Energy Services of America Reports Fourth Quarter and Full Year Fiscal 2025 Results

Rhea-AI Summary

Energy Services of America (Nasdaq: ESOA) reported fourth-quarter and full-year fiscal 2025 results for the year ended September 30, 2025. Q4 revenue hit a company record of $130.1M and full-year revenue was $411.0M (up 16.8% YoY). Adjusted EBITDA was $11.3M in Q4 and $17.2M for fiscal 2025. Net income for FY2025 was $0.38M or $0.02 per diluted share, down from $25.1M the prior year. Gross profit fell to $38.8M and gross margin to 9.4%, citing unfavorable winter weather and project timing. Backlog stood at $259.7M. The company completed acquisitions of Tribute (Dec 2, 2024) and Rigney Digital Systems (Sept 30, 2025) and doubled the dividend to $0.12 per share, paid quarterly.

Positive

• Revenue +16.8% YoY to $411.0M
• Quarterly record revenue of $130.1M
• Backlog of $259.7M as of Sept 30, 2025
• Q4 Adjusted EBITDA of $11.3M

Negative

• Gross profit declined to $38.8M (gross margin 9.4%)
• Net income down to $0.38M for FY2025 from $25.1M prior year
• Selling & administrative expenses rose to $34.6M in FY2025

Key Figures

Q4 2025 revenue $130.1M Fourth quarter 2025 vs $104.7M prior-year quarter

FY25 revenue $411.0M Fiscal 2025, a 16.8% increase year-over-year

FY25 net income $379,708 ($0.02 EPS) Fiscal 2025 vs $25.1M ($1.51 EPS) in fiscal 2024

FY25 adjusted EBITDA $17.2M Fiscal 2025 vs $28.8M in fiscal 2024

FY25 gross margin 9.4% Fiscal 2025 vs 14.2% in fiscal 2024

Q4 2025 net income $4.2M ($0.25 diluted EPS) Fourth quarter 2025 vs $6.7M ($0.40) prior-year quarter

Backlog $259.7M As of Sep 30, 2025 vs $243.2M as of Sep 30, 2024

Dividend rate $0.12 per share Dividend rate doubled and converted to quarterly payment

Market Reality Check

$8.63 Last Close

Volume Volume 150,109 is below the 20-day average of 180,255, suggesting no pre-news accumulation surge. normal

Technical Shares at $8.63 are trading below the 200-day MA of $9.88 and 56.48% under the 52-week high.

Peers on Argus

ESOA was up 1.17% pre-release, while peers were mixed: ONEG and SLND rose over 14%, SHIM and SKBL posted modest gains, and MIMI declined 3.98%, pointing to stock-specific rather than broad sector-driven dynamics for ESOA.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 13	Investor conference	Neutral	-6.3%	Announcement of participation in Southwest IDEAS investor conference with 1x1 meetings.
Sep 30	Acquisition close	Positive	+0.2%	Completion of Rigney Digital Systems acquisition to enhance HVAC control capabilities.
Sep 18	Acquisition announced	Positive	+1.6%	Announcement of Nitro’s purchase of Rigney Digital Systems to expand building tech.
Aug 20	Investor conference	Neutral	+0.2%	Midwest IDEAS conference presentation and webcast access for investors.
Aug 11	Earnings update	Positive	+7.4%	Q3 2025 revenue growth with strong Gas & Water Distribution performance and higher backlog.

Pattern Detected

Earnings and acquisition announcements have previously seen mild positive alignment between news tone and price, while conference appearances have had limited persistent impact.

Recent Company History

Over the past few months, ESOA highlighted revenue growth and strategic expansion. Q3 2025 results on Aug 11 showed higher revenue of $103.6M but sharply lower earnings versus a prior-year legal judgment boost, with a 7.37% gain following that release. Two Rigney Digital Systems acquisition announcements in September underscored a focus on building technology capabilities and were met with small positive moves. Conference participation news in August and November had little sustained effect. Today’s full-year 2025 report continues the theme of strong top-line growth but pressured margins and earnings.

Market Pulse Summary

This announcement reports record quarterly revenue and 16.8% full-year revenue growth to $411.0M, but also a steep drop in net income to $379,708 (EPS $0.02) and lower gross margin of 9.4%. Backlog of $259.7M and a doubled dividend to $0.12 per share highlight demand and shareholder returns. Investors may track margin recovery, interest expense, and execution on Gas & Water Distribution and recent acquisitions.

Key Terms

adjusted EBITDA financial

"We believe that Adjusted EBITDA as presented herein, considered along with net"

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.

non-GAAP financial measures financial

"this press release contains certain non-GAAP financial measures. The reconciliations"

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.

AI-generated analysis. Not financial advice.

Records 16.8% Annual Revenue Increase and Highest Quarterly Revenue in Company History  

HUNTINGTON, W.Va., Dec. 9, 2025 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), today announced its results for its fourth quarter and fiscal year ended September 30, 2025.

Fourth Quarter Highlights ⁽¹⁾

• Revenue of $130.1 million versus $104.7 million
• Gross profit of $16.5 million versus $17.6 million
• Net income of $4.2 million, or $0.25 per diluted share, compared to $6.7 million, or $0.40 per diluted share.
• Adjusted EBITDA of $11.3 million compared to $11.1 million
• Acquired Rigney Digital Systems on September 30th

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

Fiscal 2025 Highlights ⁽¹⁾

• Revenue of $411.0 million, a 16.8% increase
• Gross profit of $38.8 million compared to $50.0 million
• Net income of $380,000 or $0.02 per diluted share, compared to $25.1 million, or $1.51 per diluted share. The prior year's results include approximately $11.4 million net of income tax, or $0.69 per diluted share, from a legal judgement
• Adjusted EBITDA of $17.2 million compared to $28.8 million
• Backlog of $259.7 million compared to $243.2 million as of September 30, 2024
• Acquired Tribute Contracting & Consultants on December 2, 2024
• Doubled dividend rate to $0.12 per share and converted to quarterly payment
• Added to Russell 2000 index on June 30th

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

"Fiscal 2025 was a year of meaningful growth for the Company, primarily driven by demand within our Gas & Water Distribution segment and our acquisition of Tribute last December," said Doug Reynolds, President of Energy Services. "Full-year profitability was negatively impacted by very unfavorable winter weather, but we continue to execute on these delayed projects."

"We believe the outlook for Fiscal 2026 remain very favorable. We continue to experience strong demand within the water and wastewater segment as municipalities and private utility companies are replacing and upgrading older systems and our Electrical, Mechanical and General segment are benefiting from increased construction and service opportunities. Our recent acquisition of Rigney Digital Systems enhances the services offered by Nitro Construction and should boost the margin profile for the segment. Also, we are beginning to see a pickup in activity within our Gas Transmission over the past year. Overall, we remain optimistic about the prospects of the business and will continue to be opportunistic with regards to acquisitions, which should deliver long-term value to our shareholders," Mr. Reynolds concluded.

Fourth Quarter Fiscal 2025 Financial Results                  

Total revenues for the period were $130.1 million, compared to $104.7 million in the fourth quarter of fiscal 2024. Increased work within the Gas & Water Distribution and Electrical, Mechanical and General business lines more than offset lower revenue within the Gas & Petroleum Transmission segment.

Gross profit was $16.5 million, compared to $17.6 million in the prior-year quarter. Gross margin was 12.6% of revenues, compared to 16.8% of revenues in the fourth quarter of fiscal 2024. The decrease is related to sales mix and timing of projects across the business.

Selling and administrative expenses were $9.0 million, compared to $8.8 million in the prior-year quarter. The increase is primarily related to additional personnel hired to secure and manage work for expected growth.

Net income was $4.2 million, or $0.25 per diluted share, compared to net income of $6.7 million, or $0.40 per diluted share, in the fourth quarter of fiscal 2024.

Fiscal 2025 Financial Results        

Total revenues for the year were $411.0 million, compared to $351.9  million in fiscal 2024. Increased work within the Gas & Water Distribution and Electrical, Mechanical and General business lines was partially offset by lower revenue within the Gas & Petroleum Transmission segment.

Gross profit in fiscal 2025 was $38.8 million, compared to $50.0 million in the prior year. Gross margin was 9.4% of revenues, compared to 14.2% of revenues in fiscal 2024. The decrease is related to very unfavorable winter weather which delayed multiple projects into the second half of the year.

Selling and administrative expenses in fiscal 2025 were $34.6 million, compared to $30.1 million in the prior year.

Net income was $380,000 or $0.02 per diluted share, compared to $25.1 million, or $1.51 per diluted share in fiscal 2024. The prior year's results include approximately $11.4 million, or $0.69 per diluted share, related to proceeds from a legal judgement.

Backlog as of September 30, 2025 was $259.7 million, compared to $304.4 million as of June 30, 2025 and $243.2 million as of September 30, 2024.

Below is a comparison of the Company's operating results for the three months and full year ended September 30, 2025 and 2024 (unaudited):

			Three Months Ended		Three Months Ended		Year Ended		Year Ended
			September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Revenue			$            130,074,523		$            104,662,259		$        411,001,373		$          351,876,861
Cost of revenues			113,622,850		87,094,282		372,225,660		301,922,545
	Gross profit		16,451,673		17,567,977		38,775,713		49,954,316
Selling and administrative expenses			8,957,987		8,783,208		34,560,240		30,119,070
	Income from operations		7,493,686		8,784,769		4,215,473		19,835,246
Other (expense) income
	Other nonoperating (expense) income		(117,436)		12,374		(224,843)		(21,561)
	Income from lawsuit judgement		-		-		-		15,634,499
	Interest expense		(1,068,614)		(417,049)		(3,209,300)		(2,188,609)
	Gain (loss) on sale of equipment		33,020		(31,064)		83,552		261,102
			(1,153,030)		(435,739)		(3,350,591)		13,685,431
	Income before income taxes		6,340,656		8,349,030		864,882		33,520,677
	Income tax expense		2,097,892		1,691,014		485,174		8,415,667
	Net income		$                4,242,764		$                6,658,016		$                379,708		$            25,105,010
	Weighted average shares outstanding-basic		16,612,876		16,570,685		16,643,495		16,570,289
	Weighted average shares-diluted		16,649,675		16,607,045		16,686,283		16,608,038
	Earnings per share		$                           0.26		$                           0.40		$                       0.02		$                         1.52
	Earnings per share-diluted		$                           0.25		$                           0.40		$                       0.02		$                         1.51

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

	Three Months Ended		Three Months Ended		Year Ended		Year Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Net income	$                   4,242,764		$        6,658,016		$                379,708		$          25,105,010
Add: Income tax expense	2,097,892		1,691,014		485,174		8,415,667
Add:  Interest expense, net of interest income	1,068,614		417,049		3,209,300		2,188,609
Add (less): Non-operating expense (income)	117,436		(12,374)		224,843		21,561
Less:  Income from lawsuit judgement	-		-		-		(15,634,499)
(Less) add:  (Gain) loss on sale of equipment	(33,020)		31,064		(83,552)		(261,102)
Add: Depreciation and intangible asset amortization expense	3,854,213		2,315,373		13,026,917		8,978,023
Adjusted EBITDA	$                 11,347,899		$      11,100,142		$           17,242,390		$          28,813,269

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 1,300+ 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 effect of the COVID-19 pandemic, 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

What were Energy Services (ESOA) fourth-quarter revenues for fiscal 2025?

Energy Services reported $130.1 million in revenue for Q4 fiscal 2025.

How much did Energy Services (ESOA) revenue grow in fiscal 2025?

Fiscal 2025 revenue increased 16.8% year-over-year to $411.0 million.

Why did Energy Services (ESOA) gross margin decline in fiscal 2025?

The company attributed the margin decline to very unfavorable winter weather and project timing that delayed work.

What was Energy Services (ESOA) backlog as of September 30, 2025?

Backlog was reported at $259.7 million as of Sept 30, 2025.

Did Energy Services (ESOA) make any acquisitions in fiscal 2025?

Yes; the company acquired Tribute Contracting & Consultants (Dec 2, 2024) and Rigney Digital Systems (Sept 30, 2025).

What dividend change did Energy Services (ESOA) announce for fiscal 2025?

The company doubled its dividend rate to $0.12 per share and converted to quarterly payments.