10 Best Engineering Stocks to Buy in 2026

8. IES Holdings Inc. (NASDAQ:IESC)

Number of Hedge Fund Holders: 37

IES Holdings Inc. (NASDAQ:IESC) is one of the best engineering stocks to buy in 2026. On May 1, IES Holdings reported financial results for FQ2 2026, with revenue reaching $974 million, a 17% increase year-over-year. Operating income rose 21% to $112.3 million, while net income attributable to IES climbed 56% to $109.9 million, resulting in diluted EPS of $5.44. These gains were driven by demand in the data center market, which fueled significant growth in the Communications & Infrastructure Solutions segments.

Performance varied across segments, with the Communications business posting a 35% revenue increase due to heightened data center and distribution center activity. The Infrastructure Solutions segment saw a 64% surge in revenue, aided by the January acquisition of Gulf Island Fabrication, Inc., which contributed $37.5 million during the quarter. Conversely, the Residential segment faced a 10% revenue decline due to ongoing softness in the housing market and pricing pressures from home builders.

IES Holdings Inc. (NASDAQ:IESC) ended the quarter with a solid financial position, maintaining $49.5 million in cash and over $214 million in marketable securities. While the Gulf Island integration is expected to yield more meaningful earnings contributions in fiscal 2027, the company continues to invest heavily in hiring and training to execute its expanding backlog.

IES Holdings Inc. (NASDAQ:IESC) provides integrated electrical and technology systems through four segments: Communications, Residential, Infrastructure Solutions, and Commercial & Industrial. Headquartered in Texas, the firm has operated since 1997.