IES Holdings (NASDAQ:IESC) reported a 16% jump in fiscal first-quarter revenue, fueled by surging demand for data center infrastructure that helped the company weather a continued slowdown in the residential housing market.
Despite the top-line growth, the Sugar Land, Texas-based provider of electrical and technology systems saw its shares slip after earnings narrowly missed analyst expectations.
For the quarter ended Dec. 31, 2025, IES reported net income of $91 million, or $4.51 per share.
On an adjusted basis, profit reached $3.71 per share, falling short of the $3.82 consensus estimate.
Revenue totaled $871 million, which beat the $833 million forecast by Wall Street, driven primarily by a 51% revenue surge in its Communications segment.
The results underscore a widening divergence between the company's end markets.
While data center-related work drove record backlogs and double-digit growth in its Infrastructure and Commercial segments, the Residential division saw revenue decline 11%.
High interest rates and homebuilder incentives have continued to pressure the company's housing-related operations, a trend management expects to persist through the winter.