IES Holdings, Inc.
For the period ended Mar 31, 2025. Filed May 2, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
IESC$158.45+8.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-04.
0001048268-25-000031
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001048268-25-000057
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 67 previous paragraphs and 83 current paragraphs.
34 unchanged; 29 reworded; 18 added; 3 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 8 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Consolidated revenues for the six months ended March 31, 2025, were $243.3 million higher than for the six months ended March 31, 2024, an increase of 18.2%, with increases at our Communications, Infrastructure Solutions and Commercial & Industrial segments and a decrease at our Residential segment. See further discussion below of changes in revenues for our individual segments.
Current report
Consolidated gross profit for the six months ended March 31, 2025 increased $71.5 million compared to the six months ended March 31, 2024. Our overall gross profit percentage increased to 24.4% during the six months ended March 31, 2025, as compared to 23.5% during the six months ended March 31, 2024. Gross profit increased at our Communications, Infrastructure Solutions and Commercial & Industrial segments and decreased at our Residential segment. See further discussion below of changes in gross margin for our individual segments.
Current report
During the six months ended March 31, 2025, our selling, general and administrative expenses were $219.1 million, an increase of $38.0 million, or 21.0%, over the six months ended March 31, 2024. Selling, general and administrative expenses as a percentage of revenue increased from 13.5% for the six months ended March 31, 2024 to 13.8% for the six months ended March 31, 2025. The increase in selling, general and administrative expenses was generally consistent with revenue growth.
Current report
Gross Profit. Our Communications segment’s gross profit during the three months ended March 31, 2025 increased by $24.1 million, or 61.9%, compared to the three months ended March 31, 2024. Gross profit as a percentage of revenue was 23.1% in the three months ended March 31, 2025 compared to 20.1% in the three months ended March 31, 2024. The increase in gross profit and gross margin primarily reflects increased volume as discussed above and successful project execution.
Current report
Revenues. Our Communications segment's revenues increased by $141.7 million, or 38.9%, during the six months ended March 31, 2025, compared to the six months ended March 31, 2024. The increase primarily resulted from an increase in demand, particularly in the data center market.
Current report
Gross Profit. Our Communications segment’s gross profit during the six months ended March 31, 2025 increased by $36.6 million, or 48.7%, as compared to the six months ended March 31, 2024. Gross profit as a percentage of revenue increased from 20.6% to 22.1%. The increase in gross profit and gross margin primarily reflects increased volume as discussed above and successful project execution.
Current report
Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $11.8 million, or 37.0%, during the six months ended March 31, 2025, compared to the six months ended March 31, 2024. The increase primarily reflects higher personnel cost to support business growth and higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue was 8.6% during the six months ended March 31, 2025 compared to 8.8% during the six months ended March 31, 2024 as the increase in selling, general and administrative expenses was generally consistent with the Communications segment's revenue growth during the period.
Current report
Revenues. Our Residential segment’s revenues decreased by $21.4 million, or 6.3%, during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Our single-family electrical revenues decreased by $10.5 million and our single-family plumbing and HVAC revenues decreased by $2.5 million compared to the prior year period, with expansion of the plumbing and HVAC trades into new markets partly offsetting the impact of slowing demand. Consumer demand in the single-family housing market was impacted by concerns over housing affordability and general economic conditions, leading to a decline in construction volumes during the period. Our multi-family revenues also decreased by $8.3 million, or 9.6%, driven by a reduction in backlog from fiscal years 2023 and 2024 due to the impact of continued elevated interest rates on demand.
Current report
Revenues. Our Residential segment's revenues decreased by $17.3 million, or 2.6%, during the six months ended March 31, 2025, compared to the six months ended March 31, 2024. The decrease in revenues was primarily driven by a decrease of $15.3 million, or 4.4%, in our single-family electrical business revenues compared to the prior year period as consumer demand in the single-family housing market was impacted by concerns over housing affordability and general economic conditions, leading to a decline in construction volumes during the period.
Current report
Gross Profit. During the six months ended March 31, 2025, our Residential segment's gross profit decreased by $5.3 million, or 3.2%, compared to the six months ended March 31, 2024. Gross profit as a percentage of revenue decreased to 24.9% during the six months ended March 31, 2025, compared to 25.0% during the six months ended March 31, 2024. The decrease in gross profit reflects the decline in volume as discussed above and reduced pricing to our customers, partially offset by reduced material costs in the first quarter of fiscal 2025 and improved project execution.
Current report
Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $5.8 million, or 5.5%, during the six months ended March 31, 2025, compared to the six months ended March 31, 2024. Selling, general and administrative expenses as a percentage of revenue increased to 17.6% during the six months ended March 31, 2025, compared to 16.3% during the six months ended March 31, 2024. The increase was driven by higher personnel and other administrative costs to support the growth of our business.
Current report
Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the three months ended March 31, 2025 increased by $4.9 million, or 63.7%, compared to the three months ended March 31, 2024, primarily as a result of $2.2 million of expense incurred at Greiner and Arrow, increased employee compensation cost to support growth in the business and higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue increased from 10.1% for the three months ended March 31, 2024 to 10.6% for the three months ended March 31, 2025.
Current report
Revenues. Revenues in our Infrastructure Solutions segment increased by $87.1 million, or 62.8%, during the six months ended March 31, 2025 compared to the six months ended March 31, 2024. The increase in revenue was driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses, including generator enclosures for data center customers, as well as expansion of our field services offerings. Greiner and Arrow contributed $27.9 million in revenue in the six months ended March 31, 2025.
Current report
Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the three months ended March 31, 2025 increased by $2.3 million, or 26.6%, compared to the three months ended March 31, 2024 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of successful project execution. Selling, general and administrative expenses as a percentage of revenue decreased from 9.0% for the three months ended March 31, 2024 to 8.8% for the three months ended March 31, 2025 as we benefited from the scale of our operations.
Current report
Revenues. Revenues in our Commercial & Industrial segment increased by $31.8 million, or 17.5%, during the six months ended March 31, 2025, compared to the six months ended March 31, 2024. The increase was primarily driven by continued strong demand, particularly in the data center and education end markets, and successful execution of backlog.
Current report
Gross Profit. Our Commercial & Industrial segment’s gross profit during the six months ended March 31, 2025 increased by $7.8 million, or 22.8%, compared to the six months ended March 31, 2024. Gross profit as a percentage of revenue increased from 18.8% for the six months ended March 31, 2024 to 19.6% for the six months ended March 31, 2025 as we benefited from improved volumes, project execution and bid margins across the business.
Current report
The increase in total other income, net for the six months ended March 31, 2025, compared with March 31, 2024 is primarily the result of unrealized gains on investments in trading securities of $7.8 million in the six months ended March 31, 2025 compared to unrealized losses on investments in trading securities of $1.9 million in the six months ended March 31, 2024, partially offset by a decrease in interest income from $2.3 million in the six months ended March 31, 2024 to $1.6 million in the six months ended March 31, 2025.
Current report
We recorded income tax expense of $46.1 million for the six months ended March 31, 2025, compared to $34.8 million for the six months ended March 31, 2024, driven by increased pretax income.
Removed paragraphs (3)
Previous report
While the COVID-19 pandemic's impact on markets, the supply chain and the labor force had minimal impact on our business thus far in fiscal 2025 compared with prior fiscal years, COVID-19 and any future pandemic or other public health emergency could impact our workforce, customers and suppliers in the future. An inability to procure materials in a timely manner, to complete work on schedule, and to reflect higher materials or labor costs in our pricing to customers has had, and could have in the future, a significant impact on our operating results.
Previous report
Gross Profit. Our Communications segment’s gross profit during the three months ended December 31, 2024 increased by $12.5 million compared to the three months ended December 31, 2023, primarily driven by increased revenues as discussed above. Gross profit as a percentage of revenue was 21.0% in the three months ended December 31, 2024 compared to 21.2% in the three months ended December 31, 2023.
Previous report
Revenues. Our Residential segment’s revenues increased by $4.1 million, or 1.3%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Our multi-family business revenues increased by $7.3 million, or 10.5%, driven by successful execution of its backlog. A reduction in new single-family construction demand largely driven by the impacts of hurricanes in the Florida market, continued low housing affordability and consumer expectations about future interest rate reductions caused a decrease of $4.8 million, or 2.7%, in our single-family electrical revenues, while this decrease was offset by the continued expansion of our plumbing and HVAC business, where revenues increased by $1.6 million, or 2.2%.
Reworded paragraphs (29)
Previous wording
Entering fiscal 2025, we see strong demand across many of our key end markets. However, our business segments each have their own unique set of factors influencing demand for our services. We are cautious about near-term demand for single-family housing as elevated mortgage rates and the impacts of inflation on materials and labor costs have resulted in a decline in housing affordability. In addition, consumer expectations about future interest rate reductions may cause some home buyers to delay purchases in anticipation of lower mortgage costs. In the multi-family residential business, higher borrowing costs for project owners during fiscal 2024 resulted in a reduction in backlog entering fiscal 2025, which may result in lower multi-family residential revenues compared with fiscal 2024. However, backlog across our business segments as a whole remains high, reflecting strong demand in key end markets. Demand with respect to data centers, a key end market served by our Communications, Infrastructure Solutions, and Commercial & Industrial segments, remains particularly strong. However, availability of labor and capacity could constrain the rate at which we are able to grow this business.
Current wording
As we enter the second half of fiscal 2025, we see strong demand continuing across many of our key end markets. However, our business segments each have their own unique set of factors influencing demand for our services. The continuing impacts of elevated mortgage rates and inflation on housing affordability, as well as the impact of current U.S. tariff policy and general economic conditions on consumer sentiment, have dampened consumer demand for housing in certain markets. In response to this, some large home builders are offering customer incentives as they focus on maintaining volume through fluctuations in consumer demand. These incentives may put pressure on bid margins on the services that we provide to home builders. In the multi-family residential business, higher borrowing costs for project owners during fiscal 2024 resulted in a reduction in backlog entering fiscal 2025, which in turn drove a reduction in multi-family residential revenues for the quarter ended March 31, 2025. We are beginning to see an increase in multi-family bid activity, and we expect that new projects booked in the second half of fiscal 2025 will benefit us in fiscal 2026. Backlog across our business segments as a whole remains high, reflecting strong demand in key end markets. Demand with respect to data centers, a key end market served by our Communications, Infrastructure Solutions, and Commercial & Industrial segments, remains particularly strong. However, availability of labor and capacity could constrain the rate at which we are able to grow this business.
Previous wording
Consolidated revenues for the three months ended December 31, 2024, were $115.1 million higher than for the three months ended December 31, 2023, an increase of 18.1%, 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 March 31, 2025, were $128.2 million higher than for the three months ended March 31, 2024, an increase of 18.2%, with increases at our Communications, Infrastructure Solutions and Commercial & Industrial segments and a decrease at our Residential segment. See further discussion below of changes in revenues for our individual segments.
Previous wording
Consolidated gross profit for the three months ended December 31, 2024 increased $34.2 million compared to the three months ended December 31, 2023. Our overall gross profit percentage was 23.8% during the three months ended December 31, 2024, as compared to 22.7% during the three months ended December 31, 2023. Gross profit as a percentage of revenue increased at our Residential, Infrastructure Solutions and Commercial & Industrial segments and decreased slightly at our Communications segment. See further discussion below of changes in gross margin for our individual segments.
Current wording
Consolidated gross profit for the three months ended March 31, 2025 increased $37.3 million compared to the three months ended March 31, 2024. Our overall gross profit percentage was 25.0% during the three months ended March 31, 2025, as compared to 24.3% during the three months ended March 31, 2024. Gross profit as a percentage of revenue increased at our Communications, Infrastructure Solutions and Commercial & Industrial segments and decreased at our Residential segment. See further discussion below of changes in gross margin for our individual segments.
Previous wording
During the three months ended December 31, 2024, our selling, general and administrative expenses were $103.0 million, an increase of $17.2 million, or 20.0%, over the three months ended December 31, 2023. As a percentage of revenue, selling, general and administrative expenses increased from 13.5% for the three months ended December 31, 2023 to 13.7% for the three months ended December 31, 2024. The increase in selling, general and administrative expenses was generally consistent with revenue growth.
Current wording
During the three months ended March 31, 2025, our selling, general and administrative expenses were $116.0 million, an increase of $20.8 million, or 21.8%, over the three months ended March 31, 2024. As a percentage of revenue, selling, general and administrative expenses increased from 13.5% for the three months ended March 31, 2024 to 13.9% for the three months ended March 31, 2025. The increase in selling, general and administrative expenses was generally consistent with revenue growth.
Previous wording
Revenues. Our Communications segment’s revenues increased by $62.2 million during the three months ended December 31, 2024, or 36.4%, compared to the three months ended December 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 $79.5 million during the three months ended March 31, 2025, or 41.1%, compared to the three months ended March 31, 2024. The increase primarily resulted from an increase in demand, particularly in the data center market.
Previous wording
Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $5.3 million, or 35.8%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The increase was consistent with the Communications segment's revenue growth during the period, resulting in selling, general and administrative expenses as a percentage of revenue of 8.7% in both periods.
Current wording
Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $6.5 million, or 38.0%, during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase primarily reflects higher personnel cost to support business growth and higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue was 8.6% during the three months ended March 31, 2025, compared to 8.8% during the three months ended March 31, 2024 as the increase in selling, general and administrative expenses was generally consistent with the Communications segment's revenue growth during the period.
Previous wording
Gross Profit. During the three months ended December 31, 2024, our Residential segment's gross profit increased by $3.7 million, or 4.9%, compared to the three months ended December 31, 2023. Gross profit as a percentage of revenue increased slightly to 24.7% during the three months ended December 31, 2024, compared to 23.9% for the three months ended December 31, 2023. The increase in profitability was driven primarily by improved project execution and reduced material costs.
Current wording
Gross Profit. During the three months ended March 31, 2025, our Residential segment's gross profit decreased by $9.0 million, or 10.1%, compared to the three months ended March 31, 2024. Gross profit as a percentage of revenue decreased to 25.1% during the three months ended March 31, 2025, compared to 26.1% for the three months ended March 31, 2024. The decrease in profitability was driven primarily by lower volume as discussed above and reduced pricing to our customers to reflect the cost of incentives they are offering to homebuyers and the impact of lower demand on our ability to recover increased costs through pricing actions.
Previous wording
Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $3.9 million, or 7.7%, during the three months ended December 31, 2024, compared to the three months ended December 31, 2023. The increase was driven by higher personnel and other administrative costs to support the continued growth of our business. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 17.3% during the three months ended December 31, 2024, compared to 16.3% in the three months ended December 31, 2023.
Current wording
Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $1.9 million, or 3.4%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 18.0% during the three months ended March 31, 2025, compared to 16.3% in the three months ended March 31, 2024. The increase as a percentage of revenue was driven by the decrease in revenues combined with increases in personnel and other administrative costs to support the growth of our business.
Previous wording
Revenues. Revenues in our Infrastructure Solutions segment increased by $45.2 million during the three months ended December 31, 2024, an increase of 71.9% compared to the three months ended December 31, 2023, driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses, including generator enclosures for data center customers. Greiner Industries, Inc. (“Greiner”), which was acquired on April 1, 2024, contributed $12.2 million in revenues in the three months ended December 31, 2024.
Current wording
Revenues. Revenues in our Infrastructure Solutions segment increased by $41.8 million during the three months ended March 31, 2025, an increase of 55.2% compared to the three months ended March 31, 2024, driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses, including generator enclosures for data center customers, as well as expansion of our field services offerings. Greiner Industries, Inc. (“Greiner”) and Arrow Engine Company (“Arrow”), which were acquired on April 1, 2024 and January 31, 2025, respectively, contributed $15.7 million in revenues in the three months ended March 31, 2025.
Previous wording
Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended December 31, 2024 increased $16.8 million, compared to the three months ended December 31, 2023, and gross profit as a percentage of revenue increased from 28.9% to 32.3%. The improvement in gross profit and gross margin was primarily driven by higher volumes, improved pricing, operating efficiencies at our facilities, and the impact of investments to increase capacity we have made over the last several years.
Current wording
Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended March 31, 2025 increased $15.6 million, or 65.5%, compared to the three months ended March 31, 2024, and gross profit as a percentage of revenue increased from 31.3% to 33.4%. The improvement in gross profit and gross margin was primarily driven by higher volumes, improved pricing, operating efficiencies at our facilities, and the impact of investments to increase capacity we have made over the last several years.
Previous wording
Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the three months ended December 31, 2024 increased by $4.0 million, compared to the three months ended December 31, 2023, primarily as a result of increased employee compensation cost to support growth in the business and higher incentive compensation as a result of higher earnings and administrative expenses incurred at Greiner. Selling, general and administrative expenses as a percentage of revenue decreased from 11.6% for the three months ended December 31, 2023 to 10.4% for the three months ended December 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 six months ended March 31, 2025 increased by $8.8 million, or 59.3%, compared to the six months ended March 31, 2024, primarily as a result of $4.0 million of expense incurred at Greiner and Arrow, increased employee compensation cost to support growth in the business and higher incentive compensation as a result of higher earnings. Selling, general and administrative expenses as a percentage of revenue decreased from 10.8% for the six months ended March 31, 2024 to 10.5% for the six months ended March 31, 2025 as we benefited from the scale of our operations.
Previous wording
Revenues. Revenues in our Commercial & Industrial segment increased by $3.5 million, or 4.2%, during the three months ended December 31, 2024, compared to the three months ended December 31, 2023. The increase primarily relates to continued strong demand and successful execution of backlog across the business.
Current wording
Revenues. Revenues in our Commercial & Industrial segment increased by $28.3 million, or 29.1%, during the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase was primarily driven by continued strong demand, particularly in the data center and education end markets, and successful execution of backlog.
Previous wording
Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended December 31, 2024 increased by $1.2 million, compared to the three months ended December 31, 2023. Gross profit as a percentage of revenue increased from 16.4% for the quarter ended December 31, 2023 to 17.1% for the quarter ended December 31, 2024 as we benefited from improved project execution and bid margins across the business.
Current wording
Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended March 31, 2025 increased by $6.6 million, or 32.5%, compared to the three months ended March 31, 2024. Gross profit as a percentage of revenue increased from 20.9% for the quarter ended March 31, 2024 to 21.4% for the quarter ended March 31, 2025 as we benefited from improved volumes, project execution and bid margins.
Previous wording
Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the three months ended December 31, 2024 increased by $1.2 million, or 17.8%, compared to the three months ended December 31, 2023 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of successful project execution. Selling, general and administrative expenses as a percentage of revenue increased from 8.1% for the three months ended December 31, 2023 to 9.1% for the three months ended December 31, 2024.
Current wording
Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the six months ended March 31, 2025 increased by $3.5 million, or 22.7%, compared to the six months ended March 31, 2024 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of successful project execution. Selling, general and administrative expenses as a percentage of revenue increased from 8.5% for the six months ended March 31, 2024 to 8.9% for the six months ended March 31, 2025.
Previous wording
During the three months ended December 31, 2024, we incurred interest expense of $0.5 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 $144.4 million. This compares to interest expense of $0.4 million for the three months ended December 31, 2023, 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 $142.4 million.
Current wording
During the three months ended March 31, 2025, we incurred interest expense of $0.3 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 $264.9 million. This compares to interest expense of $0.4 million for the three months ended March 31, 2024, 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.
Previous wording
The increase in total other income, net for the three months ended December 31, 2024, compared to the three months ended December 31, 2023 is primarily the result of unrealized gains on investments in trading securities of $2.3 million in the three months ended December 31, 2024 compared to unrealized gains of $0.1 million on investments in trading securities in the three months ended December 31, 2023.
Current wording
The change in total other (income) expense, net for the three months ended March 31, 2025, compared to the three months ended March 31, 2024 is primarily the result of unrealized gains on investments in trading securities of $5.5 million in the three months ended March 31, 2025 compared to unrealized losses of $1.8 million on investments in trading securities in the three months ended March 31, 2024.
Previous wording
We recorded income tax expense of $20.0 million for the three months ended December 31, 2024, compared to $15.4 million for the three months ended December 31, 2023, driven by increased pretax income.
Current wording
We recorded income tax expense of $26.1 million for the three months ended March 31, 2025, compared to $19.4 million for the three months ended March 31, 2024, driven by increased pretax income.
Previous wording
During the three months ended December 31, 2024, working capital exclusive of cash increased by $33.5 million from September 30, 2024, reflecting a $13.9 million increase in current assets excluding cash and a $19.6 million decrease in current liabilities during the period.
Current wording
During the six months ended March 31, 2025, working capital exclusive of cash increased by $105.6 million from September 30, 2024, reflecting a $121.2 million increase in current assets excluding cash partially offset by a $15.6 million increase in current liabilities during the period.
Previous wording
During the three months ended December 31, 2024, our current assets exclusive of cash increased to $784.8 million, as compared to $770.9 million as of September 30, 2024. The increase was primarily driven by an $18.0 million increase in marketable securities as a portion of our excess cash was invested in trading securities and a $5.5 million increase in prepaid expenses and other current assets as we made advance payments on our annual business insurance policies during the first quarter of fiscal 2025. These increases were partially offset by a $10.8 million decrease in trade accounts receivable due to the timing of cash collections.
Current wording
During the six months ended March 31, 2025, our current assets exclusive of cash increased to $892.1 million, as compared to $770.9 million as of September 30, 2024. The increase was primarily driven by a $30.8 million increase in marketable securities as a portion of our excess cash was invested in trading securities and a $45.8 million increase in trade accounts receivable due to the timing of customer billings at the end of the period. In addition, costs and estimated earnings in excess of billings increased $27.3 million, driven by the timing of contract billings.
Previous wording
During the three months ended December 31, 2024, our total current liabilities decreased by $19.6 million to $503.0 million, compared to $522.6 million as of September 30, 2024, driven by a $31.0 million decrease in accounts payable and accrued expenses primarily as a result of the timing of vendor payments and incentive compensation payments at the end of the calendar year across all of our operating segments. This decrease was partially offset by a $11.4 million increase in billings in excess of costs and estimated earnings driven by the timing of contract billings on projects on which revenue is recognized using the percentage of completion method.
Current wording
During the six months ended March 31, 2025, our total current liabilities increased by $15.6 million to $538.2 million, compared to $522.6 million as of September 30, 2024, driven by a $11.0 million increase in accounts payable and accrued expenses primarily as a result of the timing of vendor payments at all of our operating segments and a $4.6 million increase in billings in excess of costs and estimated earnings driven by the timing of contract billings on projects on which revenue is recognized using the percentage of completion method.
Previous wording
We believe the bonding capacity provided by our sureties is adequate for our current operations and will be adequate for our operations for the foreseeable future. As of December 31, 2024, the estimated cost to complete our bonded projects was approximately $138.9 million.
Current wording
We believe the bonding capacity provided by our sureties is adequate for our current operations and will be adequate for our operations for the foreseeable future. As of March 31, 2025, the estimated cost to complete our bonded projects was approximately $139.0 million.
Previous wording
On January 21, 2025 we entered into the Fourth Amended and Restated Credit Agreement (the “Amended Credit Agreement”). Pursuant to the Amended Credit Agreement, our maximum revolver amount increased from $150 million to $300 million, and the maturity date was extended from September 30, 2026 to January 21, 2030.
Current wording
On January 21, 2025 we entered into the Fourth Amended and Restated Credit Agreement (the “Amended Credit Agreement”). Pursuant to the Amended Credit Agreement, our maximum revolver amount increased from $150 million to $300 million, and the maturity date was extended from September 30, 2026 to January 21, 2030. In addition, the limitation on borrowings based on available collateral under the previous credit agreement was eliminated under the Amended Credit Agreement.
Previous wording
Under the Amended Credit Agreement, the Company is subject to certain financial covenants including a maximum Consolidated Total Leverage Ratio (as defined in the Amended Credit Agreement) of 3.00 to 1.00 and a minimum Consolidated Interest Coverage Ratio (as defined in the Amended Credit Agreement) of 3.00 to 1.00.
Current wording
Under the Amended Credit Agreement, the Company is subject to certain financial covenants including a maximum Consolidated Total Leverage Ratio (as defined in the Amended Credit Agreement) of 3.00 to 1.00 and a minimum Consolidated Interest Coverage Ratio (as defined in the Amended Credit Agreement) of 3.00 to 1.00. As of March 31, 2025, the Company was in compliance with the financial covenants under the Amended Credit Agreement.
Previous wording
At December 31, 2024, we had $5.5 million in outstanding letters of credit and no outstanding borrowings under our revolving credit facility. As of December 31, 2024, the Company was in compliance with the financial covenants under the credit agreement that was in place at December 31, 2024.
Current wording
At March 31, 2025, we had $5.5 million in outstanding letters of credit and no outstanding borrowings under our revolving credit facility.
Previous wording
Net cash provided by operating activities was $37.3 million during the three months ended December 31, 2024, as compared to $25.0 million in the three months ended December 31, 2023. The increase in operating cash flow resulted from increased earnings in the three months ended December 31, 2024 and a decrease in cash used in working capital during the three months ended December 31, 2024 as compared with the three months ended December 31, 2023.
Current wording
Net cash provided by operating activities was $62.1 million during the six months ended March 31, 2025, as compared to $58.7 million in the six months ended March 31, 2024. The increase in operating cash flow resulted from increased earnings in the six months ended March 31, 2025, partially offset by an increase in cash used in working capital during the six months ended March 31, 2025 as compared with the six months ended March 31, 2024.
Previous wording
Net cash used in investing activities was $58.4 million for the three months ended December 31, 2024, compared to $6.0 million used in investing activities in the three months ended December 31, 2023. During the three months ended December 31, 2024, we paid $44.9 million to acquire a membership interest in Jett Texas Company LLC (“Jett”), an investment company, as part of the financing of Jett's investment in the CB&I storage solutions business formerly owned by McDermott International, Ltd. We also made capital expenditures of $13.2 million as we continued to purchase new assets instead of entering into new lease agreements at our Communications segment and made other capital expenditures to support the growth of our business. During the three months ended December 31, 2023, we used $6.5 million for capital expenditures to support the growth of our business.
Current wording
Net cash used in investing activities was $97.1 million for the six months ended March 31, 2025, compared to $11.4 million used in investing activities in the six months ended March 31, 2024. During the six months ended March 31, 2025, we paid $44.9 million to acquire a membership interest in Jett Texas Company LLC (“Jett”), an investment company, as part of the financing of Jett's investment in the CB&I storage solutions business formerly owned by McDermott International, Ltd. We also made capital expenditures of $30.1 million as we continued to purchase new assets instead of entering into new lease agreements at our Communications segment and made other capital expenditures to support the growth of our business. Additionally, we paid $22.6 million in conjunction with business combinations, primarily related to the acquisition of Arrow in January 2025. During the six months ended March 31, 2024, we used $13.4 million for capital expenditures to support the growth of our business.
Previous wording
Net cash used in financing activities for the three months ended December 31, 2024 was $20.6 million, compared to $7.3 million for the three months ended December 31, 2023. Net cash used in financing activities for the three months ended December 31, 2024 included $15.7 million used to repurchase our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation, and $4.0 million in distributions to noncontrolling interests under operating agreements in connection with certain acquisitions. Net cash used in financing activities for the three months ended December 31, 2023 included $4.1 million to settle our contingent consideration liability related to prior year acquisitions and $1.3 million in distributions to noncontrolling interests under operating agreements in connection with certain acquisitions.
Current wording
Net cash used in financing activities for the six months ended March 31, 2025 was $43.4 million, compared to $17.1 million for the six months ended March 31, 2024. Net cash used in financing activities for the six months ended March 31, 2025 included $36.3 million used to repurchase our common stock, including repurchases to satisfy statutory withholding requirements upon the vesting of employee stock compensation, and $5.0 million in distributions to noncontrolling interests under operating agreements in connection with certain acquisitions. Net cash used in financing activities for the six months ended March 31, 2024 included $4.1 million to settle our contingent consideration liability related to prior year acquisitions, $7.9 million in distributions to noncontrolling interests under operating agreements in connection with certain acquisitions, and $3.2 million in repurchases of our common stock to satisfy statutory withholding requirements upon the vesting of employee stock compensation.
Previous wording
On July 31, 2024, our Board authorized a stock repurchase program for the purchase from time to time of up to $200.0 million of the Company’s common stock after the previous stock repurchase program was fully utilized. Share purchases are made for cash in open market transactions at prevailing market prices or in privately negotiated transactions or otherwise. The timing and amount of purchases under the program are determined based upon prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. All or part of the repurchases may be implemented under a Rule 10b5-1 trading plan, which allows repurchases under pre-set terms at times when the Company might otherwise be prevented from purchasing under insider trading laws or because of self-imposed blackout periods. The program does not require the Company to purchase any specific number of shares and may be modified, suspended, reinstated, or terminated at any time at the Company’s discretion and without notice. We repurchased 21,048 shares pursuant to our repurchase programs during the three months ended December 31, 2024.
Current wording
On July 31, 2024, our Board authorized a stock repurchase program for the purchase from time to time of up to $200.0 million of the Company’s common stock after the previous stock repurchase program was fully utilized. Share purchases are made for cash in open market transactions at prevailing market prices or in privately negotiated transactions or otherwise. The timing and amount of purchases under the program are determined based upon prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. All or part of the repurchases may be implemented under a Rule 10b5-1 trading plan, which allows repurchases under pre-set terms at times when the Company might otherwise be prevented from purchasing under insider trading laws or because of self-imposed blackout periods. The program does not require the Company to purchase any specific number of shares and may be modified, suspended, reinstated, or terminated at any time at the Company’s discretion and without notice. We repurchased 139,362 shares pursuant to our repurchase programs during the six months ended March 31, 2025.
Previous wording
From time to time, we may enter into firm purchase commitments for materials, such as copper or aluminum wire, which we expect to use in the ordinary course of business. These commitments are typically for terms of less than one year and require us to buy minimum quantities of materials at specific intervals at a fixed price over the term. As of December 31, 2024, we did not have any such firm commitments to purchase materials outstanding and there were no material changes in our material cash requirements from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. We expect that cash and cash equivalents, cash flow from operations and availability under our revolving credit facility will be sufficient to satisfy cash requirements during at least the next 12 months.
Current wording
From time to time, we may enter into firm purchase commitments for materials, such as copper or aluminum wire, which we expect to use in the ordinary course of business. These commitments are typically for terms of less than one year and require us to buy minimum quantities of materials at specific intervals at a fixed price over the term. As of March 31, 2025, we did not have any such firm commitments to purchase materials outstanding. In connection with expected growth in our business, we are planning to expand capacity in certain areas. Further, based on the relative costs and benefits of purchasing certain assets compared with leasing, we expect to satisfy an increased proportion of our vehicle and equipment needs through purchasing and to reduce our reliance on leasing. As a result, we have updated our capital expenditure expectations for the current fiscal year, and now expect our capital expenditures for the year ending September 30, 2025 will range from $70 million to $80 million, compared to $45.2 million for the year ended September 30, 2024. There have been no other material changes in our material cash requirements from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. We expect that cash and cash equivalents, cash flow from operations and availability under our revolving credit facility will be sufficient to satisfy cash requirements during at least the next 12 months.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Gross Profit. Our Infrastructure Solutions segment’s gross profit during the six months ended March 31, 2025 increased by $32.3 million, or 77.1%, compared to the six months ended March 31, 2024, and gross profit as a percentage of revenue increased to 32.9% for the six months ended March 31, 2025 compared to 30.2% for the six months ended March 31, 2024. The improvement in gross profit and gross margin was primarily driven by higher volumes, improved pricing, operating efficiencies at our facilities, and the impact of investments to increase capacity we have made over the last several years.
Current report — wording carried from elsewhere
During the six months ended March 31, 2025, 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 $203.6 million. This compares to interest expense of $0.8 million for the six months ended March 31, 2024, 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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Please refer to Part I. Item 1A.“Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 for further information.