IES (IESC) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 grew 17% year-over-year to $974 million, driven by strong demand in Communications and Infrastructure Solutions, especially in the data center market, while Residential declined.

• Operating income increased 21% to $112.3 million, and net income attributable to shareholders rose 56% to $109.9 million, with diluted EPS of $5.44; adjusted EPS was $4.16.

• Gross profit margin improved to 26.2% from 25.0% year-over-year, reflecting strong demand and improved execution.

• Backlog reached a record $3.9 billion, up 62% since the end of FY2025, and remaining performance obligations were $2.3 billion.

• Completed the acquisition of Gulf Island Fabrication, expanding Infrastructure Solutions capabilities.

Financial highlights

• Year-to-date revenue grew 17% to $1.85 billion, and operating income increased 26% to $210 million compared to YTD 2025.

• Net income for the six months rose 59% to $201.3 million; cash flow from operations for the six months was $131 million.

• Adjusted EBITDA for Q2 was $133.9 million, up from $105.8 million in Q2 2025; adjusted EBITDA margin was 13.7%.

• Marketable securities increased to $214 million, with $54.2 million gain recognized in the six months.

• Cash and cash equivalents at quarter-end were $49.5 million, with $35 million in debt.

Outlook and guidance

• Record backlog and strong remaining performance obligations position the company for continued growth, with management expecting further gains in the second half of FY2026, especially in data centers.

• Capital expenditure forecast for FY2026 raised to $145–$160 million to support growth and integration of acquisitions.

• Gulf Island acquisition is not expected to contribute significantly to earnings in FY2026 but anticipated to benefit results in FY2027.