ESOA · Energy Services of America Corporation

Energy Services of America Corporation delivered a transformative second quarter fiscal 2026, posting revenue of $93.2 million, a 21.5% year-over-year increase primarily from heightened activity in Gas & Petroleum Transmission, which more than doubled, alongside double-digit growth in Gas & Water Distribution and Electrical, Mechanical, and General segments. Gross profit surged to $10.2 million with margins expanding to 11.0% from near-zero levels, attributed to greater fixed cost leverage on higher volumes and a more favorable sales mix. This marked the company's first profitable Q2 in 17 years, with net income of $216,000 or $0.01 per share, reversing a $6.8 million loss. Adjusted EBITDA flipped to $4.7 million from a $4.9 million loss, underscoring improved cash generation. President Doug Reynolds highlighted sustained momentum from fiscal 2026's strong start, bolstered by favorable weather enabling on-time project starts versus prior year disruptions. Selling and administrative expenses rose to $9.2 million from $8.2 million due to growth-related labor costs. Backlog expanded sequentially by $23.6 million to $325.1 million, positioning the company for seasonally stronger quarters ahead. Additionally, a 2,001,000 share equity offering yielded $21.2 million in net proceeds, enhancing liquidity. Six-month results showed revenue of $207.3 million and net income of $2.9 million or $0.17 per share, contrasting prior year losses, with Adjusted EBITDA of $13.4 million.