Energy Services of America Reports 11.6% Revenue Increase, Net Income Decline in Latest Quarter

Energy Services of America Corporation reported a revenue increase of 11.6% for the three months ended December 31, 2024, reaching $100.6 million compared to $90.2 million in the same period of the previous year. The company's net income for the quarter was $853,733, a decline from $2.0 million in the prior year, resulting in earnings per share of $0.05, down from $0.12. The increase in revenue was primarily driven by a $14.2 million rise in the Gas & Water Distribution segment and a $6.4 million increase in Electrical, Mechanical, & General services, although this was partially offset by a $10.1 million decrease in Gas & Petroleum Transmission work.

In terms of operational changes, Energy Services completed the acquisition of Tribute Contracting & Consultants, LLC on December 2, 2024, for a total consideration of $22 million, which included $20.8 million in cash and $2 million in common stock. This acquisition is expected to enhance the company's capabilities in constructing water distribution and wastewater systems, primarily for public municipalities in West Virginia, Ohio, and Kentucky. The acquisition contributed $1.6 million in revenue from Tribute during the month of December 2024.

The company’s total assets increased to $192.1 million as of December 31, 2024, up from $158.2 million at the end of the previous fiscal year. This growth was attributed to significant increases in property, plant, and equipment, as well as accounts receivable, which rose to $63.9 million, reflecting a $7.8 million increase. The company’s liabilities also rose, totaling $131.1 million, primarily due to the financing of the Tribute acquisition and increased borrowings on lines of credit.

Energy Services reported a backlog of $260.2 million as of December 31, 2024, compared to $243.2 million at the end of the previous fiscal year, indicating a positive outlook for future revenue generation. The company anticipates continued opportunities in water and wastewater projects, natural gas transmission, and electrical construction. However, management cautioned that while additional projects appear likely, there are no guarantees regarding the success of bidding on these projects.

Looking ahead, Energy Services remains focused on leveraging its recent acquisitions and expanding its service offerings. The company is optimistic about its growth prospects, although it acknowledges the inherent uncertainties in the bidding process and project execution. The management's forward-looking statements emphasize the importance of maintaining operational efficiency and managing costs effectively to navigate the competitive landscape.