Energy Services of America Sees Improved Gross Margin and Backlog Increase

HUNTINGTON, W.Va., Aug. 12, 2024 — Energy Services of America Corporation (Nasdaq: ESOA) has announced a significant increase in its fiscal third-quarter net income, reporting $17.5 million, or $1.06 per diluted share, for the period ending June 30, 2024. This marks a substantial rise from the $3.4 million, or $0.21 per diluted share, reported in the same quarter last year. The latest results include approximately $11.4 million, or $0.69 per diluted share, stemming from a favorable legal judgment. President Doug Reynolds attributed the improved performance to a focus on projects with better margin profiles, stating, “Our third quarter results, particularly our improved gross profit, reflect the underlying strength of the business.” The company added $28 million to its backlog compared to the previous quarter, indicating a robust pipeline of future projects. Total revenues for the quarter reached $85.9 million, slightly up from $85.5 million in Q3 of fiscal 2023, while gross margin improved to 17.8% from 12.7% year-over-year. Selling and administrative expenses rose to $6.8 million from $5.3 million in the prior-year quarter. The backlog as of June 30, 2024, stood at $250.9 million, a notable increase from $222.8 million in March 2024 and $185.9 million in June 2023. Energy Services of America operates primarily in the mid-Atlantic and Central regions of the U.S., providing services across various industries, including natural gas and power.