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Energy Services of America Reports First Quarter Results for Fiscal 2026

On February 9, 2026, Energy Services of America Corporation (NASDAQ: ESOA) released its financial results for the first quarter of fiscal 2026, ending December 31, 2025. The company showcased remarkable growth compared to the same quarter last year, indicating a robust demand and operational efficiency that bodes well for its future.

Financial Performance Highlights

• - Total Revenue: The company achieved revenue of $114.1 million, a significant increase from $100.6 million recorded in the previous year, representing a 13.4% year-over-year growth.
• - Gross Profit: Gross profit rose to $14.0 million, up from $10.3 million, showcasing an improved gross margin of 12.3%, an increase of 210 basis points compared to the prior year.
• - Net Income: Energy Services reported a net income of $2.7 million, or $0.16 per diluted share, compared to $854,000 or $0.05 per diluted share in Q1 of fiscal 2025.
• - Adjusted EBITDA: The adjusted EBITDA jumped to $8.3 million, significantly higher than the $4.3 million reported last year.

These impressive figures reflect the strength of the company's service offerings, particularly in their Gas and Water Distribution segment, which saw increased demand due to upscale infrastructure projects across various municipalities and private utility sectors.

Segment Performance

Doug Reynolds, President of Energy Services, attributed the strong results to the escalating demand within their Gas and Water Distribution segment and successful contracts awarded in the Gas and Petroleum Transmission segment during the quarter. He stated, “We continue to benefit from the very favorable tailwinds across our business, as evidenced by the $42 million sequential increase in our backlog.”

Backlog Growth

As of December 31, 2025, the company's backlog stood at $301.4 million, compared to $259.7 million on September 30, 2025, and $260.2 million from the previous year. This upward trajectory in backlog illustrates the increasing opportunities for future project expansions, especially as the Gas and Petroleum Distribution segment begins to recover with more bid opportunities surfacing.

Future Outlook

Despite slight declines in revenues from Electrical, Mechanical, and General projects, Energy Services remains optimistic. The company is maneuvering proactively through seasonal fluctuations, optimizing their workforce to maintain productivity during historically slower winter months.

Reynolds concluded, “We are optimistic about the prospects of the business, which should deliver long-term value to our shareholders.” This determination underscores their commitment to navigating challenges while seizing emerging opportunities for growth, especially in large construction projects.

Energy Services of America remains a vital player within the energy services sector, employing over 1,500 staff and focusing on delivering quality and safety across their operations in the mid-Atlantic and Central regions of the United States.

By maintaining strong financial health and a growing list of projects, the company is set to pave the way for future advancements in their service lines, reaffirming their position as an industry leader.

As they move further into the fiscal year, the financial results from Q1 2026 provide a promising glimpse into Energy Services of America's potential, both for shareholders and for the communities in which they operate.