Energy Services of America Corporation Reports 25.5% Revenue Growth to $130M in Latest Quarter

Energy Services of America Corporation reported significant financial growth in its latest quarterly results, with consolidated revenues reaching $130.0 million for the three months ended June 30, 2026, a 25.5% increase from $103.6 million in the same period last year. For the nine months ended June 30, 2026, revenues totaled $337.3 million, up 20.1% from $280.9 million in the prior year. The company attributed this growth to increased activity across its core business lines, particularly in gas and water distribution, gas and petroleum transmission, and electrical, mechanical, and general construction services.

The company's gross profit also saw a notable increase, rising to $14.3 million for the three months ended June 30, 2026, compared to $12.0 million in the same period of 2025. For the nine-month period, gross profit surged to $38.5 million, up from $22.3 million year-over-year. This improvement was driven by higher activity levels and enhanced project execution, although the gross profit margin was slightly impacted by lower margins on a large project within the gas and petroleum transmission segment.

In terms of operational developments, Energy Services reported a backlog of $286.6 million as of June 30, 2026, reflecting a steady increase from $259.7 million at the end of the previous fiscal year. The backlog includes approximately $70.0 million of recurring maintenance and blanket contract work expected to be performed over the next twelve months. The company anticipates that about $200.0 million of the project-specific backlog will be recognized as revenue in the upcoming year, contingent on normal project execution and scheduling.

The company also made strategic moves to strengthen its financial position, including a successful equity offering in February 2026 that generated approximately $21.2 million in net proceeds. This capital was utilized to support ongoing operations and reduce debt, with total liabilities decreasing to $135.4 million from $155.9 million in the previous fiscal period. Shareholders' equity increased to $84.1 million, bolstered by net income of $6.2 million for the nine months ended June 30, 2026, compared to a net loss of $3.9 million in the same period last year.

Looking ahead, Energy Services remains optimistic about its growth prospects, citing a favorable bidding environment across its core markets, including water and wastewater infrastructure and natural gas transmission. The company is well-positioned to capitalize on ongoing public and private infrastructure investments, and management believes that its diversified backlog provides meaningful visibility into future revenue. However, the timing and conversion of backlog into revenue will depend on various factors, including customer funding and project scheduling.