Energy Services of America Reports First Quarter Fiscal 2026 Results

Rhea-AI Summary

Energy Services of America (NASDAQ: ESOA) reported first quarter fiscal 2026 results for the period ended December 31, 2025, with revenue of $114.1M (up 13.4% YoY), gross profit $14.0M, gross margin of 12.3%, net income of $2.7M ($0.16 diluted), and adjusted EBITDA of $8.0M.

Backlog rose sequentially by $41.7M to $301.4M, driven by Gas & Water Distribution and new Gas & Petroleum Transmission projects.

Positive

• Revenue +13.4% YoY to $114.1 million
• Adjusted EBITDA +85% YoY to $8.0 million
• Gross margin improved by 210 basis points to 12.3%
• Backlog +$41.7M sequential to $301.4 million

Negative

• Interest expense rose to $989,851, more than doubling versus prior-year quarter

News Market Reaction – ESOA

+33.47% 3.9x vol

20 alerts

+33.47% Session close to close

+36.7% Peak in 17 hr 46 min

$219.11M Market Cap

3.9x Rel. Volume

In the Feb 10 session, ESOA gained 33.47%, reflecting a significant positive market reaction. Argus tracked a peak move of +36.7% during that session. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. Trading volume was very high at 3.9x the daily average, suggesting strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +33.5% in the session following this news. A strong positive reaction aligns with E...

Analysis

The stock surged +33.5% in the session following this news. A strong positive reaction aligns with ESOA’s solid Q1 metrics, including revenue of $114.1M, gross margin of 12.3%, and backlog rising to $301.4M. Historically, concrete financial and acquisition updates have produced mostly aligned, modestly positive moves. However, with shares trading near $9.50 and below the 200-day MA, prior patterns suggest enthusiasm could fade if execution, project mix, or macro conditions change, especially given past margin variability.

Key Figures

Revenue: $114.1M Revenue growth: 13.4% Gross margin: 12.3% +5 more

8 metrics

Revenue $114.1M Q1 FY2026 vs $100.6M prior-year quarter

Revenue growth 13.4% Year-over-year increase Q1 FY2026

Gross margin 12.3% Q1 FY2026 vs 10.2% prior-year quarter

Net income $2.7M Q1 FY2026 vs $0.854M prior-year quarter

Diluted EPS $0.16 Q1 FY2026 vs $0.05 prior-year quarter

Adjusted EBITDA $8.02M Q1 FY2026 vs $4.34M prior-year quarter

Backlog $301.4M As of Dec 31, 2025 vs $259.7M Sep 30, 2025

52-week range $7.64–$12.14 Price at $9.50 is between 52-week low and high

Historical Context

5 past events · Latest: Dec 09 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 09	Earnings results	Neutral	+1.7%	Record Q4 and FY25 revenue with margin pressure and lower net income.
Nov 13	Investor conference	Neutral	-6.3%	Announcement of participation in Southwest IDEAS investor conference.
Sep 30	Acquisition close	Positive	+0.2%	Completion of Nitro’s acquisition of Rigney Digital Systems to expand capabilities.
Sep 18	Acquisition announcement	Positive	+1.6%	Nitro announces acquisition of Rigney Digital Systems to broaden HVAC controls.
Aug 20	Investor conference	Neutral	+0.2%	Planned presentation at Midwest IDEAS investor conference for visibility.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent earnings and acquisition news have generally seen modestly positive or neutral price reactions, with conference-related headlines sometimes drawing negative moves.

Recent Company History

Over the last six months, ESOA has combined record fiscal 2025 revenues and growing backlog with active M&A and regular investor outreach. The Q4/FY25 report on Dec 9, 2025 highlighted record $130.1M quarterly revenue and $411.0M for the year, with backlog at $259.7M, and the stock rose 1.74%. Two Rigney Digital Systems acquisition announcements in September 2025 drew small positive reactions. Conference appearances in August and November 2025 produced muted to negative moves, suggesting investors focus more on concrete financial and strategic updates like today’s strong Q1 results.

Key Terms

adjusted ebitda, basis points, non-gaap financial measures, forward-looking statements

4 terms

adjusted ebitda financial

"Adjusted EBITDA of $8.3 million compared to $4.3 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

basis points financial

"Gross margin improved 210 basis points to 12.3%"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

non-gaap financial measures financial

"this press release contains certain non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

forward-looking statements regulatory

"constitute "forward-looking statements" within the meaning of section 21E"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Records 13.4% Year-over-Year Revenue Increase and $41.7 Million Increase in Sequential Backlog

HUNTINGTON, W.Va., Feb. 9, 2026 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), today announced its results for its first quarter ended December 31, 2025.

First Quarter Highlights ⁽¹⁾

• Revenue of $114.1 million versus $100.6 million
• Gross profit of $14.0 million versus $10.3 million
• Gross margin improved 210 basis points to 12.3%
• Net income of $2.7 million, or $0.16 per diluted share, compared to $854,000, or $0.05 per diluted share.
• Adjusted EBITDA of $8.3 million compared to $4.3 million

(1) All comparisons are versus the comparable prior year period, unless otherwise stated.

"We had a very strong start to fiscal 2026, thanks to continued robust demand within our Gas & Water Distribution segment and growth within our Gas & Petroleum Transmission segment from two new projects awarded in the quarter," said Doug Reynolds, President of Energy Services.

"We continue to benefit from the very favorable tailwinds across our business, as evidence by the $42 million sequential increase in our backlog. After an extended period of reduced activity, the Gas & Petroleum Distribution segment is experiencing an uptick in bid opportunities. Revenue for our Gas & Water Distribution projects increased 30 percent from the prior-year quarter thanks to the ongoing replacement and upgrade cycle by municipalities and private utility companies. Revenue for the Electrical, Mechanical and General projects declined slightly on a year-over-year basis, but backlog increased by $7 million sequentially thanks to strong demand for large construction projects. We have been proactive in optimizing our workforce for the seasonally slower winter months,  and remain optimistic about the prospects of the business,  which should deliver long-term value to our shareholders," Mr. Reynolds concluded.

First Quarter Fiscal 2026 Financial Results        

Total revenues for the period were $114.1 million, compared to $100.6 million in the first quarter of fiscal 2025. The increase was primarily driven by increased work on Gas & Water Distribution and Gas & Petroleum Transmission projects.

Gross profit was $14.0 million, compared to $10.3 million in the prior-year quarter. Gross margin was 12.3% of revenues, compared to 10.2% of revenues in the first quarter of fiscal 2025. The decrease is related to sales mix and increased revenue base.

Selling and administrative expenses were $9.1 million, compared to $8.6 million in the prior-year quarter. The increase is primarily related to a full quarter contribution of expenses related to the Tribute acquisition that was completed in December of last year.

Net income was $2.7 million, or $0.16 per diluted share, compared to $854,000 or $0.05 per diluted share in the first quarter of fiscal 2025.

Backlog as of December 31, 2025 was $301.4 million, compared to $259.7 million on September 30, 2025 and $260.2 million as of September 30, 2024.

Below is a comparison of the Company's operating results for the three months ended December 31, 2025 and 2024 (unaudited):

			Three Months Ended		Three Months Ended
			December 31, 2025		December 31, 2024
Revenue			$             114,112,200		$             100,646,114
Cost of revenues			100,118,408		90,382,532
	Gross profit		13,993,792		10,263,582
Selling and administrative expenses			9,081,029		8,618,188
	Income from operations		4,912,763		1,645,394
Other income (expense)
	Other nonoperating income (expense)		(102,642)		(48,262)
	Interest expense		(989,851)		(483,718)
	Gain on sale of equipment		18,756		195,782
			(1,073,737)		(336,198)
	Income before income taxes		3,839,026		1,309,196
	Income tax expense		1,133,544		455,463
	Net income		$                 2,705,482		$                    853,733
	Weighted average shares outstanding-basic		16,703,674		16,585,334
	Weighted average shares-diluted		16,742,867		16,636,561
	Earnings per share		$                          0.16		$                          0.05
	Earnings per share-diluted		$                          0.16		$                          0.05

Please refer to the table below that reconciles adjusted EBITDA with net income (unaudited):

	Three Months Ended		Three Months Ended
	December 31, 2025		December 31, 2024
Net income	$                2,705,482		$                  853,733
Add: Income tax expense	1,133,544		455,463
Add:  Interest expense, net of interest income	989,851		483,718
Add Non-operating expense	102,642		48,262
Less: gain on sale of equipment	(18,756)		(195,782)
Add: Depreciation and intangible asset amortization expense	3,111,424		2,698,828
Adjusted EBITDA	$                8,024,187		$               4,344,222

Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures. The reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and other information relating to these measures are included herein. We include these measurements to enhance the understanding of our operating performance. We believe that Adjusted EBITDA as presented herein, considered along with net income (loss), is a relevant indicator of trends relating to the cash generating activity of our operations. We believe that excluding the costs herein provides a consistent comparison of the cash generating activity of our operations. We believe that Adjusted EBITDA is useful to investors as they facilitate a comparison of our operating performance to other companies who also use Adjusted EBITDA as supplemental operating measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.

About Energy Services
Energy Services of America Corporation (NASDAQ: ESOA), headquartered in Huntington, WV, is a contractor and service company that operates primarily in the mid-Atlantic and Central regions of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. Energy Services employs 1,500+ employees on a regular basis. The Company's core values are safety, quality, and production.

Certain statements contained in the release including, without limitation, the words "believes," "anticipates," "intends," "expects" or words of similar import, constitute "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such factors include, among others, general economic and business conditions, changes in business strategy or development plans, the integration of acquired business and other factors referenced in this release, risks and uncertainties related to the restatement of certain of our historical consolidated financial statements. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

 

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SOURCE Energy Services of America Corporation

FAQ

How much did Energy Services of America (ESOA) revenue change in Q1 FY2026?

Revenue increased by 13.4% year-over-year to $114.1 million. According to the company, the rise was driven primarily by higher activity in Gas & Water Distribution and Gas & Petroleum Transmission projects.

Why did ESOA's backlog increase to $301.4 million in Q1 2026?

Backlog rose by $41.7 million sequentially to $301.4 million. According to the company, the increase reflects awards in Gas & Petroleum Transmission and stronger bid activity in Gas & Water Distribution and large construction projects.

What drove Energy Services of America's adjusted EBITDA improvement in Q1 2026 (ESOA)?

Adjusted EBITDA grew to $8.0 million from $4.3 million a year earlier. According to the company, higher revenue and project mix contributed, alongside depreciation and other adjustments reconciled to net income.

How did the Tribute acquisition affect ESOA's Q1 fiscal 2026 results?

The acquisition increased selling and administrative expenses in the quarter. According to the company, a full quarter contribution of Tribute-related expenses primarily drove the modest rise in S&A versus the prior-year quarter.

What was Energy Services of America's earnings per share (ESOA) for Q1 ended Dec 31, 2025?

Diluted earnings per share were $0.16 for the quarter. According to the company, net income totaled $2.7 million, reflecting higher revenue, improved margins, and the impact of recent acquisitions.