IES Holdings, Inc. 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.
Segments
The company operates through four business segments: Communications, Residential, Infrastructure Solutions, and Commercial & Industrial.
Communications segment
This segment is a nationwide provider of technology infrastructure services,...
IES Holdings, Inc. 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.
Segments
The company operates through four business segments: Communications, Residential, Infrastructure Solutions, and Commercial & Industrial.
Communications segment
This segment is a nationwide provider of technology infrastructure services, including the design, build, and maintenance of the communications infrastructure within data centers for co-location and managed hosting customers, for both large corporations and independent businesses.
This segment is a leading provider of network infrastructure solutions for data centers and other mission critical environments. The company's services include the design, installation and maintenance of network infrastructure for leading and recognizable global technology, social networking and e-commerce brands, including many Fortune 100 and 500 corporations. The company serves a variety of industries and end markets, including data centers for co-location and managed hosting customers; corporate, educational, financial, hospitality and healthcare buildings; e-commerce distribution centers; and high-tech manufacturing facilities. The company also provides the design and installation of audio/visual, telephone, fire, wireless access and intrusion alarm systems, as well as design/build, service and maintenance of data network systems. The company performs services across the United States from its 19 offices, which includes the segment headquarters located in Tempe, Arizona, and also provide dedicated onsite teams at its customers' sites.
Sales and Marketing
The company's long-term strategy is to improve its position as a preferred solutions and services provider to large national corporations and strategic local companies. Key elements of the company's long-term strategy include continued investment in its employees' technical expertise and expansion of its on-site maintenance and recurring revenue model, as well as opportunistic acquisitions of businesses that serve its markets, consistent with its stated corporate strategy.
Residential segment
This segment is a regional provider of electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation and air conditioning (HVAC) and plumbing installation services in certain markets.
This segment is a leading provider of electrical installation services for single-family housing and multi-family apartment complexes, as well as HVAC and plumbing installation services in certain markets, and cable television installations for residential and light commercial applications. This segment also provides services for the installation of residential solar power, both for new construction and existing residences. This segment is made up of 80 total locations, which include the segment headquarters in Houston, Texas. These locations geographically cover the Sun-Belt, Western, Mid-Atlantic and Northeastern regions of the United States.
Sales and Marketing
Demand for the company's Residential services is highly dependent on the number of single-family and multi-family home starts in the markets it serves. Although the company operates in multiple states, the majority of it single-family revenues are derived from services provided in Texas and Florida. The Texas market also remains an important part of the company's multi-family business; however, the majority of the company's multi-family revenue is earned across the Mid-Atlantic and Southeast.
The company's sales efforts include a variety of strategies, including a concentrated focus on national and regional homebuilders and multi-family developers and a local sales strategy for single and multi-family housing projects. The company's cable and solar revenues are typically generated through third parties specializing in these industries who select it as a preferred provider of installation services. A significant portion of the company's Residential business volume is generated from long-term, repeat customers, some of whom use IES as a preferred provider for major projects.
The long-term strategy is to continue to be a leading provider of electrical services to the residential market, and to continue to expand the company's offerings of plumbing and HVAC services. The key elements of the company's long-term strategy include allowing it to effectively scale according to the housing cycle, and to opportunistically increase its market share.
Infrastructure Solutions segment
This segment is a provider of electro-mechanical solutions for industrial operations, including apparatus repair and custom-engineered products, such as generator enclosures used in data centers and other industrial applications.
This segment provides electro-mechanical solutions for industrial operations to domestic and international customers. The company's Custom Power Solutions business includes the manufacture of custom commercial and industrial generator enclosures and the manufacture of custom-engineered power distribution equipment, including metal enclosed bus duct solutions used in power distribution. The company's Industrial Services business includes the maintenance and repair of alternating current (AC) and direct current (DC) electric motors and generators, as well as power generating and distribution equipment; the manufacture, re-manufacture, and repair of industrial lifting magnets; and maintenance and repair of railroad main and auxiliary generators, main alternators, and traction motors.
This segment serves the steel, railroad, marine, petrochemical, pipeline, pulp and paper, wind energy, mining, automotive, power generation, scrap yards, data center, and utility industries. This segment consists of 12 locations in Alabama, Georgia, Illinois, Indiana, Ohio, Oklahoma and West Virginia, and is headquartered in Massillon, Ohio.
Sales and Marketing
The company's sales efforts are primarily driven by personnel based at its operating locations, as well as independent sales representatives. The company's custom-engineered power distribution, bus system and generator enclosure products and services are principally sold in partnership with an original equipment manufacturer (OEM) or to an engineering, procurement and construction firm on behalf of the end-user. Regarding its apparatus repair services, the majority of the company's customers are located within a 200-mile radius of its facilities, and the locations of the company's facilities allow it to rapidly address and respond to the needs of its customers. The company's long-term strategy is to be a leader in custom-engineered metal enclosed bus systems and generator enclosures and the preferred solutions provider of outsourced electro-mechanical services, repairs, and manufacturing to its select markets.
Commercial & Industrial segment
This segment is a provider of electrical and mechanical design, construction, and maintenance services to the commercial and industrial markets in various regional markets and nationwide in certain areas of expertise, such as the power infrastructure market and data centers.
This segment provides electrical and mechanical design, service, and construction services to commercial and industrial markets. The company's construction services range from the initial planning and procurement to installation and start-up and are offered to a variety of new and remodel construction projects, ranging from the construction of office buildings and industrial facilities to transmission and distribution projects. The company's design services range from budget assistance to providing design-build and LEED (Leadership in Energy & Environmental Design) solutions to its end customers. The company's maintenance and emergency services include critical plant shutdown, troubleshooting, emergency testing, preventative maintenance, and constant presence. The company also provides mechanical services, such as maintenance agreements, installation, or replacement of mechanical equipment for commercial and industrial facilities.
This segment provides services for a variety of project types, including office buildings, manufacturing facilities, data centers, wind farms, solar facilities, municipal infrastructure and health care facilities. This segment consists of 16 locations, which includes the segment headquarters in Houston, Texas. Geographically, these locations cover Texas, Nebraska, Oregon, Wisconsin, and the Southeast and Mid-Atlantic regions.
Sales and Marketing
The company's sales focus varies by location, but is primarily based upon regional and local relationships and a demonstrated expertise in certain areas, such as heavy industrial, design-build, agricultural, or transmission and distribution. The company's maintenance and certain renovation and upgrade work tends to be either recurring or experience lower sensitivity to economic cycles, or both. A significant portion of the company's larger projects is awarded from long-term, repeat customers. From time to time, the company is contracted on projects with completion times extending beyond one year or over several years, which are generally more complex and difficult to estimate.
Customers
During the year ended September 30, 2023, one customer accounted for 12.0% of the company's consolidated revenues.
Strategy
The company seeks to create shareholder value by growing its business through increasing its market share, geographic and market expansion and adding to its capabilities, as well as improving operating margins and generating free cash flow, by investing in its existing businesses and completing acquisitions. The company primarily seeks to acquire businesses that strategically complement its existing business segments.
History
The company, a Delaware corporation, was founded in 1997. It was incorporated in 1997. The company was formerly known as Integrated Electrical Services, Inc. and changed its name to IES Holdings, Inc. in 2016.