Energy Services of America Corporation reported consolidated operating revenues of $411.0 million for the fiscal year ending September 30, 2025, marking a 16.8% increase from $351.9 million in the previous fiscal year. The revenue growth was primarily driven by a significant rise in the Gas & Water Distribution segment, which saw revenues increase by $67.1 million to $149.6 million, attributed to a focus on expanding water project opportunities. However, the Gas & Petroleum Transmission segment experienced a decline, with revenues falling by $16.5 million to $64.6 million due to fewer project awards and later bid opportunities.
The company's total cost of revenues also increased, rising by 23.3% to $372.2 million, which outpaced revenue growth and resulted in a gross profit of $38.8 million, down 22.4% from $50.0 million in the prior year. This decline in gross profit was attributed to increased competition in the water industry and a decrease in profitability from gas transmission projects. Selling and administrative expenses rose to $34.6 million, up from $30.1 million, largely due to increased business opportunities and management hires to support project growth.
Energy Services made strategic acquisitions during the fiscal year, including the purchase of Tribute Contracting & Consultants for $21.2 million and Rigney Digital Systems for $4.5 million. These acquisitions are expected to enhance the company's service offerings and market presence. The company reported a backlog of $259.7 million as of September 30, 2025, an increase from $243.2 million the previous year, indicating a solid pipeline of future work.
The company’s total assets increased to $215.2 million, up from $158.2 million, driven by higher accounts receivable and property, plant, and equipment. Liabilities also rose significantly to $156.0 million, primarily due to increased borrowings related to acquisitions and operational financing. As of September 30, 2025, Energy Services had a cash balance of $12.2 million and a line of credit of $30.0 million, which was renewed in July 2025.
Looking ahead, Energy Services anticipates continued growth driven by its strategic focus on expanding its service capabilities and addressing market demands. However, the company remains cautious about potential risks, including economic fluctuations, competition, and the ongoing review of its Paycheck Protection Program loan forgiveness status, which could impact its financial condition.
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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