Energy Services of America Reports $76.7M Revenue with Increased Losses for Q1 2025

Energy Services of America Corporation reported a revenue of $76.7 million for the three months ended March 31, 2025, marking a 7.8% increase from $71.1 million in the same period last year. For the six months ended March 31, 2025, revenue rose to $177.3 million, up 9.9% from $161.3 million in the prior year. However, the company experienced a net loss of $6.8 million for the quarter, compared to a loss of $1.1 million in the same quarter of 2024. The loss for the six-month period was $5.9 million, a significant decline from a profit of $933,000 in the previous year.

The increase in revenue was primarily driven by a substantial rise in the Gas & Water Distribution segment, which saw revenues increase by $12.8 million to $27.1 million for the quarter and by $27.0 million to $58.4 million for the six months. This growth was partially offset by a decline in the Gas & Petroleum Transmission segment, which decreased by $6.4 million for the quarter and $16.5 million for the six months. The company attributed these fluctuations to project completions and the timing of new bids and awards, particularly in the transmission sector.

In terms of operational developments, Energy Services completed the acquisition of Tribute Contracting & Consultants, LLC in December 2024, which contributed $6.2 million in revenue for the quarter and $7.9 million for the six months ended March 31, 2025. The acquisition has led to an increase in goodwill, which rose to $7.4 million from $4.1 million at the end of the previous fiscal year. The company’s total assets increased to $170.2 million, up from $158.2 million, while total liabilities rose to $116.4 million, reflecting the financing associated with the acquisition.

The company’s operational metrics showed a decrease in accounts receivable, which totaled $51.5 million, down from $56.1 million, primarily due to the timing of cash collections. Contract liabilities also increased to $22.9 million, up from $17.0 million, indicating a rise in billings in excess of costs and estimated earnings. The company reported a backlog of $280.7 million as of March 31, 2025, compared to $243.2 million at the end of the previous fiscal year, suggesting a positive outlook for future revenue generation.

Looking ahead, Energy Services anticipates increased bid opportunities in water and wastewater projects, as well as electrical and mechanical construction projects. However, the company noted that natural gas project bids are occurring later than in previous years. While the outlook appears promising with a growing backlog, the company cautioned that success in securing contracts is not guaranteed, and project execution may be influenced by external factors such as market conditions and customer capital availability.