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what it is
IES builds electrical, network, and equipment systems for homes, data centers, factories, and infrastructure across the U.S.
how it gets paid
Last year Ies made $3.4B in revenue. Reportable segments: Residential was the main engine at $1.3B, or 38% of sales.
why it's growing
Revenue grew 16.9% last year. Specifically, revenue for communications surged 51% vs. prior year, to $351.9 million, driven almost exclusively by hyperscale data center demand.
what just happened
Latest quarter revenue hit $871M and EPS rose to $4.51, showing the growth story is still real.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
37.0x trailing p/e — you're paying up for this one
36.5% return on capital — every dollar works hard here
xvary composite: 56/100 — below average
What they do
IES builds electrical, network, and equipment systems for homes, data centers, factories, and infrastructure across the U.S.
This business wins because it shows up where spending is already urgent. Communications revenue jumped 51% vs. prior year to $351.9 million in the latest quarter, while the residential unit faced a soft housing market. That mix matters to you because repeat project work in data centers and infrastructure keeps volume moving, and a 36.5% return on capital means each dollar put to work throws off 36.5 cents in profit.
How they make money
$3.4B
annual revenue · their business grew +16.9% last year
Reportable segments: Residential
$1.3B
Communications
$1.2B
Infrastructure Solutions
$510M
Commercial & Industrial
$442M
The products that matter
data center and communications buildout
Communications
$351.9M in the recent quarter · +51%
this was the biggest recent segment at $351.9M, and management said the jump was driven almost exclusively by hyperscale data center demand.
fastest grower
power and infrastructure services
Infrastructure Solutions
$140.2M in the recent quarter · +30%
this $140.2M segment also benefited from the same secular demand, which tells you the data center tailwind is showing up in more than one lane.
data center tailwind
commercial project work
Commercial & Industrial
$94.8M in the recent quarter · +7%
growth here was slower at $94.8M, but it was still lifted by data center proliferation. even the slower segment had the same theme underneath.
steady grower
residential electrical and installation work
Residential
$284.1M in the recent quarter · -11%
residential is still a $284.1M business, but revenue fell 11% as the housing market stayed soft. this is the segment that keeps the story honest.
housing drag
Key numbers
36.5%
return on capital
Return on capital → profit earned on each dollar invested → so what: IES turns projects into cash better than most contractors.
37.0x
trailing p/e
P/E → stock price divided by earnings → so what: you are paying a premium price for a contractor.
$3.4B
annual revenue
Revenue → total sales → so what: this is no tiny niche operator anymore.
14.5%
operating margin
Operating margin → profit after running the business → so what: that is stout for a services-heavy company.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- net profit margin 8.9% — keeps 9 cents of every dollar in revenue
- return on equity 36% — $0.36 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in IESC 3 years ago → it's now worth $120,990.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Latest quarter revenue hit $871M and EPS rose to $4.51, showing the growth story is still real.
The quarter was driven by Communications revenue up 51% to $351.9 million and Infrastructure Solutions up 30%. Gross margin was 25.3%, and EPS grew 66% vs. prior year.
$871M
revenue
$4.51
eps
25.3%
gross margin
the number that mattered
Communications revenue of $351.9 million matters most because that one segment grew 51% and is carrying the current story.
-
specifically, revenue for communications surged 51% vs. prior year, to $351.9 million, driven almost exclusively by hyperscale data center demand.
-
meanwhile, infrastructure solutions benefited from the same secular tailwind, and revenue jumped 30% over the same span, to $140.2 million.
-
top-line growth for commercial & industrial was more modest, though, at a 7% rate, to $94.8 million, also boosted by tailwinds associated with data center proliferation.
-
however, a soft housing market continued to pressure volumes for its residential business.
-
that segment saw revenues dip 11%, to $284.1 million.
source: company earnings report, 2026
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What could go wrong
the top threat is data center demand cooling after a 51% jump in communications revenue.
high
communications growth was doing the heavy lifting
communications revenue hit $351.9M, up 51% from a year ago, and management said hyperscale data center demand drove almost all of it.
if that demand cools, the segment carrying the narrative cools with it.
med
residential is moving the other way
residential revenue fell 11% to $284.1M as housing stayed soft. that is too large a business line to ignore.
one weak segment does not break the thesis. several weak quarters would.
med
gulf island fabrication integration
the planned acquisition of Gulf Island Fabrication was announced in november 2025. the page data is thin on economics, which means you should treat execution risk as real.
deals are easy to announce. the integration work shows up later.
low
valuation leaves less room for a miss
the stock trades at 37.0x trailing earnings with only 35/100 earnings predictability. that's a premium multiple on a business that still lives in project cycles.
even good results can disappoint if growth merely slows instead of stalling.
three segments are benefiting from ai and data center spend, but the stock already reflects a lot of that optimism at $505.73 and 37.0x earnings.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
communications at $351.9M
this segment grew 51% from a year ago. if that pace cools hard, the multiple will notice.
trend
residential at $284.1M
revenue fell 11%. you want to see whether housing weakness stays contained to this one segment.
earnings
the gap between $13.66 and $17.50
FY2025 EPS was $13.66. the FY2026 estimate is $17.50. that jump needs to start showing up in the next few prints.
risk
gulf island fabrication deal execution
the acquisition was announced in november 2025. with sparse deal detail here, your job is to watch for integration friction, not assume perfection.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see a good business but not a screaming short-term setup.
risk profile
average
stability score 3. this is not unusually safe, and it is not chaos either.
chart momentum
average
technical score 3. the chart is not giving you a special signal right now.
earnings predictability
35 / 100
earnings predictability is low. translation: quarterly results can move around more than the premium multiple would prefer.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 121 buyers vs. 103 sellers in 4q2025. total institutional holdings: 19.1M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$294
$870
$506
current price
$582
target midpoint · +15% from current · 3-5yr high: $895 (+75% · 15% ann'l return)
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