#United States #Fiscal 2025 #Energy Services #Huntington #ESOA

Energy Services of America Reports Strong Fiscal 2025 Results

Energy Services of America Corporation (Nasdaq: ESOA) recently unveiled its fiscal results for the fourth quarter and full year ending September 30, 2025, showcasing a remarkable journey of growth.

Key Highlights

• - Revenue Boom: The company reported total revenues of $130.1 million for Q4, marking an increase from $104.7 million in the same quarter last year. Fiscal 2025 revenues reached $411.0 million, a 16.8% growth.
• - Profitability Metrics: While gross profit for Q4 was $16.5 million, down from $17.6 million previously, the company secured a net income of $4.2 million or $0.25 per diluted share.
• - Strategic Acquisitions: The acquisition of Rigney Digital Systems on September 30, 2025, and Tribute Contracting Consultants in December 2024 are set to enhance the company's service offerings.

Doug Reynolds, the President of Energy Services, stated, “Fiscal 2025 marked a significant year of growth for us, primarily due to the robust demand in our Gas and Water Distribution sectors.” He underscored the challenges posed by unfavorable winter weather that delayed project executions, impacting full-year profitability.

Detailed Financial Overview

The full-year financial snapshot revealed a gross profit of $38.8 million, a decline from $50.0 million, and an adjusted EBITDA of $17.2 million, down from $28.8 million compared to fiscal 2024. However, the company still boasts a healthy backlog totaling $259.7 million, an increase from last year’s figures.

The annual net income dipped to $380,000, down from $25.1 million the previous year, affected by the absence of a favorable legal judgment that had previously inflated their earnings.

Sector Performance

Significant increases in the Gas and Water Distribution segment propelled the revenue boost, even as the Gas Petroleum Transmission segment saw a downturn. The diversification into Electrical, Mechanical, and General construction has proved fruitful, resonating well with the market demands.

As municipalities and private utility companies engage in upgrades and replacements of outdated systems, Energy Services anticipates sustained demand across its service sectors. The company plans to leverage its recent acquisitions to optimize margins and further solidify its market position.

Looking Ahead

Reynolds expressed optimism regarding the outlook for FY2026, citing a revival in Gas Transmission activities and a generous pipeline of upcoming projects. “We are keen on pursuing additional acquisitions that align with our growth strategy,” Reynolds stated, emphasizing the commitment to maximizing shareholder value through deliberate, strategic moves.

In conclusion, Energy Services of America has forged a path of resilience and growth despite challenges, with significant plans for the future that promise to enhance its market standing and deliver value to shareholders.