Energy Services of America (NASDAQ: ESOA) reported trailing 12-month revenue of $467 million, a 3.5-fold increase from fiscal 2020’s $120 million, as the company outlined its growth trajectory at the 17th Annual Midwest IDEAS Conference.
The company’s EBITDA rose to $33 million over the same period, translating to a 7.2% margin, up from a 4.2% margin in fiscal 2025. Management highlighted a 300-basis-point margin expansion on a trailing basis, supported by a shift away from gas transmission toward regulated utility, water and gas distribution, and industrial services. Gas transmission now accounts for roughly 25% of revenue, down from about 75% several years ago.
Backlog totaled $286 million, with $216 million in project-specific contracts and $70 million in maintenance and blanket agreements. Approximately $200 million of the project backlog is expected to be executed within the next 12 months. The company also reported a $10 million Virginia data center backlog, with $10 million already completed.
Revenue growth has been driven by acquisitions, including about $75 million from recent purchases such as Tri-State Paving, and internal expansion. An in-house general contractor startup contributed roughly $50 million in revenue. Key customers include Toyota, American Water, TransCanada, Marathon Petroleum, Kellogg’s, Ford, Nucor, and Essential Utilities.
ESOA’s stock traded at $11.68 on Wednesday, up 1.65% from the previous close, with a 52-week range of $7.84 to $19.94. The company completed a $22 million capital raise in February 2025 and paid off a $17 million line of credit, leaving total debt at an estimated $25 million to $30 million. It maintains a $30 million two-year rolling credit facility and a $400 million bonding capacity with Philadelphia Insurance.
Management set an intermediate revenue target of $500 million with 10% EBITDA margins, while noting a probable long-term outcome of $700 million in revenue and 9% margins. The company also increased its quarterly dividend from $0.03 to $0.04 in June 2025, equating to an annualized payout of $0.16 per share. Annual capital spending is budgeted between $8 million and $12 million for fleet and equipment upgrades.
CEO Doug Reynolds emphasized the company’s growth potential despite valuation misperceptions, stating that leadership development remains the primary challenge in scaling operations. He also cited increased public scrutiny of water quality as a driver for growth in the water distribution segment, particularly following events in Flint, Michigan.
