IES Holdings Inc

Previous wording

Increases in the target federal funds rate throughout calendar years 2022 and 2023 have resulted in higher mortgage rates, which when combined with elevated materials and labor costs, have had a substantial impact on the affordability of housing. While decreased housing affordability has led to uncertainty around near-term demand for our services in the single-family housing market and we continue to monitor market conditions for signs of slowing activity, demand in the primary markets we serve has remained firm. In addition, there continue to be several trends, such as rising household formation and population growth in our key markets, that we expect will drive long-term demand for our services. Within the various other end markets we serve, our customers' capital budgets for new construction projects may be impacted by broader economic, technological or other factors.

Current wording

Increases in the target federal funds rate throughout calendar years 2022 and 2023 have resulted in higher mortgage rates, which when combined with elevated materials and labor costs, have had a substantial impact on the affordability of housing. We continue to monitor market conditions for signs of slowing activity in the residential markets as decreased housing affordability has led to uncertainty around near-term demand for our services in the single-family housing market. However, demand in the primary single-family markets we serve has remained firm in the current fiscal year, and there continue to be several trends, such as rising household formation and population growth in our key markets, that we expect will drive long-term demand for our services. In the multi-family residential market, a large supply of new units coming to completion in 2024, as well as tighter lending conditions for project owners, is expected to have a negative impact on demand for 2025 and 2026. Within the various other end markets we serve, such as data centers and manufacturing, our customers' capital budgets for new construction projects may be impacted by broader economic, technological or other factors. Demand in these markets has remained firm in the current fiscal year.

Previous wording

Consolidated revenues for the three months ended March 31, 2024, were $136.9 million higher than for the three months ended March 31, 2023, an increase of 24.1%, with increases at all four of our operating segments. See further discussion below of changes in revenues for our individual segments.

Current wording

Consolidated revenues for the three months ended June 30, 2024, were $184.0 million higher than for the three months ended June 30, 2023, an increase of 31.5%, with increases at all four of our operating segments. See further discussion below of changes in revenues for our individual segments.

Previous wording

Consolidated gross profit for the three months ended March 31, 2024 increased $70.7 million compared to the three months ended March 31, 2023. Our overall gross profit percentage was 24.3% during the three months ended March 31, 2024, as compared to 17.7% during the three months ended March 31, 2023. Gross profit as a percentage of revenue increased at all four of our operating segments. See further discussion below of changes in gross margin for our individual segments.

Current wording

Consolidated gross profit for the three months ended June 30, 2024 increased $87.2 million compared to the three months ended June 30, 2023. Our overall gross profit percentage was 25.3% during the three months ended June 30, 2024, as compared to 18.4% during the three months ended June 30, 2023. Gross profit as a percentage of revenue increased at all four of our operating segments. See further discussion below of changes in gross margin for our individual segments.

Previous wording

During the six months ended March 31, 2024, our selling, general and administrative expenses were $181.1 million, an increase of $44.0 million, or 32.1%, over the six months ended March 31, 2023, primarily driven by increased personnel costs at our Residential operating segment in connection with a reorganization of the segment's management structure in fiscal 2023 and higher incentive compensation at the division level as a result of higher earnings. Increases in selling, general and administrative expenses at our other operating segments were generally consistent with each segment's respective revenue growth. Selling, general and administrative expenses as a percentage of revenue increased from 12.0% for the six months ended March 31, 2023 to 13.5% for the six months ended March 31, 2024.

Current wording

During the three months ended June 30, 2024, our selling, general and administrative expenses were $104.7 million, an increase of $30.4 million, or 40.9%, over the three months ended June 30, 2023, primarily driven by increased personnel costs, particularly at our Residential operating segment, and higher incentive compensation across our business as a result of higher earnings. Increases in selling, general and administrative expenses at our other operating segments were generally consistent with each segment's respective revenue growth. Selling, general and administrative expenses as a percentage of revenue increased from 12.7% for the three months ended June 30, 2023 to 13.6% for the three months ended June 30, 2024.

Previous wording

Consolidated revenues for the six months ended March 31, 2024, were $196.4 million higher than for the six months ended March 31, 2023, an increase of 17.2%, with increases at all four of our operating segments. See further discussion below of changes in revenues for our individual segments.

Current wording

Consolidated revenues for the nine months ended June 30, 2024, were $380.4 million higher than for the nine months ended June 30, 2023, an increase of 22.0%, with increases at all four of our operating segments. See further discussion below of changes in revenues for our individual segments.

Previous wording

Our overall gross profit percentage increased to 23.5% during the six months ended March 31, 2024, as compared to 17.2% during the six months ended March 31, 2023. Gross profit as a percentage of revenue increased at all four of our operating segments. See further discussion below of changes in gross margin for our individual segments.

Current wording

Our overall gross profit percentage increased to 24.2% during the nine months ended June 30, 2024, as compared to 17.6% during the nine months ended June 30, 2023. Gross profit as a percentage of revenue increased at all four of our operating segments. See further discussion below of changes in gross margin for our individual segments.

Previous wording

During the three months ended March 31, 2024, our selling, general and administrative expenses were $95.3 million, an increase of $25.9 million, or 37.4%, over the three months ended March 31, 2023, primarily driven by increased personnel costs at our Residential operating segment in connection with a reorganization of the segment's management structure in fiscal 2023 and higher incentive compensation at the division level as a result of higher earnings. Increases in selling, general and administrative expenses at our other operating segments were generally consistent with each segment's respective revenue growth. Selling, general and administrative expenses as a percentage of revenue increased from 12.2% for the three months ended March 31, 2023 to 13.5% for the three months ended March 31, 2024.

Current wording

During the nine months ended June 30, 2024, our selling, general and administrative expenses were $285.8 million, an increase of $74.4 million, or 35.2%, over the nine months ended June 30, 2023, primarily driven by increased personnel costs, particularly at our Residential operating segment in connection with a reorganization of the segment's management structure in fiscal 2023, and higher incentive compensation across our businesses as a result of higher earnings. Increases in selling, general and administrative expenses at our other operating segments were generally consistent with each segment's respective revenue growth. Selling, general and administrative expenses as a percentage of revenue increased from 12.2% for the nine months ended June 30, 2023 to 13.6% for the nine months ended June 30, 2024.

Previous wording

Gain on Sale of Assets. Our results for the six months ended March 31, 2023 included a pretax gain on sale of $13.0 million from the sale of STR Mechanical, LLC (“STR”) on October 7, 2022. STR previously operated as part of our Commercial & Industrial segment.

Current wording

Gain on Sale of Assets. Our results for the nine months ended June 30, 2023 included a pretax gain on sale of $13.0 million from the sale of STR Mechanical, LLC (“STR”) on October 7, 2022. STR previously operated as part of our Commercial & Industrial segment.

Previous wording

Revenues. Our Communications segment’s revenues increased by $52.4 million during the three months ended March 31, 2024, or 37.1%, compared to the three months ended March 31, 2023. The increase primarily resulted from an increase in demand from data center customers.

Current wording

Revenues. Our Communications segment’s revenues increased by $50.7 million during the three months ended June 30, 2024, or 35.8%, compared to the three months ended June 30, 2023. The increase primarily resulted from an increase in demand from data center customers.

Previous wording

Gross Profit. Our Communications segment’s gross profit during the three months ended March 31, 2024 increased by $13.8 million compared to the three months ended March 31, 2023. Gross profit as a percentage of revenue increased from 17.8% to 20.1%. The increase in profitability in the three months ended March 31, 2024 was primarily the result of increased volume, improved project execution and pricing, and the impact of a more disciplined bidding process.

Current wording

Gross Profit. Our Communications segment’s gross profit during the three months ended June 30, 2024 increased by $9.9 million compared to the three months ended June 30, 2023. Gross profit as a percentage of revenue was 19.3% in the three months ended June

Previous wording

Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $3.6 million, or 26.9%, during the three months ended March 31, 2024, compared to the three months ended March 31, 2023. The increase primarily reflects higher personnel cost including higher incentive compensation as a result of higher earnings, investment in an organizational structure that will enhance the scalability of our business, and higher wages in an increasingly competitive labor market. Selling, general and administrative expenses as a percentage of revenue in the Communications segment decreased from 9.5% for the three months ended March 31, 2023 to 8.8% during the three months ended March 31, 2024 as we benefited from the scale of our operations.

Current wording

Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $2.4 million, or 17.9%, during the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The increase primarily reflects higher personnel cost including higher incentive compensation as a result of higher earnings, investment in an organizational structure that will enhance the scalability of our business, and higher wages in an increasingly competitive labor market. Selling, general and administrative expenses as a percentage of revenue in the Communications segment decreased from 9.7% for the three months ended June 30, 2023 to 8.4% during the three months ended June 30, 2024 as we benefited from the scale of our operations.

Previous wording

Revenues. Our Communications segment's revenues increased by $75.9 million, or 26.3%, during the six months ended March 31, 2024, compared to the six months ended March 31, 2023. The increase primarily resulted from an increase in demand from data center, high-tech manufacturing and e-commerce distribution center customers.

Current wording

Revenues. Our Communications segment's revenues increased by $126.6 million, or 29.4%, during the nine months ended June 30, 2024, compared to the nine months ended June 30, 2023. The increase primarily resulted from an increase in demand from data center, high-tech manufacturing and e-commerce distribution center customers.

Previous wording

Gross Profit. Our Communications segment’s gross profit during the six months ended March 31, 2024 increased by $28.3 million, or 60.4%, as compared to the six months ended March 31, 2023. Gross profit as a percentage of revenue increased from 16.3% to 20.6%. The increase in gross profit and gross profit as a percentage of revenue primarily reflects increased volume, improved project execution and pricing, and the impact of a more disciplined bidding process.

Current wording

Gross Profit. Our Communications segment’s gross profit during the nine months ended June 30, 2024 increased by $38.3 million, or 51.6%, as compared to the nine months ended June 30, 2023. Gross profit as a percentage of revenue increased from 17.2% to 20.2%. The increase in gross profit and gross profit as a percentage of revenue primarily reflects increased volume, successful project execution, favorable contract pricing and the impact of a more disciplined bidding process.

Previous wording

Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $6.2 million, or 24.2%, during the six months ended March 31, 2024, compared to the six months ended March 31, 2023. The increase primarily reflects higher personnel cost including higher incentive compensation as a result of higher earnings, investment in an organizational structure that will enhance the scalability of our business, and higher wages in an increasingly competitive labor market. Selling, general and administrative expenses as a percentage of revenues in the Communications segment was 8.8% during the six months ended March 31, 2024 compared to 8.9% during the six months ended March 31, 2023.

Current wording

Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $8.6 million, or 22.0%, during the nine months ended June 30, 2024, compared to the nine months ended June 30, 2023. The increase primarily reflects higher personnel cost including higher incentive compensation as a result of higher earnings, investment in an organizational structure that will enhance the scalability of our business, and higher wages in an increasingly competitive labor market. Selling, general and administrative expenses as a percentage of revenues in the Communications segment was 8.6% during the nine months ended June 30, 2024 compared to 9.2% during the nine months ended June 30, 2023 as we benefited from the scale of our operations.

Previous wording

Revenues. Our Residential segment’s revenues increased by $33.3 million, or 10.9%, during the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The increase was primarily driven by an expansion of our plumbing and HVAC offerings and continued strong demand in our single-family business, where revenues increased by $25.1 million. In addition, in our multi-family business, successful execution of its backlog contributed to an $8.2 million increase in revenues.

Current wording

Revenues. Our Residential segment’s revenues increased by $59.5 million, or 18.7%, during the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily driven by an expansion of our plumbing and HVAC offerings and continued strong demand in our single-family business, where revenues increased by $44.4 million, or 18.4%. In addition, in our multi-family business, successful execution of its backlog contributed to an increase in revenues of $15.1 million, or 19.6%.

Previous wording

Gross Profit. During the three months ended March 31, 2024, our Residential segment's gross profit increased by $33.8 million, or 61.7%, compared to the three months ended March 31, 2023. Gross profit as a percentage of revenue increased to 26.1% during the three months ended March 31, 2024, compared to 17.9% for the three months ended March 31, 2023. The increase in profitability was driven primarily by improved project execution in our multi-family business, as well as the benefit of improved procurement and other processes implemented as part of the reorganization of the segment in fiscal 2023.

Current wording

Gross Profit. During the three months ended June 30, 2024, our Residential segment's gross profit increased by $48.0 million, or 83.7%, compared to the three months ended June 30, 2023. Gross profit as a percentage of revenue increased to 27.9% during the three months ended June 30, 2024, compared to 18.0% for the three months ended June 30, 2023. The increase in profitability was driven primarily by improved project execution in our multi-family business, reduced material costs resulting from improved procurement, and other processes implemented as part of the reorganization of the segment in fiscal 2023.

Previous wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $17.3 million, or 45.4%, during the three months ended March 31, 2024, compared to the three months ended March 31, 2023. The increase was driven by higher personnel costs in connection with a reorganization of the segment's management structure in fiscal 2023 and incentive profit sharing for division management resulting from higher earnings. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 16.3% during the three months ended March 31, 2024, compared to 12.4% in the three months ended March 31, 2023.

Current wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $19.7 million, or 47.0%, during the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The increase was driven by higher personnel costs to support the growth of our business and incentive profit sharing for division management resulting from higher earnings. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 16.3% during the three months ended June 30, 2024, compared to 13.2% in the three months ended June 30, 2023.

Previous wording

Revenues. Our Residential segment's revenues increased by $31.0 million, or 5.0%, during the six months ended March 31, 2024, compared to the six months ended March 31, 2023. The increase was primarily driven by an expansion of our plumbing and HVAC offerings and continued strong demand in our single-family business, where revenues increased by $27.9 million compared to the prior year period. Multi-family and other revenue also increased by $3.1 million for the six months ended March 31, 2024 compared to the prior year period as continued strong demand and successful execution of existing backlog were partially offset by a more selective bidding process and a reduction in activity in certain areas where we experienced project execution challenges in the prior year.

Current wording

Revenues. Our Residential segment's revenues increased by $90.6 million, or 9.6%, during the nine months ended June 30, 2024, compared to the nine months ended June 30, 2023. The increase was primarily driven by an expansion of our plumbing and HVAC offerings and continued strong demand in our single-family business, where revenues increased by $72.3 million, or 10.2%, compared to the prior year period. In addition, multi-family and other revenue increased by $18.2 million, or 7.9%, for the nine months ended June 30, 2024 compared to the prior year period driven by continued strong demand and successful execution of existing backlog, partially offset by a reduction in activity in certain areas as we became more selective in our bidding process.

Previous wording

Gross Profit. During the six months ended March 31, 2024, our Residential segment's gross profit increased by $49.7 million, or 43.4%, compared to the six months ended March 31, 2023. Gross margin as a percentage of revenue increased to 25.0% during the six months ended March 31, 2024, compared to 18.3% during the six months ended March 31, 2023. The increase in profitability was driven primarily by improved project execution in our multi-family business, as well as the benefit of improved procurement and other processes implemented as part of the reorganization of the segment in fiscal 2023.

Current wording

Gross Profit. During the nine months ended June 30, 2024, our Residential segment's gross profit increased by $97.6 million, or 56.8%, compared to the nine months ended June 30, 2023. Gross margin as a percentage of revenue increased to 26.1% during the nine months ended June 30, 2024, compared to 18.2% during the nine months ended June 30, 2023. The increase in profitability was driven primarily by improved project execution in our multi-family business, as well as the benefit of improved procurement and other processes implemented as part of the reorganization of the segment in fiscal 2023.

Previous wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $29.6 million, or 38.4%, during the six months ended March 31, 2024, compared to the six months ended March 31, 2023. The increase was driven by higher personnel costs in connection with a reorganization of the segment's management structure in fiscal 2023 and incentive profit sharing for division management resulting from higher earnings. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 16.3% during the six months ended March 31, 2024, compared to 12.3% during the six months ended March 31, 2023.

Current wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $49.3 million, or 41.4%, during the nine months ended June 30, 2024, compared to the nine months ended June 30, 2023. The increase was driven by higher personnel costs in connection with a reorganization of the segment's management structure in fiscal 2023 and increased incentive profit sharing for division management resulting from higher earnings. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 16.3% during the nine months ended June 30, 2024, compared to 12.6% during the nine months ended June 30, 2023.

Previous wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $23.2 million during the three months ended March 31, 2024, an increase of 44.0% compared to the three months ended March 31, 2023, driven primarily by continued strong demand in our custom power solutions manufacturing businesses, including generator enclosures.

Current wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $45.0 million during the three months ended June 30, 2024, an increase of 78.8% compared to the three months ended June 30, 2023, driven primarily by continued strong demand in our custom power solutions manufacturing businesses, including generator enclosures. Greiner Industries, Inc. ("Greiner"), which was acquired on April 1, 2024, contributed $15.3 million in revenue in the three months ended June 30, 2024.

Previous wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended March 31, 2024 increased $9.6 million, compared to the three months ended March 31, 2023, primarily resulting from higher volumes, improved pricing and operating efficiencies at our facilities as well as the impact of investments to increase capacity we have made over the last several years. Gross profit as a percentage of revenue increased from 27.0% to 31.3%.

Current wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended June 30, 2024 increased $16.5 million, compared to the three months ended June 30, 2023, primarily resulting from higher volumes, improved pricing and operating efficiencies at our facilities as well as the impact of investments to increase capacity we have made over the last several years. Gross profit as a percentage of revenue increased from 24.9% to 30.0%.

Previous wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the three months ended March 31, 2024 increased by $1.6 million, compared to the three months ended March 31, 2023, primarily as a result of increased employee compensation cost to support growth in the business. Selling, general and administrative expenses as a percentage of revenue decreased from 11.4% for the three months ended March 31, 2023 to 10.1% for the three months ended March 31, 2024 as we benefited from the scale of our operations.

Current wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the three months ended June 30, 2024 increased by $3.8 million, compared to the three months ended June 30, 2023, primarily as a result of increased employee compensation cost to support growth in the business. Selling, general and administrative expenses as a percentage of revenue decreased from 12.4% for the three months ended June 30, 2023 to 10.7% for the three months ended June 30, 2024 as we benefited from the scale of our operations.

Previous wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $36.8 million, or 36.1%, during the six months ended March 31, 2024 compared to the six months ended March 31, 2023. The increase in revenue was driven primarily by continued strong demand in our custom power solutions manufacturing businesses, including generator enclosures.

Current wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $81.7 million, or 51.4%, during the nine months ended June 30, 2024 compared to the nine months ended June 30, 2023. The increase in revenue was driven primarily by continued strong demand in our custom power solutions manufacturing businesses, including generator enclosures. Greiner, which was acquired on April 1, 2024, contributed $15.3 million in revenue in the nine months ended June 30, 2024.

Previous wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the six months ended March 31, 2024 increased by $17.3 million, compared to the six months ended March 31, 2023, primarily resulting from higher volumes, improved pricing and operating efficiencies at our facilities as well as the impact of investments to increase capacity we have made over the last several years. Gross profit as a percentage of revenues increased to 30.2% for the six months ended March 31, 2024 compared to 24.2% for the six months ended March 31, 2023.

Current wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the nine months ended June 30, 2024 increased by $33.7 million, compared to the nine months ended June 30, 2023, primarily resulting from higher volumes, improved pricing and operating efficiencies at our facilities as well as the impact of investments to increase capacity we have made over the last several years. Gross profit as a percentage of revenues increased to 30.2% for the nine months ended June 30, 2024 compared to 24.5% for the nine months ended June 30, 2023.

Previous wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the six months ended March 31, 2024 increased by $3.2 million, compared to the six months ended March 31, 2023, primarily as a result of increased employee compensation cost to support growth in the business. Selling, general and administrative expenses as a percentage of revenue decreased from 11.5% for the six months ended March 31, 2023 to 10.8% for the six months ended March 31, 2024 as we benefited from the scale of our operations.

Current wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the nine months ended June 30, 2024 increased by $7.0 million, compared to the nine months ended June 30, 2023, primarily as a result of increased employee compensation cost to support growth in the business. Selling, general and administrative expenses as a percentage of revenue decreased from 11.8% for the nine months ended June 30, 2023 to 10.7% for the nine months ended June 30, 2024 as we benefited from the scale of our operations.

Previous wording

Revenues. Revenues in our Commercial & Industrial segment increased by $28.0 million, or 40.6%, during the three months ended March 31, 2024, compared to the three months ended March 31, 2023. The increase primarily relates to a large data center project.

Current wording

Revenues. Revenues in our Commercial & Industrial segment increased by $28.8 million, or 42.5%, during the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The increase primarily relates to a large data center project.

Previous wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended March 31, 2024, increased by $13.5 million, compared to the three months ended March 31, 2023. Gross profit as a percentage of revenue increased from 9.8% for the quarter ended March 31, 2023 to 20.9% for the quarter ended March 31, 2024. In the three months ended March 31, 2024, segment results benefited from favorable project execution on the large data center project, improving bid margins in certain markets, and a more selective bidding strategy implemented in the prior year. Our results for the quarter ended March 31, 2023 were impacted by continuing operating challenges at one branch that incurred significant losses during fiscal 2022 and into fiscal 2023.

Current wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended June 30, 2024, increased by $12.8 million, compared to the three months ended June 30, 2023. Gross profit as a percentage of revenue increased from 13.1% for the quarter ended June 30, 2023 to 22.5% for the quarter ended June 30, 2024. In the three months ended June 30, 2024, segment results benefited from favorable project execution and additions to the original scope of work at favorable margins on the large data center project. We also benefited from improved project execution and bid margins across the business.

Previous wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the three months ended March 31, 2024 increased by $2.3 million, or 36.0%, compared to the three months ended March 31, 2023 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue decreased from 9.3% for the three months ended March 31, 2023, to 9.0% for the three months ended March 31, 2024, as we benefited from the scale of our operations.

Current wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the three months ended June 30, 2024 increased by $2.4 million, or 38.7%, compared to the three months ended June 30, 2023 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue decreased from 9.3% for the three months ended June 30, 2023, to 9.0% for the three months ended June 30, 2024, as we benefited from the scale of our operations.

Previous wording

Revenues. Revenues in our Commercial & Industrial segment increased by $52.7 million, or 40.8%, during the six months ended March 31, 2024, compared to the six months ended March 31, 2023. The increase primarily relates to a large data center project.

Current wording

Revenues. Revenues in our Commercial & Industrial segment increased by $81.5 million, or 41.4%, during the nine months ended June 30, 2024, compared to the nine months ended June 30, 2023. The increase primarily relates to a large data center project.

Previous wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the six months ended March 31, 2024 increased by $23.8 million, or 230.1%, compared to the six months ended March 31, 2023. Gross profit as a percentage of revenue increased from 8.0% for the six months ended March 31, 2023 to 18.8% for the six months ended March 31, 2024. In the six months ended March 31, 2024, segment results benefited from improved project execution, including favorable project execution on the large data center project, improving bid margins in certain markets, and a more selective bidding strategy implemented in the prior year. Our results for the six months ended March 31, 2023 were impacted by continuing operating challenges at one branch that incurred significant losses during fiscal 2022 and into fiscal 2023.

Current wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the nine months ended June 30, 2024 increased by $36.6 million, or 190.2%, compared to the nine months ended June 30, 2023. Gross profit as a percentage of revenue increased from 9.8% for the nine months ended June 30, 2023 to 20.1% for the nine months ended June 30, 2024. In the nine months ended June 30, 2024, segment results benefited from favorable project execution and additions to the original scope of work at favorable margins on the large data center project, improved project execution across the business, improving bid margins in certain markets, and a more selective bidding strategy implemented in the prior year.

Previous wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the six months ended March 31, 2024 increased by $3.5 million, or 28.7%, compared to the six months ended March 31, 2023 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue decreased from 9.3% for the six months ended March 31, 2023 to 8.5% for the six months ended March 31, 2024 as we benefited from the scale of our operations.

Current wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the nine months ended June 30, 2024 increased by $5.9 million, or 32.1%, compared to the nine months ended June 30, 2023 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue decreased from 9.3% for the nine months ended June 30, 2023 to 8.7% for the nine months ended June 30, 2024 as we benefited from the scale of our operations.

Previous wording

Gain on Sale of Assets. As discussed above, our results for the six months ended March 31, 2023 include a pretax gain on sale of $13.0 million from the sale of STR in October 2022.

Current wording

Gain on Sale of Assets. As discussed above, our results for the nine months ended June 30, 2023 include a pretax gain on sale of $13.0 million from the sale of STR in October 2022.

Previous wording

During the three months ended March 31, 2024, we incurred interest expense of $0.4 million primarily comprised of interest on our finance lease agreements and fees on an average letter of credit balance of $5.6 million under our revolving credit facility and an average unused line of credit balance of $142.7 million. This compares to interest expense of $1.0 million for the three months ended March 31, 2023, primarily comprising interest expense from our revolving credit facility, which had an average outstanding balance of $43.5 million, in addition to fees on an average letter of credit balance of $5.0 million under our revolving credit facility and an average unused line of credit balance of $106.6 million. The decrease in interest expense in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was a result of a decrease in average outstanding borrowings under our revolving credit facility, which had no outstanding balance during the three months ended March 31, 2024.

Current wording

During the three months ended June 30, 2024, we incurred interest expense of $0.4 million primarily comprised of interest on our finance lease agreements and fees on an average letter of credit balance of $5.6 million under our revolving credit facility and an average unused line of credit balance of $142.9 million. This compares to interest expense of $0.4 million for the three months ended June 30, 2023, primarily comprising interest on our finance lease agreements and interest expense from our revolving credit facility, which had an average outstanding balance of $2.5 million, in addition to fees on an average letter of credit balance of $4.3 million under our revolving credit facility and an average unused line of credit balance of $142.9 million.

Previous wording

The change in total other (income) expense, net for the three months ended March 31, 2024, compared to the three months ended March 31, 2023 is primarily the result of unrealized losses on investments in trading securities of $1.8 million in the three months ended March 31, 2024 compared to realized gains on investments in trading securities of $1.7 million in the three months ended March 31, 2023, partially offset by interest income of $1.1 million earned during the three months ended March 31, 2024 with no such interest income earned in the three months ended March 31, 2023.

Current wording

The change in total other (income) expense, net for the three months ended June 30, 2024, compared to the three months ended June 30, 2023 is primarily the result of unrealized losses on investments in trading securities of $1.6 million in the three months ended June 30, 2024 with no comparable gains or losses on investments in the three months ended June 30, 2023, partially offset by interest income of $1.0 million earned during the three months ended June 30, 2024 with no such interest income earned in the three months ended June 30, 2023.

Previous wording

During the six months ended March 31, 2024, we incurred interest expense of $0.8 million primarily comprised of interest on our finance lease agreements and fees on an average letter of credit balance of $5.5 million under our revolving credit facility and an average unused line of credit balance of $142.5 million. This compares to interest expense of $2.2 million for the six months ended March 31, 2023, primarily comprised of interest expense from our revolving credit facility, which had an average outstanding balance of $52.4 million, in addition to fees on an average letter of credit balance of $5.2 million under our revolving credit facility and an average unused line of credit balance of $93.5 million. The reduction in interest expense in the six months ended March 31, 2024 compared to the six months ended March 31, 2023 was a result of a decrease in average outstanding borrowings under our revolving credit facility, which had no outstanding balance during the six months ended March 31, 2024.

Current wording

During the nine months ended June 30, 2024, we incurred interest expense of $1.2 million primarily comprised of interest on our finance lease agreements and fees on an average letter of credit balance of $5.5 million under our revolving credit facility and an average unused line of credit balance of $142.7 million. This compares to interest expense of $2.6 million for the nine months ended June 30, 2023, primarily comprised of interest expense from our revolving credit facility, which had an average outstanding balance of $35.5 million, in addition to interest on our finance lease agreements and fees on an average letter of credit balance of $4.9 million under our revolving credit facility and an average unused line of credit balance of $108.9 million. The reduction in interest expense in the nine months ended June 30, 2024 compared to the nine months ended June 30, 2023 was a result of a decrease in average outstanding borrowings under our revolving credit facility, which had no outstanding balance during the nine months ended June 30, 2024.

Previous wording

The decrease in total other income, net for the six months ended March 31, 2024, compared with March 31, 2023 is primarily the result of unrealized losses on investments in trading securities of $1.9 million in the six months ended March 31, 2024 compared to realized gains on investments in trading securities of $0.9 million in the six months ended March 31, 2023, partially offset by interest income of $2.3 million earned during the six months ended March 31, 2024 with no such interest income in the six months ended March 31, 2023.

Current wording

The change in total other (income) expense, net for the nine months ended June 30, 2024, compared with June 30, 2023 is primarily the result of unrealized losses on investments in trading securities of $3.3 million in the nine months ended June 30, 2024 compared to realized gains on investments in trading securities of $1.0 million in the nine months ended June 30, 2023, offset by interest income of $3.3 million earned during the nine months ended June 30, 2024 with no such interest income in the nine months ended June 30, 2023.

Previous wording

We recorded income tax expense of $19.4 million for the three months ended March 31, 2024, compared to $8.2 million for the three months ended March 31, 2023, driven by increased pretax income.

Current wording

We recorded income tax expense of $22.6 million for the three months ended June 30, 2024, compared to $8.3 million for the three months ended June 30, 2023, driven by increased pretax income.

Previous wording

We recorded income tax expense of $34.8 million for the six months ended March 31, 2024, compared to $18.2 million for the six months ended March 31, 2023, driven by increased pretax income.

Current wording

We recorded income tax expense of $57.3 million for the nine months ended June 30, 2024, compared to $26.4 million for the nine months ended June 30, 2023, driven by increased pretax income.

Previous wording

During the six months ended March 31, 2024, working capital exclusive of cash increased by $61.4 million from September 30, 2023, reflecting a $95.0 million increase in current assets excluding cash partially offset by a $33.7 million increase in current liabilities during the period.

Current wording

During the nine months ended June 30, 2024, working capital exclusive of cash increased by $74.6 million from September 30, 2023, reflecting a $148.2 million increase in current assets excluding cash partially offset by a $73.6 million increase in current liabilities during the period.