Energy Services of America (NASDAQ: ESOA) turns Q2 2026 profit as revenue and backlog rise

Rhea-AI Filing Summary

Energy Services of America reported a strong turnaround in its fiscal second quarter ended March 31, 2026. Revenue rose 21.5% year over year to $93.2 million, driven by increased work across all segments, especially Gas & Petroleum Transmission.

Gross profit improved sharply to $10.2 million with an 11.0% gross margin, compared with nearly breakeven a year earlier, and the company posted net income of $0.2 million, or $0.01 per diluted share, versus a prior loss. Backlog reached $325.1 million, up from both December 31, 2025 and March 31, 2025, and adjusted EBITDA for the quarter improved to $4.7 million from a loss in the prior-year period.

Positive

• Return to profitability: Net income of $215,548 ($0.01 per diluted share) versus a net loss of $6.8 million ($0.41 per share) in the prior-year quarter indicates a meaningful earnings turnaround.
• Stronger revenue and backlog: Quarterly revenue increased to $93.2 million from $76.7 million, and backlog grew to $325.1 million from $280.7 million year over year, supporting future activity levels.

Negative

• None.

Insights

Equity analyst

ESOA posts a sharp profitability turnaround with higher revenue and backlog growth.

Energy Services of America delivered much stronger operating results in Q2 fiscal 2026. Revenue increased to $93.2 million and gross margin expanded to 11.0%, reflecting higher volumes across segments and better fixed-cost leverage versus the prior-year quarter.

Net income swung to a profit of $215,548 from a sizeable loss, and adjusted EBITDA rose to $4.7 million. Backlog reached $325.1 million as of March 31, 2026, up from both December 31, 2025 and the prior year, supporting near-term revenue visibility.

Six-month revenue of $207.3 million and adjusted EBITDA of $13.4 million underscore sustained improvement beyond a single quarter. Future company filings may further detail segment performance and whether the current margin gains and backlog strength can be maintained through the seasonally stronger periods.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 revenue: $93.2 million Q2 2026 gross margin: 11.0% of revenues Q2 2026 net income: $215,548 ($0.01 diluted EPS) +5 more

8 metrics

Q2 2026 revenue $93.2 million Three months ended March 31, 2026; up from $76.7 million in 2025

Q2 2026 gross margin 11.0% of revenues Compared to 0.1% in the second quarter of fiscal 2025

Q2 2026 net income $215,548 ($0.01 diluted EPS) Versus net loss of $6.8 million ($0.41 per share) in Q2 2025

Backlog $325.1 million As of March 31, 2026; up from $301.7 million on December 31, 2025

Six-month revenue $207.3 million Six months ended March 31, 2026 vs. $177.3 million in 2025

Q2 2026 adjusted EBITDA $4.7 million Three months ended March 31, 2026 vs. negative $4.9 million in 2025

Six-month adjusted EBITDA $13.4 million Six months ended March 31, 2026 vs. negative $0.6 million in 2025

Q2 2026 selling and administrative expenses $9.2 million Three months ended March 31, 2026 vs. $8.2 million in 2025

Key Terms

Adjusted EBITDA, backlog, non-GAAP financial measures, gross margin, +1 more

5 terms

Adjusted EBITDA financial

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

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.

backlog financial

"Backlog as of March 31, 2026 was $325.1 million, compared to $301.7 million"

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

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.

gross margin financial

"Gross margin was 11.0% of revenues, compared to 0.1% of revenues"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

forward-looking statements regulatory

"constitute "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934"

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.

Earnings Snapshot

Revenue: $93.2 million

Q2 fiscal 2026

Revenue $93.2 million 21.5% year-over-year increase

Net income $215,548 from $6.8 million net loss in Q2 2025

Diluted EPS $0.01 from ($0.41) in Q2 2025

Gross margin 11.0% from 0.1% in Q2 2025

Backlog $325.1 million $23.6 million sequential increase

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 11, 2026

Energy Services of America Corporation

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-32998	20-4606266
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

75 West 3rd Ave., Huntington, West Virginia	25701
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (304) 522-3868

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Ticker symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.0001	ESOA	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations

On May 11, 2026, Energy Services of America Corporation issued a press release disclosing its results of operations and financial condition at and for the three and six months ended March 31, 2026.

A copy of the press release dated May 11, 2026, is included as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed filed for any purpose. 

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1 Press Release dated May 11, 2026

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	ENERGY SERVICES OF AMERICA CORPORATION
DATE:  May 11, 2026	By:	/s/ Charles Crimmel
		Charles Crimmel
		Chief Financial Officer

Exhibit 99.1

Energy Services of America Reports Second Quarter Fiscal 2026 Results

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.

Contact

Steven Hooser or John Beisler

Three Part Advisors

shooser@threepa.com; jbeisler@threepa.com

(214) 872-2710

FAQ

How did Energy Services of America (ESOA) perform in Q2 fiscal 2026?

Energy Services of America reported higher revenue and a return to profitability in Q2 fiscal 2026. Revenue reached $93.2 million, and net income was $215,548, or $0.01 per diluted share, compared with a net loss in the prior-year quarter.

What drove Energy Services of America’s revenue growth in the quarter?

Revenue growth was driven by increased work across all segments, particularly Gas & Petroleum Transmission. Total revenues rose to $93.2 million from $76.7 million, helped by new projects and higher activity levels, along with more favorable weather that allowed projects to start on time.

How did Energy Services of America’s margins change year over year?

Gross profit improved significantly to $10.2 million and gross margin reached 11.0% of revenue, versus 0.1% in the prior-year quarter. This reflected better fixed cost leverage from a larger revenue base and a more favorable sales mix across the company’s segments.

What were Energy Services of America’s backlog levels as of March 31, 2026?

Backlog as of March 31, 2026 was $325.1 million. This compares with $301.7 million at December 31, 2025 and $280.7 million a year earlier, indicating sequential and year-over-year growth in contracted work.

What was Energy Services of America’s adjusted EBITDA in Q2 fiscal 2026?

Adjusted EBITDA for Q2 fiscal 2026 was $4.7 million, compared with a negative $4.9 million in the prior-year quarter. For the first six months of fiscal 2026, adjusted EBITDA totaled $13.4 million, versus a small loss in the comparable 2025 period.

How did six-month fiscal 2026 results compare for Energy Services of America?

For the six months ended March 31, 2026, revenue was $207.3 million versus $177.3 million a year earlier. Net income reached $2.9 million compared with a net loss of $5.9 million in the prior-year period, reflecting improved operating performance.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 57.3 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.0 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 33.4 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 21.9 KB