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Here are 1-2 brief analogies to describe IES Holdings (IESC):

1. IES Holdings is like a **pure-service Johnson Controls or Honeywell**, designing, installing, and maintaining electrical, technology, and mechanical systems for large commercial, industrial, and residential projects.
2. IES Holdings acts as a **specialized general contractor for the crucial electrical, technology, and mechanical systems** found in large infrastructure and building projects, akin to a focused execution arm within **AECOM** or **Jacobs Engineering**.

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• Communications Infrastructure Services: Provides design, installation, and maintenance services for communication networks, structured cabling, data centers, and security systems across various industries.
• Commercial & Industrial Electrical Services: Offers comprehensive electrical contracting, installation, and maintenance for commercial, industrial, and infrastructure projects, including new construction and renovations.
• Residential Services: Delivers electrical, plumbing, and mechanical (HVAC) installation and service primarily for new single-family residential housing projects.
• Industrial Power & Control Solutions: Designs, engineers, fabricates, and installs specialized modular power and control solutions and provides support services for industrial applications.

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Major Customers of IES (IESC)

IES (Integrated Electrical Services) primarily operates on a business-to-business (B2B) model, providing specialized electrical and communications contracting services across the commercial, industrial, residential, and infrastructure markets throughout the United States. According to its annual reports, IES serves a diverse customer base, and no single customer has represented 10% or more of its consolidated revenue in recent fiscal years. This means there are no individual major customers that are publicly disclosed by name.

Instead of specific company names, IES serves a range of client categories that include:

• General Contractors: IES subsidiaries frequently work as subcontractors for general contractors on large-scale construction projects. They provide essential electrical and communications infrastructure installations for new commercial buildings, industrial facilities, public works, and other significant developments.
• Commercial and Industrial Companies / Property Owners: This broad category encompasses direct clients such as businesses and property owners who contract IES for their specific electrical and communication infrastructure needs. This includes services for offices, retail establishments, manufacturing plants, data centers, educational institutions, healthcare facilities, and other commercial or industrial sites, covering everything from new installations to upgrades and maintenance.
• Public and Private Sector Organizations / Government Agencies: IES engages with governmental entities (federal, state, and local agencies) and other large institutional clients. These projects often involve providing critical electrical and communications services for public infrastructure, utilities, transportation systems, and government facilities.

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Matthew J. Simmes Chief Executive Officer, President & Director

Matthew J. Simmes was appointed Chief Executive Officer and Director of IES Holdings, Inc. effective July 1, 2025. Prior to this role, he served as the company's Chief Operating Officer from December 2021 until July 1, 2025.

Tracy McLauchlin Chief Financial Officer, Senior Vice President, Treasurer

Tracy McLauchlin serves as the Chief Financial Officer, Senior Vice President, and Treasurer of IES Holdings, Inc. She has held these positions, including Principal Accounting Officer, at IES Holdings Inc from 2015 to the present.

Jeffrey Gendell Executive Chairman

Jeffrey Gendell holds the position of Executive Chairman of the Board at IES Holdings, Inc.

Mary Newman Senior Vice President

Mary Newman is a Senior Vice President at IES Holdings, Inc.

Matt Allen Chief Technical Officer

Matt Allen serves as the Chief Technical Officer for IES Holdings, Inc.

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The key risks to IES (symbol: IESC) include the potential for a slowdown in data center demand, execution and integration challenges associated with acquisitions, and ongoing supply chain disruptions with increased costs.

1. Potential Slowdown in Data Center Demand and Cyclicality of Mission-Critical Work: IES Holdings has experienced strong performance, driven significantly by robust data center demand and mission-critical infrastructure projects. However, a primary risk identified is that this data center demand could cool faster than anticipated, or that the growth in mission-critical work may prove more cyclical than recent results suggest. This could lead to pressure on profit margins and challenge the company's current valuation.

2. Execution Risk and Integration of Acquisitions: The company's expansion, including the broadened capabilities achieved through acquisitions like Gulf Island Fabrication, introduces execution risk. Should the integration of these acquired entities not meet expectations, it could adversely affect margins and impact the company's valuation.

3. Supply Chain Disruptions and Increased Costs: IES has encountered difficulties in its operations due to supply chain interruptions. These disruptions have resulted in increased challenges in material procurement, higher costs, and extended lead times for orders. These ongoing supply challenges can directly affect project timelines and overall profitability.

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The increasing adoption of prefabrication and modular construction methods within the residential housing market presents an emerging threat by significantly reducing the scope of traditional on-site electrical and plumbing installation services, which are core to IES's residential segment. This shift in construction methodology, driven by demands for efficiency, cost reduction, and addressing labor shortages, moves work from the construction site to the factory, potentially diminishing demand for conventional specialty contractors reliant on on-site labor.

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IES (IESC) Addressable Markets:

Communications Segment: This segment provides technology infrastructure services, including the design, build, and maintenance of communications infrastructure within data centers and telecommunications infrastructure.

• For the U.S. Data Center market, its size was valued at USD 50.76 billion in 2022 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 10.7% from 2023 to 2030. Other estimates for the U.S. data center market size by investment range from USD 208.38 billion in 2024, projected to reach USD 308.83 billion by 2030 with a CAGR of 6.78%, to USD 114.48 billion in 2025, expected to reach USD 158.55 billion by 2030. The U.S. data center construction market size is projected to reach USD 41,475.8 million in 2024 and USD 87,874.1 million by 2033, with a CAGR of 8.7%.

• The U.S. Telecommunication Services market was estimated at USD 468.08 billion in 2023 and is expected to grow at a CAGR of 6.6% from 2024 to 2030. Another estimate valued the USA Telecommunication Market at USD 400 billion. The US Telecom MNO (Mobile Network Operator) market size is estimated at USD 344.45 billion in 2025 and is expected to reach USD 416.26 billion by 2030. The overall market for US telecom services is estimated to reach US$848.8 billion by the end of 2031, growing at a CAGR of 6.8% from US$534.9 billion in 2024.

Residential Segment: This segment provides electrical installations, HVAC, plumbing, cable television installations, and residential solar power for single-family homes and multi-family apartment complexes.

• The U.S. residential construction market size stands at USD 1.35 trillion in 2025 and is projected to grow to USD 1.69 trillion by 2030, with a CAGR of 4.59%. Residential construction spending in the U.S. was at a seasonally adjusted annual rate of $886.5 billion in July 2025. The U.S. residential construction market is forecasted to grow by USD 242.9 million, at a CAGR of 4.5% from 2024 to 2029.

• The U.S. electrical services industry, which includes electrical construction, was valued at USD 163.9 billion in 2024 and is expected to reach USD 294.6 billion by 2034, growing at a CAGR of 6.3%. The North America electrical services market was valued at USD 187.07 billion in 2024 and is expected to reach USD 228.29 billion by 2030, with a CAGR of 3.37%.

Infrastructure Solutions Segment: This segment offers electro-mechanical solutions for industrial operations, including apparatus repair, power generating and distribution equipment, custom-engineered metal enclosed bus duct solutions, generator enclosures, and industrial lifting magnets, as well as services for the rail and transit industry.

• The U.S. power infrastructure market was valued at USD 264.2 billion in 2024 and is expected to increase to USD 455.6 billion by 2032, advancing at a CAGR of 7.2%.

• The U.S. electricity transmission and distribution market size was valued at USD 82.96 billion in 2022 and is projected to grow at a CAGR of 2.95% during the forecast period of 2023-2030. The North America Infrastructure Services market is estimated at USD 59.14 billion in 2025 and is projected to grow at a CAGR of 20.8% from 2025 to 2033.

Commercial & Industrial Segment: This segment provides electrical and mechanical design, construction, and maintenance services for various commercial and industrial markets, including office buildings, manufacturing facilities, data centers, wind farms, solar facilities, municipal infrastructures, and health care facilities.

• The U.S. electrical services industry, covering electrical construction, was valued at USD 163.9 billion in 2024 and is expected to reach USD 294.6 billion by 2034, growing at a CAGR of 6.3%. The electrical contracting industry in the U.S. was valued at $255 billion in 2024 and is expected to reach $295 billion by 2030.

• The North America mechanical electrical and plumbing (MEP) service market was estimated at USD 31,348.1 million (approximately $31.35 billion) in 2023 and is projected to grow at a CAGR of 7.4% from 2024 to 2030, with the U.S. holding a 77.5% market share in 2023.

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Here are the expected drivers of future revenue growth for IES (symbol: IESC) over the next 2-3 years:

1. Growing Demand in the Data Center Market: IES's Communications, Infrastructure Solutions, and Commercial & Industrial segments are experiencing strong growth driven by robust demand in the data center market. This demand is fueled by trends such as artificial intelligence (AI) and cloud computing, leading to increased need for reliable communications infrastructure, cabling services, custom power solutions, and generator enclosures.
2. Expansion of Residential Service Offerings: Despite some fluctuations in the broader housing market, IES anticipates growth within its Residential segment through the continued expansion of its plumbing and HVAC service offerings. This strategy aims to provide additional growth opportunities by offering multiple trades to customers.
3. Strong and Growing Backlog: The company has consistently reported a significant and growing backlog of projects. This backlog represents future revenue from current contracts and acts as a key indicator of sustained growth in upcoming quarters. For example, the backlog reached a record $2.1 billion as of June 30, 2025.
4. Strategic Acquisitions and Investments: IES is pursuing a strategy of making strategic investments to support business growth and executing an acquisition strategy. These initiatives contribute to revenue expansion by enhancing capabilities, increasing market reach, and integrating new operations.

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Share Repurchases

• IES repurchased 33,900 shares of its common stock for $5.3 million in the third quarter of fiscal 2025, with $168.0 million remaining under its stock repurchase authorization.
• In the second quarter of fiscal 2025, the company repurchased 118,314 shares for $20.4 million, leaving $173.3 million under authorization.
• Year-to-date through the third quarter of fiscal 2025, IES executed $41.6 million in share buybacks, acquiring 173,000 shares at an average price of $174.

Outbound Investments

• IES acquired Arrow Engine Company in the second quarter of fiscal 2025 to expand its Infrastructure Solutions offerings.
• The company funded a $7 million deposit for the anticipated purchase of the Manitowoc, Wisconsin fabrication operation in the third quarter of fiscal 2025.
• Subsequent to the third quarter of fiscal 2025, on July 1, 2025, IES acquired the remaining 20% of Edmonson Electric for $40 million.

Capital Expenditures

• Capital expenditures for the third quarter of fiscal 2025 amounted to $17.1 million, supporting the growth of operating businesses.
• Year-to-date capital expenditures through the third quarter of fiscal 2025 totaled $47.3 million.
• Historical capital expenditures were $45 million in fiscal year 2024, $18 million in fiscal year 2023, and $29 million in fiscal year 2022, primarily focused on property, plant & equipment to support growth and infrastructure.