Companies

Energy Services of America Raises Dividend After Profit Jump

The Tip Desk · August 10, 2026 · 3 min read

Net income reached $3.3 million, or $0.18 a share, and the quarterly dividend rose 33% to $0.04 a share.

Energy Services of America Corporation (ESOA) posted a 25.5% year-over-year revenue increase in the fiscal third quarter ended June 30, 2026, accelerating from a 21.5% year-over-year gain in the second quarter.

The Huntington, West Virginia contractor and service company, which works in natural gas, petroleum, water distribution, automotive, chemical and power industries across the mid-Atlantic and Central United States, reported revenue of $130.0 million. President Doug Reynolds said the increase was driven by increased work across all segments, particularly Gas & Petroleum Transmission, and that results reflected strength in water distribution and electrical construction as well as a continued recovery in gas transmission. He also said more favorable spring weather allowed projects to start on or ahead of schedule.

Sequential revenue also recovered. The third-quarter total compared with $93.2 million in the second quarter, after a sequential decline from $114.1 million in the first quarter. Gross profit was $14.3 million.

Gross margin was 11.0% of revenues, matching the second-quarter rate. A year earlier, the margin was 11.6%. The year-over-year decrease related to one large gas transmission project, partially offset by higher levels of construction activity. Reynolds said profitability was slightly affected by a lower-than-expected gross profit margin on that project, but that the diversity of the business allowed the company to absorb the impact.

Net income rose 57.9% to $3.3 million, or $0.18 a diluted share, from $2.1 million, or $0.12 a share, a year earlier. Adjusted EBITDA was $8.3 million. Selling and administrative expenses were $9.7 million, tied to higher labor and related costs associated with growth, partially offset by improved operating leverage.

Backlog as of June 30, 2026, was $286.6 million, down from $325.1 million at March 31, 2026, after a $23.6 million sequential increase into the second quarter. Backlog a year earlier, at June 30, 2025, was $280.7 million.

The company increased its quarterly dividend 33% to $0.04 a share. Reynolds said the increase reflected confidence in near- and longer-term opportunities driven by the ongoing replacement cycle for water infrastructure and growth in electric demand and data-center build-out.

For the nine months ended June 30, 2026, revenue was $337.3 million, gross profit $38.5 million, and net income $6.2 million, or $0.35 a diluted share, compared with a net loss of $3.9 million, or ($0.23) a share, in the year-ago nine months. Adjusted EBITDA for the nine months was $21.7 million. Income from operations for the nine months was $10.6 million, compared with a loss from operations of $3.3 million a year earlier.

The company employs more than 1,500 people on a regular basis. Reynolds said Energy Services remains optimistic about the business, citing water-infrastructure replacement and electric demand tied to data centers as the drivers of that outlook.