It’s an electrifying time to be in this business
For IES Holdings, navigating a pandemic is just another blip in the cyclical nature of the construction industry, company officials said.
The Houston company provides electrical contracting work for residential, commercial and industrial construction. Along the way, IES Holdings expanded into high tech security and audiovisual work, repairing large motors in heavy manufacturing plants and custom engineering electrical and mechanical equipment for industrial settings.
Its nearly 5,400 employees operate in 40 states across the country, but Texas and the Southeast drove the company’s 2019 growth as more people moved into these regions and increased demand for housing. These trends helped IES move into the Top 5 of the Houston Chronicle’s list of the region’s 100 best performing public companies.
IES Holdings’ revenues jumped 20.3 percent to $1.1 billion last year from $922.4 million in 2018. Its profits jumped 35 percent to $33.2 million last year from $24.6 million in 2018.
Single-family and multifamily residential properties have driven much of its residential real estate growth, said chief financial officer Tracy McLauchlin.
On the commercial side, demand for data and the server farms that process the vast amounts of information have increased as companies rely on ecommerce and the internet.
“We are following the macro trends of strong housing and data center development,” said IES
Holdings President Gary Matthews.
IES Holdings was founded in 1997 as Integrated Electrical Services, Inc. In the last decade, it began acquiring subsidiary companies that build and install electrical and mechanical framework.
The company doesn’t expect a large drop in sales or massive layoffs this year because of the coronavirus pandemic; construction services were deemed “essential” by state governments, and crews could continue working on projects already underway. IES Holdings crews are breaking ground on new commercial real estate projects.
With no net debt and a strong balance sheet, Matthews said his company is well-positioned to survive and even thrive in the post-COVID-19 economy.
“We’re optimistic,” he said, “that the construction business will continue to operate at a really good, healthy level.”
“We’re optimistic that the construction business will continue to operate at a really good, healthy level.” IES Holdings President Gary Matthews