Energy Services of America (ESOA) investor relations material

Business overview and strategy

• Focus shifted from capital-intensive gas transmission to water and gas distribution, now comprising about 75% of business, with regulated utility contracts providing stable, multi-year revenue streams.

• Significant growth in top-line revenue and backlog, with a strong presence in the Mid-Atlantic and expansion into the Midwest and Southeast through customer-driven opportunities.

• Organic growth driven by increased public scrutiny and funding for water infrastructure, as well as privatization trends in utilities.

• Acquisitions are targeted at family-owned businesses, with a preference for retaining leadership during transitions and aligning interests through stock ownership.

• Leadership and personnel are key to expansion, with about 50 individuals driving business lines and customer relationships.

Financial performance and capital allocation

• Revenue grew from $120 million in 2020 to $411 million in 2025, with trailing 12-month revenue at $467 million, reflecting 3.5x growth.

• EBITDA increased from $17 million (4.2%) in 2025 to $33 million (7.2%) in the trailing 12 months, with a focus on improving profitability alongside revenue growth.

• Backlog stands at $286 million, with $200 million expected to be executed within 12 months; maintenance and blanket contracts provide additional stability.

• Capital raise in February brought in $22 million, used to pay down debt and strengthen the balance sheet, enabling a $30 million line of credit and $400 million bonding capacity.

• Dividend increased to $0.04 per quarter, with a shareholder-friendly approach to capital allocation, including opportunistic share buybacks.

Growth outlook and future plans

• Targeting $500 million in revenue with 10% EBITDA margins, but sees potential to reach $700 million with slightly lower margins as a better outcome.

• Plans to continue growth through both organic expansion and M&A, with a focus on risk-sharing contracts and stable, recurring revenue streams.

• Expansion is customer-driven, with new offices and operations established in response to major client needs, particularly in automotive and industrial sectors.

• Leadership development and retention are critical for successful expansion into new markets and business lines.

• No immediate plans to issue additional equity; debt levels are at historic lows relative to revenue, positioning the company for future acquisitions.