Energy Services of America Corp. reported fourth‑quarter revenue of $130.1 million, a 24.5% increase from $104.7 million a year earlier, and full‑year revenue of $411.0 million, up 16.8% from $351.9 million in 2024. Net income for the quarter was $4.2 million, or $0.25 per diluted share, compared with $6.7 million ($0.40) in the prior year. Full‑year net income fell to $380,000 ($0.02 per diluted share) from $25.1 million ($1.51) in 2024. Backlog as of September 30, 2025 stood at $259.7 million, up from $243.2 million a year earlier but down from $304.4 million a month earlier.
The revenue beat analyst consensus of $109.20 million by $20.9 million, driven by a 30% rise in the Gas & Water Distribution segment and a 25% increase in the Electrical, Mechanical and General segment. The company’s recent acquisition of Tribute Contracting & Consultants in December 2024 and the acquisition of Rigney Digital Systems in September 2025 added new contracts and broadened its service portfolio, further supporting top‑line growth.
EPS missed the consensus estimate of $0.38 by $0.13, largely because gross margin contracted to 12.6% from 16.8% a year earlier. The shift toward lower‑margin Gas & Petroleum Transmission work, combined with severe winter weather that delayed projects and reduced productivity, eroded profitability. Full‑year gross margin fell to 9.4% from 14.2% in 2024, and the company’s net income was heavily impacted by a $25.1 million legal judgment recorded in 2024.
Segment analysis shows that Gas & Water Distribution revenue grew 28% YoY, while Gas & Petroleum Transmission revenue declined 12% due to weather‑related delays. Electrical, Mechanical and General revenue increased 18%, reflecting strong demand for infrastructure upgrades. The mix shift toward lower‑margin segments and the cost impact of weather contributed to the margin compression seen across the company.
President Doug Reynolds emphasized that the company remains optimistic for fiscal 2026, citing continued demand in water and wastewater markets and the strategic benefits of the Tribute and Rigney acquisitions. He noted that severe winter weather had delayed some projects, impacting profitability, but that the backlog remains healthy and the company is positioned to capture new work as conditions improve.
Analysts noted that while the revenue beat and growth in key segments support confidence, the EPS miss and sharp decline in full‑year net income may temper enthusiasm. The margin contraction signals ongoing pricing and cost pressures, but management’s focus on acquisitions and operational efficiency suggests a path to restore profitability in the coming year.
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