Energy Services of America Corporation Reports 13.4% Revenue Growth and Increased Net Income for December 2025 Quarter

Energy Services of America Corporation reported a significant increase in financial performance for the three months ended December 31, 2025, with total revenues reaching $114.1 million, up 13.4% from $100.6 million in the same period of 2024. The company’s gross profit also rose to $14.0 million, a 36.3% increase compared to $10.3 million a year earlier. This growth was primarily driven by increased revenues in the Gas & Water Distribution and Gas & Petroleum Transmission segments, which saw increases of $9.3 million and $5.7 million, respectively. However, revenues from Electrical, Mechanical, & General construction services decreased by $1.5 million.

The company’s net income for the quarter was $2.7 million, compared to $854,000 in the prior year, resulting in earnings per share of $0.16, up from $0.05. The increase in net income was attributed to higher revenues and improved operational efficiency, despite a rise in selling and administrative expenses, which totaled $9.1 million, up from $8.6 million in the previous year. The company also experienced an increase in interest expenses, which rose to $990,000 from $484,000, largely due to higher borrowings on its line of credit.

In terms of operational developments, Energy Services reported a backlog of $301.4 million as of December 31, 2025, an increase from $259.7 million at the end of the previous fiscal year. The company’s total assets decreased to $201.0 million from $215.2 million, primarily due to a reduction in contract assets and accounts receivable, which were impacted by the timing of project billings and cash collections. The company’s cash and cash equivalents increased to $16.7 million, up from $12.2 million, reflecting strong cash flow from operating activities.

Strategically, Energy Services has continued to expand its operations through acquisitions, including the purchase of Rigney Digital Systems Ltd. for $4.5 million, which was completed on September 30, 2025. This acquisition is expected to enhance the company’s capabilities in HVAC/R controls. The company also renewed its $30 million line of credit in July 2025, which provides additional liquidity for ongoing operations and future growth initiatives.

Looking ahead, Energy Services anticipates continued growth driven by its expanding project portfolio and strategic acquisitions. The company remains focused on enhancing its service offerings in the natural gas, petroleum, and water distribution sectors, while managing operational costs and improving profitability. The management expressed confidence in meeting its financial covenants and maintaining a strong financial position in the coming quarters.