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IES HOLDINGS, INC. (NASDAQ: IESC) | Third Quarter Fiscal 2026 Update | June 30, 2026
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2 Forward-Looking Statements Certain statements in this release may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company’s actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to, a general reduction in the demand for our products or services; changes in general economic conditions, including supply chain constraints, high rates of inflation, changes in consumer sentiment, elevated interest rates, and market disruptions resulting from a number of factors, including geo-political events; competition in the industries in which we operate, which could result in the loss of one or more customers or lead to lower margins on new projects; the use of estimates in placing bids on fixed price contracts, variations from estimated contract costs and our ability to successfully manage and execute projects, the cost and availability of qualified labor and the ability to maintain positive labor relations, and our ability to pass along increases in the cost of commodities used in our business; our ability to enter into, and the terms of, future contracts; the existence of a small number of customers from whom we derive a meaningful portion of our revenues; reliance on third parties, including subcontractors and suppliers, to complete our projects; the inability to carry out plans and strategies as expected, including the inability to identify and complete acquisitions that meet our investment criteria, or the subsequent underperformance of those acquisitions; challenges integrating new businesses into the Company or new types of work, products or processes into our segments; backlog that may not be realized or may not result in profits; failure to adequately recover on contract change orders or claims against customers; closures or sales of our facilities resulting in significant future charges or a significant disruption of our operations; the impact of future epidemics or pandemics on our business; an increased cost of surety bonds affecting margins on work and the potential for our surety providers to refuse bonding or require additional collateral at their discretion; the impact of seasonality, adverse weather conditions, and climate change; fluctuations in operating activity due to factors such as cyclicality, downturns in levels of construction or the housing market, and differing regional economic conditions; difficulties in managing our billings and collections; accidents resulting from the physical hazards associated with our work and the potential for accidents; the possibility that our current insurance coverage may not be adequate or that we may not be able to obtain policies at acceptable rates; the effect of litigation, claims and contingencies, including warranty losses, damages or other latent defect claims in excess of our existing reserves and accruals; costs and liabilities under existing or potential future laws and regulations, including those laws and regulations related to the environment and climate change, as well as the inability to transfer, renew and obtain electrical and other professional licenses; interruptions to our information systems and cyber security or data breaches; expenditures to conduct environmental remediation activities required by certain environmental laws and regulations; loss of key personnel, ineffective transition of new management, or general labor constraints; credit and capital market conditions, including changes in interest rates that affect the cost of construction financing and mortgages, and the inability of some of our customers to obtain sufficient financing at acceptable rates, which could lead to project delays or cancellations; limitations on our ability to access capital markets and generate cash from operations to fund our capital needs; the impact on our effective tax rate or cash paid for taxes from changes in tax positions we have taken or changes in tax laws; difficulty in fulfilling the covenant terms of our revolving credit facility, which could result in a default and acceleration of any indebtedness under such revolving credit facility; reliance on certain estimates and assumptions that may differ from actual results in the preparation of our financial statements and the impacts of new accounting, control and operating procedures resulting from new accounting pronouncements; uncertainties inherent in the use of percentage-of-completion accounting, which could result in the reduction or elimination of previously recorded revenues and profits; the recognition of potential goodwill, long-lived assets and other investment impairments; the existence of a controlling shareholder, who has the ability to take action not aligned with other shareholders or to dispose of all or a significant portion of the shares of our common stock it holds, which may trigger certain change of control provisions in a number of our material agreements; the relatively low trading volume of our common stock, which could increase the volatility of our stock price and could make it more difficult for shareholders to sell a substantial number of shares for the same price at which shareholders could sell a smaller number of shares; the possibility that we issue additional shares of common stock, preferred stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the value per share of our common stock; the potential for substantial sales of our common stock, which could adversely affect our stock price; the impact of increasing scrutiny and changing expectations from investors and customers, or new or changing regulations, with respect to climate change or environmental impacts of our operations; the cost or effort required for our shareholders to bring certain claims or actions against us, as a result of our designation of the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings; and the possibility that our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur, as well as other risk factors discussed in this document, in the Company’s annual report on Form 10-K for the year ended September 30, 2025 and in the Company’s other reports on file with the SEC. You should understand that such risk factors could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. The Company undertakes no obligation to publicly update or revise any information or any forward-looking statements to reflect events or circumstances that may arise after the date of this release. Non-GAAP Financial Measures and Other Adjustments This press release includes adjusted net income attributable to IES, adjusted diluted earnings per share attributable to common stockholders, and backlog, and, in the non-GAAP reconciliation tables included herein, adjusted net income attributable to common stockholders, EBITDA, adjusted EBITDA and adjusted income from operations before income taxes, each of which is a financial measure not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Management believes that these measures provide useful information to our investors by, in the case of adjusted net income attributable to IES, adjusted net income attributable to common stockholders, adjusted earnings per share attributable to common stockholders, adjusted EBITDA and adjusted income from operations before income taxes, distinguishing certain nonrecurring events such as litigation settlements, significant expenses associated with leadership changes, or gains or losses from the sale of a business, noncash events, such as impairment charges, items that are not indicative of quarterly business performance such as gains and losses on our investments, or, in the case of backlog, providing a common measurement used in IES's industry, as described further below, and that these measures, when reconciled to the most directly comparable GAAP measures, help our investors to better identify underlying trends in the operations of our business and facilitate easier comparisons of our financial performance with prior and future periods and to our peers. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial tables included in this press release. Remaining performance obligations represent the unrecognized revenue value of our contract commitments. While backlog is not a defined term under GAAP, it is a common measurement used in IES’s industry and IES believes this non-GAAP measure enables it to more effectively forecast its future results and better identify future operating trends that may not otherwise be apparent. IES’s remaining performance obligations are a component of IES’s backlog calculation, which also includes signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. IES’s methodology for determining backlog may not be comparable to the methodologies used by other companies. For further details on the Company’s financial results, please refer to the Company’s quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2026, to be filed with the Securities and Exchange Commission ("SEC") by July 31, 2026, and any amendments thereto. IES designs and installs integrated electrical and technology systems and provides infrastructure solutions and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our more than 11,000 employees serve clients in the United States. For more information about IES, please visit www.ies-co.com. Disclosures
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3 • Revenue of $1,243 million, an increase of 40% year-over-year • Operating income of $178.5 million, an increase of 60% year-over-year • Earning per share of $7.57 and adjusted earnings per share* of $6.70 • Remaining performance obligations of $2.8 billion, a GAAP measure of future revenue to be recognized from current contracts with customers, and record backlog* of $4.5 billion Third Quarter 2026 Highlights * Non-GAAP financial measure; see reconciliation table
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4 $890 $1,243 $2,474 $3,088 3Q '25 3Q '26 YTD'25 YTD'26 Financial Highlights: 3Q & YTD’26 +40% REVENUE: ($ in millions) OPERATING INCOME: ($ in millions) EARNINGS PER SHARE: ($ / share) ADJ. EARNINGS PER SHARE*: ($ / share) * Non-GAAP financial measure; see reconciliation table $112 $179 $279 $389 3Q '25 3Q '26 YTD'25 YTD'26 $3.81 $7.57 $10.03 $17.52 3Q '25 3Q '26 YTD'25 YTD'26 $3.92 $6.70 $9.87 $14.56 3Q '25 3Q '26 YTD'25 YTD'26 +25% +75% +48% +39% +60% +99% +71%
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5 Segment Results: 3Q & YTD’26 • Revenue: $453.1 million (+51% from 3Q FY’25) • Operating Income: $83.6 million (+75%) Communications • Revenue: $324.1 million (-6%) • Operating Income: $16.3 million (-51%) Residential • Revenue: $224.1 million (+73%) • Operating Income: $53.4 million (+63%) Infrastructure Solutions • Revenue: $241.4 million (+109%) • Operating Income: $54.2 million (+319) Commercial & Industrial • Revenue: $1,172.7 million (+46% from YTD’25) • Operating Income: $202.2 million (+74%) • Revenue: $895.8 million (-9%) • Operating Income: $31.6 million (-60%) • Revenue: $556.7 million (+57%) • Operating Income: $130.9 million (+59%) • Revenue: $462.7 million (+41%) • Operating Income: $85.4 million (+139%) THIRD QUARTER YEAR to DATE
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6 Quarterly Backlog* Trend $2,067 $2,374 $2,602 $3,862 $4,525 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Remaining Performance Obligations $2,347 $2,802$1,295 $1,687 $1,809 * Non-GAAP financial measure; see reconciliation table BACKLOG* ($ in millions)
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Appendix
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8 Income Statement Three Months Ended Nine Months Ended (in millions, except per share data) June 30, June 30, 2025 2026 2025 2026 Revenue $890.2 $1,242.7 $2,473.7 $3,087.9 Operating income $111.9 $178.5 $279.2 $388.5 Interest expense & other (0.1) (0.1) (1.3) (0.5) (Gain) Loss on marketable securities 3.3 (26.2) (4.6) (80.4) Provision for income taxes 29.4 51.3 75.5 118.0 Equity method investment income - - - 4.2 Net income attributable to noncontrolling interest (2.1) (0.6) (5.4) (1.3) Net income attributable to IES Holdings, Inc. $77.2 $153.0 $204.2 $354.3 Computation of EPS: Net income attributable to IES Holdings, Inc. $77.2 $153.0 $204.2 $354.3 Increase in noncontrolling interest (0.6) (0.1) (1.6) (0.6) Net income attributable to common stockholders of IES Holdings, Inc. $76.6 $152.9 $202.6 $353.7 Adjusted net income attributable to common stockholders (1) $78.9 $135.2 $199.2 $294.0 Earnings per share attributable to common stockholders $3.81 $7.57 $10.03 $17.52 Adjusted earnings per share attributable to common stockholders (1) $3.92 $6.70 $9.87 $14.56 Diluted shares used to calculate earnings per share 20.1 20.2 20.2 20.2 (1) Adjusted net income attributable to common stockholders and Adjusted earnings per share attributable to common stockholders are non-GAAP financial measures; see reconciliation table
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9 Select Balance Sheet Data (in millions) 6/30/2025 9/30/2025 6/30/2026 Cash & Marketable securities $175.2 $231.8 $387.9 Other Current Assets 837.6 853.7 1,146.7 Deferred Tax Assets 22.4 16.1 23.3 Non-Current Assets 434.5 494.1 717.8 Total Assets $1,469.7 $1,595.7 $2,275.7 Current Liabilities $546.6 $633.4 $941.7 Other Liabilities 80.7 74.3 99.5 Debt 20.0 - – Total Liabilities $647.3 $707.7 $1,041.2 Noncontrolling interest 41.0 4.0 5.3 Equity 781.4 884.0 1,229.2 Total Liabilities & Equity $1,469.7 $1,595.7 $2,275.7 Net Cash & Marketable securities less Debt $155.2 $231.8 $387.9
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10 Segment Results Three Months Ended Nine Months Ended (in millions) June 30, June 30, 2025 2026 2025 2026 Revenue Communications $299.2 $453.1 $805.2 $1,172.7 Residential 346.1 324.1 984.0 895.8 Infrastructure Solutions 129.5 224.1 355.2 556.7 Commercial & Industrial 115.4 241.4 329.3 462.7 Total Revenue $890.2 $1,242.7 $2,473.7 $3,087.9 Operating Income (Loss) Communications $47.8 $83.6 $116.0 $202.2 Residential 33.4 16.3 79.9 31.6 Infrastructure Solutions 32.6 53.4 82.4 130.9 Commercial & Industrial 12.9 54.2 35.8 85.4 Corporate (14.8) (29.0) (34.9) (61.6) Total Operating Income $111.9 $178.5 $279.2 $388.5
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11 Non-GAAP Reconciliation of Adjusted Net Income Three Months Ended Nine Months Ended (in millions, except per share data) June 30, June 30, 2025 2026 2025 2026 Net income attributable to IES Holdings, Inc. $77.2 $153.0 $204.2 $354.3 (Gain) Loss on marketable securities 3.3 (26.2) (4.6) (80.4) Equity method investment income (1) - - - (4.2) Acquisition-related compensation expense (2) - 2.6 - 5.0 Provision for income taxes 29.4 51.3 75.5 118.0 Adjusted net income before taxes $109.9 $180.7 $275.1 $392.7 Adjusted tax expense (3) (30.4) (45.4) (74.3) (98.1) Adjusted net income attributable to IES Holdings, Inc. $79.5 $135.3 $200.8 $294.6 Adjustments for computation of earnings per share: Increase in noncontrolling interest (0.6) (0.1) (1.6) (0.6) Adjusted net income attributable to common stockholders $78.9 $135.2 $199.2 $294.0 Adjusted earnings per share attributable to common stockholders $3.92 $6.70 $9.87 $14.56 Diluted shares used to calculate adjusted earnings per share 20.1 20.2 20.2 20.2 (1) Represents unrealized gains recorded by our equity investment, Jett Texas Company LLC, related to its investment in the CB&I storage solutions business. (2) Represents expense associated with change in control awards and other stock-based compensation for former CEO and CFO of Gulf Island, to be paid out in cash upon completion of their employment agreements. (3) Adjusted for the tax impact of adjustments to pretax income above.
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12 Non-GAAP Reconciliation of Adjusted EBITDA Three Months Ended Nine Months Ending (in millions) June 30, June 30, 2025 2026 2025 2026 Net income attributable to IES Holdings, Inc. $77.2 $153.0 $204.2 $354.3 Equity method investment income - - - (4.2) Provision for income taxes 29.4 51.3 75.5 118.0 Interest & other expense, net (0.1) (0.1) (1.3) (0.5) (Gain) Loss on marketable securities 3.3 (26.2) (4.6) (80.4) Depreciation and amortization 11.6 16.9 34.7 45.7 EBITDA $121.4 $194.9 $308.5 $432.9 Non-cash equity compensation expense 4.3 3.8 9.4 11.1 Acquisition-related compensation expense (1) - 2.6 - 5.0 Adjusted EBITDA $125.7 $201.3 $317.9 $449.0
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13 Non-GAAP Reconciliation of Remaining Performance Obligations to Backlog (in millions) June 30, 2025 September 30, 2025 June 30, 2026 Remaining performance obligations: Communications 610.8 692.2 1,329.3 Residential 250.2 252.0 278.3 Infrastructure Solutions (2) 173.0 128.7 355.5 Commercial & Industrial 261.2 613.6 838.5 Total Remaining performance obligations $1,295.2 $1,686.5 $2,801.6 Agreements without an enforceable obligation (1): Communications 81.8 63.6 282.8 Residential 107.6 121.5 103.5 Infrastructure Solutions 419.8 490.6 773.7 Commercial & Industrial 162.3 11.5 563.5 Total Agreements without an enforceable obligation (1) $771.5 $687.2 $1,723.5 Backlog: Communications 692.7 755.8 1,612.1 Residential 357.8 373.6 381.8 Infrastructure Solutions (2) 592.8 619.2 1,129.2 Commercial & Industrial 423.5 625.2 1,402.0 Total Backlog $2,066.8 $2,373.8 $4,525.1 (1) Our backlog contains signed agreements and letters of intent which we do not have a legal right to enforce prior to work starting. These arrangements are excluded from remaining performance obligations until work begins. (2) In January 2026, Infrastructure Solutions acquired $29.1 million of remaining performance obligations and backlog in connection with the acquisition of Gulf Island.