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olivLaw · US equity research

Energy Services of America Corporation ESOA

Water, Sewer, Pipeline, Comm & Power Line Construction · SIC 1623 · Vertical: Water, Sewer, Pipeline, Comm & Power Line Construction (SIC 1623)

8.73USD−5.62% · 1 dayClose 04 Nov 2026

Energy Services of America is a contractor that builds and maintains natural gas pipelines, water and sewer networks, and electrical systems across the mid-Atlantic and central United States. The company grew strongly in its latest fiscal year, with revenue of 411.0 million USD, and water and electrical infrastructure are becoming important directions amid demand from data centers and water network replacement.

At the close of 04 Nov 2026, Energy Services of America Corporation (ESOA) stock was 8.73 USD (−5.62% on the day), with market capitalisation 162.9 m USD, P/E 436.5 on diluted EPS of 0.02 USD over the last 12 months, dividend yield 1.49%, beta 1.64, 52-week range 7.93–19.34 USD. Latest reported quarter (Q3 2026): revenue of 130.0 m USD (+25.5% YoY), diluted EPS 0.18 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
162.9 m USD
shares as of 07 Aug 2026
P/E (TTM)
436.5
Diluted EPS TTM 0.02 · TTM to 30 Sept 2025
E/P (TTM)
0.23%
TTM to 30 Sept 2025
Dividend yield
1.49%
DPS 12m 0.13
Beta (2y)
1.64
Volatility (1y) 59%
52-week range
7.9319.34

Price history

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Technical reading

RSI (14)
31.2
weak (30–45)
Bollinger (20, 2)
8.60 – 10.46
in the lower half of the band · %B 0.07 · band width 19.5%
SMA 50 / 200
10.54 / 13.66
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.46 / -0.48
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−20.6%−1.1%−19.5 pp—
3 months−43.1%−0.5%−42.6 pp—
6 months−50.8%+4.4%−55.2 pp—
Year to date+6.9%+12.3%−5.5 pp—
1 year−18.9%+13.5%−32.5 pp−7.5%
3 years+71.5%+76.4%−4.9 pp+125.5%
5 years+463.2%+63.7%+399.6 pp—
Max drawdown (1y)
−54.9%
30 Jun 2026 → 04 Nov 2026
Max drawdown (5y)
−57.8%
16 Dec 2024 → 22 Dec 2025
Compound annual growth (5y)
+41.3%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Jun 2026

Revenue
130.0 m USD
+25.5% YoY
Net income
unavailable USD
unavailable YoY
Diluted EPS
0.18
+50.0% YoY
net / operating
unavailable / 3.6%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue104.7 m100.6 m76.7 m103.6 m130.1 m114.1 m93.2 m130.0 m
Cost of revenue87.1 m90.4 m76.6 m91.6 m113.6 m100.1 m82.9 m115.7 m
Gross profit17.6 m10.3 m77.9 k12.0 m16.5 m14.0 m10.2 m14.3 m
SG&A8.8 m8.6 m8.2 m8.8 m9.0 m9.1 m9.2 m9.7 m
Operating income8.8 m1.6 m-8.1 m3.2 m7.5 m4.9 m1.1 m4.6 m
Interest expense417.0 k483.7 k875.8 k781.2 k1.1 m989.9 k621.8 k486.9 k
Pre-tax income8.3 m1.3 m-9.0 m2.2 m6.3 m3.8 m412.3 k4.0 m
Income tax1.7 m455.5 k-2.2 m138.0 k2.1 m1.1 m196.8 k745.0 k
Diluted EPS—0.05-0.410.12—0.160.010.18
Operating cash flow-847.5 k8.9 m1.1 m ≈3.4 m ≈-9.3 m18.8 m3.6 m ≈-2.9 m ≈
Capex2.1 m2.9 m2.2 m ≈4.0 m ≈-2.7 m2.0 m3.7 m ≈1.9 m ≈
Dividends paid0——501.5 k ≈501.6 k501.3 k-2.6 k ≈558.7 k ≈
Share repurchases0———0846.5 k1.3 k ≈0 ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 100 percentile of its own 7-quarter history (min 6.9, median 8.4, max 39.0; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue135.5 m174.5 m119.2 m122.5 m197.6 m304.1 m351.9 m411.0 m
Revenue YoY−3.6%+28.8%−31.7%+2.7%+61.3%+53.9%+15.7%+16.8%
Net income2.5 munavailableunavailableunavailableunavailableunavailableunavailableunavailable
Net income YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPS0.130.100.12-0.070.230.441.510.02
Diluted EPS YoYunavailable−23.2%+28.1%−156.9%unavailable+91.3%+243.2%−98.7%
net %1.9%unavailableunavailableunavailableunavailableunavailableunavailableunavailable
Free cash flow7.2 m961.9 k11.5 m-5.2 m3.0 m10.2 m9.9 m-2.2 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 30 Sept 2025

Cash
12.2 m USD
Financial debt
72.2 m USD
Net debt
60.0 m USD
Equity
59.2 m USD
Total assets
215.2 m USD
Debt / equity
1.22x
Current ratio
1.48x
ROE
unavailable
ROA
unavailable
FCF margin
-0.5%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
304.1 m
2024
351.9 m
2025
411.0 m

SEC (XBRL)· 15 Dec 2025verified

Cost of revenue
2023
267.3 m
2024
301.9 m
2025
372.2 m

SEC (XBRL)· 15 Dec 2025verified

Gross profit
2023
36.8 m
2024
50.0 m
2025
38.8 m

SEC (XBRL)· 15 Dec 2025verified

SG&A
2023
23.8 m
2024
30.1 m
2025
34.6 m

SEC (XBRL)· 15 Dec 2025verified

Operating income
2023
13.0 m
2024
19.8 m
2025
4.2 m

SEC (XBRL)· 15 Dec 2025verified

Interest expense
2023
2.4 m
2024
2.2 m
2025
3.2 m

SEC (XBRL)· 15 Dec 2025verified

Pre-tax income
2023
10.4 m
2024
33.5 m
2025
864.9 k

SEC (XBRL)· 15 Dec 2025verified

Income tax
2023
3.0 m
2024
8.4 m
2025
485.2 k

SEC (XBRL)· 15 Dec 2025verified

Diluted EPS
2023
0.44
2024
1.51
2025
0.02

SEC (XBRL)· 15 Dec 2025verified

Weighted average diluted shares
2023
16.7 m
2024
16.6 m
2025
16.7 m

SEC (XBRL)· 15 Dec 2025verified

Dividend per share
2023
0.05
2024
—
2025
—

SEC (XBRL)· 16 Jan 2024verified

Balance sheet · USD

Cash
2023
16.4 m
2024
12.9 m
2025
12.2 m

SEC (XBRL)· 15 Dec 2025verified

Receivables
2023
51.2 m
2024
56.1 m
2025
76.0 m

SEC (XBRL)· 15 Dec 2025verified

Current assets
2023
95.2 m
2024
110.4 m
2025
144.9 m

SEC (XBRL)· 15 Dec 2025verified

Property, plant & equipment, net
2023
36.5 m
2024
38.1 m
2025
53.5 m

SEC (XBRL)· 15 Dec 2025verified

Goodwill
2023
4.1 m
2024
4.1 m
2025
9.9 m

SEC (XBRL)· 15 Dec 2025verified

Intangibles (excl. goodwill)
2023
3.4 m
2024
3.1 m
2025
4.9 m

SEC (XBRL)· 15 Dec 2025verified

Total assets
2023
142.5 m
2024
158.2 m
2025
215.2 m

SEC (XBRL)· 15 Dec 2025verified

Accounts payable
2023
22.0 m
2024
23.7 m
2025
30.7 m

SEC (XBRL)· 15 Dec 2025verified

Short-term debt
2023
26.0 m
2024
16.7 m
2025
21.9 m

SEC (XBRL)· 15 Dec 2025verified

Long-term debt
2023
18.9 m
2024
17.2 m
2025
50.3 m

SEC (XBRL)· 15 Dec 2025verified

Current liabilities
2023
79.9 m
2024
74.2 m
2025
98.0 m

SEC (XBRL)· 15 Dec 2025verified

Total liabilities
2023
107.9 m
2024
99.6 m
2025
156.0 m

SEC (XBRL)· 15 Dec 2025verified

Equity
2023
34.6 m †
2024
58.7 m †
2025
59.2 m †

SEC (XBRL)· 15 Dec 2025verified

Cash flow · USD

Operating cash flow
2023
21.1 m
2024
18.7 m
2025
4.1 m

SEC (XBRL)· 15 Dec 2025verified

Capex
2023
10.8 m
2024
8.8 m
2025
6.4 m

SEC (XBRL)· 15 Dec 2025verified

Free cash flow
2023
10.2 m ≈
2024
9.9 m ≈
2025
-2.2 m ≈

SEC (XBRL)· 15 Dec 2025derived

Investing cash flow
2023
-10.2 m
2024
-8.0 m
2025
-29.4 m

SEC (XBRL)· 15 Dec 2025verified

Financing cash flow
2023
-1.9 m
2024
-14.2 m
2025
24.6 m

SEC (XBRL)· 15 Dec 2025verified

Dividends paid
2023
833.4 k
2024
994.0 k
2025
1.5 m

SEC (XBRL)· 15 Dec 2025verified

Share repurchases
2023
219.6 k
2024
41.4 k
2025
844.2 k

SEC (XBRL)· 15 Dec 2025verified

Computed indicators

Growth

Revenue growth (YoY)
16.8%
computed by olivLawFY 2025
Revenue CAGR 3Y
27.7%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
28.1%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
-78.7%
computed by olivLawFY 2025
Net income growth (YoY)
unavailable
input data missing
Net income CAGR 3Y
unavailable
input data missing
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
-98.7%
computed by olivLawFY 2025
EPS CAGR 3Y
-55.7%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
-30.5%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
-122.3%
computed by olivLawFY 2025

Profitability

Gross margin
11.8%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
unavailable
input data missing
EBIT margin
3.9%
computed by olivLawTTM to 30 Jun 2026
Net margin
unavailable
input data missing
FCF margin
1.2%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
unavailable
input data missing
ROA
unavailable
input data missing
ROIC
12.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROCE
15.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
650.0%
computed by olivLawTTM to 30 Jun 2026
Payout ratio (FCF)
28.9%
computed by olivLawTTM to 30 Jun 2026

Balance sheet

Net debt
30.7 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.5x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
5.7x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
1.5x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
10.3 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
4.9 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
5.4 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
48 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
24 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
162.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
193.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
unavailable
input data missing
P/E (TTM)
436.5x
computed by olivLawFY 2025
Earnings yield
0.2%
computed by olivLawFY 2025
P/B
1.9x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
10.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/Sales
0.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
30.2x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
3.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
1.5%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
1.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Risk

Altman Z
3.40
computed by olivLawbalance sheet at 30 Jun 2026

Valuation

olivLaw classification

Neutral profile

Score: 48 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

8.73 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 162.9 m USD

Key indicators

Market capitalisation
162.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
436.5x
computed by olivLawFY 2025
P/B
1.9x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
unavailable
input data missing
Net margin
unavailable
input data missing
Revenue growth (YoY)
16.8%
computed by olivLawFY 2025
Dividend yield
1.5%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 07 Aug 2026
Source: SEC (XBRL)published 10 Aug 2026
verified 2400derived 177

Score by group

  • Valuation18
  • Balance sheet62
  • Quality78
  • Growth50
  • Returns53

Estimated value range

Low
0.66
USD per share
Mid
0.75
USD per share
High
0.88
USD per share
Price: 8.73 USD
The price is above the range
Potential to the central value: -91.4% (value / price − 1)
Margin of safety: -1,058.3% (1 − price / value)
Agreement between methods: low · 3 methods used · 3 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.42 – 11.37 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)6.17 – 11.37 (Mid 8.09)
    WACC 8.2% · starting FCFF 7.7 m USD · terminal value share of EV 77%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 18.0%
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/E0.42 – 0.50 (Mid 0.45)
    4 companies used · median multiple 22.7x · quartiles 20.9x – 24.8x
    DY, MTZ, MYRG, PLPC
  • Dividend discount (DDM)0.66 – 0.88 (Mid 0.75)
Multiple comparisons use the SIC vertical: Water, Sewer, Pipeline, Comm & Power Line Construction (SIC 1623)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 48/100

FactorValueScoreWeight used
ROIC · Quality12.1%78 (on a fixed band)16%
Net margin · Qualityunavailableunavailable—
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth27.7%100 (on a fixed band)13%
EPS CAGR 3Y · Growth-55.7%0 (on a fixed band)13%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet5.7x65 (on a fixed band)9%
Current ratio · Balance sheet1.5x59 (on a fixed band)6%
P/E (TTM) · Valuation436.5x0 (vs peers)16%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation3.3%41 (on a fixed band)13%
Shareholder yield (distributions) · Returns1.5%21 (on a fixed band)9%
Payout ratio (FCF) · Returns28.9%100 (on a fixed band)6%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet62/100 · 2/3 factors with a value
  • Growth50/100 · 2/2 factors with a value
  • Quality· partial78/100 · 1/3 factors with a value
  • Returns53/100 · 2/2 factors with a value
  • Valuation18/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Energy Services of America CORP (ESOA). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 411.0 m USD in 2025; YoY growth 16.8%.

The estimated value range is 0.66–0.88 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 0.75 USD, the price of 8.73 USD leaves a potential of -91.4% (value / price − 1) and a margin of safety of -1,058.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 48/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: quality. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 12.1%
  • Revenue CAGR 3Y: 27.7%
  • Payout ratio (FCF): 28.9%

What contradicts it

  • EPS CAGR 3Y: -55.7%
  • P/E (TTM): 436.5x
  • Shareholder yield (distributions): 1.5%
  • The price is above the estimated value range
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): Net margin, FCF conversion, Net debt / EBITDA, EV/EBITDA.

Versus the vertical median

Water, Sewer, Pipeline, Comm & Power Line Construction (SIC 1623) · same industry (4-digit SIC) · compared with 6 companies

Multiples and returns vs the median

P/E
436.5x
vertical median 24.0x
above median (+1,722.2%)
EV/EBITDA
—
vertical median 13.0x
P/S
0.3x
vertical median 0.9x
below median (−63.0%)
P/B
1.9x
vertical median 3.2x
below median (−39.7%)
ROE
—
vertical median 12.7%
Net margin
—
vertical median 3.6%
EBIT margin
3.9%
vertical median 4.3%
below median (−9.3%)
Revenue YoY
16.8%
vertical median 16.4%
at median
Net debt/EBITDA
—
vertical median 0.6x
Dividend yield
1.5%
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
MTZMasTec, Inc.13.5 bn27.413.5%2.8%+16.2%−22% / +176%
DYDycom Industries, Inc.6.4 bn19.319.2%4.8%+17.9%−41% / +104%
MYRGMyr Group Inc.4.1 bn21.426.9%4.5%+8.8%+18% / +112%
PRIMPrimoris Services Corporation3.6 bn38.76.0%1.4%+19.0%−46% / +125%
PLPCPreformed Line Products Company1.4 bn24.012.0%7.6%+12.7%+39% / +129%
ESOAEnergy Services of America CORP162.9 m436.5——+16.8%−19% / +72%
SKKRantizo77.4 m—-40.2%-22.6%+16.6%+7% / unavailable

1- and 3-year price returns: for ESOA from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Scenarios are not available. input data missing

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Energy Services of America is a contractor that builds and maintains natural gas pipelines, water and sewer networks, and electrical systems across the mid-Atlantic and central United States. The company grew strongly in its latest fiscal year, with revenue of 411.0 million USD, and water and electrical infrastructure are becoming important directions amid demand from data centers and water network replacement.

SWOT

Strengths

  • A diversified service portfolio across gas, water, electrical and construction work allows the company to absorb projects with lower margins.
  • Backlog held up and revenue grew in the third quarter of fiscal 2026, with increases across segments.
  • Long-standing relationships with large utility, industrial and public-sector customers.

Weaknesses

  • Gross margins are low and volatile, affected by individual projects and price competition.
  • Dependence on seasonality and weather, with weak quarters in the winter months.
  • The need for surety bonds on contracts may limit access to large projects.

Opportunities

  • Water infrastructure replacement and public network expansion could increase the volume of work.
  • Demand for electrical work linked to data centers and rising power consumption could bring new contracts.
  • Acquisitions of smaller construction firms could widen geographic reach and the service range.

Threats

  • Lower investment in natural gas could reduce the number of transmission projects.
  • Pricing pressure in bidding could limit prices and margins.
  • Uncertainty over the PPP loans and possible SBA penalties could affect the company's finances.

Risks

  • PPP loan reviewhigh

    The SBA could revisit the forgiveness of the PPP loans and demand repayment, together with penalties, if the company's certification is not accepted.

  • Margin pressurehigh

    Low-margin projects, price competition and higher costs could reduce profitability, as seen in fiscal 2025 and in a transmission project in the third quarter of fiscal 2026.

  • Reliance on a few large projectsmedium

    Cancellation or delay of large contracts could reduce revenue if they cannot be replaced quickly.

  • Acquisition integrationmedium

    Integrating acquired businesses such as Tribute and Rigney may bring unexpected costs and distract management.

  • Cybersecuritylow

    The company's information systems could be hit by attacks, which could lead to data loss or disruption of operations.

Investment thesis

What would need to be true (bull case)

  • If demand for water and electricity holds, backlog and revenue could keep growing, and profit could recover toward higher levels.
  • The dividend increase in the third quarter of fiscal 2026 signals management's confidence in future cash flows.
  • Diversification across segments could let the company offset weakness in any single area.

What would break the thesis

  • Low gross margins and strong competition could keep limiting profitability even as revenue grows.
  • The PPP loan risk and possible SBA penalties remain unresolved, and the outcome could affect the balance sheet.
  • Dependence on gas investment and customers' capital budgets makes revenue vulnerable to economic cycles.

What to watch

  • Trend in gross margin and gas transmission projectsQ4 2026
  • Level of backlog and new water and electrical contractsQ4 2026
  • Any SBA communication on the PPP loans2027
  • Results of integrating Tribute and Rigney in the annual reportnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Energy Services of America Corporation, formed in 2006, is a construction and service company working for utilities, gas operators, industry, chemical and power customers. Its activity includes building and repairing gas pipelines, storage facilities, water and sewer networks, and electrical and mechanical work. Main customers are in West Virginia, Virginia, Ohio, Pennsylvania and Kentucky, and the company also works in other states.

Operations rely on subsidiaries such as C.J. Hughes, Nitro Construction Services, West Virginia Pipeline, SQP Construction Group, Tri-State Paving, Ryan Construction and Tribute Contracting. Most construction subsidiaries have unionized staff, while newer units such as Tribute have non-union staff. The Tribute acquisition closed on December 2, 2024, and Rigney Digital Systems was acquired on September 30, 2025.

Contracts are usually awarded through competitive bids and are mostly priced on unit rates. Backlog, meaning contracted but unfinished work, indicates future activity volume, and project durations range from two to five months for typical jobs to seven to eighteen months for larger ones.

Market context

The company's activity depends on investment levels in natural gas, water and electrical infrastructure, factors it does not control. Its market is competitive, and price and the ability to finish projects on time are decisive. Seasonality, weather and customers' capital budgets affect quarterly results, with the first calendar quarter usually the slowest.

Revenue growth in the latest quarter, to 130.0 million USD, points to continued demand for water and electricity, but an 11.0% gross margin shows pricing and cost pressure remain. If investment in water infrastructure continues at its current pace, demand could support the company's backlog.

Trends

  • Water infrastructure replacementmixed

    Municipalities and water utilities are renewing their networks, and the company describes this replacement cycle as a source of opportunities. Public projects carry lower margins, however, and competition in this segment has increased.

  • Rising electricity demandtailwind

    The company cites growing electric demand and data center build-out across the country, which could increase its electrical and mechanical work.

  • Cyclical gas investmentheadwind

    Gas transmission activity is cyclical and depends on energy prices and capital budgets. The drop in transmission projects in fiscal 2025 reduced that segment's profit.

  • Inflation and labor costsheadwind

    Inflation raises the cost of energy and wages, and customers may struggle to pay fees. If these costs cannot be passed on, margins could narrow.

Competitive position

The pipeline, electrical and mechanical construction industries are highly competitive, and contracts are usually awarded through bidding. Price and the ability to finish a project on time are the main factors. Some competitors have larger financial and human resources, which may let them offer lower prices.

Regional and national competition in water and gas transmission has increased, which pressed gross margins in fiscal 2025. The company differentiates itself through the breadth of its services and its capacity to absorb a lower-margin project, as the third quarter of fiscal 2026 showed.

  • Integrity Kokosing Pipeline Services

    Regional and national pipeline services competitor, named by the company among its largest rivals.

  • Orders Construction

    Competitor in pipeline construction and utility work, cited among the principal rivals.

  • InfraSource

    Electrical infrastructure and utility services company, cited as an important rival.

  • Northern Pipeline

    Pipeline construction competitor, named by the company among its largest rivals.

News & filings

In the press

The latest news item in our archive is from 10 Jul 2026; the newest SEC filing is from 23 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / Energy Services of America Corporation · 15 Dec 2025
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Energy Services of America Corporation · 10 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Energy Services of America Corporation · 10 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.