Energy Services of America Reports Third Quarter Fiscal 2026 Results
Rhea-AI Summary
Energy Services of America (Nasdaq: ESOA) reported fiscal third quarter 2026 revenue of $130.0 million, up from $103.6 million, a 25.5% year-over-year increase. Net income rose to $3.3 million, or $0.18 per diluted share, compared to $2.1 million, or $0.12 per diluted share.
Gross profit increased to $14.3 million, though gross margin declined to 11.0% from 11.6%, primarily due to one large gas transmission project. Adjusted EBITDA grew to $8.3 million from $6.5 million. The quarterly dividend was raised 33% to $0.04 per share. Backlog was $286.6 million at June 30, 2026, versus $325.1 million at March 31, 2026 and $280.7 million a year earlier. For the nine months ended June 30, 2026, revenue reached $337.3 million and net income was $6.2 million, compared with a net loss of $3.9 million in the prior-year period.
Positive
- Revenue +25.5% year-over-year to $130.0 million in Q3 2026
- Net income +57.9% year-over-year to $3.3 million in Q3 2026
- Adjusted EBITDA increased to $8.3 million from $6.5 million in Q3
- Nine‑month turnaround to $6.2 million net income from $3.9 million loss
- Interest expense decreased to $0.5 million from $0.8 million in the quarter
- Dividend raised 33% to $0.04 per share
Negative
- Gross margin declined to 11.0% from 11.6% in Q3
- Selling and administrative expenses rose to $9.7 million from $8.8 million
- Backlog decreased to $286.6 million from $325.1 million on March 31, 2026
News Explained
The completed quarter’s diluted weighted-average share count was 18,659,624 versus 16,666,135 in the comparable prior-year quarter; reported per-share results were therefore measured over a larger average share base, although the release does not establish current shares outstanding.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 02 | Investor conference presentation | Neutral | -0.8% | Management presentation and investor meetings scheduled for the East Coast IDEAS conference |
| May 11 | 2Q26 earnings report | Positive | +8.2% | Revenue growth, improved profitability, higher EBITDA, and increased backlog |
| Feb 24 | Offering overallotment closing | Negative | +10.0% | Underwriter exercised overallotment option and issued additional common shares |
| Feb 19 | Common stock offering | Negative | -4.7% | Company priced a $20.0 million underwritten public offering of common stock |
| Feb 18 | Proposed stock offering | Negative | -4.7% | Company announced a proposed underwritten offering subject to market conditions |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history showed mixed reactions: the prior earnings report aligned with a gain, while offering outcomes split between alignment and divergence.
Key Terms
adjusted ebitda financial
gaap financial
non-gaap financial measures financial
forward-looking statements regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Records
Third Quarter Summary (1)
- Revenue of
$130.0 million $103.6 million - Gross profit of
$14.3 million $12.0 million - Gross margin of
11.0% compared to11.6% - Net income of
$3.3 million $0.18 $2.1 million $0.12 - Adjusted EBITDA of
$8.3 million $6.5 million - Increased quarterly dividend by
33% to$0.04
(1) All comparisons are versus the comparable prior year period, unless otherwise stated. |
"Our third quarter results reflect strength across each of our segments, thanks to continued demand for water distribution and electrical construction as well as the continued recovery in our gas transmission business. The quarter also benefited from the more favorable weather throughout the spring, allowing our projects to start on or ahead of schedule," said Doug Reynolds, President of Energy Services. "Profitability during the quarter was slightly affected by a lower-than-expected gross profit margin on a large gas transmission project, but the diversity of our business allowed us to absorb this impact and still report a
"We remain optimistic about the near and longer-term opportunities for the business, driven by the ongoing replacement cycle for water infrastructure and the growth in electric demand and build out of data centers across the country. This confidence is reflected in the
Third Quarter Fiscal 2026 Financial Results
Total revenues for the period were
Gross profit was
Selling and administrative expenses were
Net income was
Backlog as of June 30, 2026 was
Below is a comparison of the Company's operating results for the three months ended June 30, 2026 and 2025 (unaudited):
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||
June 30, | June 30, | June 30, | June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||||
Revenue | $ 130,005,928 | $ 103,601,585 | $ 337,291,570 | $ 280,926,850 | |||||
Cost of revenues | 115,688,703 | 91,618,987 | 298,748,217 | 258,602,810 | |||||
Gross profit | 14,317,225 | 11,982,598 | 38,543,353 | 22,324,040 | |||||
Selling and administrative expenses | 9,685,305 | 8,814,545 | 27,940,257 | 25,602,253 | |||||
Income (loss) from operations | 4,631,920 | 3,168,053 | 10,603,096 | (3,278,213) | |||||
Other income (expense) | |||||||||
Other nonoperating expense | (118,403) | (38,529) | (315,268) | (107,407) | |||||
Interest expense | (486,914) | (781,198) | (2,098,600) | (2,140,686) | |||||
Gain (loss) on sale of equipment | 5,097 | (128,710) | 93,846 | 50,532 | |||||
Total other income (expense) | (600,220) | (948,437) | (2,320,022) | (2,197,561) | |||||
Income (loss) before income taxes | 4,031,700 | 2,219,616 | 8,283,074 | (5,475,774) | |||||
Income tax expense (benefit) | 745,041 | 137,987 | 2,075,386 | (1,612,718) | |||||
Net income (loss) | $ 3,286,659 | $ 2,081,629 | $ 6,207,688 | $ (3,863,056) | |||||
Weighted average shares outstanding-basic | 18,622,477 | 16,625,761 | 17,614,419 | 16,644,028 | |||||
Weighted average shares-diluted | 18,659,624 | 16,666,135 | 17,653,687 | 16,644,028 | |||||
Earnings (loss) per share-basic | $ 0.18 | $ 0.13 | $ 0.35 | $ (0.23) | |||||
Earnings (loss) per share-diluted | $ 0.18 | $ 0.12 | $ 0.35 | $ (0.23) | |||||
Please refer to the table below that reconciles adjusted EBITDA with net income (unaudited):
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||
June 30, | June 30, | June 30, | June 30, | |||||
2026 | 2025 | 2026 | 2025 | |||||
Net income (loss) | $ 3,286,659 | $ 2,081,629 | $ 6,207,688 | $ (3,863,056) | ||||
Add (less): Income tax expense (benefit) | 745,041 | 137,987 | 2,075,386 | (1,612,718) | ||||
Add: Interest expense, net of interest income | 486,914 | 781,198 | 2,098,600 | 2,140,686 | ||||
Add: Non-operating expense | 118,403 | 38,529 | 315,268 | 107,407 | ||||
(Less) add: (gain) loss on sale of equipment | (5,097) | 128,710 | (93,846) | (50,532) | ||||
Add: Depreciation and intangible asset amortization expense | 3,697,049 | 3,291,414 | 11,112,160 | 9,172,704 | ||||
Adjusted EBITDA | $ 8,328,969 | $ 6,459,467 | $ 21,715,256 | $ 5,894,491 |
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with
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