Energy Services of America Corporation (ESOA) reported its financial results for the third quarter and nine months ended June 30, 2025, revealing a significant increase in revenue but a notable decline in profitability compared to the same period last year. The company generated $103.6 million in revenue for the three months ended June 30, 2025, a 20.6% increase from $85.9 million in the same quarter of 2024. For the nine-month period, revenue rose to $280.9 million, up 13.6% from $247.2 million in the prior year. However, net income for the quarter fell to $2.1 million, down from $17.5 million in the previous year, while the nine-month net loss reached $3.9 million compared to a profit of $18.4 million in 2024.
The company's financial performance was impacted by several factors, including increased costs associated with its operations. The cost of revenue for the three months ended June 30, 2025, rose to $91.6 million, a 29.7% increase from $70.6 million in the same quarter of 2024. This increase was attributed to heightened activity in the Gas & Water Distribution and Electrical, Mechanical, & General construction sectors, as well as inefficiencies across all business models. Gross profit for the quarter decreased to $12.0 million, representing 11.6% of revenue, down from 17.8% in the prior year.
Strategically, ESOA completed the acquisition of Tribute Contracting & Consultants, Inc. in December 2024, which contributed to the company's growth. The acquisition added $10.2 million and $18.1 million in revenue for the three and nine months ended June 30, 2025, respectively. The company also reported an increase in its backlog, which reached $304.4 million at June 30, 2025, compared to $243.2 million at the end of the previous fiscal year. This backlog includes significant bid opportunities in water and wastewater projects, as well as electrical and mechanical construction projects.
Operationally, ESOA's total assets increased to $189.1 million as of June 30, 2025, up from $158.2 million at the end of the previous fiscal year. The company reported a rise in accounts receivable to $57.7 million, reflecting the timing of cash collections and project invoicing. Additionally, the company’s goodwill increased to $7.4 million, primarily due to the Tribute acquisition. However, total liabilities also rose to $134.6 million, driven by increased debt related to the acquisition and other financing activities.
Looking ahead, ESOA's management expressed optimism about future growth, citing a robust pipeline of projects and increased bid opportunities, particularly in the natural gas sector. The company anticipates that its backlog will support revenue growth in the upcoming quarters, although it acknowledged the uncertainty surrounding project awards and the timing of contract execution. The company remains focused on managing its costs and improving operational efficiencies to enhance profitability moving forward.
About Energy Services of America CORP
Energy Services of America Corporation is a contractor providing construction, repair, and maintenance services for natural gas pipelines, water distribution, electrical, mechanical, and civil projects across the mid-Atlantic and central U.S. regions. Serving utility, industrial, and government clients, it offers pipeline construction, electrical and mechanical installations, and civil contracting. The company emphasizes safety, union workforce management, and diversified industry expertise to deliver infrastructure solutions.
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