Energy Services of America Reports Second Quarter Fiscal 2026 Results

Rhea-AI Summary

Energy Services of America (Nasdaq: ESOA) reported fiscal Q2 2026 revenue of $93.2 million, up 21.5% year-over-year, with gross margin improving to 11.0%. Net income was $0.2 million ($0.01 per diluted share) versus a $6.8 million loss a year ago.

Adjusted EBITDA reached $4.7 million versus a ($4.9) million loss. Backlog rose to $325.1 million, up $23.4 million sequentially. The company completed a 2,001,000 share equity offering, generating $21.2 million in net proceeds.

Positive

• Revenue up 21.5% year-over-year to $93.2 million in Q2 2026
• Gross profit increased to $10.2 million; gross margin reached 11.0%
• Net income of $215,548 versus $6.8 million net loss in prior-year quarter
• Adjusted EBITDA improved to $4.7 million from a $4.9 million loss year-over-year
• Backlog grew to $325.1 million, up from $301.7 million on December 31, 2025
• Equity offering generated $21.2 million in net proceeds, adding to liquidity

Negative

• Selling and administrative expenses rose to $9.2 million from $8.2 million year-over-year
• Interest expense of $621,835 in Q2 2026 remains a notable cost
• Non-operating expense increased to $94,224 from $20,616 year-over-year
• Issuance of 2,001,000 shares and higher average share count imply shareholder dilution

News Market Reaction – ESOA

+8.16%

5 alerts

+8.16% Session close to close

+3.0% Peak Tracked

-4.0% Trough Tracked

$365.74M Market Cap

0.5x Rel. Volume

In the May 12 session, ESOA gained 8.16%, reflecting a notable positive market reaction. Argus tracked a peak move of +3.0% during that session. Argus tracked a trough of -4.0% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +8.2% in the session following this news. A strong positive reaction aligns with ESO...

Analysis

The stock moved +8.2% in the session following this news. A strong positive reaction aligns with ESOA’s improving fundamentals. The company delivered Q2 revenue of $93.2M, gross margin of 11.0%, and returned to profitability with net income of about $0.2M, while backlog increased to $325.1M. Past earnings on Feb 9, 2026 triggered a 33.47% move, showing investors have rewarded operational strength. However, recent equity issuance and historically volatile responses to capital raises suggest sharp gains could prove sensitive to future execution.

Key Figures

Q2 2026 revenue: $93.2M Revenue YoY growth: 21.5% Gross margin: 11.0% +5 more

8 metrics

Q2 2026 revenue $93.2M Three months ended March 31, 2026

Revenue YoY growth 21.5% Q2 2026 vs Q2 2025

Gross margin 11.0% Q2 2026 (vs 0.1% prior-year quarter)

Net income $215,548 Q2 2026 (vs $6.8M net loss Q2 2025)

Diluted EPS $0.01 Q2 2026 (vs -$0.41 Q2 2025)

Adjusted EBITDA $4.71M Q2 2026 (vs -$4.91M Q2 2025)

Backlog $325.1M As of March 31, 2026

Equity offering proceeds $21.2M Net proceeds from 2,001,000-share offering completed in Q2

Historical Context

5 past events · Latest: Feb 24 (Negative)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Feb 24	Overallotment exercised	Negative	+10.0%	Underwriter exercised option for 261,000 extra shares at $11.50.
Feb 19	Offering priced	Negative	-4.7%	Priced $20.0M stock offering at $11.50 per share.
Feb 18	Offering proposed	Negative	-4.7%	Announced proposed underwritten common stock offering.
Feb 09	Q1 2026 results	Positive	+33.5%	Reported Q1 revenue $114.1M, margin 12.3%, EBITDA $8.0M.
Dec 09	FY 2025 results	Neutral	+1.7%	Record $130.1M Q4 revenue, $411.0M FY revenue, weaker margins.

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

Pattern Detected

Across the last five notable events, ESOA’s price generally aligned with news tone, with one divergence where a follow-on overallotment was met by a strong positive move.

Recent Company History

Over the past six months, ESOA has combined strong operating momentum with capital-raising activity. Fiscal 2025 results on Dec 9, 2025 showed record $130.1M Q4 revenue and $411.0M full-year sales but compressed margins. First-quarter fiscal 2026 results on Feb 9, 2026 highlighted revenue of $114.1M, gross margin of 12.3%, and a backlog increase of $41.7M to $301.4M. In February 2026, ESOA announced and priced a common stock offering and the underwriter later exercised its overallotment option, providing additional capital for general corporate purposes and potential acquisitions.

Key Terms

adjusted ebitda, non-gaap financial measures, gaap, forward-looking statements, +1 more

5 terms

adjusted ebitda financial

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

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."

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.

gaap financial

"In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

forward-looking statements regulatory

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

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.

section 21e of the securities exchange act of 1934 regulatory

"within the meaning of section 21E of the Securities Exchange Act of 1934, as amended"

Section 21E of the Securities Exchange Act of 1934 creates a legal safe harbor for forward-looking statements — projections, plans, estimates or predictions — made by public companies, provided those statements are identified as forward-looking and accompanied by meaningful cautionary language about risks and uncertainties. For investors, it matters because it helps distinguish promotional predictions from factual disclosures and signals which optimistic forecasts carry legal protection and which risks the company has warned could affect outcomes, like a weather forecast that comes with a disclaimer about changing conditions.

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

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Records 21.5% Year-over-Year Revenue Increase and $23.6 Million Increase in Sequential Backlog

HUNTINGTON, W.Va., May 11, 2026 /PRNewswire/ -- Energy Services of America Corporation (the "Company" or "Energy Services") (Nasdaq: ESOA), today announced its results for its second quarter ended March 31, 2026.

Second Quarter Highlights ⁽¹⁾

• Revenue of $93.2 million versus $ 76.7 million
• Gross profit of $10.2 million versus $78,000
• Gross margin of 11.0% compared to 0.1%
• Net income of $216,000, or $0.01 per diluted share, compared to net loss of $6.8 million, or ($0.41) per share.
• Adjusted EBITDA of $4.7 million compared to ($4.9 million)
• Completed 2,001,000 share equity offering, generating net proceeds of $21.2 million

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

"The momentum from our strong start to fiscal 2026 carried into the second quarter, resulting in our first profitable fiscal second quarter in 17 years as an operating company," said Doug Reynolds, President of Energy Services. "The quarter benefited from the combination of continued demand across all of our business segments and more favorable weather versus the prior year, which allowed many projects this year to begin on time or ahead of schedule."

"Revenue from our Gas & Petroleum Distribution more than doubled from the prior-year quarter thanks to new projects awarded in the first quarter and increased activity levels drove double-digit revenue growth for our Gas & Water Distribution and Electrical, Mechanical and General segments. Our backlog increased more than $23 million sequentially, keeping us well-positioned as we enter the seasonally stronger quarters," Mr. Reynolds concluded.

Second Quarter Fiscal 2026 Financial Results
Total revenues for the period were $93.2 million, compared to $76.7 million in the second quarter of fiscal 2025. The increase was primarily driven by increased work across all segments, particularly Gas & Petroleum Transmission.

Gross profit was $10.2 million, compared to $78,000 in the prior-year quarter. Gross margin was 11.0% of revenues, compared to 0.1% of revenues in the second quarter of fiscal 2025. The increase is related to greater fixed cost leverage from the increased revenue base and more favorable sales mix.

Selling and administrative expenses were $9.2 million, compared to $8.2 million in the prior-year quarter. The increase is primarily related to higher labor expenses related to the Company's growth.

Net income was $216,000, or $0.01 per diluted share, compared to a net loss of $6.8 million or ($0.41) per share in the second quarter of fiscal 2025.

Backlog as of March 31, 2026 was $325.1 million, compared to $301.7 million on December 31, 2025 and $280.7 million as of March 31, 2025.

Below is a comparison of the Company's operating results for the three and six months ended March 31, 2026 and 2025 (unaudited):

			Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
			March 31,		March 31,		March 31,		March 31,
			2026		2025		2026		2025
Revenue			$       93,173,442		$          76,679,151		$     207,285,642		$      177,325,265
Cost of revenues			82,941,106		76,601,291		183,059,514		166,983,823
	Gross profit		10,232,336		77,860		24,226,128		10,341,442
Selling and administrative expenses			9,173,925		8,170,087		18,254,952		16,787,708
	Income (loss) from operations		1,058,411		(8,092,227)		5,971,176		(6,446,266)
Other (expense) income
	Other nonoperating expense		(94,224)		(20,616)		(196,865)		(68,878)
	Interest expense		(621,835)		(875,770)		(1,611,686)		(1,359,488)
	Gain (loss) on sale of equipment		69,993		(16,540)		88,749		179,242
			(646,066)		(912,926)		(1,719,802)		(1,249,124)
Income (loss) before income taxes			412,345		(9,005,153)		4,251,374		(7,695,390)
Income tax expense (benefit)			196,797		(2,206,735)		1,330,345		(1,750,705)
Net income (loss)			$            215,548		$           (6,798,418)		$         2,921,029		$        (5,944,685)
Weighted average shares outstanding-basic			17,526,126		16,716,809		17,110,381		16,630,245
Weighted average shares-diluted			17,568,110		16,716,809		17,150,954		16,630,245
Earnings per share-basic			$                  0.01		$                    (0.41)		$                  0.17		$                 (0.36)
Earnings per share-diluted			$                  0.01		$                    (0.41)		$                  0.17		$                 (0.36)

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

		Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
		March 31,		March 31,		March 31,		March 31,
		2026		2025		2026		2025
Net income (loss)		$                215,548		$          (6,798,418)		$            2,921,029		$          (5,944,685)
Add (less): Income tax expense (benefit)		196,797		(2,206,735)		1,330,345		(1,750,705)
Add:  Interest expense, net of interest income		621,835		875,770		1,611,686		1,359,488
Add: Non-operating expense		94,224		20,616		196,865		68,878
(Less) add:  Gain (less) on sale of equipment		(69,993)		16,540		(88,749)		(179,242)
Add: Depreciation and intangible asset amortization expense		3,656,461		3,182,462		7,415,111		5,881,290
Adjusted EBITDA		$             4,714,872		$          (4,909,765)		$          13,386,287		$             (564,976)

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 1,400+ 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 did Energy Services of America (ESOA) perform in Q2 2026?

Energy Services of America reported Q2 2026 revenue of $93.2 million and net income of $0.2 million. According to Energy Services, this compared with $76.7 million revenue and a $6.8 million net loss in the prior-year quarter, reflecting improved profitability and margins.

What was Energy Services of America’s Q2 2026 adjusted EBITDA (ESOA)?

Energy Services of America reported Q2 2026 adjusted EBITDA of $4.7 million, versus a $4.9 million loss a year earlier. According to Energy Services, this figure adds back interest, taxes, depreciation, amortization, certain non-operating items, and gains or losses on equipment sales.

How much did Energy Services of America’s backlog grow by March 31, 2026 (ESOA)?

Energy Services of America’s backlog reached $325.1 million as of March 31, 2026. According to Energy Services, this compares with $301.7 million on December 31, 2025 and $280.7 million on March 31, 2025, indicating sequential and year-over-year backlog growth.

Did Energy Services of America return to profitability in fiscal Q2 2026 (ESOA)?

Energy Services of America reported net income of $215,548, or $0.01 per diluted share, in Q2 2026. According to Energy Services, this contrasts with a net loss of $6.8 million, or ($0.41) per share, in the fiscal Q2 2025 period.

What were Energy Services of America’s six-month fiscal 2026 results (ESOA)?

For the six months ended March 31, 2026, Energy Services of America generated revenue of $207.3 million and net income of $2.9 million. According to Energy Services, this compares with $177.3 million revenue and a $5.9 million net loss for the same period in fiscal 2025.

What equity offering did Energy Services of America complete in Q2 2026 (ESOA)?

Energy Services of America completed a 2,001,000 share equity offering in Q2 2026, raising $21.2 million in net proceeds. According to Energy Services, the transaction increased the company’s capital base, with basic weighted average shares rising to about 17.5 million.

How did margins change for Energy Services of America in Q2 2026 (ESOA)?

Energy Services of America’s Q2 2026 gross margin rose to 11.0% on gross profit of $10.2 million. According to Energy Services, this compares with a 0.1% gross margin and $78,000 gross profit in the prior-year quarter, reflecting higher revenues and improved mix.