# IES Holdings (IESC.US)

Canonical: https://gigainvestors.com/s/IESC

Analysis as of: 2026-10-16T07:29:17.276Z. Financial observations: FY2005–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $262.44 per share; close as of 2026-10-15.

Estimated value: low $78.55 per share, central $108.94 per share, high $126.63 per share. Buy at or below the central value $108.94 per share. Valuation as of 2026-10-16T07:29:17.276Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 1

- Operating margin variation: 0.58×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.03×

- FY2019: 0.04×

- FY2020: 0.04×

- FY2021: 0.06×

- FY2022: 0.03×

- FY2023: 0.07×

- FY2024: 0.10×

- FY2025: 0.11×

- LTM to Jun 2026: 0.12×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 19.8%

- ROIC, second-lowest year: 9.8%

- Typical minus recent gross margin: -5.7 pp

- Typical gross margin (annual median): 18.5%

- Recent gross margin (lower of latest and 3-year median): 24.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.6%

- ROIC including acquisitions, ten-year median: 18.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 11.2%

- FY2017: 7.7%

- FY2018: 9.8%

- FY2019: 19.7%

- FY2020: 19.9%

- FY2021: 22.1%

- FY2022: 11.1%

- FY2023: 35.2%

- FY2024: 51.7%

- FY2025: 41.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $761M

- Net income, five-year total: $735M

- Return on incremental invested capital: 53.2%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.6 pp

- Working capital / revenue, final three-year average: 19.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.22×

- FY2022: 1.00×

- FY2023: 1.11×

- FY2024: 1.00×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.8% vs 41.7%

- Per-share earnings: 0.77 to 5.37 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 6.6%

- Ordinary dilution, 5-year annual growth: 13.9%

- Market cap gain: $15B

- Cumulative retained earnings: $754M

- Diluted shares, 10-year annual growth: 6.6%

- Diluted shares, 5-year annual growth: 13.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 27.4%

- Per-share value change: $4.59

- Per-share value, starting three-year median: $0.77

- Per-share value, ending three-year median: $5.37

- Buybacks concentrated in cheaper years (correlation): 0.17

- Average buyback yield: 0.6%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $170M

- Cumulative net income, 10 years: $930M

- ROIC, first three-year median: 9.8%

- ROIC, last three-year median: 41.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.62

- FY2017: $0.63

- FY2018: -$0.67

- FY2019: $1.57

- FY2020: $1.98

- FY2021: $1.58

- FY2022: $0.83

- FY2023: $2.65

- FY2024: $5.37

- FY2025: $7.58

### accounting: pass

- Sloan accruals: 1.2%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 4.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.94×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 24.3%

- FY2017: -2.1%

- FY2018: -6.3%

- FY2019: -1.2%

- FY2020: -6.3%

- FY2021: 3.8%

- FY2022: 2.0%

- FY2023: -4.6%

- FY2024: -1.2%

- FY2025: 1.2%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 65% since Jul 2026 · sales +18.2%

Story as of 2026-10-16T09:58:56.445Z; price observation 2026-10-15.

Price needs cash profits to grow 18.3% a year for ten years

- 2025-09-29: IES Holdings Expands Through Acquisition Amid Insider Stock Sales and Revenue Growth ([finance.yahoo.com](https://finance.yahoo.com/news/ies-holdings-expands-acquisition-amid-231356973.html))

### Sales · FY2025–2026

sales +18.2%; source https://www.sec.gov/Archives/edgar/data/1048268/000104826825000174/iesc-20250930.htm; observed 2025-11-21.

- FY2017: $811M 

- FY2018: $877M 

- FY2019: $1.1B 

- FY2020: $1.2B 

- FY2021: $1.5B 

- FY2022: $2.2B 

- FY2023: $2.4B 

- FY2024: $2.9B 

- FY2025: $3.4B 

- FY2026: $4.0B 

### Gross margin · FY2025

gross margin 25.5%; source https://www.sec.gov/Archives/edgar/data/1048268/000104826825000174/iesc-20250930.htm; observed 2025-11-21.

- FY2016: 18.2% 

- FY2017: 17.3% 

- FY2018: 17.1% 

- FY2019: 16.9% 

- FY2020: 19.1% 

- FY2021: 18.7% 

- FY2022: 14.7% 

- FY2023: 18.7% 

- FY2024: 24.2% 

- FY2025: 25.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are USD 3.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1048268/000104826825000174/iesc-20250930.htm (filed 2025-11-21); FY2025: revenue 3371468000; grossProfit 859497000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IESC.US: IES Holdings, Inc. designs and installs integrated electrical and technology systems and provides infrastructure products and services in the United States. The Communications segment designs, builds, and maintains communications infrastructure within data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality, and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. It also designs and installs audio/visual, telephone, fire, and wireless access and intrusion alarm systems; and engages in designing/building, servicing, and maintaining data network systems. The Residential segment offers electrical installations to single-family housing and multi-family apartments; heating, ventilation and air conditioning and plumbing installation services; and cable television installations to residential and light commercial applications, as well as installs residential solar power for new construction and existing residences. The Infrastructure Solutions segment maintains and repairs alternating and direct current electric motors and generators, and power generating and distribution equipment; manufactures custom-engineered metal enclosed bus duct solutions used in power distribution; manufactures custom commercial and industrial generator enclosures; manufactures, re-manufactures, and repairs industrial lifting magnets; and maintains and repairs railroad main and auxiliary generators, main alternators, and traction motors. The Commercial & Industrial segment offers electrical and mechanical design, construction, and maintenance services for office buildings, manufacturing facilities, data centers, wind farms, solar facilities, municipal infrastructures, and health care facilities. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in May 2016. IES Holdings, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.

### Why customers stay

Margins ranged from 18.7% to 25.5% during 2023–25; it earns 19.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: grossProfit / revenue = 18.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: grossProfit / revenue = 24.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1048268/000104826825000174/iesc-20250930.htm (filed 2025-11-21); FY2025: grossProfit / revenue = 25.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); 10-year return on capital observations [[2016,0.11182530204014081],[2017,0.07682303043592227],[2018,0.09767544011744171],[2019,0.19718094067113123],[2020,0.19850101916654414],[2021,0.22138546080665392],[2022,0.11144439700818923],[2023,0.35151387209816704],[2024,0.5174351020668625],[2025,0.41690121356108883]]; median 0.1978409799188377. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 6.6% of cash earnings on expansion; earns 53.2% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2016: growth capex 0; upkeep 3400000; owner earnings 123064000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2017: growth capex 0; upkeep 4600000; owner earnings 18434000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2019: growth capex 0; upkeep 6300000; owner earnings 36457000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2020: growth capex 0; upkeep 4700000; owner earnings 49407000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2021: growth capex 0; upkeep 7400000; owner earnings 81172000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2022: growth capex 3832000; upkeep 25468000; owner earnings 34762000. Growth capex / owner earnings = 0.1102353144237961.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: growth capex 0; upkeep 17667000; owner earnings 120028000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: growth capex 8056000; upkeep 37103000; owner earnings 219116000. Growth capex / owner earnings = 0.036765913945124955.

- Source: https://www.sec.gov/Archives/edgar/data/1048268/000104826825000174/iesc-20250930.htm (filed 2025-11-21); FY2025: growth capex 20312000; upkeep 46941000; owner earnings 305975000. Growth capex / owner earnings = 0.06638450853827928.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Incremental return on capital 0.5316082372141994, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Dividend observations: [[2016,20300000],[2017,5400000],[2018,189000],[2019,0],[2020,592766000],[2021,0],[2022,0],[2023,22000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1048268/000104826825000174/iesc-20250930.htm (filed 2025-11-21); FY2025: cash repurchases 41644000 USD.

### Are managers owners

Insiders own 3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); IESC.US SharesStats.PercentInsiders = 3.0300000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 18.3% yearly over ten years; actual growth was 25.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Ten-year compound average after fade. Initial solved rate 0.2526596857504294. Price 262.44; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7729242300035133 → FY2025 7.58009407714897. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $14.95 per share

- 2016-11: $19.65 per share

- 2016-12: $19.15 per share

- 2017-01: $19.50 per share

- 2017-02: $18.75 per share

- 2017-03: $18.10 per share

- 2017-04: $20.00 per share

- 2017-05: $15.35 per share

- 2017-06: $18.15 per share

- 2017-07: $17.00 per share

- 2017-08: $16.50 per share

- 2017-09: $17.30 per share

- 2017-10: $18.70 per share

- 2017-11: $17.75 per share

- 2017-12: $17.25 per share

- 2018-01: $17.50 per share

- 2018-02: $15.35 per share

- 2018-03: $15.15 per share

- 2018-04: $16.90 per share

- 2018-05: $17.65 per share

- 2018-06: $16.75 per share

- 2018-07: $17.95 per share

- 2018-08: $19.15 per share

- 2018-09: $19.50 per share

- 2018-10: $17.74 per share

- 2018-11: $17.56 per share

- 2018-12: $15.55 per share

- 2019-01: $16.74 per share

- 2019-02: $18.38 per share

- 2019-03: $17.77 per share

- 2019-04: $17.51 per share

- 2019-05: $17.92 per share

- 2019-06: $18.85 per share

- 2019-07: $18.11 per share

- 2019-08: $18.87 per share

- 2019-09: $20.59 per share

- 2019-10: $19.40 per share

- 2019-11: $21.69 per share

- 2019-12: $25.66 per share

- 2020-01: $25.01 per share

- 2020-02: $23.31 per share

- 2020-03: $17.65 per share

- 2020-04: $19.75 per share

- 2020-05: $23.40 per share

- 2020-06: $23.17 per share

- 2020-07: $23.83 per share

- 2020-08: $28.83 per share

- 2020-09: $31.77 per share

- 2020-10: $31.92 per share

- 2020-11: $36.88 per share

- 2020-12: $46.04 per share

- 2021-01: $45.48 per share

- 2021-02: $45.84 per share

- 2021-03: $50.41 per share

- 2021-04: $52.79 per share

- 2021-05: $53.06 per share

- 2021-06: $51.36 per share

- 2021-07: $54.41 per share

- 2021-08: $48.90 per share

- 2021-09: $45.69 per share

- 2021-10: $49.85 per share

- 2021-11: $47.99 per share

- 2021-12: $50.64 per share

- 2022-01: $49.30 per share

- 2022-02: $42.04 per share

- 2022-03: $40.20 per share

- 2022-04: $29.30 per share

- 2022-05: $30.89 per share

- 2022-06: $30.17 per share

- 2022-07: $33.00 per share

- 2022-08: $30.39 per share

- 2022-09: $27.62 per share

- 2022-10: $33.04 per share

- 2022-11: $33.82 per share

- 2022-12: $35.57 per share

- 2023-01: $39.81 per share

- 2023-02: $42.06 per share

- 2023-03: $43.09 per share

- 2023-04: $43.19 per share

- 2023-05: $47.42 per share

- 2023-06: $56.88 per share

- 2023-07: $57.32 per share

- 2023-08: $74.98 per share

- 2023-09: $65.87 per share

- 2023-10: $62.23 per share

- 2023-11: $69.97 per share

- 2023-12: $79.22 per share

- 2024-01: $81.96 per share

- 2024-02: $109.92 per share

- 2024-03: $121.64 per share

- 2024-04: $135.12 per share

- 2024-05: $152.45 per share

- 2024-06: $139.33 per share

- 2024-07: $153.97 per share

- 2024-08: $186.53 per share

- 2024-09: $199.62 per share

- 2024-10: $218.67 per share

- 2024-11: $309.86 per share

- 2024-12: $200.96 per share

- 2025-01: $221.28 per share

- 2025-02: $178.33 per share

- 2025-03: $165.11 per share

- 2025-04: $196.68 per share

- 2025-05: $259.66 per share

- 2025-06: $296.23 per share

- 2025-07: $353.07 per share

- 2025-08: $349.31 per share

- 2025-09: $397.65 per share

- 2025-10: $391.88 per share

- 2025-11: $418.57 per share

- 2025-12: $389.02 per share

- 2026-01: $380.29 per share

- 2026-02: $495.35 per share

- 2026-03: $476.47 per share

- 2026-04: $644.08 per share

- 2026-05: $678.35 per share

- 2026-06: $734.66 per share

- 2026-07: $744.54 per share

- 2026-08: $303.00 per share

- 2026-09: $321.08 per share

- 2026-10: $262.44 per share

## Annual estimated value (USD per share)

- FY2016: low $5.68 per share, central $7.40 per share, high $8.52 per share

- FY2017: low $10.08 per share, central $11.39 per share, high $13.13 per share

- FY2018: low $11.46 per share, central $13.98 per share, high $16.23 per share

- FY2019: low $18.81 per share, central $25.35 per share, high $29.69 per share

- FY2020: low $27.43 per share, central $38.58 per share, high $45.08 per share

- FY2021: low $15.78 per share, central $21.17 per share, high $24.80 per share

- FY2022: low $23.86 per share, central $34.09 per share, high $40.04 per share

- FY2023: low $33.53 per share, central $47.61 per share, high $55.80 per share

- FY2024: low $50.41 per share, central $71.18 per share, high $83.28 per share

- FY2025: low $64.06 per share, central $89.76 per share, high $104.73 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1048268/000104826825000174/iesc-20250930.htm); period 2025-09-30, filed 2025-11-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.