IES (IESC) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue reached $1,243 million, up 40% year-over-year, with operating income up 60% to $178.5 million and net income up 98% to $153.0 million; diluted EPS was $7.57, adjusted EPS $6.70.

• For the nine months ended June 30, 2026, revenue grew 24.8% to $3.09 billion, net income rose 69.7% to $355.6 million, and diluted EPS increased to $17.52.

• Backlog hit a record $4.5 billion, up 91% since fiscal 2025 year-end, with remaining performance obligations at $2.8 billion.

• The Gulf Island Fabrication acquisition expanded Infrastructure Solutions, contributing $89.2 million in revenue since acquisition.

• A two-for-one stock split was announced, effective August 21, 2026.

Financial highlights

• Gross profit for Q3 2026 was $340.7 million, up from $239.6 million in Q3 2025; gross margin for Q3 2026 was 27.4%.

• Adjusted EBITDA for Q3 2026 was $201.3 million, up from $125.7 million in Q3 2025.

• Year-to-date operating income grew 39% to $388.5 million, with operating margin up to 12.6%.

• Net cash provided by operating activities for the nine months ended June 30, 2026, was $239.4 million.

• Marketable securities increased to $310.6 million, with unrealized gains of $56.1 million for the nine months.

Outlook and guidance

• Management expects continued growth in Q4 2026 and fiscal 2027, supported by record backlog and strong demand in data center and infrastructure markets.

• Multi-family backlog growth in Residential is anticipated to benefit results in fiscal 2027.

• Capital expenditure forecast for fiscal 2026 raised to $145–$160 million to support growth and integration of Gulf Island.