IES Holdings, Inc.

Previous wording

Please refer to Part I, Item 1. “Business”of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, for a discussion of the Company’s services and corporate strategy. IES Holdings, Inc., a Delaware corporation, designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our operations are organized into four business segments: Communications, Residential, Infrastructure Solutions and Commercial & Industrial.

Current wording

Please refer to Part I, Item 1. “Business”of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, for a discussion of the Company’s services and corporate strategy. IES Holdings, Inc., a Delaware corporation, designs and installs integrated electrical and technology systems and provides infrastructure solutions and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our operations are organized into four business segments: Communications, Residential, Infrastructure Solutions and Commercial & Industrial.

Previous wording

Entering the second half of fiscal 2026, we have significantly expanded our backlog. Demand with respect to data centers, a key end market served by our Communications, Infrastructure Solutions, and Commercial & Industrial segments, has continued to grow. We expect the continuing investments in capacity we have made in recent years, combined with our increased backlog, will drive growth in our business in the second half of the year. Availability of labor remains challenging, and will continue to be an area of focus for us. While demand is strong for much of our business, our operating segments each have their own unique set of factors influencing demand for our services. Housing affordability challenges from elevated mortgage rates and inflation, concerns around the availability and cost of insurance, and the impact of overall economic uncertainty on consumer confidence have persisted from fiscal 2025. The large national and regional home builders continue to put pressure on suppliers such as IES to reduce our pricing, which has continued to impact our revenues and gross margins in our single-family business. In the multi-family residential business, higher borrowing costs for project owners in recent years resulted in a reduction in backlog during fiscal 2025, which we expect to drive a reduction in multi-family residential revenues for fiscal 2026. Multi-family backlog recently has begun to increase, which we expect will benefit us in fiscal 2027.

Current wording

As we enter the fourth quarter of fiscal 2026, our remaining performance obligations and backlog are at record levels. Demand with respect to data centers, a key end market served by our Communications, Infrastructure Solutions, and Commercial & Industrial segments, has continued to grow. Investments in capacity we have made in recent years have allowed us to meet our customers' growing needs, and we expect to continue to invest in building our capacity and capabilities. We expect that these strategic investments, combined with our increased backlog, will drive growth in our business in the fourth quarter of the fiscal 2026 and into fiscal 2027. Availability of labor remains challenging, and will continue to be an area of focus for us. While demand is strong for much of our business, our operating segments each have their own unique set of factors influencing demand for our services. In our Residential business, lower demand and reduced housing starts have limited our ability to recover higher material costs through increased pricing, putting pressure on our margins. While we expect challenges in the single-family housing market to continue in the near term, we remain committed to this market, and will work to position the business to benefit when demand conditions improve. In the multi-family residential business, higher borrowing costs for project owners in recent years resulted in a reduction in backlog during fiscal 2025, which drove lower multi-family residential revenue for the first nine months of fiscal 2026 compared with the prior year. Multi-family backlog has increased over the first nine months of fiscal 2026, which we expect will benefit us in fiscal 2027. We are continuing to expand our Plumbing and HVAC offerings and focus on electrical markets where there may be an opportunity to expand our market share.

Previous wording

Consolidated revenues for the three months ended March 31, 2026, were $140.3 million higher than for the three months ended March 31, 2025, an increase of 16.8%, 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.

Current wording

Consolidated revenues for the three months ended June 30, 2026, were $352.5 million higher than for the three months ended June 30, 2025, an increase of 39.6%, 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, 2026 increased $45.9 million compared to the three months ended March 31, 2025. Our overall gross profit percentage was 26.2% during the three months ended March 31, 2026, as compared to 25.0% during the three months ended March 31, 2025. Gross profit as a percentage of revenue increased at our Communications and Commercial & Industrial and decreased at our Residential and Infrastructure Solutions segments. See further discussion below of changes in gross margin for our individual segments.

Current wording

Consolidated gross profit for the three months ended June 30, 2026 increased $101.1 million compared to the three months ended June 30, 2025. Our overall gross profit percentage was 27.4% during the three months ended June 30, 2026, as compared to 26.9% during the three months ended June 30, 2025. Gross profit as a percentage of revenue increased at our Communications and Commercial & Industrial segments and decreased at our Residential and Infrastructure Solutions segments. See further discussion below of changes in gross margin for our individual segments.

Previous wording

During the three months ended March 31, 2026, our selling, general and administrative expenses were $142.4 million, an increase of $26.4 million, or 22.7%, over the three months ended March 31, 2025, 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 13.9% for the three months ended March 31, 2025 to 14.6% for the three months ended March 31, 2026.

Current wording

During the three months ended June 30, 2026, our selling, general and administrative expenses were $162.2 million, an increase of $34.8 million, or 27.4%, over the three months ended June 30, 2025, driven by increased perso nnel costs across our operating segments to support their growth and increased incentive compensation in connection with higher earnings than in the prior fiscal year. Certain of our stock-based employee compensation awards are expected to be cash-settled upon vesting, and our liability for these awards is adjusted at each period end based on the stock price at the balance sheet date. Expense related to these cash-settled stock-based awards was $11.4 million for the three months ended June 30, 2026, compared to $2.7 million for the three months ended June 30, 2025. The increase in expense was driven primarily by the increase in the price of our common stock. As a percentage of revenue, selling, general and administrative expenses decreased from 14.3% for the three months ended June 30, 2025 to 13.0% for the three months ended June 30, 2026.

Previous wording

Consolidated revenues for the six months ended March 31, 2026 were $261.7 million higher than for the six months ended March 31, 2025, an increase of 16.5%, 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, 2026 were $614.3 million higher than for the nine months ended June 30, 2025, an increase of 24.8%, 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 six months ended March 31, 2026 increased $87.9 million compared to the six months ended March 31, 2025. Our overall gross profit percentage increased to 25.7% during the six months ended March 31, 2026 as compared to 24.4% during the six months ended March 31, 2025. 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 nine months ended June 30, 2026 increased $189.0 million compared to the nine months ended June 30, 2025. Our overall gross profit percentage increased to 26.4% during the nine months ended June 30, 2026 as compared to 25.3% during the nine months ended June 30, 2025. 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 six months ended March 31, 2026, our selling, general and administrative expenses were $264.3 million, an increase of $45.2 million, or 20.6%, over the six months ended March 31, 2025, driven primarily by increased personnel costs across our operating segments to support their growth, increased incentive compensation in connection with higher earnings than in the prior fiscal year and continued investment in technology to support the scalability of the business. Selling, general and administrative expenses as a percentage of revenue increased from 13.8% for the six months ended March 31, 2025 to 14.3% for the six months ended March 31, 2026.

Current wording

During the nine months ended June 30, 2026, our selling, general and admi nistrative expenses were $426.4 million, an increase of $80.0 million, or 23.1%, over the nine months ended June 30, 2025, driven primarily by increased personnel costs across our operating segments to support their growth, increased incentive compensation in connection with higher earnings than in the prior fiscal year and continued investment in technology to support the scalability of the business. Expense related to our cash-settled stock-based awards was $17.6 million for the nine months ended June 30, 2026, compared to $3.8 million for the nine months ended June 30, 2025, with the increase in expense driven by an increase in the price of our common stock. Selling, general and administrative expenses as a percentage of revenue decreased from 14.0% for the nine months ended June 30, 2025 to 13.8% for the nine months ended June 30, 2026.

Previous wording

Revenues. Our Communications segment’s revenues increased by $94.7 million during the three months ended March 31, 2026, or 34.7%, compared to the three months ended March 31, 2025. The increase primarily resulted from an increase in demand, particularly in the data center market, while demand in the distribution center market also continued to grow.

Current wording

Revenues. Our Communications segment’s revenues increased by $153.9 million during the three months ended June 30, 2026, or 51.4%, compared to the three months ended June 30, 2025. The increase primarily resulted from continued strong demand in the data center market, and our recent capital investments have positioned us well to respond to that demand and deliver solutions to our customers. Demand for our services in the distribution center and high-tech manufacturing end markets also increased year over year.

Previous wording

Gross Profit. Our Communications segment’s gross profit during the three months ended March 31, 2026 increased by $30.7 million, or 48.7%, compared to the three months ended March 31, 2025. Gross profit as a percentage of revenue was 25.5% in the three months ended March 31, 2026 compared to 23.1% in the three months ended March 31, 2025. The increase in gross profit and gross margin primarily reflects strong demand as discussed above and successful project execution and improved margins on projects well-suited to our skilled workforce.

Current wording

Gross Profit. Our Communications segment’s gross profit during the three months ended June 30, 2026 increased by $45.7 million, or 62.5%, compared to the three months ended June 30, 2025. Gross profit as a percentage of revenue was 26.2% in the three months ended June 30, 2026 compared to 24.4% in the three months ended June 30, 2025. The increase in gross profit and gross margin primarily reflects strong demand as discussed above and successful project execution and improved margins on projects well-suited to our skilled workforce.

Previous wording

Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $9.1 million, or 38.9%, during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase primarily reflects higher personnel costs 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 8.9% during the three months ended March 31, 2026, compared to 8.6% during the three months ended March 31, 2025 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 $9.8 million, or 38.7%, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase primarily reflects higher personnel costs 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 7.8% during the three months ended June 30, 2026, compared to 8.5% during the three months ended June 30, 2025 as we benefited from the increased scale of our operations.

Previous wording

Revenues. Our Communications segment’s revenues increased by $213.6 million, or 42.2%, during the six months ended March 31, 2026, compared to the six months ended March 31, 2025. Continued strong demand in the data center market was the primary driver of the increase, while demand in the distribution center market also continued to grow.

Current wording

Revenues. Our Communications segment’s revenues increased by $367.5 million, or 45.6%, during the nine months ended June 30, 2026, compared to the nine months ended June 30, 2025. Continued strong demand in the data center market was the primary driver of the increase, while demand in the distribution center and high-tech manufacturing end markets also continued to grow.

Previous wording

Gross Profit. Our Communications segment’s gross profit during the six months ended March 31, 2026 increased by $68.3 million, or 61.0%, as compared to the six months ended March 31, 2025. Gross profit as a percentage of revenue increased from 22.1% to 25.0%. The increase in gross profit and gross margin primarily reflects strong demand as discussed above, successful project execution and improved margins on projects well-suited to our skilled workforce.

Current wording

Gross Profit. Our Communications segment’s gross profit during the nine months ended June 30, 2026 increased by $114.0 million, or 61.6%, as compared to the nine months ended June 30, 2025. Gross profit as a percentage of revenue increased from 23.0% to 25.5%. The increase in gross profit and gross margin primarily reflects strong demand as discussed above, successful project execution and improved margins on projects well-suited to our skilled workforce.

Previous wording

Selling, General and Administrative Expenses. Our Communications segment’s selling, general and administrative expenses increased by $17.3 million, or 39.7%, during the six months ended March 31, 2026, compared to the six months ended March 31, 2025. 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% for the six months ended March 31, 2026 compared with 8.6% during the six months ended March 31, 2025 as the change 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 $27.2 million, or 39.3%, during the nine months ended June 30, 2026, compared to the nine months ended June 30, 2025. Theincrease 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 8.2% for the nine months ended June 30, 2026 compared with 8.6% during the nine months ended June 30, 2025 as we benefited from the increased scale of our operations.

Previous wording

Revenues. Our Residential segment’s revenues decreased by $30.4 million, or 9.5%, during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Our single-family electrical revenues decreased by $25.9 million, primarily due to the continued impact of housing affordability and general economic conditions on consumer demand in the single-family housing market leading to a decline in construction volumes and pressure on pricing during the period, along with unfavorable weather conditions in certain regions reducing the total working days available during the three months ended March 31, 2026. Our single-family plumbing and HVAC revenues increased by $10.9 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 on new home construction and unfavorable weather conditions impacting existing projects. Our multi-family revenues decreased by $15.4 million, or 19.5%, driven bya reduction in backlog during fiscal 2025 resulting from the impact of elevated interest rates on demand.

Current wording

Revenues. Our Residential segment’s revenues decreased by $21.9 million, or 6.3%, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Our single-family electrical revenues decreased by $20.4 million, primarily due to the continued impact of housing affordability and general economic conditions on consumer demand in the single-family housing market leading to a decline in construction volumes and pressure on pricing during the period. Our single-family plumbing and HVAC revenues increased by $10.9 million compared to the prior year period, with expansion of the plumbing and HVAC trades into new markets offsetting the impact of slowing demand on new home construction. Our multi-family revenues decreased by $12.4 million, or 14.2%, reflecting a decline in backlog during fiscal 2025 resulting from the impact of elevated interest rates on demand.

Previous wording

Gross Profit. During the three months ended March 31, 2026, our Residential segment's gross profit decreased by $17.9 million, or 22.4%, compared to the three months ended March 31, 2025, driven primarily by lower volume as discussed above. Gross profit as a percentage of revenue decreased to 21.5% during the three months ended March 31, 2026, compared to 25.1% for the three months ended March 31, 2025 as weaker demand and pricing pressure from our customers limited our ability to recover cost increases through pricing actions.

Current wording

Gross Profit. During the three months ended June 30, 2026, our Residential segment's gross profit decreased by $25.2 million, or 25.9%, compared to the three months ended June 30, 2025, driven primarily by lower volume as discussed above. Gross profit as a percentage of revenue decreased to 22.2% during the three months ended June 30, 2026, compared to 28.1% for the three months ended June 30, 2025 as the weaker demand environment and pricing pressure from our customers limited our ability to recover higher costs of materials through pricing actions.

Previous wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses decreased by $1.8 million, or 3.1%, during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily driven by lower incentive compensation costs associated with lower profitability. Selling, general and administrative expenses as a percentage of revenue in the Residential segment increased to 19.3% during the three months ended March 31, 2026, compared to 18.0% in the three months ended March 31, 2025. The increase as a percentage of revenue was primarily driven by the decrease in revenues as discussed above.

Current wording

Selling, General and Administrative Expenses. Our Residential segment's selling, general and administrative expenses decreased by $8.0 million, or 12.6%, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease was primarily driven by a reduction in headcount and lower incentive compensation costs associated with lower profitability. Selling, general and administrative expenses as a percentage of revenue in the Residential segment decreased to 17.2% during the three months ended June 30, 2026, compared to 18.5% in the three months ended June 30, 2025. The decrease as a percentage of revenue was primarily attributable to selling, general and administrative expenses declining at a faster rate than revenues, reflecting the reductions in incentive compensation and headcount described above.

Previous wording

Revenues. Our Residential segment’s revenues decreased by $66.3 million, or 10.4%, during the six months ended March 31, 2026, compared to the six months ended March 31, 2025. Our single-family electrical revenues decreased by $58.1 million compared to the prior year period. Consumer demand in the single-family housing market was impactedby housing affordability challenges, availability and cost of insurance, and overall economic uncertainty, leading to a decline in construction volumes and pressure on pricing during the period. Our multi-family revenues also decreased by $27.7 million, driven by a reduction in backlog during fiscal 2025 resulting from the impact of elevated interest rates on demand. Our single-family plumbing and HVAC revenue increased by $19.6 million compared to the prior year period asthe general decrease in demand for single-family housing was offset by continued expansion of our plumbing and HVAC business into new markets, as well as improved market conditions for these services in certain markets.

Current wording

Revenues. Our Residential segment’s revenues decreased by $88.2 million, or 9.0%, during the nine months ended June 30, 2026, compared to the nine months ended June 30, 2025. Our single-family electrical revenues decreased by $78.5 million compared to the prior year period. Consumer demand in the single-family housing market was impacted by housing affordability challenges, availability and cost of insurance, and overall economic uncertainty, leading to a decline in construction volumes and pressure on pricing during the period. Our multi-family revenues also decreased by $40.2 million, reflecting a decline in backlog during fiscal 2025 resulting from the impact of elevated interest rates on demand. Our single-family plumbing and HVAC revenue increased by $30.5 million compared to the prior year period as the general decrease in demand for single-family housing was more than offset by continued expansion of our plumbing and HVAC business into new markets, as well as improved market conditions for these services in certain markets.

Previous wording

Gross Profit. During the six months ended March 31, 2026, our Residential segment’s gross profit decreased by $34.1 million, or 21.5%, compared to the six months ended March 31, 2025. The decrease in gross profit reflects the decline in volume as discussed above and reduced pricing to our customers. Gross profit as a percentage of revenue was 21.8% during the six months ended March 31, 2026, compared to 24.9% during the six months ended March 31, 2025.

Current wording

Gross Profit. During the nine months ended June 30, 2026, our Residential segment’s gross profit decreased by $59.3 million, or 23.2%, compared to the nine months ended June 30, 2025. Gross profit as a percentage of revenue was 22.0% during the nine months ended June 30, 2026, compared to 26.0% during the nine months ended June 30, 2025. The decrease in gross profit and gross profit as a percentage of revenue reflects the decline in volume as discussed above and reduced pricing to our customers.

Previous wording

Selling, General and Administrative Expenses. Our Residential segment’s selling, general and administrative expenses decreased by $3.0 million, or 2.7%, during the six months ended March 31, 2026, compared to the six months ended March 31, 2025. The decrease was primarily driven by reduced incentive compensation expense in connection with lower profitability, partly offset by investments to support the future scalability of our business. Selling, general and administrative expenses as a percentage of revenue increased to 19.1% during the six months ended March 31, 2026, compared to 17.6% during the six months ended March 31, 2025. The increase as a percentage of revenue was primarily driven by the decrease in revenues as discussed above.

Current wording

Selling, General and Administrative Expenses. Our Residential segment’s selling, general and administrative expenses decreased by $11.0 million, or 6.3%, during the nine months ended June 30, 2026, compared to the nine months ended June 30, 2025. The decrease was primarily driven by a reduction in headcount and lower incentive compensation expense in connection with lower profitability, partly offset by investments to support the future scalability of our business. Selling, general and administrative expenses as a percentage of revenue increased to 18.5%during the nine months ended June 30, 2026, compared to 17.9% during the nine months ended June 30, 2025. Theincrease 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 $74.8 million during the three months ended March 31, 2026, an increase of 63.6% compared to the three months ended March 31, 2025, driven prim arily by continued strong demand in our custom engineered solutions manufacturing businesses, improved pricing, and the impact of investments to increase capacity we have made over the last several years. We also continued to expand our field services offerings. Gulf Island Fabrication, Inc. (“Gulf Island”), which was acquired on January 16, 2026, contributed $37.5 million in revenues in the three months ended March 31, 2026.

Current wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $94.6 million during the three months ended June 30, 2026, an increase of 73.1% compared to the three months ended June 30, 2025, driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses, primarily in the data center end market, and our ability to meet that demand through expanded capacity. We also continued to grow our field services offerings. Gulf Island Fabrication, Inc. (“Gulf Island”), which was acquired on January 16, 2026, contributed $51.7 million in revenues in the three months ended June 30, 2026.

Previous wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended March 31, 2026 increased $23.8 million, or 60.6%, compared to the three months ended March 31, 2025, driven by increased revenue as discussed above, while gross profit as a percentage of revenue decreased from 33.4% to 32.8%, primarily reflecting lower gross margins at the recently acquired Gulf Island business as we reposition its operations to better utilize available manufacturing capacity.

Current wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the three months ended June 30, 2026 increased $30.0 million, or 64.9%, compared to the three months ended June 30, 2025, driven by increased revenue as discussed above, while gross profit as a percentage of revenue decreased from 35.6% to 34.0%, primarily reflecting lower gross margins at the recently acquired Gulf Island business as we reposition its operations to better utilize available manufacturing capacity.

Previous wording

Selling, General and Administrative Expenses. Our Infr astructure Solutions segment’s selling, general and administrative expenses during the three months ended March 31, 2026 increased by $8.6 million, or 68.6%, compared to the three months ended March 31, 2025, 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 $5.4 million of expense, including amortization of acquired intangible assets, incurred at Gulf Island. Selling, general and administrative expenses as a percentage of revenue increased from 10.6% for the three months ended March 31, 2025 to 10.9% for the three months ended March 31, 2026, primarily reflecting the acquisition of Gulf Island.

Current wording

Selling, General and Administrative Expenses. Our Infr astructure Solutions segment’s selling, general and administrative expenses during the three months ended June 30, 2026 increased by $9.5 million, or 72.4%, compared to the three months ended June 30, 2025, 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 $6.5 million of expense, including amortization of acquired intangible assets, incurred at Gulf Island. Selling, general and administrative expenses as a percentage of revenue remained consistent at 10.1% for the three months ended June 30, 2025 and June 30, 2026.

Previous wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $106.9 million, or 47.3%, during the six months ended March 31, 2026 compared to the six months ended March 31, 2025. The increase in revenue was driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses, improved pricing and the impact of investments we have made over the last several years to increase capacity to meet increasing demand, as well as expansion of our field services offerings and the acquisition of Gulf Island as discussed above.

Current wording

Revenues. Revenues in our Infrastructure Solutions segment increased by $201.5 million, or 56.7%, during the nine months ended June 30, 2026 compared to the nine months ended June 30, 2025. The increase in revenue was driven primarily by continued strong demand in our custom engineered solutions manufacturing businesses, primarily in the data center end market, and our ability to meet that demand through expanded capacity. We also continued to grow our field services offerings. Gulf Island contributed$89.2 millionof revenues during thenine months ended June 30, 2026.

Previous wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the six months ended March 31, 2026 increased by $39.4 million, or 53.0%, compared to the six months ended March 31, 2025, and gross profit as a percentage of revenue increased to 34.2% for the six months ended March 31, 2026 compared to 32.9% for the six months ended March 31, 2025. The improvement in gross profit and gross margin primarily reflects improved pricing and productivity improvements as our newer facilities ramped up production, partly offset by the lower gross margin at Gulf Island as we reposition its operations to better utilize available manufacturing capacity.

Current wording

Gross Profit. Our Infrastructure Solutions segment’s gross profit during the nine months ended June 30, 2026 increased by $69.3 million, or 57.6%, compared to the nine months ended June 30, 2025, and gross profit as a percentage of revenue increased to 34.1% for the nine months ended June 30, 2026 compared to 33.9% for the nine months ended June 30, 2025. The improvement in gross profit and gross margin primarily reflects improved pricing and productivity improvements as our newer facilities ramped up production, partly offset by the lower gross margin at Gulf Island as we reposition its operations to better utilize available manufacturing capacity.

Previous wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the six months ended March 31, 2026 increased by $12.2 million, or 51.4%, compared to the six months ended March 31, 2025, as a result of the growth of the business, as well as $5.4 million of expense, including amortization of acquired intangible assets, incurred at Gulf Island. Selling, general and administrative expenses as a percentage of revenue increased from 10.5% for the six months ended March 31, 2025 to 10.8% for the six months ended March 31, 2026, primarily reflecting the acquisition of Gulf Island.

Current wording

Selling, General and Administrative Expenses. Our Infrastructure Solutions segment’s selling, general and administrative expenses during the nine months ended June 30, 2026 increased by $21.7 million, or 58.9%, compared to the nine months ended June 30, 2025, as a result of the growth of the business, as well as$11.9 million of expense, including amortization of acquired intangible assets, incurred at Gulf Island. Selling, general and administrative expenses as a percentage of revenue was 10.5% for the nine months ended June 30, 2026, compared with 10.4% for thenine months ended June 30, 2025 as the increase in selling, general and administrative expenses was generally consistent with the segment's revenue growth during the period.

Previous wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended March 31, 2026 increased by $9.3 million, or 34.6%, compared to the three months ended March 31, 2025. Gross profit as a percentage of revenue increased from 21.4% for the three months ended March 31, 2025 to 28.6% for the thee months ended March 31, 2026, as we benefited from strong execution on certain large data center projects.

Current wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the three months ended June 30, 2026 increased by $50.6 million, or 220.1%, compared to the three months ended June 30, 2025. Gross profit as a percentage of revenue increased from 19.9% for the three months ended June 30, 2025 to 30.5% for the three months ended June 30, 2026, as we benefited from strong execution on certain large data center projects, including certain large, short duration jobs that we executed 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, 2026 increased by $3.7 million, or 33.8%, compared to the three months ended March 31, 2025 primarily as a result of increased employee compensation cost as we continue to invest in the growth of the business and higher incentive compensation as a result of successful project execution. Selling, general and administrative expenses as a percentage of revenue increased from 8.8% for the three months ended March 31, 2025 to 11.7% for the three months ended March 31, 2026 as a result of the increased compensation expense discussed above.

Current wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the three months ended June 30, 2026 increased by $9.3 million, or 92.8%, compared to the three months ended June 30, 2025 primarily as a result of increased employee compensation cost as we continue to invest in the growth of the business and higher incentive compensation as a result of successful project execution. Selling, general and administrative expenses as a percentage of revenue decreased from 8.7% for the three months ended June 30, 2025 to 8.0% for the three months ended June 30, 2026 as we benefited from the increased scale of our operations.

Previous wording

Revenues. Revenues in our Commercial & Industrial segment increased by $7.5 million, or 3.5%, during the six months ended March 31, 2026, compared to the six months ended March 31, 2025. The increase was prim arily driven by continued strong demand and successful execution of backlog, particularly in the data center end market, as well as expansion of one of our operations in the Midwest market.

Current wording

Revenues. Revenues in our Commercial & Industrial segment increased by $133.5 million, or 40.5%, during the nine months ended June 30, 2026, compared to the nine months ended June 30, 2025 driven by an expansion of our capabilities in the data center end market, allowing us to increase the size and number of projects we can execute. We also benefited from theexpansion of one of our operations in the Midwest market, as well asthe execution of certain large, short duration projects.

Previous wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the six months ended March 31, 2026 increased by $14.3 million, or 34.1%, compared to the six months ended March 31, 2025. Gross profit as a percentage of revenue was 25.4% for the six months ended March 31, 2026 compared with 19.6% for the six months ended March 31, 2025 as we benefited from strong execution on certain large data center projects.

Current wording

Gross Profit. Our Commercial & Industrial segment’s gross profit during the nine months ended June 30, 2026 increased by $64.9 million, or 100.0%, compared to the nine months ended June 30, 2025. Gross profit as a percentage of revenue was 28.1% for the nine months ended June 30, 2026 compared with 19.7% for the nine months ended June 30, 2025 aswe benefited from strong execution on certain large data center projects. Results in the nine months ended June 30, 2026 also benefited from certain large, short duration jobs that we executed 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, 2026 increased by $6.2 million, or 32.4%, compared to the six months ended March 31, 2025 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of successful project execution, as we continue to invest in growth of the business. Selling, general and administrative expenses as a percentage of revenue increased to 11.4% for the six months ended March 31, 2026 compared with 8.9% for the six months ended March 31, 2025 as a result of the increased compensation expense discussed above.

Current wording

Selling, General and Administrative Expenses. Our Commercial & Industrial segment’s selling, general and administrative expenses during the nine months ended June 30, 2026 increased by $15.5 million, or 53.2%, compared to the nine months ended June 30, 2025 primarily as a result of increased employee compensation cost, including higher incentive compensation as a result of successful project execution, as we continue to invest in growth of the business. Selling, general and administrative expenses as a percentage of revenue increased to 9.7% for the nine months ended June 30, 2026 compared with 8.9% for the nine months ended June 30, 2025 as a result of the increased compensation expense discussed above.

Previous wording

During the three months ended March 31, 2026, we incurred interest expense of $1.5 million primarily comprised of interest on our revolving credit facility, which had an average outstanding balance of $83.9 million, interest on our finance lease agreements and fees on an average letter of credit balance of $11.3 million under our revolving credit facility and an average unused line of credit balance of $204.8 million. This compares to interest expense of $0.3 million for the three months ended March 31, 2025, 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.

Current wording

During the three months ended June 30, 2026, we incurred interest expense of $1.0 million primarily comprised of interest on our revolving credit facility, which had an average outstanding balance of $45.6 million, interest on our finance lease agreements and fees on an average letter of credit balance of $11.8 million under our revolving credit facility and an average unused line of credit balance of $242.6 million. This compares to interest expense of $0.5 million for the three months ended June 30, 2025, 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.

Previous wording

We recorded a net gain on marketable securities of $54.2 million for the six months ended March 31, 2026 compared to $7.9 million for the six months ended March 31, 2025 reflecting both realized gains and an increase in the market value of our holdings.

Current wording

We recorded a net gain on marketable securities of $26.2 million for the three months ended June 30, 2026 compared to a net loss of $3.3 million for the three months ended June 30, 2025 reflecting both realized gains or losses and changes in the market value of our holdings.

Previous wording

During the six months ended March 31, 2026, we incurred interest expense of $2.0 million primarily comprised of interest on our revolving credit facility, which had an average outstanding balance of $41.6 million, interest on our finance lease agreements and fees on an average letter of credit balance of $10.2 million under our revolving credit facility and an average unused line of credit balance of $248.2 million. This compares to interest expense of $0.8 million for the six months ended March 31, 2025, 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.

Current wording

During the nine months ended June 30, 2026, we incurred interest expenseof $3.0 million primarily comprised of interest on our revolving credit facility, which had an average outstanding balance of $42.9 million, interest on our finance lease agreements and fees on an average letter of credit balance of $10.7 million under our revolving credit facility and an average unused line of credit balance of $246.3 million. This compares to interest expense of $1.3 million for the nine months ended June 30, 2025, 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.

Previous wording

We recorded a net gain on marketable securities of $37.3 million for the three months ended March 31, 2026 compared to $5.5 million for the three months ended March 31, 2025 reflecting both realized gains and an increase in the market value of our holdings.

Current wording

We recorded a net gain on marke table securities of $80.4 million for the nine months ended June 30, 2026 compared to $4.6 million for the nine months ended June 30, 2025 reflecting both realized gains and an increase in the market value of our holdings.

Previous wording

We recorded income tax expense of $38.3 million for the three months ended March 31, 2026, compared to $26.1 million for the three months ended March 31, 2025, driven primarily by increased pretax income.

Current wording

We recorded income tax expense of $51.3 million for the three months ended June 30, 2026, compared to $29.5 million for the three months ended June 30, 2025, driven primarily by increased pretax income.

Previous wording

We recorded income tax expense of $66.7 million for the six months ended March 31, 2026, compared to $46.1 million for the six months ended March 31, 2025, driven primarily by increased pretax income.

Current wording

We recorded income tax expense of $118.0 million for the nine months ended June 30, 2026, compared to $75.5 million for the nine months ended June 30, 2025, driven primarily by increased pretax income.

Previous wording

There have been no significant changes to our accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

Current wording

There have been no significant changes toour accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

Previous wording

(2) During the quarter ended March 31, 2026, Infrastructure Solutions acquired $29.1 million of remaining performance obligations and backlog in connection with the acquisition of Gulf Island.

Current wording

(2) In January 2026, Infrastructure Solutions acquired $29.1 million of remaining performance obligations and backlog in connection with the acquisition of Gulf Island.

Previous wording

During the six months ended March 31, 2026, working capital exclusive of cash, cash equivalents and restricted cash increased by $87.4 million from September 30, 2025, reflecting a $287.0 million increase in current assets excluding cash and restricted cash and a $199.6 million increase in current liabilities during the period.

Current wording

During the nine months ended June 30, 2026, working capital exclusive of cash, cash equivalents and restricted cash increased by $190.7 million from September 30, 2025, reflecting a $499.0 million increase in current assets excluding cash and restricted cash and a $308.3 million increase in current liabilities during the period.