Energy Services of America (ESOA) 17th Annual Southwest IDEAS Conference summary

Business overview and recent performance

• Focuses on infrastructure, primarily water and natural gas distribution, with growing electrical and mechanical segments.

• Revenue reached $350 million last year with $28 million EBITDA, though recent quarters faced weather-related challenges.

• Backlog increased from $70 million to $300 million over four years, with 90% expected to be executed within the next year.

• Insiders own 26% of shares; pays $0.03 per quarter in dividends and maintains an opportunistic buyback program.

• Joined the Russell 2000 index in the past year.

Growth strategy and acquisitions

• Growth driven by both organic expansion and targeted acquisitions, including a $40 million water/wastewater contractor and Rigney Digital (HVAC controls).

• Acquisitions often target companies with strong crews or strategic customer relationships, such as Tri-State Paving and Tribute.

• Most growth has been organic, with acquisitions supplementing capabilities and market reach.

• Acquisitions are sourced through industry relationships and market competition.

Market trends and business mix

• Water and general services drive backlog growth, while gas transmission has been weak but is expected to improve over the next 2–3 years.

• Gas transmission business is poised for recovery, with potential for significant revenue increases if market conditions improve.

• Electrical and mechanical segments benefit from reindustrialization trends and large industrial projects.

• Average job size varies: water/gas distribution jobs are small and frequent, while gas transmission projects can be $10–$20 million.