Energy Services of America (ESOA) investor relations material

Business performance and growth

• Achieved record revenue of $441 million for the trailing twelve months ended March 31, 2026, and EBITDA of $31.2 million, with a record backlog of $325.1 million, about 75% expected to be realized within 12 months.

• Completed a $23 million capital raise in February 2026, strengthening the balance sheet, enabling debt reduction, and supporting future growth.

• Debt reduced from $72 million to $35 million in six months, with further decreases by March 2026, reflecting improved balance sheet strength.

• Joined the Russell 2000 index and expanded to over 1,400 employees, primarily based in Huntington, West Virginia, with strong insider ownership at approximately 26%.

• Book value per share increased to $4.37 as of March 31, 2026, and total shareholders’ equity rose to $81.5 million.

Business segments and operations

• Operates in water and natural gas distribution, gas transmission, and industrial services, serving major clients like Toyota, Dow, Ford, and Nucor.

• Water segment grew from $20 million to $150 million, with stable, multi-year contracts.

• Gas transmission business is showing early signs of a cyclical upturn after years of stagnation.

• Nitro subsidiary has nearly tripled in size in three years, expanding from maintenance to construction services.

• Service offerings span water and natural gas distribution, gas transmission, electrical, mechanical, HVAC/R, general contracting, and paving.

Financial strategy and capital allocation

• Focused on improving EBITDA margins to 10%+ by next September, with adjusted EBITDA margin at 7.1% for the trailing twelve months ended March 2026.

• Regularly pays dividends, recently doubling to a quarterly $0.03 per share, and maintains a share buyback program, with 681,000 shares remaining on the current plan.

• Acquisitions are typically small, familiar businesses at favorable multiples, with recent examples including Rigney and Tribute.

• Capital expenditures average $8–10 million annually, mainly for equipment supporting core operations.

• Bonding capacity increased from $250 million to $400 million, reflecting improved financial strength.