Core Viewpoint - Energy Services of America Corporation has successfully closed the overallotment option, issuing an additional 261,000 shares of common stock at a price of $11.50 per share, resulting in proceeds of approximately $2.8 million after underwriting discounts and commissions [1]. Group 1: Offering Details - The underwriter for the public offering was Lake Street Capital Markets, LLC, which acted as the sole underwriter [1]. - Roth Capital Partners served as the financial advisor for the offering [1]. - The offering was conducted under an effective shelf registration statement on Form S-3 (File No. 333-280025) [1]. Group 2: Company Overview - Energy Services of America Corporation (NASDAQ: ESOA) is headquartered in Huntington, WV, and operates primarily in the mid-Atlantic and Central regions of the United States [1]. - The company provides services to various industries, including natural gas, petroleum, water distribution, automotive, chemical, and power [1]. - Energy Services employs over 1,500 individuals regularly and emphasizes core values of safety, quality, and production [1].

Core Viewpoint - Energy Services of America Corporation has announced a public offering of common stock, aiming to raise approximately $20 million, with potential total proceeds of $23 million if the underwriter's option is fully exercised [1]. Group 1: Offering Details - The company is offering 1,740,000 shares at a price of $11.50 per share [1]. - The underwriter has a 30-day option to purchase an additional 261,000 shares [1]. - The expected closing date for the offering is February 20, 2026, subject to customary closing conditions [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, working capital, and potential acquisitions [1]. - The company currently has no specific plans or arrangements for any acquisitions [1]. Group 3: Underwriter and Advisors - Lake Street Capital Markets, LLC is serving as the sole underwriter for the offering [1]. - Roth Capital Partners acted as the financial advisor for the offering [1]. Group 4: Company Overview - Energy Services of America Corporation is headquartered in Huntington, WV, and operates primarily in the mid-Atlantic and Central regions of the United States [1]. - The company provides services to various industries, including natural gas, petroleum, water distribution, automotive, chemical, and power [1]. - Energy Services employs over 1,500 employees regularly [1].

Group 1 - Energy Services of America Corporation announced a proposed public offering of common stock, intending to sell shares in an underwritten offering [1] - The company plans to grant the underwriter a 30-day option to purchase additional shares, up to 15% of the number sold in the offering [1] - Proceeds from the offering will be used for general corporate purposes, working capital, and potential acquisitions, although there are no current plans for specific acquisitions [1] Group 2 - Lake Street Capital Markets, LLC is serving as the sole underwriter for the offering [1] - The company has filed a shelf registration statement and a preliminary prospectus supplement with the SEC for the offering [1] - Energy Services of America Corporation operates primarily in the mid-Atlantic and Central regions of the United States, providing services in various industries including natural gas and petroleum [1]

Revenue Performance - Energy Services reported consolidated operating revenues of $114.1 million for the three months ended December 31, 2025, a 13.4% increase from $100.6 million in the same period of 2024[126]. - The revenue breakdown for Q4 2025 included 35.6% from Gas & Water Distribution ($40.6 million), 21.1% from Gas & Petroleum Transmission ($24.1 million), and 43.3% from Electrical, Mechanical, & General services ($49.4 million)[127]. - Gas & Water Distribution revenues increased by $9.3 million, primarily due to increased water distribution services, while Gas & Petroleum Transmission revenues rose by $5.7 million due to new transmission projects[128][130]. - Electrical, Mechanical, & General construction services revenues decreased by $1.5 million, attributed to a decline in electrical services performed[131]. - Net income for the three months ended December 31, 2025, was $2.7 million, compared to $853,733 in the same period of 2024, representing a significant year-over-year increase[126]. - Earnings per share available to common shareholders for Q4 2025 was $0.16, up from $0.05 in Q4 2024, reflecting improved profitability[126]. Operational Efficiency - Gross profit for Q4 2025 was $14.0 million, compared to $10.3 million in Q4 2024, reflecting improved operational efficiency[126]. - Income from operations increased to $4.9 million in Q4 2025, up from $1.6 million in Q4 2024, indicating stronger operational performance[126]. - Total gross profit increased by $3.7 million to $14.0 million for the three months ended December 31, 2025, compared to $10.3 million for the same period in 2024[138]. - Gas & Water Distribution gross profit totaled $6.5 million for the three months ended December 31, 2025, a $1.4 million increase from $5.2 million for the same period in 2024[139]. Cost Analysis - Total cost of revenues increased by $9.7 million to $100.1 million for the three months ended December 31, 2025, compared to $90.4 million for the same period in 2024, representing a 10.8% increase[132]. - Gas & Water Distribution cost of revenues totaled $34.1 million for the three months ended December 31, 2025, an increase of $8.0 million from $26.1 million for the same period in 2024[133]. - Gas & Petroleum Transmission cost of revenues totaled $20.3 million for the three months ended December 31, 2025, a $2.8 million increase from $17.5 million for the same period in 2024[134]. - Total selling and administrative expenses increased by $463,000 to $9.1 million for the three months ended December 31, 2025, compared to $8.6 million for the same period in 2024[143]. Assets and Liabilities - The Company had total assets of $201.0 million at December 31, 2025, a decrease of $14.2 million from the prior fiscal year end balance of $215.2 million[159]. - Accounts receivable totaled $69.1 million at December 31, 2025, a decrease of $7.5 million from the prior fiscal year end balance of $76.6 million[160]. - The Company had net property, plant and equipment of $52.9 million at December 31, 2025, a decrease of $592,000 from the prior fiscal year end balance of $53.5 million[162]. - Intangible assets decreased to $4.5 million, down $406,000 from the prior fiscal year[163]. - Total liabilities decreased to $140.4 million, down $15.6 million from the prior fiscal year[168]. - Shareholders' equity increased to $60.6 million, up $1.4 million from the prior fiscal year, driven by net income of $2.7 million[177]. Debt and Financing - The company renewed its $30.0 million line of credit with a maturity date of June 28, 2027, at an interest rate of 6.75%[178]. - The company had a total of $51.5 million in long-term debt, a decrease of $10.3 million from the prior fiscal year[169]. - The company made principal payments of $4.9 million on its $7.5 million Non-Revolving Note agreement as of December 31, 2025[191]. - The company had borrowed $9.3 million against its Equipment Line of Credit 2023, with $3.9 million in principal payments made[194]. - The Company entered into a $500,000 sellers' note agreement for the acquisition of Rigney Digital Systems Ltd, with a fair carrying value of $461,000[197]. - The total acquisition price was $4.6 million, consisting of $3.0 million in cash and $1.0 million in common shares[198]. Backlog and Future Projections - The Company's unaudited backlog at December 31, 2025, was $301.4 million, an increase from $260.2 million at December 31, 2024, and $259.7 million at September 30, 2025[257]. - The projected backlog for Gas & Water Distribution and Gas & Petroleum Transmission categories was $161.7 million at December 31, 2025[258]. - Electrical, Mechanical, & General revenue decreased by $1.5 million for the three months ended December 31, 2025, compared to the same period in 2024, with a projected backlog of $139.7 million[259]. - The company anticipates continued growth in the Gas & Water Distribution and Gas & Petroleum Transmission sectors, driven by ongoing projects and increased demand[128]. Tax and Regulatory - The effective income tax rate for the three months ended December 31, 2025, was 29.5%, down from 34.8% for the same period in 2024[246]. - The Company had $5.2 million of federal net operating loss carryforwards at December 31, 2025, down from $6.9 million at September 30, 2025[248]. - Inflation did not have a significant effect on the Company's results for the three months ended December 31, 2025, and 2024[225]. Miscellaneous - NiSource and subsidiaries accounted for 13.5% of the Company's revenue for the three months ended December 31, 2025, up from 11.8% in 2024[213]. - TransCanada Corporation represented 18.2% of the Company's accounts receivable as of December 31, 2025, an increase from 13.9% in September 2025[214]. - The Company has a right-of-use operating lease for the Columbus, Ohio facility with a carrying value of $250,000 at December 31, 2025[205]. - The Company did not have a goodwill impairment at December 31, 2025[237]. - No quantitative disclosures about market risk were required for the smaller reporting company[261].

Financial Performance - Revenue for Q1 Fiscal 2026 was $114.1 million, a 13.4% increase from $100.6 million in Q1 Fiscal 2025[5] - Gross profit increased to $14.0 million, up from $10.3 million, with a gross margin improvement of 210 basis points to 12.3%[7] - Net income for the quarter was $2.7 million, or $0.16 per diluted share, compared to $854,000, or $0.05 per diluted share in the prior year[8] - Adjusted EBITDA rose to $8.3 million, compared to $4.3 million in the same quarter last year[5] Backlog and Demand - Backlog as of December 31, 2025, was $301.4 million, an increase from $259.7 million on September 30, 2025[9] - The company experienced a $41.7 million sequential increase in backlog, indicating strong demand across its segments[4] - Revenue from Gas & Water Distribution projects increased by 30% year-over-year due to ongoing replacement and upgrade cycles[4] - The Electrical, Mechanical and General projects saw a slight revenue decline year-over-year, but backlog increased by $7 million sequentially[4] Expenses and Acquisitions - Selling and administrative expenses were $9.1 million, reflecting a full quarter of expenses related to the Tribute acquisition[8] Future Outlook - The company remains optimistic about future business prospects, particularly in the Gas & Petroleum Distribution segment[4]

Core Insights - Energy Services of America Corporation reported a 13.4% year-over-year revenue increase, totaling $114.1 million for the first quarter of fiscal 2026, compared to $100.6 million in the same period last year [4][8] - The company experienced a sequential backlog increase of $41.7 million, reaching $301.4 million as of December 31, 2025, up from $259.7 million on September 30, 2025 [7][8] Financial Performance - Gross profit for the quarter was $14.0 million, an increase from $10.3 million in the prior-year quarter, with a gross margin improvement to 12.3% from 10.2% [5][8] - Selling and administrative expenses rose to $9.1 million, primarily due to the full quarter impact of the Tribute acquisition [6] - Net income increased to $2.7 million, or $0.16 per diluted share, compared to $854,000, or $0.05 per diluted share in the first quarter of fiscal 2025 [6][8] - Adjusted EBITDA for the quarter was $8.3 million, up from $4.3 million in the prior-year quarter [8] Segment Performance - The Gas & Water Distribution segment saw a revenue increase of 30% year-over-year, driven by ongoing replacement and upgrade cycles by municipalities and private utility companies [3] - The Electrical, Mechanical, and General projects segment experienced a slight revenue decline year-over-year, but backlog increased by $7 million sequentially due to strong demand for large construction projects [3]

Financial Performance - As of September 30, 2025, the Company reported a backlog of $259.7 million in contracts to be completed, up from $243.2 million on September 30, 2024[44]. - The Company received $9.8 million in PPP Loans, which were forgiven by the SBA in fiscal year 2021, but is currently under review, leading to a restatement of financial statements for fiscal years 2022 and 2021[41]. - The Company has a short-term borrowing recorded due to the SBA inquiry regarding the PPP Loans, amounting to $9.8 million plus accrued interest[41]. Workforce and Employment - As of September 30, 2025, the Company employed 1,418 individuals, including 558 full-time non-union employees[61]. - The Company emphasizes employee health and safety, providing various insurance plans and wellness programs to its workforce[62]. Industry Competition - The pipeline, electrical, and mechanical construction industries are highly competitive, with significant competition from larger firms that may have greater financial resources[51]. - The Company’s contracts are typically awarded on a competitive basis, with pricing and timely project completion being key factors in contract awards[46]. Regulatory and Compliance - Energy Services' operations are subject to various environmental regulations, which could impose compliance costs but have not materially affected earnings to date[54]. Research and Development - The Company has not made any material expenditures for research and development and does not own any patents, trademarks, or licenses[60]. Supply Chain and Materials - The Company anticipates being able to obtain necessary raw materials for ongoing projects, although delays may occur if customers face challenges in sourcing materials[49].

Financial Performance - Revenue for fiscal 2025 was $411.0 million, a 16.8% increase from $351.9 million in fiscal 2024[6] - Gross profit for fiscal 2025 was $38.8 million, with a gross margin of 9.4%, down from $50.0 million and 14.2% in the prior year[12] - Net income for fiscal 2025 was $380,000, or $0.02 per diluted share, compared to $25.1 million, or $1.51 per diluted share in fiscal 2024[13] - Adjusted EBITDA for fiscal 2025 was $17.2 million, down from $28.8 million in the previous year[15] - Selling and administrative expenses for fiscal 2025 were $34.6 million, up from $30.1 million in the prior year[13] Backlog and Demand - Backlog as of September 30, 2025, was $259.7 million, an increase from $243.2 million as of September 30, 2024[14] - The company experienced strong demand in the Gas & Water Distribution segment, driven by municipal and private utility upgrades[7] - The company anticipates favorable outlook for fiscal 2026, with increased activity in Gas Transmission and Electrical, Mechanical, and General segments[7] Acquisitions and Dividends - The company acquired Rigney Digital Systems on September 30, 2025, and Tribute Contracting & Consultants on December 2, 2024[6] - The company doubled its dividend rate to $0.12 per share and converted to quarterly payments[6]

Core Insights - Energy Services of America Corporation reported a 16.8% increase in total annual revenue, reaching $411.0 million for fiscal 2025, compared to $351.9 million in fiscal 2024 [6][10] - The company achieved its highest quarterly revenue in history, with fourth-quarter revenues of $130.1 million, up from $104.7 million in the same quarter of the previous year [6][8] - The company faced challenges with profitability due to unfavorable winter weather impacting project timelines, but remains optimistic about future growth driven by strong demand in various segments [5][11] Fiscal 2025 Highlights - Full-year gross profit was $38.8 million, down from $50.0 million in fiscal 2024, resulting in a gross margin of 9.4% compared to 14.2% in the prior year [11] - Net income for fiscal 2025 was $380,000, or $0.02 per diluted share, significantly lower than $25.1 million, or $1.51 per diluted share, in fiscal 2024, which included a legal judgment gain [12] - Selling and administrative expenses increased to $34.6 million from $30.1 million in the previous year, reflecting additional personnel hired for expected growth [11] Fourth Quarter Financial Results - Fourth-quarter gross profit was $16.5 million, down from $17.6 million in the prior-year quarter, with a gross margin of 12.6% compared to 16.8% [7] - Net income for the fourth quarter was $4.2 million, or $0.25 per diluted share, compared to $6.7 million, or $0.40 per diluted share, in the fourth quarter of fiscal 2024 [9] - Adjusted EBITDA for the fourth quarter was $11.3 million, slightly up from $11.1 million in the prior-year quarter [8][14] Strategic Acquisitions and Future Outlook - The company acquired Rigney Digital Systems on September 30, 2025, which is expected to enhance service offerings and improve margins [8] - The acquisition of Tribute Contracting & Consultants in December 2024 contributed to growth in the Gas & Water Distribution segment [5] - The company anticipates continued strong demand in the water and wastewater segment, as well as increased construction opportunities in the Electrical, Mechanical, and General segment [5]

Summary of Energy Services of America Corporation (NasdaqCM: ESOA) FY Conference Company Overview - **Company Name**: Energy Services of America Corporation (ESOA) - **Industry**: Infrastructure services, specifically in water and natural gas distribution, natural gas transmission, and electrical/mechanical services [2][3] Key Points and Arguments 1. **Stock Performance**: The stock price has fluctuated, recently dropping from $12 to $8.60, presenting a potential buying opportunity [2][3] 2. **Business Model**: ESOA primarily operates in the infrastructure sector, focusing on water and natural gas distribution, rather than oil and gas field services [3][4] 3. **Revenue and EBITDA**: The company reported $350 million in revenue and $28 million in EBITDA last year, with a goal to improve EBITDA margins to over 10% in the coming years [4][10] 4. **Acquisitions**: ESOA has made strategic acquisitions, including a $40 million water and wastewater contractor and a small HVAC controls company, Rigni Digital, which has high gross margins [5][12][26] 5. **Backlog Growth**: The backlog has increased from $70 million to $300 million over four years, primarily driven by water and general services contracts [6][25] 6. **Market Position**: ESOA competes with larger firms like Primoris and MasTec but maintains a lower stock valuation despite strong operational performance [5][6] 7. **Customer Base**: Major customers include regulated utilities and large industrial clients like Toyota and Nucor [7][11] 8. **Labor Challenges**: The company faces challenges in finding skilled labor, which limits growth potential; however, there is a growing emphasis on trades programs [22][49] 9. **Future Outlook**: The CEO projects revenue exceeding $500 million and EBITDA margins over 10% within five years, with a focus on organic growth and strategic acquisitions [43][46] Additional Important Insights 1. **Market Dynamics**: The gas transmission business has seen a decline due to low natural gas prices and political factors, but there are signs of recovery and increased project opportunities [37][40] 2. **Capital Allocation**: The board prioritizes dividends and organic growth, with a strategy to buy back stock when undervalued [28][29] 3. **Acquisition Strategy**: ESOA aims to acquire companies that can provide skilled labor and enhance operational capabilities [50] 4. **Job Size Variability**: The average job size varies significantly, with smaller contracts in water and gas distribution and larger contracts in gas transmission [51][52] This summary encapsulates the key aspects of the conference, highlighting the company's current status, strategic direction, and market challenges.