Energy Services of America Reports Record Revenue, Increased Backlog, and Optimistic Outlook for 2026.

Energy Services of America reported a 21% increase in revenue to $103.6 million in Q3 2025, driven by its Gas & Water Distribution business line. However, gross profit decreased to $12.0 million from $15.3 million, and net income dropped to $2.1 million from $17.5 million in the prior year. The company's backlog increased to $304.4 million, up from $250.9 million, and management remains optimistic about future growth opportunities.

Energy Services of America (ESOA) has reported a robust 21% increase in revenue for the third quarter of 2025, reaching $103.6 million. This growth was primarily driven by the company's Gas & Water Distribution business line. However, gross profit decreased to $12.0 million from $15.3 million in the previous year, and net income fell to $2.1 million from $17.5 million. Despite these decreases, ESOA's backlog increased to $304.4 million, up from $250.9 million, indicating strong demand for its services.

The company's Q3 results reflect a mixed performance. The revenue increase suggests a strong market demand for ESOA's services, particularly in the Gas & Water Distribution sector. However, the decline in gross profit and net income highlights operational inefficiencies and potential higher costs associated with growth. ESOA's backlog growth, which reached $304.4 million, underscores the company's ability to secure future projects, providing a positive outlook for continued revenue growth.

Looking ahead, ESOA remains optimistic about future growth opportunities in the electrical, mechanical, and general construction sectors, supported by ongoing water and wastewater projects. The company's strategic workforce expansion and higher administrative expenses, including the acquisition of Tribute in December 2024, are aimed at managing anticipated growth.

Overall, while ESOA's Q3 results show a mixed performance with revenue growth and increased backlog, the company's operational challenges and higher costs are areas that investors should closely monitor. The company's optimism about future growth opportunities suggests a potential for recovery in gross profit and net income in the coming quarters.

References:
[1] https://www.tipranks.com/news/company-announcements/energy-services-of-america-reports-strong-revenue-growth
[2] https://finance.yahoo.com/news/origin-energy-ltd-ogfgf-full-071544943.html