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Jun 30, 2022
IES Holdings Q3 2022 Earnings Report
Announced third quarter results for fiscal year 2022, showing revenue increase but a decrease in operating and net income compared to the same quarter of fiscal year 2021.
Key Takeaways
IES Holdings reported a 40% increase in revenue for Q3 2022 compared to Q3 2021, but experienced a decrease in operating and net income due to factors including a volatile commodities market, labor inefficiencies, and workforce disruptions related to COVID-19, as well as losses on specific projects.
Revenue increased by 40% to $567 million compared to the same quarter in fiscal 2021.
Operating income decreased by 30% to $15.6 million compared to the same quarter in fiscal 2021.
Net income attributable to IES decreased to $9.5 million, or $0.33 per diluted share, compared to $19.3 million, or $0.92 per diluted share, for the same quarter of fiscal 2021.
The company repurchased $5.6 million of its common stock during the third quarter of fiscal 2022.
IES Holdings
IES Holdings
IES Holdings Revenue by Segment
Revenue by Segment
Communications Revenue
CapyFin.comResidential Revenue
CapyFin.comInfrastructure Solutions Revenue
CapyFin.com Forward Guidance
While operating conditions in the third quarter of fiscal 2022 were challenging, and supply chain and labor market constraints may continue to present challenges in the near term, the company is optimistic about the long-term outlook for its business.
Positive Outlook
- Steps have been taken to address the issues that have impacted the profitability of Communications and Infrastructure Solutions segments.
- Expect improvement in the operating results of Communications and Infrastructure Solutions segments as we move through the fourth quarter and into fiscal 2023.
- See continued opportunity for organic growth in the Residential segment, particularly in Florida and Texas.
- Continue to evaluate the optimal structure for the Commercial & Industrial segment.
- Seek to mitigate risk while improving the financial and operational performance of the Company.
Challenges Ahead
- Operating conditions in the third quarter of fiscal 2022 were challenging.
- Supply chain constraints may continue to present challenges in the near term.
- Labor market constraints may continue to present challenges in the near term.
- Communications segment operating income decreased 57% due to expenses completing projects with substantial losses related to expansion.
- Infrastructure Solutions segment recorded an operating loss of $0.4 million partially as a result of execution difficulties on certain projects, supply chain disruptions and labor availability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income