Energy Services of America (ESOA) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended March 31, 2026, increased 21.5% year-over-year to $93.2 million, with net income of $216,000 versus a net loss of $6.8 million in the prior year period.

• Achieved first profitable fiscal second quarter in 17 years, driven by strong demand and favorable weather conditions.

• Six-month revenue rose 16.9% to $207.3 million, with net income of $2.9 million compared to a net loss of $5.9 million a year ago.

• Growth was driven by higher activity in gas & water distribution, gas & petroleum transmission, and electrical, mechanical, & general construction services.

Financial highlights

• Gross profit for the quarter was $10.2 million, up from $78,000 in the prior year; six-month gross profit was $24.2 million, up from $10.3 million.

• Operating income for the quarter was $1.1 million, compared to a loss of $8.1 million last year; six-month operating income was $6.0 million, versus a loss of $6.4 million.

• Adjusted EBITDA was $4.7 million, compared to negative $4.9 million in the prior-year quarter.

• Diluted EPS was $0.01 for the quarter and $0.17 for the six months, compared to $(0.41) and $(0.36) in the prior year periods.

• Cash flow from operations for the six months was $22.4 million, up from $10.0 million a year ago.

Outlook and guidance

• Backlog at March 31, 2026, was $325.1 million, up from $259.7 million at September 30, 2025.

• Sequential backlog increased by $23.6 million to $325.1 million, positioning the company for seasonally stronger quarters.

• Management expects continued strong bid opportunities in water/wastewater, natural gas, and electrical/mechanical projects.

• The company projects compliance with all debt covenants and sufficient liquidity for the next twelve months.