IES Holdings, Inc. (IESC)

IES Holdings, Inc. designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. The company is a Delaware corporation established in 1997 and seeks to grow through market share gains, geographic and market expansion, added capabilities, and acquisitions of businesses that complement its existing segments. A corporate office handles capital allocation, investment decisions, selection of segment leadership and risk management oversight, while each segment manages its own day-to-day operations.

The company operates four segments. Residential was the largest in fiscal 2022 with $1,131 million, or 52.2% of $2,167 million in total revenue. It provides electrical installation for single-family homes and multi-family apartment complexes, plus HVAC, plumbing, cable television and residential solar installation in certain markets. Communications ($560 million, 25.8%) designs, installs and maintains network infrastructure for data centers and other mission critical environments, and also installs audio/visual, telephone, fire, wireless access and intrusion alarm systems. Commercial & Industrial ($309 million, 14.2%) offers electrical and mechanical design, construction, maintenance and emergency services for offices, manufacturing facilities, data centers, refineries, wind and solar facilities and healthcare facilities. Infrastructure Solutions ($167 million, 7.7%) makes custom generator enclosures and power distribution equipment such as metal enclosed bus duct, and repairs electric motors, generators, industrial lifting magnets and railroad generators and traction motors. Backlog was $1,286 million at September 30, 2022, up from $900 million a year earlier.

Customers include large technology, social networking and e-commerce companies, co-location and managed hosting providers, national and regional homebuilders, multi-family developers, and industrial customers in steel, railroad, marine, petrochemical, pipeline, mining, power generation and utility industries. No single customer exceeded 10% of consolidated revenue in fiscal 2020 through 2022, and much of the business comes from long-term repeat customers. Residential operations cover the Sun-Belt, Western, Mid-Atlantic and Northeastern U.S., with single-family revenue concentrated in Texas and Florida. Commercial & Industrial locations span Texas, Nebraska, Oregon, Wisconsin, and the Southeast and Mid-Atlantic. Infrastructure Solutions serves domestic and international customers from sites in seven states.

The company is headquartered in Houston, Texas, with an executive office in Greenwich, Connecticut. Segment headquarters are in Tempe, Arizona (Communications), Houston (Residential and Commercial & Industrial) and Massillon, Ohio (Infrastructure Solutions). Raw materials such as electrical fixtures and components, copper, aluminum, steel and plastics are generally available from domestic suppliers, though recent supply chain disruptions have delayed some components. Competitors are mainly small, privately owned contractors, along with large national or regional firms, OEMs and multi-location repair providers. Tontine Associates and its affiliates own about 57% of the common stock.