Energy Services of America Corporation (ESOA) investor relations material

Business overview and operations

• Operates as a contractor in natural gas, petroleum, water, and industrial sectors, with services including electrical, mechanical, piping, HVAC, and fire protection across the Appalachian region and beyond.

• Achieved $352 million in revenue and $29 million in adjusted EBITDA last year, with a workforce of about 1,400 employees.

• Maintains a diverse customer base, including American Water, Toyota, Mountaineer Gas, Dow, and TC Energy, with a focus on long-term relationships.

• Expanded geographical reach through customer-driven projects, now operating from New York to Alabama and as far west as Illinois and Michigan.

• Emphasizes safety, quality, and production as core values, critical for customer retention and operational success.

Growth strategy and acquisitions

• Pursues growth through both organic expansion and strategic acquisitions, having completed four recent acquisitions to enhance service offerings.

• Acquisitions are financed through a mix of cash, stock, and seller's notes, with a focus on keeping acquired management engaged; no earn-outs are used.

• Recent acquisitions include Tri State Paving, West Virginia Pipeline, Bryan Construction Services, and Tribute Contracting, each adding complementary capabilities.

• Integration of acquired companies allows for cross-utilization of services and internal cost efficiencies, such as in-house boring and paving.

• Actively seeks further M&A opportunities to supplement or expand existing business lines.

Financial performance and outlook

• Backlog has steadily increased, reaching $340–$400 million as of June, with significant portions in water and industrial services.

• Targets a balanced revenue mix, aiming for gas transmission to be about one-third of business, with water distribution as the primary growth area.

• Fiscal year 2024 saw EBITDA around $28–$29 million, but trailing twelve months EBITDA dropped to $17 million due to weather-related project delays and customer spending slowdowns.

• Expects improvement as delayed projects resume and sees strong future opportunities, especially in water infrastructure.

• Maintains a quarterly dividend of $0.03 per share and an active stock repurchase plan with about 786,000 shares remaining.