IES Holdings, Inc.

Previous 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.

Current wording

Throughout the first nine months of fiscal 2025, our business has benefited from 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. Housing affordability challenges from elevated mortgage rates and inflation, as well as the impact of overall economic uncertainty on consumer confidence, have persisted throughout the spring and into the summer, which is typically an active time for home sales. In response to this, many large home builders have increased their offerings of customer incentives as they focus on maintaining volume through fluctuations in consumer demand. These incentives have put pressure on our revenues and gross margins in our single-family business. Current tariff policy could exacerbate these housing affordability and consumer confidence issues, which could further impact our single-family business. 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 fiscal 2025 to date. 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 our business in this end market.

Previous 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.

Current wording

Consolidated revenues for the three months ended June 30, 2025, were $121.7 million higher than for the three months ended June 30, 2024, an increase of 15.8%, 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 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.

Current wording

Consolidated gross profit for the three months ended June 30, 2025 increased $44.8 million compared to the three months ended June 30, 2024. Our overall gross profit percentage was 26.9% during the three months ended June 30, 2025, as compared to 25.3% during the three months ended June 30, 2024. Gross profit as a percentage of revenue increased at our Communications, Residential and Infrastructure Solutions segments and decreased at our Commercial & Industrial segment. See further discussion below of changes in gross margin for our individual segments.

Previous 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.

Current wording

During the three months ended June 30, 2025, our selling, general and administrative expenses were $127.3 million, an increase of $22.6 million, or 21.6%, over the three months ended June 30, 2024, driven by increased personnel costs across our operating segments to support their growth and increased incentive compensation in connection with higher earnings than in the prior fiscal year. As a percentage of revenue, selling, general and administrative expenses increased from 13.6% for the three months ended June 30, 2024 to 14.3% for the three months ended June 30, 2025.

Previous wording

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 wording

Consolidated revenues for the nine months ended June 30, 2025, were $365.1 million higher than for the nine months ended June 30, 2024, an increase of 17.3%, 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 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 wording

Consolidated gross profit for the nine months ended June 30, 2025 increased $116.3 million compared to the nine months ended June 30, 2024. Our overall gross profit percentage increased to 25.3% during the nine months ended June 30, 2025, as compared to 24.2% during the nine months ended June 30, 2024. Gross profit as a percentage of revenue increased at our Communications and Infrastructure Solutions segments and decreased at our Residential and Commercial & Industrial segments. See further discussion below of changes in gross margin for our individual segments.

Previous wording

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 wording

During the nine months ended June 30, 2025, our selling, general and administrative expenses were $346.4 million, an increase of $60.6 million, or 21.2%, over the nine months ended June 30, 2024, driven primarily by increased personnel costs across our operating segments to support their growth and increased incentive compensation in connection with higher earnings than in the prior fiscal year. Selling, general and administrative expenses as a percentage of revenue increased from 13.6% for the nine months ended June 30, 2024 to 14.0% for the nine months ended June 30, 2025.

Previous 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.

Current wording

Revenues. Our Communications segment’s revenues increased by $106.9 million during the three months ended June 30, 2025, or 55.6%, compared to the three months ended June 30, 2024. The increase primarily resulted from an increase in demand, particularly in the data center market.

Previous wording

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 wording

Gross Profit. Our Communications segment’s gross profit during the three months ended June 30, 2025 increased by $36.0 million, or 97.0%, compared to the three months ended June 30, 2024. Gross profit as a percentage of revenue was 24.4% in the three months ended June 30, 2025 compared to 19.3% in the three months ended June 30, 2024. The increase in gross profit and gross margin primarily reflects strong demand as discussed above and successful project execution.

Previous 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.

Current wording

Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $9.3 million, or 57.6%, during the three months ended June 30, 2025 compared to the three months ended June 30, 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 8.5% during the three months ended June 30, 2025, compared to 8.4% during the three months ended June 30, 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

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 wording

Revenues. Our Communications segment's revenues increased by $248.6 million, or 44.7%, during the nine months ended June 30, 2025, compared to the nine months ended June 30, 2024. The increase primarily resulted from an increase in demand, particularly in the data center market.

Previous wording

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 wording

Gross Profit. Our Communications segment’s gross profit during the nine months ended June 30, 2025 increased by $72.6 million, or 64.7%, as compared to the nine months ended June 30, 2024. Gross profit as a percentage of revenue increased from 20.2% to 23.0%. The increase in gross profit and gross margin primarily reflects strong demand as discussed above and successful project execution.

Previous wording

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 wording

Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $21.1 million, or 43.9%, during the nine months ended June 30, 2025, compared to the nine months ended June 30, 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 nine months ended both June 30, 2025 and 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

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 wording

Revenues. Our Residential segment’s revenues decreased by $31.5 million, or 8.3%, during the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Our single-family electrical revenues decreased by $23.9 million and our single-family plumbing and HVAC revenues decreased by $3.2 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 and pressure on pricing during the period. Our multi-family revenues also decreased by $4.4 million, or 4.8%, driven by a reduction in backlog from fiscal years 2023 and 2024 due to the impact of continued elevated interest rates on demand.

Previous 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.

Current wording

Gross Profit. During the three months ended June 30, 2025, our Residential segment's gross profit decreased by $8.0 million, or 7.6%, compared to the three months ended June 30, 2024, driven primarily by lower volume as discussed above. Gross profit as a percentage of revenue increased to 28.1% during the three months ended June 30, 2025, compared to 27.9% for the three months ended June 30, 2024 as reduced material costs and improved project execution in our multi-family business resulting from improved procurement and other processes offset the impact of lower volume.

Previous 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.

Current wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $2.3 million, or 3.7%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily driven by higher personnel and other administrative costs to support the future growth of our business. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 18.5% during the three months ended June 30, 2025, compared to 16.3% in the three months ended June 30, 2024. The increase as a percentage of revenue was primarily driven by the decrease in revenues as discussed above.

Previous wording

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 wording

Revenues. Our Residential segment's revenues decreased by $48.8 million, or 4.7%, during the nine months ended June 30, 2025, compared to the nine months ended June 30, 2024. The decrease in revenues was primarily driven by a decrease of $39.2 million, or 7.3%, 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 and pressure on pricing during the period.

Previous wording

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 wording

Gross Profit. During the nine months ended June 30, 2025, our Residential segment's gross profit decreased by $13.3 million, or 4.9%, compared to the nine months ended June 30, 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 and improved project execution in our multi-family business. Gross profit as a percentage of revenue was 26.0% during the nine months ended June 30, 2025, compared to 26.1% during the nine months ended June 30, 2024.

Previous wording

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 wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses increased by $8.1 million, or 4.8%, during the nine months ended June 30, 2025, compared to the nine months ended June 30, 2024. The increase was primarily driven by higher personnel and other administrative costs to support the future growth of our business. Selling, general and administrative expenses as a percentage of revenue increased to 17.9% during the nine months ended June 30, 2025, compared to 16.3% during the nine months ended June 30, 2024. The increase as a percentage of revenue was primarily driven by the decrease in revenues as discussed above.

Previous 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.

Current wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $27.5 million during the three months ended June 30, 2025, an increase of 26.9% compared to the three months ended June 30, 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. Arrow Engine Company (“Arrow”), which was acquired on January 31, 2025, contributed $5.3 million in revenues in the three months ended June 30, 2025.

Previous 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.

Current wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended June 30, 2025 increased $15.5 million, or 50.6%, compared to the three months ended June 30, 2024, and gross profit as a percentage of revenue increased from 30.0% to 35.6%. 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 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 wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the three months ended June 30, 2025 increased by $2.2 million, or 20.5%, compared to the three months ended June 30, 2024, primarily as a result of increased employee compensation cost to support growth in the business, higher incentive compensation as a result of higher earnings, and $0.8 million of expense incurred at Arrow. Selling, general and administrative expenses as a percentage of revenue decreased from 10.7% for the three months ended June 30, 2024 to 10.1% for the three months ended June 30, 2025 as we benefited from the scale of our operations.

Previous wording

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 wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $114.5 million, or 47.6%, during the nine months ended June 30, 2025 compared to the nine months ended June 30, 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 Industries, Inc. (“Greiner”), which was acquired on April 1, 2024, and Arrow contributed $47.3 million in revenue in the nine months ended June 30, 2025, compared to $15.3 million in revenue at Greiner 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, 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 wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the nine months ended June 30, 2025 increased by $47.8 million, or 65.9%, compared to the nine months ended June 30, 2024, and gross profit as a percentage of revenue increased to 33.9% for the nine months ended June 30, 2025 compared to 30.2% for the nine months ended June 30, 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.

Previous 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.

Current wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the nine months ended June 30, 2025 increased by $11.1 million, or 42.9%, compared to the nine months ended June 30, 2024, primarily as a result of $6.4 million of expense incurred at Greiner and Arrow in the nine months ended June 30, 2025 compared to $0.9 million incurred at Greiner in the nine months ended June 30, 2024, 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 10.7% for the nine months ended June 30, 2024 to 10.4% for the nine months ended June 30, 2025 as we benefited from the scale of our operations.

Previous 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.

Current wording

Revenues. Revenues in our Commercial & Industrial segment increased by $18.9 million, or 19.5%, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily driven by increased activity in the education and healthcare end markets, continued strong demand and successful execution of backlog, particularly in the data center end market, and expansion of one of our operations in the Midwest market.

Previous 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.

Current wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended June 30, 2025 increased by $1.3 million, or 6.0%, compared to the three months ended June 30, 2024. Gross profit as a percentage of revenue decreased from 22.5% for the quarter ended June 30, 2024 to 19.9% for the quarter ended June 30, 2025. While we benefited from improved volumes, project execution and bid margins in the quarter ended June 30, 2025, gross profit as a percentage of revenue for the quarter ended June 30, 2024 reflected a strong contribution from a large data center project where we completed additions to the original scope of work at favorable margins.

Previous wording

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 wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the three months ended June 30, 2025 increased by $1.3 million, or 15.3%, compared to the three months ended June 30, 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 June 30, 2024 to 8.7% for the three months ended June 30, 2025 as we benefited from the scale of our operations.

Previous wording

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 wording

Revenues. Revenues in our Commercial & Industrial segment increased by $50.7 million, or 18.2%, during the nine months ended June 30, 2025, compared to the nine months ended June 30, 2024. The increase was primarily driven by continued strong demand and successful execution of backlog, particularly in the data center end market, increased activities in the education and healthcare end markets, and expansion of one of our operations in the Midwest market.

Previous wording

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 wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the nine months ended June 30, 2025 increased by $9.1 million, or 16.3%, compared to the nine months ended June 30, 2024. Gross profit as a percentage of revenue was 20.1% for the nine months ended June 30, 2024 compared to 19.7% for the nine months ended June 30, 2025. While we benefited from improved volumes, project execution and bid margins in the nine months ended June 30, 2025, gross profit as a percentage of revenue for the nine months ended June 30, 2024 reflected a strong contribution from a large data center project where we completed additions to the original scope of work at favorable margins.

Previous 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.

Current wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the nine months ended June 30, 2025 increased by $4.9 million, or 20.1%, compared to the nine months ended June 30, 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 was 8.7% for the nine months ended June 30, 2024 compared to 8.9% for the nine months ended June 30, 2025.

Previous 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.

Current wording

During the three months ended June 30, 2025, 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 $292.2 million. This compares to interest expense of $0.4 million for the three months ended June 30, 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 $142.9 million.

Previous 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.

Current wording

The increase in total other expense, net for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 is primarily the result of unrealized losses on investments in trading securities of $3.8 million in the three months ended June 30, 2025 compared to unrealized losses of $1.6 million on investments in trading securities in the three months ended June 30, 2024.

Previous wording

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.

Current wording

During the nine months ended June 30, 2025, we incurred interest expense of $1.3 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 $233.3 million. This compares to interest expense of $1.2 million for the nine months ended June 30, 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 $142.7 million.

Previous wording

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 wording

The change in total other (income) expense, net for the nine months ended June 30, 2025, compared with June 30, 2024 is primarily the result of unrealized gains on investments in trading securities of $4.1 million in the nine months ended June 30, 2025 compared to unrealized losses on investments in trading securities of $3.3 million in the nine months ended June 30, 2024, partially offset by a decrease in interest income from $3.3 million in the nine months ended June 30, 2024 to $2.1 million in the nine months ended June 30, 2025.

Previous 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.

Current wording

We recorded income tax expense of $29.5 million for the three months ended June 30, 2025, compared to $22.6 million for the three months ended June 30, 2024, driven primarily by increased pretax income.

Previous wording

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.

Current wording

We recorded income tax expense of $75.5 million for the nine months ended June 30, 2025, compared to $57.3 million for the nine months ended June 30, 2024, driven primarily by increased pretax income.

Previous 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.

Current wording

During the nine months ended June 30, 2025, working capital exclusive of cash, cash equivalents and restricted cash increased by $109.6 million from September 30, 2024, reflecting a $133.6 million increase in current assets excluding cash partially offset by a $24.0 million increase in current liabilities during the period.

Previous 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.

Current wording

During the nine months ended June 30, 2025, our current assets exclusive of cash, cash equivalents and restricted cash increased to $904.5 million, as compared to $770.9 million as of September 30, 2024. The increase was primarily driven by a $74.4 million increase in accounts receivable including retainage due to higher overall volume of sales and the timing of customer billings and project execution at the end of the period. Marketable securities also increased by $31.8 million as a portion of our excess cash was invested in trading securities. In addition, costs and estimated earnings in excess of billings increased by $14.6 million, driven by the timing of contract billings, and inventory increased by $7.0 million primarily due to the acquisition of Arrow during the nine months ended June 30, 2025.

Previous 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.

Current wording

During the nine months ended June 30, 2025, our total current liabilities increased by $24.0 million to $546.6 million, compared to $522.6 million as of September 30, 2024, primarily driven by a $28.2 million increase in accounts payable and accrued expenses as our volume of sales increased.