Energy Services of America CORP (NASDAQ: ESOA)

Energy Services of America Corporation is a contractor and service company that operates primarily in the mid Atlantic and central regions of the United States and provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. For the natural gas sector, the company engages in the construction, replacement and repair of pipelines and storage facilities for utility and private gas companies, handling both interstate and intrastate projects with a focus on intrastate lines. In the petroleum sector, it performs work on pipelines, storage tanks and plant facilities, including mechanical installations and related services. For the power, chemical and automotive sectors, the company delivers electrical and mechanical installations, such as substation and switchyard construction, site preparation, equipment setting, pipe fabrication, packaged buildings, transformers and ancillary work. Additionally, the firm offers corrosion protection, horizontal drilling, liquid pipeline construction, pump station installation, production facility construction, water and sewer pipeline laying, and various maintenance and repair services.

Energy Services of America Corporation reported consolidated operating revenues of $411.0 million for the fiscal year ended September 30, 2025. Of this total, 47.9 percent came from electrical, mechanical and general contract services, 15.7 percent from gas and petroleum transmission projects, and 36.4 percent from gas and water distribution services. The company’s revenue streams are derived from contracts that involve the engineering, procurement and construction of infrastructure assets, as well as ongoing maintenance and repair work for existing systems. In the prior fiscal year ended September 30, 2024, revenues were $351.9 million with a contribution of 53.2 percent from electrical, mechanical and general contract services, 23.5 percent from gas and petroleum transmission projects, and 23.3 percent from gas and water distribution services, illustrating a shift toward greater emphasis on distribution and infrastructure work.

The company operates through the following segments: Underground Infrastructure Construction, Industrial Construction, and Building Construction.

• Underground Infrastructure Construction primarily includes new construction and maintenance work in water and wastewater pipelines, natural gas distribution pipelines, natural gas transmission pipelines, natural gas stations and ancillary facilities, corrosion protection services, horizontal drilling services, liquid pipeline construction, pump station construction and production facility construction.

• Industrial Construction primarily includes new construction and maintenance work in electrical, mechanical, HVAC/R, controls, and fire protection services for automotive, chemical, power and manufacturing facilities, encompassing substation and switchyard installations, site preparation, equipment setting, pipe fabrication, packaged buildings, transformers and ancillary work.

• Building Construction primarily includes new construction and rehabilitation activities in school projects, local and state building projects and small bridge projects, with most services subcontracted to outside contractors or internally to other legal entities within the company, and the segment also handles general contracting for commercial and public sector clients.

Energy Services of America Corporation operates in highly competitive markets for pipeline, electrical and mechanical construction where winning contracts often depends on offering the lowest price while completing work on schedule. The company differentiates itself by emphasizing safety programs, skilled union and non union workforces, and the ability to provide a broad range of ancillary services such as corrosion protection, horizontal drilling and solar installations. Its principal competitors include Integrity Kokosing Pipeline Services, Orders Construction, InfraSource, Northern Pipeline and Enerfab, many of which possess greater financial resources and larger fleets of equipment. Despite this, Energy Services leverages long standing relationships with major utilities and industrial clients, a reputation for quality workmanship and a flexible organizational structure that allows rapid mobilization of crews to remote project sites.

Energy Services of America Corporation serves a broad customer base that includes major corporations such as TransCanada Corporation, NiSource Inc., Marathon Petroleum, Mountaineer Gas, Nucor Steel, West Virginia, American Electric Power, Toyota Motor Manufacturing, Bayer Chemical, Dow Chemical, Kentucky American Water and WV American Water. In addition to these national firms, the company works with numerous regional utilities, municipal water authorities, county public works departments and state transportation agencies across its core operating states. The majority of projects are located in West Virginia, Virginia, Ohio, Pennsylvania and Kentucky, while a meaningful share of work is performed in Alabama, Michigan, Illinois, Tennessee, North Carolina and Indiana. Clients typically engage the firm for infrastructure upgrades, new capacity expansions, regulatory compliance projects and emergency repair work following natural disasters or equipment failures.