Energy Services of America (ESOA) Q1 2026 earnings summary

Executive summary

• Revenue for the quarter ended December 31, 2025, increased 13.4% year-over-year to $114.1 million, driven by strong growth in Gas & Water Distribution and Gas & Petroleum Transmission projects.

• Net income rose to $2.7 million ($0.16 per diluted share) from $854,000 ($0.05 per diluted share) in the prior year period.

• Backlog reached $301.4 million at quarter-end, up from $259.7 million at the prior fiscal year-end, reflecting robust bidding activity and project wins.

• Adjusted EBITDA more than doubled to $8.3 million from $4.3 million in the prior-year quarter.

Financial highlights

• Gross profit increased to $14.0 million from $10.3 million year-over-year, with gross margin improving to 12.3% from 10.2%.

• Operating income rose to $4.9 million from $1.6 million, with operating margin expanding to 4.3% from 1.9%.

• Cash flow from operations was $18.8 million, up from $8.9 million in the prior year period.

• Selling and administrative expenses rose to $9.1 million, mainly due to the Tribute acquisition.

• Shareholders’ equity increased to $60.6 million, up $1.4 million sequentially.

Outlook and guidance

• Management expects continued strong bid opportunities in water, wastewater, natural gas, and electrical projects, with a $301.4 million backlog supporting revenue visibility for fiscal 2026.

• Projected backlog for Gas & Water Distribution and Gas & Petroleum Transmission is $161.7 million, and $139.7 million for Electrical, Mechanical & General.

• Management remains optimistic about long-term value creation, citing favorable industry tailwinds and increased bid opportunities, especially in Gas & Petroleum Distribution.

• Workforce optimization measures are in place for seasonally slower winter months.