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]

Records 16.8% Annual Revenue Increase and Highest Quarterly Revenue in Company History   HUNTINGTON, W.Va., Dec. 9, 2025 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), today announced its results for its fourth quarter and fiscal year ended September 30, 2025. Fourth Quarter Highlights (1) Revenue of $130.1 million versus $104.7 million Gross profit of $16.5 million versus $17.6 million Net income of $4.2 million, or $0.25 per diluted share, com ...

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.

Core Points - Energy Services of America (Nasdaq: ESOA) will have its President Doug Reynolds and CFO Charles Crimmel present at the Southwest IDEAS Investor Conference on November 20, 2025 [1] - The presentation is scheduled to start at 4:20 PM ET and will be available via webcast [1] 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 [3] - The company provides services to various industries including natural gas, petroleum, water distribution, automotive, chemical, and power [3] - Energy Services employs over 1,000 employees regularly and emphasizes core values of safety, quality, and production [3]

Company Overview - Energy Services of America Corporation, headquartered in Huntington, West Virginia, operates primarily in the mid-Atlantic and Central regions of the United States, providing services across various industries including natural gas, petroleum, water distribution, automotive, chemical, and power [4]. - Nitro Construction Services, a subsidiary of Energy Services, has over 60 years of experience in industrial construction, fabrication, and maintenance services, emphasizing safety, craftsmanship, and long-term client partnerships [5]. Acquisition Details - Nitro Construction has completed the acquisition of Rigney Digital Systems Ltd Co., a regional leader in HVAC control systems based in Hurricane, West Virginia [1][2]. - Rigney Digital Systems, founded in 2000, is known for designing, installing, and servicing advanced HVAC control systems that enhance efficiency, comfort, and reliability [2][6]. - The acquisition allows Rigney to maintain its brand identity, staff, and client relationships while benefiting from Nitro Construction's resources and support [2][3]. Strategic Fit - The acquisition is described as a natural fit for Nitro Construction, as Rigney's HVAC control expertise complements existing services, enabling the provision of smarter and more efficient building solutions [3]. - Rigney Digital Systems will continue to operate as a distinct entity within Nitro Construction, ensuring continuity for existing customers and supporting future growth in HVAC controls and building technology [3].

Core Insights - Energy Services of America Corporation announced the acquisition of Rigney Digital Systems, a leader in HVAC control systems, enhancing its capabilities in building technology [1][2][3] Company Overview - Energy Services of America Corporation operates primarily in the mid-Atlantic and Central regions of the U.S., providing services across various industries including natural gas, petroleum, and power [4] - Nitro Construction, a subsidiary of Energy Services, has over 60 years of experience in industrial construction and maintenance services, emphasizing safety and craftsmanship [5] - Rigney Digital Systems, founded in 2000, specializes in HVAC control systems, focusing on optimizing building performance and energy efficiency [6] Acquisition Details - The acquisition allows Rigney Digital Systems to retain its brand identity and client relationships while benefiting from Nitro Construction's resources [2][3] - Douglas Reynolds, President and CEO of Energy Services, stated that the acquisition is a natural fit, enhancing service offerings for clients [3]

Summary of Energy Services of America Corporation (ESOA) FY Conference Call Company Overview - **Company Name**: Energy Services of America Corporation (ESOA) - **Ticker**: ESOA - **Industry**: General contracting and construction, HVAC electrical work - **Primary Region**: Appalachian region - **Revenue**: $352 million in the last fiscal year - **Adjusted EBITDA**: $29 million [5][6] Core Business Segments - **Natural Gas and Petroleum Transmission**: Main focus area - **Water and Natural Gas Distribution**: Significant operations - **Industrial Services**: Involves power, automotive, chemical, and steel manufacturing [3][4] Financial Performance - **Employee Count**: Approximately 1,400 employees [6] - **Backlog**: Increased to $304 million as of June, with $125 million in water services and $100 million in industrial services [7][43] - **Quarterly Dividend**: $0.03 per share [10][48] Growth Strategies - **Geographical Expansion**: Active in expanding reach, particularly in Michigan and other states based on customer demand [8][11] - **Mergers and Acquisitions**: Completed four acquisitions to enhance service offerings and geographical presence [9][12] - **Diversification**: Shifted focus from solely gas transmission to include water distribution and industrial services to mitigate risks [15][16] Customer Relationships - **Key Customers**: American Water, Toyota, Mountaineer Gas, Dow, and TC Energy [12][13] - **Importance of Relationships**: Strong customer relationships are crucial for securing contracts and expanding operations [7][11] Safety and Operational Focus - **Safety as a Core Value**: Emphasis on safety to maintain customer trust and employee well-being [36][37] - **Quality Production**: Aiming for high standards in service delivery to ensure shareholder returns [38] Market Outlook - **Future Opportunities**: Anticipation of growth in water distribution services due to aging infrastructure and increasing demand for clean water [42][43] - **Challenges**: Weather-related disruptions and customer spending delays have impacted profitability [46][47] Capital Allocation and Stock Management - **Active in Acquisitions**: Continues to seek acquisition opportunities to enhance service capabilities [47] - **Stock Repurchase Plan**: Approximately 786,000 shares remaining for repurchase [48] Conclusion - **Overall Sentiment**: Optimistic about future growth despite recent challenges, with a focus on diversifying services and maintaining strong customer relationships [44][45]

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 [4] - The company provides services to customers in various industries including natural gas, petroleum, water distribution, automotive, chemical, and power [4] - Energy Services employs over 1,000 employees on a regular basis, emphasizing core values of safety, quality, and production [4] Event Announcement - Energy Services of America will present at the Midwest IDEAS Investor Conference on August 27, 2025, at The InterContinental in Chicago, IL [1] - The presentation is scheduled to begin at 9:15 am CT and will be webcast, accessible through the conference host's main website [1]

Part I: Financial Information This section presents the unaudited consolidated financial statements and management's discussion and analysis for the period ended June 30, 2025 [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements for Q3 2025 show increased assets and revenue, but a net loss of $3.9 million due to lower margins and no prior-year lawsuit judgment [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $189.1 million, driven by an acquisition, while liabilities increased to $134.6 million and equity decreased to $54.5 million Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | June 30, 2025 ($) | September 30, 2024 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $121,617,498 | $110,426,929 | | **Total Fixed Assets** | $54,090,651 | $38,135,714 | | **Goodwill** | $7,428,761 | $4,087,554 | | **Total Assets** | **$189,121,088** | **$158,247,000** | | **Total Current Liabilities** | $91,001,964 | $74,248,552 | | **Long-Term Debt** | $37,600,186 | $17,187,992 | | **Total Liabilities** | **$134,579,565** | **$99,552,856** | | **Total Shareholders' Equity** | **$54,541,523** | **$58,694,144** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Nine-month revenue rose to $280.9 million, but gross profit declined, resulting in a net loss of $3.9 million compared to prior year's $18.4 million net income Consolidated Income Statement Summary (Unaudited) | Metric | Nine Months Ended June 30, 2025 ($) | Nine Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | | **Revenue** | $280,926,850 | $247,214,602 | | **Gross Profit** | $22,324,040 | $32,386,339 | | **Income (Loss) from Operations** | ($3,278,213) | $11,050,477 | | **Proceeds from Lawsuit Judgement** | $0 | $15,634,499 | | **Net Income (Loss)** | **($3,863,056)** | **$18,446,994** | | **Diluted EPS** | **($0.23)** | **$1.11** | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was $13.4 million, investing activities used $29.2 million for an acquisition, and financing provided $18.2 million, increasing cash by $2.4 million Consolidated Cash Flow Summary (Unaudited) | Cash Flow Activity | Nine Months Ended June 30, 2025 ($) | Nine Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $13,421,957 | $19,524,533 | | **Net Cash from Investing Activities** | ($29,159,985) | ($5,670,815) | | **Net Cash from Financing Activities** | $18,150,226 | ($15,747,423) | | **Increase (Decrease) in Cash** | $2,412,198 | ($1,893,705) | | **Cash at End of Period** | $15,338,234 | $14,537,867 | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity decreased to $54.5 million due to net loss, dividends, and treasury stock purchases, partially offset by stock issuance for an acquisition - Key changes in shareholders' equity for the nine months ended June 30, 2025 include a net loss, payment of dividends, issuance of **$2.0 million** in common stock for the Tribute acquisition, and purchase of treasury stock[15](index=15&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail business, accounting policies, the $24 million Tribute acquisition, PPP loan uncertainty, revenue breakdown, and debt covenant non-compliance with waiver - The company provides construction and repair services for the natural gas, petroleum, water distribution, automotive, chemical, and power industries, primarily in the mid-Atlantic and central U.S.[19](index=19&type=chunk) - On December 2, 2024, the company acquired Tribute Contracting & Consultants, LLC for **$22.0 million in cash** and **$2.0 million in stock**, adding water distribution and wastewater system construction capabilities[27](index=27&type=chunk)[77](index=77&type=chunk) - The company restated prior financial statements due to an ongoing SBA review of its **$9.8 million** in previously forgiven PPP loans, recording a short-term borrowing liability for the full amount plus interest due to outcome uncertainty[33](index=33&type=chunk)[34](index=34&type=chunk)[71](index=71&type=chunk) - At June 30, 2025, the company had **$258.2 million** in remaining unsatisfied performance obligations (backlog), expected to be recognized as revenue over the next twelve months[48](index=48&type=chunk) - The company was not in compliance with all financial covenants at June 30, 2025, but received a waiver from its lender, who agreed to omit the effect of the PPP loan restatement from covenant calculations[69](index=69&type=chunk)[163](index=163&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 13.6% revenue growth to $280.9 million, a $3.9 million net loss due to lower gross profit, balance sheet expansion from acquisition, and a $304.4 million backlog [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Revenue increased 13.6% to $280.9 million, but gross profit declined 31.1% to $22.3 million, leading to a $3.9 million net loss due to weather and project mix Revenue by Segment (Nine Months Ended June 30) | Segment | 2025 Revenue ($) | 2024 Revenue ($) | % Change | | :--- | :--- | :--- | :--- | | Gas & Water Distribution | $96,967,546 | $53,892,952 | 79.9% | | Gas & Petroleum Transmission | $37,177,225 | $55,465,127 | -33.0% | | Electrical, Mechanical, & General | $146,782,079 | $137,856,523 | 6.5% | | **Total** | **$280,926,850** | **$247,214,602** | **13.6%** | Gross Profit Analysis (Nine Months Ended June 30) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Gross Profit** | $22,324,040 | $32,386,339 | -31.1% | | **Gross Margin** | 7.9% | 13.1% | -5.2 p.p. | - The decrease in gross profit was primarily due to less efficient performance, significant impacts from inclement weather in Q2, and a later start for Gas & Petroleum Transmission work compared to the prior year[130](index=130&type=chunk) - Selling and administrative expenses increased by **$4.3 million**, driven by additional personnel, increased consulting and audit fees from becoming an accelerated filer, and costs from the newly acquired Tribute subsidiary[136](index=136&type=chunk) [Comparison of Financial Condition](index=28&type=section&id=Comparison%20of%20Financial%20Condition) Total assets grew to $189.1 million and liabilities to $134.6 million, primarily due to the Tribute acquisition, while shareholders' equity decreased to $54.5 million - Net property, plant and equipment increased by **$16.0 million**, primarily due to **$14.9 million** in assets from the Tribute acquisition[145](index=145&type=chunk) - Goodwill increased by **$3.3 million** to **$7.4 million** due to the Tribute acquisition[148](index=148&type=chunk) - Total debt (current and long-term) increased by **$25.2 million**, mainly due to **$16.0 million** in financing for the Tribute acquisition and the assumption of **$3.8 million** of its debt[153](index=153&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company has a $30.0 million credit line, received a waiver for debt covenant non-compliance, faces uncertainty regarding $9.8 million in PPP loans, and has $86.9 million in performance bonds - The company renewed its **$30.0 million** line of credit in July 2025, with an outstanding balance of **$11.6 million** at June 30, 2025[161](index=161&type=chunk)[162](index=162&type=chunk) - The company was not in compliance with all debt covenants at June 30, 2025, and received a waiver, with the lender agreeing to exclude the impact of the PPP loan restatement from covenant calculations[163](index=163&type=chunk) - The SBA is reviewing the forgiveness of **$9.8 million** in PPP loans, creating uncertainty and a potential repayment liability that could negatively impact financial condition[166](index=166&type=chunk)[168](index=168&type=chunk) - As of June 30, 2025, the company had **$86.9 million** in performance bonds outstanding to guarantee project performance and payments to subcontractors[188](index=188&type=chunk) [Outlook](index=39&type=section&id=Outlook) Management reports a strong backlog of $304.4 million, with significant bid opportunities in water, wastewater, electrical, and mechanical projects Backlog Comparison | Date | Unaudited Backlog ($) | | :--- | :--- | | June 30, 2025 | $304.4 million | | June 30, 2024 | $250.9 million | | September 30, 2024 | $243.2 million | - The company is seeing significant bid opportunities for water, wastewater, electrical, and mechanical projects, with backlogs of **$125.0 million** and **$133.0 million** in these areas, respectively[233](index=233&type=chunk) - Bidding and awards for natural gas projects are occurring later than in previous years, but bid opportunities increased in the third fiscal quarter, with the backlog for transmission projects at **$30.0 million**[234](index=234&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Disclosure about market risk is not required as the company qualifies as a smaller reporting company - Disclosure about market risk is not required as the company qualifies as a smaller reporting company[236](index=236&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal controls, and the Tribute subsidiary is within its SOX compliance grace period - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[237](index=237&type=chunk) - The recently acquired Tribute subsidiary has a one-year grace period before needing to fully comply with Sarbanes-Oxley (SOX) regulations[239](index=239&type=chunk) Part II: Other Information This section provides information on legal proceedings, risk factors, equity security sales, other disclosures, and exhibits [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is negotiating a disputed pension withdrawal liability claim, with no future liability expected, and other legal proceedings are not material - The company is negotiating a disputed pension withdrawal liability claim for work that ended in 2011, with payments suspended and no future liability expected[242](index=242&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the filing of the Annual Report on Form 10-K - No material changes to risk factors have occurred since the filing of the Annual Report on Form 10-K[244](index=244&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported no unregistered equity sales and repurchased 106,392 shares of common stock for $844,230 during Q3 FY2025 Issuer Purchases of Equity Securities (Q3 FY2025) | Period | Total Shares Purchased | Average Price Paid Per Share ($) | Total Value of Shares Purchased ($) | | :--- | :--- | :--- | :--- | | April 2025 | — | — | — | | May 2025 | 106,392 | $7.94 | $844,230 | | June 2025 | — | — | — | | **Total** | **106,392** | **$7.94** | **$844,230** | [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the third fiscal quarter of 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the third fiscal quarter of 2025[246](index=246&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including SOX certifications and XBRL data files - Exhibits filed include Sarbanes-Oxley certifications (302 and 906) and XBRL interactive data files[250](index=250&type=chunk) [Signatures](index=43&type=section&id=Signatures) The report is duly signed by the Chief Executive Officer and Chief Financial Officer on August 11, 2025