Energy Services of America CORP Annual Report - How They Did This Year

Hey there! Let's dive into how Energy Services of America CORP (ESOA) performed this past fiscal year, ending September 30, 2025. It looks like they had a pretty solid year with some good growth across the board.

Business Performance: Strong Growth in Key Areas

ESOA saw a healthy increase in its overall business, with total revenue climbing to $200 million this year, up from $175 million last year. That's a 14.3% jump, which is a great sign!

Breaking it down by their main service areas:

• Gas and Water Distribution was a big contributor, bringing in $85 million, an increase of nearly 15% from last year's $74 million.
• Their Gas and Petroleum Transmission services also grew, reaching $70 million, up 11.1% from $63 million.
• The Electrical, Mechanical, and General segment showed the strongest percentage growth, increasing by 18.4% to $45 million, compared to $38 million last year.

This shows that all parts of their business are expanding, which is a positive indicator of their market demand and operational efficiency.

Financial Health: Growing Stronger

The company's financial foundation looks more robust this year:

• Total shareholder equity (which is essentially the company's net worth) increased by $24 million, growing from $222 million last year to $246 million this year. This means the company is building more value for its owners.
• A big part of this growth came from retained earnings, which are the profits the company keeps in the business rather than paying out as dividends. These grew by $20 million, reaching $150 million this year. This suggests they're making good profits and reinvesting them wisely.
• ESOA also continued to buy back some of its own stock, increasing its treasury stock by $1 million. This can sometimes signal confidence from the company in its own value.

On the flip side, the company did take on a bit more debt. Their notes payable to finance companies and banks increased by $5 million, going from $30 million last year to $35 million this year. While an increase, it's important to see this in context of their overall growth and asset base.

Investments in the Future

ESOA is clearly investing in its operational capacity. Their total segment assets (the resources they use to generate revenue) grew by $27 million, from $223 million to $250 million. This includes significant investments in their operating equipment and vehicles, which increased by $5 million to reach $80 million. This suggests they're upgrading or expanding their fleet and machinery to handle more work and support their growing business.

The company also granted more restricted stock under its equity incentive plan, with 100,000 more shares outstanding this year compared to last, totaling 1,000,000 shares. This is a common way to incentivize employees and align their interests with shareholders.

Key Takeaways

• Strong Revenue Growth: ESOA achieved a 14.3% increase in total revenue, reaching $200 million, with all three business segments contributing to this growth.
• Enhanced Financial Position: The company's total shareholder equity grew by $24 million to $246 million, largely driven by a $20 million increase in retained earnings.
• Strategic Investments: ESOA invested in its future by increasing total segment assets by $27 million, including significant upgrades to operating equipment and vehicles.
• Increased Debt: Notes payable increased by $5 million to $35 million, which should be considered in the context of the company's overall expansion and asset growth.
• Employee Incentives: The company expanded its equity incentive plan, granting an additional 100,000 restricted shares.