IES Holdings, Inc. (NASDAQ: IESC) experienced a strong 4.87% rise, hitting $74.70 in the normal trading session on Thursday. This climb in the company’s stock value was triggered by the unveiling of its quarterly financial outcomes.
In its disclosure for the quarter and fiscal year ending on September 30, 2023, IES Holdings (IESC) revealed notable financial accomplishments. Revenue for the fourth quarter of fiscal 2023 increased by 5%, reaching $649 million, compared to $617 million for the same period in fiscal 2022.
Fiscal year 2023 saw the company generate $2.4 billion in revenue, a substantial 10% increase from fiscal year 2022’s $2.2 billion. IESC’s financial success was reflected in its net income for the fourth quarter of fiscal 2023, which increased 133% to $37.8 million. This stands in stark contrast to the $16.2 million reported for the corresponding quarter in fiscal 2022.
On an annual basis, net income attributable to IES witnessed a remarkable surge of 212%, reaching $108.3 million for fiscal 2023, in comparison to $34.8 million in fiscal 2022.
As of September 30, 2023, the reported backlog stood at approximately $1.6 billion. IES Holdings demonstrated commendable growth in revenue, margin enhancements, and sustained robust performance across all business sectors. Despite the divestiture of STR Mechanical in October 2022 and a planned reduction in activity at a significant, underperforming branch in the Commercial & Industrial segment, consolidated revenue experienced a year-over-year increase of 10%.
In the realm of residential housing, IESC remains vigilant regarding demand in the single-family market, given that mortgage interest rates have reached levels not seen in the past two decades. However, since initiating the reorganization of the Residential segment in April 2023, the company has witnessed continuous margin improvements, notwithstanding the severance and discrete expenses incurred during the restructuring.
Looking ahead to fiscal 2024, IESC is steadfast in its commitment to prioritize margin enhancement and cash generation across all operational segments. The company also pledges to maintain a discerning and disciplined approach in the bidding process while exploring avenues for further improvement.
