ESOA Revenue Jumps 16.8% to $411M Amid Strategic Acquisitions

TL;DR

**ESOA is a buy; strong revenue growth and a rising backlog confirm its critical role in essential infrastructure, despite the lingering PPP loan uncertainty.**

AI Summary

Energy Services of America CORP (ESOA) reported a robust fiscal year ended September 30, 2025, with consolidated operating revenues increasing by 16.8% to $411.0 million, up from $351.9 million in fiscal year 2024. Electrical, mechanical, and general contract services remained the largest revenue contributor at 47.9% ($196.8 million), though its share decreased from 53.2% in the prior year. Gas and water distribution services significantly grew their revenue share to 36.4% ($149.6 million) from 23.3%, while gas and petroleum transmission projects saw their share decline to 15.7% ($64.5 million) from 23.5%. The company expanded its capabilities through strategic acquisitions, including Tribute Contracting & Consultants, Inc. in December 2024, focusing on water distribution and wastewater systems, and Rigney Digital System Ltd. in September 2025, an HVAC/R controls company. A key risk remains the ongoing SBA review of $9.8 million in Paycheck Protection Program (PPP) loans, which could lead to repayment demands and potential penalties. ESOA's backlog increased to $259.7 million as of September 30, 2025, from $243.2 million in 2024, indicating continued project pipeline strength.

Why It Matters

ESOA's strong revenue growth and increased backlog signal healthy demand in the mid-Atlantic and central U.S. infrastructure sectors, particularly for gas, water, and electrical services. This performance is crucial for investors, demonstrating the company's ability to secure and execute projects despite potential economic headwinds and competitive pressures from larger infrastructure players. For employees, especially the unionized workforce, a growing backlog ensures job stability and continued demand for specialized skills. Customers benefit from expanded service offerings, such as the new HVAC/R controls capabilities from the Rigney acquisition, enhancing ESOA's value proposition in critical infrastructure maintenance and development. The company's focus on essential services like water distribution and natural gas pipelines positions it well within a stable, albeit cyclical, industry.

Risk Assessment

Risk Level: medium — The company faces a medium risk primarily due to the ongoing SBA review of $9.8 million in Paycheck Protection Program (PPP) loans, plus accrued interest. This uncertainty could lead to a demand for repayment and potential penalties, directly impacting the company's financial condition and results of operations. Additionally, the cyclical nature of the pipeline industry and dependence on customer capital expenditures introduce revenue volatility, as highlighted by the filing's discussion on industry factors.

Analyst Insight

Investors should monitor the resolution of the $9.8 million PPP loan review closely, as a negative outcome could significantly impact short-term liquidity and profitability. However, the strong 16.8% revenue growth and increased backlog to $259.7 million suggest underlying operational strength and demand for ESOA's services, warranting a bullish long-term view for those comfortable with the regulatory risk.

Financial Highlights

revenue

$411.0 million

revenue Growth

+16.8%

Revenue Breakdown

Key Numbers

• $411.0 million — Consolidated Operating Revenues (Increased by 16.8% from $351.9 million in fiscal year 2024)
• 47.9% — Revenue from Electrical, Mechanical, and General Contract Services (Largest segment, but decreased from 53.2% in 2024)
• 36.4% — Revenue from Gas & Water Distributions Services (Increased significantly from 23.3% in 2024)
• 15.7% — Revenue from Gas and Petroleum Transmission Projects (Decreased from 23.5% in 2024)
• $259.7 million — Backlog (Increased from $243.2 million at September 30, 2024)
• $9.8 million — Paycheck Protection Program Loans (Under SBA review, recorded as a short-term borrowing)
• March 31, 2025 — Market Value Measurement Date (Aggregate market value of non-affiliate common equity was $116,796,122)
• 18,145,934 — Shares of Common Stock Issued (As of December 12, 2025)

Key Players & Entities

• Energy Services of America Corporation (company) — Registrant
• TransCanada Corporation (company) — Key customer
• NiSource, Inc. (company) — Key customer
• Marathon Petroleum (company) — Key customer
• C.J. Hughes Construction Company, Inc. (company) — Wholly owned subsidiary
• Nitro Construction Services, Inc. (company) — Wholly owned subsidiary
• Rigney Digital System Ltd. (company) — Acquired HVAC/R controls company
• Tribute Contracting & Consultants, Inc. (company) — Acquired subsidiary
• Charles Crimmel (person) — Chief Financial Officer and Corporate Secretary
• United Bank (company) — Lender for PPP Loans

FAQ

Risk Factors

• SBA Review of PPP Loans [medium — legal]: The company is subject to an ongoing review by the Small Business Administration (SBA) concerning $9.8 million in Paycheck Protection Program (PPP) loans. This review could result in demands for repayment and potential penalties, impacting liquidity and financial results.
• Integration of Acquisitions [medium — operational]: The company has expanded through acquisitions, including Tribute Contracting & Consultants, Inc. and Rigney Digital System Ltd. Successful integration of these entities and their operations is crucial for realizing expected synergies and maintaining operational efficiency.
• Customer Concentration and Industry Dependence [medium — market]: The company serves customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. A downturn in any of these sectors, or loss of key customers, could materially affect revenues and profitability.
• Environmental and Safety Regulations [low — regulatory]: Operations in the energy and infrastructure sectors are subject to stringent environmental and safety regulations. Non-compliance can lead to significant fines, operational disruptions, and reputational damage.

Industry Context

Energy Services of America CORP operates in the competitive infrastructure services sector, serving natural gas, petroleum, water, and power industries. Key trends include the ongoing need for pipeline maintenance and replacement, expansion of water and wastewater systems, and the integration of renewable energy infrastructure like solar. The company faces competition from established players and regional contractors, necessitating strategic acquisitions and operational efficiency to maintain market share.

Regulatory Implications

The company faces regulatory scrutiny related to its $9.8 million in PPP loans, which could lead to financial penalties or repayment obligations. Additionally, operations are subject to environmental and safety regulations within the energy and infrastructure sectors, requiring ongoing compliance efforts.

What Investors Should Do

1. Monitor the outcome of the SBA review of PPP loans.
2. Analyze the integration progress of recent acquisitions (Tribute Contracting & Consultants, Rigney Digital System Ltd.).
3. Assess the revenue growth drivers within the Gas & Water Distributions Services segment.

Key Dates

• 2025-09-30: Fiscal Year End — Reporting period for the 10-K, showing consolidated operating revenues of $411.0 million.
• 2025-09-30: Backlog as of Year-End — The company's project pipeline stood at $259.7 million, indicating continued business activity.
• 2025-09-01: Acquisition of Rigney Digital System Ltd. — Expansion into HVAC/R controls, diversifying service offerings.
• 2024-12-01: Acquisition of Tribute Contracting & Consultants, Inc. — Strengthened capabilities in water distribution and wastewater systems.
• 2024-09-30: Fiscal Year End — Previous reporting period, with consolidated operating revenues of $351.9 million.

Glossary

Consolidated Operating Revenues

The total revenue generated by the company and its subsidiaries after eliminating intercompany transactions. (Key indicator of the company's overall business activity and market reach.)

Backlog

The total value of uncompleted contracts and projects that the company has secured. (Provides insight into future revenue streams and operational capacity.)

Paycheck Protection Program (PPP) Loans

A U.S. federal program providing forgivable loans to small businesses to help them maintain payroll during the COVID-19 pandemic. (A potential financial liability for ESOA due to ongoing SBA review.)

SBA

Small Business Administration, a U.S. government agency that supports entrepreneurs and small businesses. (The regulatory body conducting the review of ESOA's PPP loans.)

Year-Over-Year Comparison

Energy Services of America CORP demonstrated strong top-line growth, with consolidated operating revenues increasing by 16.8% to $411.0 million from $351.9 million in the prior fiscal year. While the Electrical, Mechanical, and General Contract Services segment saw a slight decrease in its revenue share, the Gas & Water Distributions Services segment experienced substantial growth, significantly increasing its contribution. The company's backlog also saw a modest increase, indicating sustained project pipeline strength. A new risk factor has emerged concerning the SBA review of PPP loans, which was not present in the prior filing.

Key Financial Figures

• $0.0001 — ch Registered Common Stock, par value $0.0001per share ESOA The Nasdaq Stock Mark
• $411.0 million — had consolidated operating revenues of $411.0 million for the fiscal year ended September 30,
• $351.9 million — had consolidated operating revenues of $351.9 million for the fiscal year ended September 30,
• $13.1 million — r") in an aggregate principal amount of $13.1 million pursuant to the PPP (collectively, the
• $3.3 million — the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the f
• $9.8 million — left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During
• $9.8 m — ing due to the SBA inquiry for the full $9.8 million, plus accrued interest. During J
• $259.7 million — 2025, Energy Services had a backlog of $259.7 million of work to be completed on existing con
• $243.2 million — 30, 2024, the Company had a backlog of $243.2 million. Due to the timing of Energy Services'
• $2,500 — ductible per occurrence on equipment of $2,500 and $500 for damage to miscellaneous to
• $500 — r occurrence on equipment of $2,500 and $500 for damage to miscellaneous tools. The

Filing Documents

• esoa-20250930x10k.htm (10-K) — 4191KB
• esoa-20250930xex21.htm (EX-21) — 16KB
• esoa-20250930xex23d1.htm (EX-23.1) — 3KB
• esoa-20250930xex31d1.htm (EX-31.1) — 11KB
• esoa-20250930xex31d2.htm (EX-31.2) — 11KB
• esoa-20250930xex32d1.htm (EX-32.1) — 7KB
• 0001104659-25-121185.txt ( ) — 18284KB
• esoa-20250930.xsd (EX-101.SCH) — 93KB
• esoa-20250930_cal.xml (EX-101.CAL) — 87KB
• esoa-20250930_def.xml (EX-101.DEF) — 283KB
• esoa-20250930_lab.xml (EX-101.LAB) — 676KB
• esoa-20250930_pre.xml (EX-101.PRE) — 504KB
• esoa-20250930x10k_htm.xml (XML) — 4909KB

Business

Business 3 ITEM 1A.

Risk Factors

Risk Factors 9 ITEM 1B. Unresolved Staff Comments 15 ITEM 1C. Cybersecurity 15 ITEM 2.

Properties

Properties 17 ITEM 3.

Legal Proceedings

Legal Proceedings 17 ITEM 4. Mine Safety Disclosures 17 ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 ITEM 6. Reserved 18 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 ITEM 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 34 ITEM 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure 34 ITEM 9A.

Controls and Procedures

Controls and Procedures 34 ITEM 9B. Other Information 35 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 35 ITEM 10. Directors, Executive Officers and Corporate Governance 36 ITEM 11.

Executive Compensation

Executive Compensation 36 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 36 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 36 ITEM 14. Principal Accountant Fees and Services 36 ITEM 15. Exhibits and Financial Statement Schedules 37 ITEM 16. Form 10-K Summary 38 Signatures. 39 2 Table of Contents

Forward Looking Statements

Forward Looking Statements Within Energy Services' (as defined below) consolidated financial statements and this Annual Report on Form 10-K, there are included statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events that are intended as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "project," "forecast," "may," "will," "should," "could," "expect," "believe," "intend" and other words of similar meaning . These forward-looking statements do not guarantee future performance and involve or rely on risks, uncertainties, and assumptions that are difficult to predict or beyond Energy Services' control. Energy Services has based its forward-looking statements on management's beliefs and assumptions based on information available to management at the time the statements are made. Actual outcomes and results may differ materially from what is expressed, implied, and forecasted by forward-looking statements and any or all of Energy Services' forward-looking statements may turn out to be wrong. The accuracy of such statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties. All the forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements or that are otherwise included in this report. In addition, Energy Services does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report or otherwise. PART I

Business

ITEM 1. Business Overview Energy Services of America Corporation ("Energy Services" or the "Company"), formed in 2006, 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. For the gas industry, the Company is primarily engaged in the construction, replacement and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. Energy Services is involved in the construction of both interstate and intrastate pipelines, with an emphasis on the latter. For the oil industry, the Company provides a variety of services relating to pipeline, storage facilities and plant work. For the power, chemical, and automotive industries, the Company provides a full range of electrical and mechanical installations and repairs including substation and switchyard services, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary work with regards thereto. Energy Services' other pipeline services include corrosion protection services, horizontal drilling services, liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction. The Company has also added the ability to install broadband and solar electric systems and perform civil and general contracting services. The Company had consolidated operating revenues of $411.0 million for the fiscal year ended September 30, 2025, of which 47.9% was attributable to electrical, mechanical, and general contract services, 15.7% to gas and petroleum transmission projects, and 36.4% to gas & water distributions services. The Company had consolidated operating revenues of $351.9 mi

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View this 10-K filing on SEC EDGAR