IES Holdings (IESC) opened fiscal 2026 on the back of a strong finish to 2025, with Q4 revenue of US$897.8 million and basic EPS of US$5.06, supported by quarterly net income of US$100.5 million. The company has seen revenue move from US$775.8 million in Q4 2024 to US$897.8 million in Q4 2025, while quarterly EPS over that span ranged from US$2.71 in Q3 2024 to US$5.06 most recently. This sets up an earnings story in which margins are central to how investors interpret the latest release.

With the numbers on the table, the next step is to see how this margin profile and earnings run rate line up with the prevailing stories about IES Holdings and where those narratives might need updating.

50% earnings growth meets higher 9% margin

• Over the last 12 months, net income reached US$303.1 million on US$3.4b of revenue, with a 9% net margin compared with 7% a year earlier and a 50% earnings growth rate over that period.
• What stands out for a bullish view is that this higher 9% margin sits alongside a five year annualized earnings growth rate of 44.3%. This lines up with the idea of a business benefiting from multiple profit drivers, even as investors weigh how that pace compares with the more moderate earnings growth outlook of about 14.3% per year.

Over the last 12 months, EPS trends outpaced many expectations and the margin shift to 9% is central to how growth focused investors are framing the story. 📊 Read the full IES Holdings Consensus Narrative.

TTM EPS of US$15.22 underpins growth story

• On a trailing basis, basic EPS is US$15.22, up from US$10.02 in the prior year period, and quarterly EPS moved from US$2.71 in Q3 2024 to US$5.06 in Q4 2025, giving you a line of sight from individual quarters to the trailing 12 month run rate.
• Supporters of a bullish angle point to that 50% year over year earnings growth and US$15.22 of trailing EPS as evidence of strong profit momentum, while the data showing revenue of US$3.4b and net income of US$303.1 million helps test whether that EPS level reflects underlying operations or one off factors.
• The trailing 12 month figures are described as high quality earnings, which backs the argument that the US$15.22 EPS is not just a function of accounting items.
• At the same time, the move from US$10.02 to US$15.22 on trailing EPS is much faster than the roughly 14.3% earnings growth outlook, so readers can ask whether recent momentum and that future growth profile are in sync.

P/E of 25x with DCF fair value below price

• The shares trade at US$380.29, which implies a P/E of 25x based on trailing EPS of US$15.22, compared with a DCF fair value of US$262.39 and the US Construction industry average P/E of 36.8x, while peers sit around 25.7x.
• Critics who lean more cautious focus on the gap between the current price and the DCF fair value, and the figures give them clear reference points to work with, as the stock sits above the DCF fair value of US$262.39 yet on a P/E multiple that is below the broader industry average and roughly in line with peers. This means the tension is between cash flow based valuation on one side and earnings based relative valuation on the other.
• The P/E of 25x suggests the market is valuing each US$1 of trailing earnings less aggressively than the wider US Construction group at 36.8x.
• However, the DCF view anchors attention on cash flows by flagging a lower figure than the current US$380.29 share price, which is why valuation focused investors may look closely at how the 9% margin and 50% earnings growth feed into future cash generation.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on IES Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

IES Holdings pairs strong recent earnings with a share price of US$380.29 that sits above a DCF fair value estimate of US$262.39, which raises questions about valuation support.

If that kind of gap gives you pause, check out these 868 undervalued stocks based on cash flows to focus on companies where price and cash flow based value look more closely aligned right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.