On January 16, 2026, the Company acquired 100% of the common stock of Gulf Island Fabrication, Inc. (“Gulf Island”), a steel fabricator and service provider for the industrial, energy and government sectors, for a purchase price of $152,042, net of cash acquired. Gulf Island is a part of our Infrastructure Solutions segment and continues to operate under the Gulf Island name. The acquisition of Gulf Island expands our fabrication capabilities and our presence in the energy and other markets, and will add capacity for IES's custom engineered solutions. The following table provides a summary of the total allocable purchase price for the acquisition of Gulf Island:


	Purchase Consideration
Cash consideration, net of cash acquired	$	143,108
Fair value of stock-based compensation awards	2,143
Fair value of previously held interest in Gulf Island	6,791
Total allocable purchase price	$	152,042

We remeasured our previously held interest in Gulf Island to its fair value of $6,791 and realized a remeasurement gain of $2,818, representing the difference between the carrying value of that interest at September 30, 2025 and its fair value immediately prior to our acquisition of the remaining outstanding shares. Prior to the acquisition of the remaining outstanding shares of Gulf Island, we accounted for our initial investment as a trading security and recorded a gain or loss in each period to adjust the carrying value of the securities to fair value at each period end. The net impact of the change in value of our previously held interest in Gulf Island, inclusive of the final realized gain, was $17 and $2,818 for the three and nine months ended June 30, 2026, and is included in Gain (loss) on marketable securities in the Company's Condensed Consolidated Statements of Comprehensive Income.

The Company accounted for the transaction under the acquisition method of accounting, which requires recording assets and liabilities at fair value (Level 3). The preliminary purchase price allocation is subject to valuation activities that are currently underway; therefore, the allocation of purchase price is subject to change, and is expected to result in adjustments to the preliminary amounts recorded. The preliminary valuation of the assets acquired and liabilities assumed is as follows:


Trade accounts receivable	$	21,873
Prepaid and other current assets	17,156
Property and equipment	78,968
Deferred tax asset	6,110
Intangible - customer relationships	19,520
Intangible - trade name	4,890
Goodwill	21,747
Other assets	2,488
Current liabilities	(19,447)
Long term liabilities	(1,263)


Net assets acquired	$	152,042

In connection with this acquisition, we acquired goodwill of $21,747, of which $3,342 is tax deductible, attributable to an assembled workforce and other intangible assets that do not qualify for separate recognition. The intangible assets acquired primarily consisted of customer relationships and trade name with a weighted-average amortization period of 8.0 years and 4.0 years, respectively.