Energy Services of America Reports Fourth Quarter and Full Year Fiscal 2025 Results

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]