$IESC - IES'S BACKLOG NEARLY DOUBLED IN NINE MONTHS, AND THE SCARCE INPUT IS CREWS, NOT DEMAND
Fiscal third-quarter revenue was $1.243 billion, up 40% from $890 million, operating income $178.5 million against $111.9 million, and diluted earnings $7.57 a share against $3.81. Backlog reached about $4.5 billion at June 30, up 91% since fiscal 2025 ended in September.
The mix has inverted. Commercial & Industrial revenue rose 109% to $241.4 million while its operating income went from $12.9 million to $54.2 million, lifting segment margin from 11% to 22%, and Communications grew 51% to $453.1 million on data center demand. Residential, still a quarter of the company, fell 6% to $324.1 million and its operating income halved to $16.3 million as housing starts stayed weak.
Chief executive Matt Simmes credited "efforts to add capacity and expand capabilities," including "actively working to train additional teams to serve the data center end market." That is the mechanism worth holding onto: an electrical contractor converts backlog at the speed it can staff crews, so labor, not orders, sets the ceiling. The board approved a two-for-one split on July 29, payable as a stock dividend after the close on August 21.
Shares traded near $728, up about 27%.