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Energy Services of America (ESOA) - 2025 Q2 - Quarterly Results

Fiscal Second Quarter 2025 Results Second Quarter Summary Q2 FY2025 saw an 8% revenue increase to $76.7 million, but severe weather caused a $6.8 million net loss and minimal gross profit, despite a growing backlog of $280.7 million Q2 FY2025 Key Metrics | Metric | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | Revenue | $76.7 million | $71.1 million | | Gross Profit | $78,000 | $6.2 million | | Net Loss | ($6.8 million) | ($1.1 million) | | Net Loss Per Share | ($0.41) | ($0.07) | | Backlog | $280.7 million | $222.8 million | - Management attributes the poor quarterly results to unusually unfavorable weather conditions impacting the C.J. Hughes business and reducing fixed cost coverage5 - The company is encouraged by a $37 million sequential increase in backlog from September 30, 2024, and expects performance to improve in the historically stronger spring and summer months5 - Future strategy involves focusing on higher-margin projects, particularly in water distribution, and evaluating complementary acquisition opportunities5 Financial Performance Q2 FY2025 revenue grew to $76.7 million driven by Gas & Water Distribution, but weather-related issues caused gross margin to collapse to 0.1% and net loss to widen to $6.8 million Q2 & H1 FY2025 Operating Results Q2 FY2025 revenue grew 8% to $76.7 million, but gross profit plummeted and net loss widened to $6.8 million, with H1 FY2025 also showing a $5.9 million net loss Condensed Statement of Operations (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 76,679,151 | 71,127,655 | +7.8% | | Gross Profit | 77,860 | 6,239,554 | -98.8% | | Loss from Operations | (8,092,227) | (1,082,397) | +647.6% | | Net Loss | (6,798,418) | (1,108,828) | +513.1% | | Loss Per Share (basic) | (0.41) | (0.07) | +485.7% | Condensed Statement of Operations (Six Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 177,325,265 | 161,290,842 | +10.0% | | Gross Profit | 10,341,442 | 17,078,515 | -39.4% | | (Loss) Income from Ops | (6,446,266) | 2,557,844 | N/A | | Net (Loss) Income | (5,944,685) | 933,367 | N/A | - The year-over-year revenue increase was primarily driven by increased work within the Gas & Water Distribution business line, which offset a decline in Gas & Petroleum Transmission7 - Selling and administrative expenses rose from $7.3 million to $8.2 million YoY, mainly due to additional personnel and the acquisition of Tribute in December 20249 Backlog The company's project backlog showed strong growth, reaching $280.7 million as of March 31, 2025, a significant increase from prior fiscal year-end and prior-year levels Backlog Growth | Date | Backlog Amount ($) | | :--- | :--- | | March 31, 2025 | 280.7 million | | September 30, 2024 | 243.2 million | | March 31, 2024 | 222.8 million | Non-GAAP Measures (Adjusted EBITDA) Adjusted EBITDA, a non-GAAP metric, showed a $(4.9) million loss in Q2 FY2025 and a $(0.6) million loss for the six months, a significant decline from prior-year positive figures Adjusted EBITDA Reconciliation (unaudited) | Period | Adjusted EBITDA 2025 ($) | Adjusted EBITDA 2024 ($) | | :--- | :--- | :--- | | Three Months Ended Mar 31 | (4,909,765) | 922,930 | | Six Months Ended Mar 31 | (564,976) | 6,739,792 | - The company believes Adjusted EBITDA is a relevant indicator of trends in cash-generating activity and is useful for comparing operating performance with other companies12 Company Overview and Outlook Energy Services of America, a contractor in natural gas, petroleum, and water distribution, maintains a favorable outlook for H2 FY2025 and FY2026, focusing on higher-margin projects and strategic acquisitions - The company operates primarily in the mid-Atlantic and Central regions of the U.S., providing services to natural gas, petroleum, water distribution, automotive, chemical, and power industries13 - Management anticipates very favorable prospects for H2 FY2025 and FY2026, driven by strong water distribution demand and a focus on higher-margin projects, while continuing to evaluate acquisition opportunities5 - The report contains forward-looking statements, and investors are cautioned that actual results may differ materially from expectations due to various risks and uncertainties14