NASDAQ$IESC

IES Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Financial performance improved significantly due to focus on project execution and operating efficiency leading to improved margins.

IES Holdings reported a strong second quarter with a 13% increase in revenue, a significant improvement in operating income from a loss to a profit, and a net income of $21.6 million compared to a net loss in the same quarter of the previous year.

  • Revenue increased by 13% to $569 million compared to the same quarter last year.
  • Operating income was $31.6 million, a significant turnaround from an operating loss of $4.9 million in the prior year.
  • Net income attributable to IES was $21.6 million, or $0.92 per share, compared to a net loss of $5.4 million, or $0.30 per share, in the same quarter of the previous year.
  • Adjusted net income was $24.6 million, or $1.07 per share, compared to an adjusted net loss of $6.6 million, or $0.36 per share, in the prior year.

Headline financials

Total Revenue

$569M

Previous: $502M+13.4%
EPS (adj)

$1.07

Previous: -$0.36+397.2%
Remaining performance obligations

$1.01B

Previous: $835M+21.2%
Backlog

$1.39B

Previous: $1.08B+28.4%
Free Cash Flow

$21.6M

Previous: -$5.41M+498.2%
Net Income

$21.6M

Previous: -$5.41M+498.2%
Operating Income

$31.6M

Previous: -$4.92M+742.0%
Gross Profit

$101M

Previous: $58.5M+72.5%
Cash & Equivalents

$15.1M

Previous: $19.3M-21.5%
Total Assets

$889M

Previous: $831M+7.0%
Stock-Based Comp

$1.05M

Previous: $998K+5.3%

Revenue & EPS history

IES Holdings · Revenue · Quarterly

$569M

Q2 2023+13.4%vs Q2 2022
Beat estimate in 0 of 2 quarters(0%)
ActualEstimate

Revenue by segment

IES Holdings · $500M total across 3 segments · Q2 2023

  • Residential
    $306M+17.5%
  • Communications
    $141M+8.0%
  • Infrastructure Solutions
    $52.6M+26.1%

Forward guidance

The company has recently made certain organizational changes at its operating segments to enhance profitability and improve the scalability of its business model.

Tailwinds

  • Opportunity for Residential segment to expand the plumbing and HVAC trades across the network of electrical branches
  • Infrastructure Solutions segment to enhance manufacturing capacity and capabilities to meet market demand as it completes its facility expansions
  • Generated operating cash flow of $60.1 million during the first six months of fiscal 2023
  • Substantially reduced borrowings under credit facility and ended the quarter with a net cash position
  • Expect to benefit from capital investments made in fiscal 2022 to expand the footprint and capabilities of the business

Headwinds

  • Continue to be cautious about the economic outlook and its impact on demand for construction
  • Expect to fully utilize federal tax net operating loss carryforwards during fiscal 2023
  • Began making federal estimated tax payments in January 2023 in anticipation of having a federal income tax obligation for the fiscal year
  • Will have a higher cash tax rate for fiscal 2023 compared with 2022
  • Limiting the size and duration of projects bid at a specific branch due to past execution issues

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.7%

Avg return

Earnings day

+2.9%

Avg return

5 days after

+4.7%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+23.4%

Q2 2024

Best reaction

-23.3%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-6.1%+4.6%+5.2%
Q1 2026-19.8%-15.2%+4.4%
Q4 2025+12.4%+17.5%+14.6%
Q2 2025-1.9%+6.7%+11.7%
Q1 2025-2.4%+4.8%-25.0%
Q4 2024+3.4%+6.1%-21.4%
Q3 2024+3.9%+7.6%+29.0%
Q2 2024+23.4%+27.8%+11.4%
Q1 2024+0.3%+5.2%+32.5%
Q4 2023+14.6%+16.0%+7.9%
Q3 2023+11.2%+19.8%+31.2%
Q2 2023+6.1%+9.0%+19.7%
Q1 2023+1.0%+2.6%+9.1%
Q4 2022-1.7%-8.3%+3.4%
Q3 2022-3.6%-3.3%-10.5%
Q2 2022-23.3%-22.9%-11.8%
Q1 2022-11.2%-16.8%-17.2%
Q4 2021+1.2%+2.8%+1.8%
Q3 2021-1.4%-4.9%-12.0%
Q2 2021+6.1%+0.4%+4.1%
Q1 2021+2.7%-1.0%+6.4%
Q4 2020+4.0%+10.1%+24.0%
Q3 2020+14.5%+22.5%+19.3%
Q2 2020+5.3%+11.7%+18.2%
Q1 2020+4.2%-1.2%-3.1%
Q4 2019+9.8%+12.3%+14.3%
Q3 2019+4.1%+5.6%+6.3%
Q2 2019+1.2%+1.5%+2.3%
Q1 2019+5.9%+9.2%+10.4%
Q4 2018+2.5%+3.1%+1.0%
Q3 2018+9.2%+9.8%+7.0%
Q2 2018+4.1%+1.5%+3.2%
Q1 2018-2.1%-5.4%-2.1%
Q4 2017-8.0%-6.6%-8.8%
Q3 2017-10.3%-7.9%+2.1%
Q2 2017-15.8%-15.4%-20.8%
Q1 2017+11.6%+7.4%+0.5%
Q4 2016+8.9%-1.9%-8.2%
Q3 2016+3.9%-0.1%+21.5%
Q2 2016+14.0%
Q1 2016+2.3%
Q4 2015+7.0%
Q3 2015+11.5%
Q2 2015-4.9%
Q1 2015+10.9%
Q4 2014-5.9%
Q3 2014+5.4%
Q2 2014-1.6%
Q1 2014+0.3%
Q3 2013+1.1%
Q2 2013+3.6%
Q4 2013-0.7%
Q1 2013-0.2%
Q4 2012+1.7%
Q3 2012-4.0%
Q2 2012+3.1%
Q1 2011-6.6%
Q1 2012+0.0%
Q4 2011-1.0%
Q2 2011-1.0%
Q4 2009-1.0%
Q4 2010-0.3%
Q3 2010-0.3%
Q3 2011-0.3%
Q2 2010+8.3%

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