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Table of Contents

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

​

☒ | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

​

For the quarterly period ended June 30, 2025

Commission File Number: 001-32998

Energy Services of America Corporation

(Exact Name of Registrant as Specified in Its Charter)

​

Delaware |  | 20-4606266
(State or Other Jurisdiction of Incorporation or Organization) |  | (I.R.S. Employer Identification Number)

​

​

75 West 3rd Ave., Huntington, West Virginia |  | 25701
(Address of Principal Executive Office) |  | (Zip Code)

​

(304) 522-3868

(Registrant’s Telephone Number Including Area Code)

​

Securities Registered Pursuant to Section 12(b) of the Act:

​

Title of Each Class |  | Trading Symbols |  | Name of Each Exchange On Which Registered
Common Stock, Par Value $0.0001 | ​ | ESOA | ​ | The Nasdaq Stock Market LLC

​

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such requirements for the past 90 days. YES ☒ NO ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ☒ NO ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, or an “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

​

Large accelerated filer | ☐ | Accelerated filer | ☒
Non-accelerated filer | ☐ | Smaller reporting company | ☒
|  | Emerging growth company | ☐

​

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of August 8, 2025, there were 16,650,538 outstanding shares of the Registrant’s Common Stock.

​

​

​

​

Table of Contents

​

​

Part 1: Financial Information |  |
Item 1. Financial Statements (Unaudited): |  |
Consolidated Balance Sheets (Unaudited) |  | 2
Consolidated Statements of Income (Unaudited) |  | 3
Consolidated Statements of Cash Flows (Unaudited) |  | 4
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) |  | 5
Notes to Unaudited Consolidated Financial Statements |  | 7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |  | 21
Item 3. Quantitative and Qualitative Disclosures About Market Risk |  | 39
Item 4. Controls and Procedures |  | 39
Part II: Other Information |  |
Item 1. Legal Proceedings |  | 40
Item 1A. Risk Factors |  | 40
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities |  | 40
Item 5. Other Information | ​ | 40
​ | ​ | ​
Item 6. Exhibits |  | 41
Signatures |  | 42

​

​

​

1

Table of Contents

Part 1. Financial Information

Item 1. Financial Statements (Unaudited):

Energy Services of America Corporation

Consolidated Balance Sheets

Unaudited

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | September 30,
​ |  | 2025 |  | 2024
Assets | ​ | ​ | ​ | ​ | ​ | ​
Current assets |  | ​ | ​ |  | ​ | ​
Cash and cash equivalents | ​ | $ | 15,338,234 | ​ | $ | 12,926,036
Accounts receivable-trade | ​ |  | 58,353,666 | ​ |  | 56,802,844
Allowance for doubtful accounts | ​ |  | (700,875) | ​ |  | (738,526)
Retainage receivable | ​ |  | 16,283,468 | ​ |  | 11,704,281
Other receivables | ​ |  | 1,094,732 | ​ |  | 1,047,952
Contract assets | ​ |  | 26,685,573 | ​ |  | 24,595,792
Prepaid expenses and other | ​ |  | 4,562,700 | ​ |  | 4,088,550
Total current assets | ​ |  | 121,617,498 | ​ |  | 110,426,929
​ | ​ |  | ​ | ​ |  | ​
Property, plant and equipment, at cost | ​ |  | 114,275,410 | ​ |  | 91,885,621
less accumulated depreciation | ​ |  | (60,184,759) | ​ |  | (53,749,907)
Total fixed assets | ​ |  | 54,090,651 | ​ |  | 38,135,714
​ | ​ | ​ | ​ | ​ | ​ | ​
Right-of-use assets-operating leases | ​ | ​ | 2,377,861 | ​ | ​ | 2,531,227
Intangible assets, net | ​ | ​ | 3,606,317 | ​ | ​ | 3,065,576
Goodwill | ​ | ​ | 7,428,761 | ​ | ​ | 4,087,554
Total assets | ​ | $ | 189,121,088 | ​ | $ | 158,247,000
​ | ​ |  | ​ | ​ |  | ​
Liabilities and shareholders’ equity | ​ |  | ​ | ​ |  | ​
Current liabilities | ​ |  | ​ | ​ |  | ​
Current maturities of long-term debt | ​ | $ | 11,133,370 | ​ | $ | 6,372,915
Current maturities of short-term borrowings | ​ |  | 10,367,394 | ​ |  | 10,292,676
Current maturities of operating lease liabilities | ​ | ​ | 1,140,315 | ​ | ​ | 907,503
Accounts payable | ​ |  | 24,353,056 | ​ |  | 23,673,659
Accrued expenses and other current liabilities | ​ |  | 15,934,215 | ​ |  | 13,855,533
Contract liabilities | ​ |  | 27,660,163 | ​ |  | 16,950,988
Income tax payable | ​ |  | 413,451 | ​ |  | 2,195,278
Total current liabilities | ​ |  | 91,001,964 | ​ |  | 74,248,552
​ | ​ |  | ​ | ​ |  | ​
Long-term debt, less current maturities | ​ |  | 37,600,186 | ​ |  | 17,187,992
Long-term operating lease liabilities, less current maturities | ​ | ​ | 1,240,208 | ​ | ​ | 1,625,424
Deferred tax liability | ​ |  | 4,737,207 | ​ |  | 6,490,888
Total liabilities | ​ |  | 134,579,565 | ​ |  | 99,552,856
​ | ​ |  | ​ | ​ |  |
Shareholders’ equity | ​ |  |  | ​ |  |
Common stock, $.0001 par value Authorized 50,000,000 shares, 18,008,243 issued and 16,612,123 outstanding at June 30, 2025 and 17,860,413 issued and 16,570,685 outstanding at September 30, 2024 | ​ |  | 1,806 | ​ |  | 1,790
Treasury stock, 1,396,120 shares at June 30, 2025 and 1,289,728 shares at September 30, 2024 | ​ |  | (143) | ​ |  | (133)
Additional paid in capital | ​ |  | 61,497,573 | ​ |  | 60,282,921
Retained deficit | ​ |  | (6,957,713) | ​ |  | (1,590,434)
Total shareholders’ equity | ​ |  | 54,541,523 | ​ |  | 58,694,144
Total liabilities and shareholders’ equity | ​ | $ | 189,121,088 | ​ | $ | 158,247,000

​

The Accompanying Notes are an Integral Part of These Financial Statements

​

2

Table of Contents

Energy Services of America Corporation

Consolidated Statements of Income

Unaudited

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Three Months Ended | ​ | Nine Months Ended | ​ | Nine Months Ended
​ | ​ | June 30, | ​ | June 30, | ​ | June 30, | ​ | June 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue | ​ | $ | 103,601,585 | ​ | $ | 85,923,760 | ​ | $ | 280,926,850 | ​ | $ | 247,214,602
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Cost of revenue | ​ |  | 91,618,987 | ​ |  | 70,615,936 | ​ |  | 258,602,810 | ​ |  | 214,828,263
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Gross profit | ​ |  | 11,982,598 | ​ |  | 15,307,824 | ​ |  | 22,324,040 | ​ |  | 32,386,339
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Selling and administrative expenses | ​ |  | 8,814,545 | ​ |  | 6,815,191 | ​ |  | 25,602,253 | ​ |  | 21,335,862
Income (loss) from operations | ​ |  | 3,168,053 | ​ |  | 8,492,633 | ​ |  | (3,278,213) | ​ |  | 11,050,477
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Other income (expense) | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Proceeds from lawsuit judgement | ​ | ​ | — | ​ | ​ | 15,634,499 | ​ | ​ | — | ​ | ​ | 15,634,499
Other nonoperating expense | ​ | ​ | (38,529) | ​ | ​ | (27,446) | ​ | ​ | (107,407) | ​ | ​ | (33,935)
Interest expense | ​ | ​ | (781,198) | ​ | ​ | (546,960) | ​ | ​ | (2,140,686) | ​ | ​ | (1,771,560)
(Loss) gain on sale of equipment | ​ |  | (128,710) | ​ |  | 571 | ​ |  | 50,532 | ​ |  | 292,166
​ | ​ |  | (948,437) | ​ |  | 15,060,664 | ​ |  | (2,197,561) | ​ |  | 14,121,170
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Income (loss) before income taxes | ​ |  | 2,219,616 | ​ |  | 23,553,297 | ​ |  | (5,475,774) | ​ |  | 25,171,647
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Income tax expense (benefit) | ​ |  | 137,987 | ​ |  | 6,039,670 | ​ |  | (1,612,718) | ​ |  | 6,724,653
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Net income (loss) | ​ | ​ | 2,081,629 | ​ | ​ | 17,513,627 | ​ | ​ | (3,863,056) | ​ | ​ | 18,446,994
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Weighted average shares outstanding-basic | ​ |  | 16,625,761 | ​ |  | 16,565,827 | ​ |  | 16,644,028 | ​ |  | 16,567,034
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Weighted average shares-diluted | ​ |  | 16,666,135 | ​ |  | 16,597,982 | ​ |  | 16,644,028 | ​ |  | 16,602,903
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Earnings (loss) per share available to common shareholders | ​ | $ | 0.13 | ​ | $ | 1.06 | ​ | $ | (0.23) | ​ | $ | 1.11
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings (loss) per share-diluted available to common shareholders | ​ | $ | 0.12 | ​ | $ | 1.06 | ​ | $ | (0.23) | ​ | $ | 1.11

​

The Accompanying Notes are an Integral Part of These Financial Statements

​

3

Table of Contents

Energy Services of America Corporation

Consolidated Statements of Cash Flows

Unaudited

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended | ​ | Nine Months Ended
​ | ​ | June 30, | ​ | June 30,
​ |  | 2025 |  | 2024
Cash flows from operating activities: |  | ​ |  |  | ​ |
Net (loss) income | ​ | $ | (3,863,056) | ​ | $ | 18,446,994
​ | ​ |  | ​ | ​ |  | ​
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ​ |  | ​ | ​ | ​ | ​
Depreciation expense | ​ |  | 8,713,445 | ​ |  | 6,338,224
Accreted interest on PPP loans | ​ | ​ | 74,718 | ​ | ​ | 75,380
(Loss) gain on sale of equipment | ​ | ​ | (50,532) | ​ | ​ | (292,166)
Provision for deferred taxes | ​ |  | (1,753,681) | ​ |  | 412,457
Amortization of intangible assets | ​ | ​ | 459,259 | ​ | ​ | 324,426
Accreted interest on note payable | ​ |  | 45,000 | ​ |  | 53,977
Vested stock grants | ​ | ​ | 58,888 | ​ | ​ | 35,556
Decrease in accounts receivable-trade | ​ | ​ | 4,000,870 | ​ | ​ | 1,046,178
Increase in retainage receivable | ​ |  | (1,808,157) | ​ |  | (2,689,270)
Decrease (increase) in other receivables | ​ | ​ | 1,366,200 | ​ | ​ | (605,252)
Increase in contract assets | ​ |  | (373,797) | ​ |  | (5,090,894)
Increase in prepaid expenses and other | ​ | ​ | (474,150) | ​ | ​ | (725,714)
Decrease in accounts payable | ​ | ​ | (2,797,474) | ​ | ​ | (2,580,965)
(Decrease) increase in accrued expenses and other current liabilities | ​ | ​ | (203,738) | ​ | ​ | 4,573,985
Increase in contract liabilities | ​ |  | 10,028,162 | ​ |  | 201,617
Net cash provided by operating activities | ​ | ​ | 13,421,957 | ​ | ​ | 19,524,533
​ | ​ |  | ​ | ​ |  | ​
Cash flows from investing activities: | ​ |  | ​ | ​ |  | ​
Investment in property and equipment | ​ |  | (9,101,722) | ​ |  | (6,666,139)
Acquistion of Tribute Contracting & Consultants, net of cash aquired | ​ | ​ | (20,783,224) | ​ | ​ | —
Proceeds from sales of property and equipment | ​ |  | 724,961 | ​ |  | 995,324
Net cash used in investing activities | ​ |  | (29,159,985) | ​ |  | (5,670,815)
​ | ​ | ​ | ​ | ​ | ​ |
Cash flows from financing activities: | ​ |  | ​ | ​ |  | ​
Proceeds from long-term debt | ​ |  | 19,676,024 | ​ |  | —
Borrowings on lines of credit and short term debt, net of (repayments) | ​ | ​ | 7,073,976 | ​ | ​ | (9,663,150)
Cash dividend on common stock | ​ | ​ | (1,002,668) | ​ | ​ | (994,031)
Treasury stock purchased | ​ | ​ | (844,230) | ​ | ​ | (41,380)
Principal payments on long-term debt | ​ | ​ | (6,752,876) | ​ | ​ | (5,048,862)
Net cash provided by (used in) financing activities | ​ |  | 18,150,226 | ​ |  | (15,747,423)
Increase (decrease) in cash and cash equivalents | ​ |  | 2,412,198 | ​ |  | (1,893,705)
Cash and cash equivalents beginning of period | ​ |  | 12,926,036 | ​ |  | 16,431,572
Cash and cash equivalents end of period | ​ | $ | 15,338,234 | ​ | $ | 14,537,867
​ | ​ |  | ​ | ​ |  | ​
Supplemental schedule of noncash investing and financing activities: | ​ |  | ​ | ​ |  | ​
Purchases of property & equipment under financing agreements | ​ | $ | 1,340,563 | ​ | $ | 1,696,436
Net operating lease right-of-use assets received in exchange for operating lease liabilities | ​ | $ | 669,056 | ​ | $ | (36,667)
Common dividends declared but not paid | ​ | $ | 501,555 | ​ | $ | —
Common stock issued in Tribute Contracting & Consultants acquisition | ​ | $ | 2,000,000 | ​ | $ | —
​ | ​ |  | ​ | ​ |  | ​
Supplemental disclosures of cash flows information: | ​ |  | ​ | ​ |  | ​
Cash paid during the period for: | ​ |  | ​ | ​ |  | ​
Interest | ​ | $ | 1,942,786 | ​ | $ | 1,690,100
Income taxes | ​ | $ | 1,997,969 | ​ | $ | 1,251,818

​

The Accompanying Notes are an Integral Part of These Financial Statements

​

4

Table of Contents

Energy Services of America Corporation

Consolidated Statements of Changes in Shareholders’ Equity

For the three and nine months ended June 30, 2025 and 2024

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Total
​ | ​ | Common Stock | ​ | Additional Paid | ​ | Retained | ​ | Treasury | ​ | Shareholders’
​ |  | Shares |  | Amount |  | in Capital |  | Deficit |  | Stock |  | Equity
Balance at September 30, 2024 |  | 16,570,685 | ​ | $ | 1,790 | ​ | $ | 60,282,921 | ​ | $ | (1,590,434) | ​ | $ | (133) | ​ | $ | 58,694,144
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​
Net income |  | — | ​ |  | — | ​ |  | — | ​ |  | 853,733 | ​ |  | — | ​ | ​ | 853,733
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dividends on common stock ($0.03 per share on 16,705,457 shares) | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (501,164) | ​ | ​ | — | ​ | ​ | (501,164)
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Common shares issued as part of acquisition | ​ | 134,772 | ​ | ​ | 13 | ​ | ​ | 1,999,987 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,000,000
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at December 31, 2024 |  | 16,705,457 | ​ | $ | 1,803 | ​ | $ | 62,282,908 | ​ | $ | (1,237,865) | ​ | $ | (133) | ​ | $ | 61,046,713
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net loss |  | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (6,798,418) | ​ | ​ | — | ​ | ​ | (6,798,418)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dividends on common stock ($0.03 per share on 16,716,809 shares) | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (501,504) | ​ | ​ | — | ​ | ​ | (501,504)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Vested restricted stock award | ​ | 11,352 | ​ | ​ | 1 | ​ | ​ | 32,757 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 32,758
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at March 31, 2025 |  | 16,716,809 | ​ | $ | 1,804 | ​ | $ | 62,315,665 | ​ | $ | (8,537,787) | ​ | $ | (133) | ​ | $ | 53,779,549
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income |  | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,081,629 | ​ | ​ | — | ​ | ​ | 2,081,629
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dividends on common stock ($0.03 per share on 16,718,515 shares) | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (501,555) | ​ | ​ | — | ​ | ​ | (501,555)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Vested restricted stock award | ​ | 1,706 | ​ | ​ | 2 | ​ | ​ | 26,128 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 26,130
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Treasury stock purchased by company | ​ | (106,392) | ​ | ​ | — | ​ | ​ | (844,220) | ​ | ​ | — | ​ | ​ | (10) | ​ | ​ | (844,230)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at June 30, 2025 |  | 16,612,123 | ​ | $ | 1,806 | ​ | $ | 61,497,573 | ​ | $ | (6,957,713) | ​ | $ | (143) | ​ | $ | 54,541,523

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Total
​ | ​ | Common Stock | ​ | Additional Paid | ​ | Retained | ​ | Treasury | ​ | Shareholders’
​ |  | Shares |  | Amount |  | in Capital |  | Deficit |  | Stock |  | Equity
Balance at September 30, 2023 | ​ | 16,567,185 | ​ | $ | 1,789 | ​ | $ | 60,288,745 | ​ | $ | (25,701,413) | ​ | $ | (132) | ​ | $ | 34,588,989
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,042,195 | ​ | ​ | — | ​ | ​ | 2,042,195
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dividends on common stock ($0.06 per share on 16,567,185 shares) | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (994,031) | ​ | ​ | — | ​ | ​ | (994,031)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at December 31, 2023 | ​ | 16,567,185 | ​ | $ | 1,789 | ​ | $ | 60,288,745 | ​ | $ | (24,653,249) | ​ | $ | (132) | ​ | $ | 35,637,153
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net loss | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (1,108,828) | ​ | ​ | — | ​ | ​ | (1,108,828)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Vested restricted stock award | ​ | 10,401 | ​ | ​ | 1 | ​ | ​ | 35,555 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 35,556
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at March 31, 2024 | ​ | 16,577,586 | ​ | $ | 1,790 | ​ | $ | 60,324,300 | ​ | $ | (25,762,077) | ​ | $ | (132) | ​ | $ | 34,563,881
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 17,513,627 | ​ | ​ | — | ​ | ​ | 17,513,627
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Treasury stock purchased by company | ​ | (6,901) | ​ | ​ | — | ​ | ​ | (41,379) | ​ | ​ | — | ​ | ​ | (1) | ​ | ​ | (41,380)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at June 30, 2024 | ​ | 16,570,685 | ​ | $ | 1,790 | ​ | $ | 60,282,921 | ​ | $ | (8,248,450) | ​ | $ | (133) | ​ | $ | 52,036,128

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The Accompanying Notes are an Integral Part of These Financial Statements

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ENERGY SERVICES OF AMERICA CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. BUSINESS AND ORGANIZATION

Energy Services of America Corporation (“Energy Services” or the “Company”), formed in 2006, 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 gas industry, the Company is primarily engaged in the construction, replacement and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. Energy Services is involved in the construction of both interstate and intrastate pipelines, with an emphasis on the latter. For the oil industry, the Company provides a variety of services relating to pipeline, storage facilities and plant work. For the power, chemical, and automotive industries, the Company provides a full range of electrical and mechanical installations and repairs including substation and switchyard services, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary work with regards thereto. Energy Services’ other pipeline services include corrosion protection services, horizontal drilling services, liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction. The Company has also added the ability to install broadband and perform civil and general contracting services.

C.J. Hughes Construction Company, Inc. (“C.J. Hughes”), a wholly owned subsidiary of the Company, is a general contractor primarily engaged in pipeline construction for utility companies. Contractors Rental Corporation (“Contractors Rental”), a wholly owned subsidiary of C.J. Hughes, provides union building trade employees for projects managed by C.J. Hughes.

Nitro Construction Services, Inc. (“NCS”), a wholly owned subsidiary of C.J. Hughes, provides electrical, mechanical, HVAC/R, and fire protection services to customers primarily in the automotive, chemical, and power industries. Nitro Electric Company, LLC (“Nitro Electric”), a wholly owned subsidiary of NCS, performs industrial electrical work and has a satellite office registered in Michigan. Pinnacle Technical Solutions, Inc. (“Pinnacle”), a wholly owned subsidiary of NCS, operates as a data storage facility within Nitro’s office building. Pinnacle is supported by NCS and has no employees of its own. NCS and its subsidiaries will collectively be referred to “Nitro”. Revolt Energy, LLC (“Revolt”), formerly a wholly owned subsidiary of NCS, that performed residential solar installations projects, was sold for a nominal consideration on March 1, 2025 in a transaction that was not material to the Company’s Consolidated Financial Statements.

All C.J. Hughes, Nitro, and Contractors Rental construction personnel are union members of various related construction trade unions and are subject to collective bargaining agreements that expire at varying time intervals.

West Virginia Pipeline, Inc. (“West Virginia Pipeline” or “WVP”), a wholly owned subsidiary of Energy Services, operates as a gas and water distribution contractor primarily in southern West Virginia. The employees of West Virginia Pipeline are non-union and are managed independently of the Company’s union subsidiaries.

SQP Construction Group, Inc. (“SQP”), a wholly owned subsidiary of Energy Services, operates as a general contractor primarily in West Virginia. SQP engages in the construction and renovation of buildings and other civil construction projects for state and local government agencies and commercial customers. As a general contractor, SQP manages the overall construction project and subcontracts most of the work. The employees of SQP are non-union and are managed independently of the Company’s union subsidiaries.

Tri-State Paving & Sealcoating, Inc. (“TSP” or “Tri-State Paving”), a wholly owned subsidiary of Energy Services, completed the acquisition of substantially all the assets of Tri-State Paving & Sealcoating, LLC (“Tri-State Paving, LLC”) on April 29, 2022. Tri-State Paving provides utility paving services to water distribution customers in the Charleston, West Virginia, Lexington, Kentucky, and Chattanooga, Tennessee markets. The employees of TSP are non-union and are managed independently of the Company’s union subsidiaries.

Ryan Construction Services Inc. (“Ryan Construction” or “RCS”), a wholly owned subsidiary of Energy Services, provides directional drilling services for broadband service providers along with offering natural gas distribution services, cathodic protection and corrosion prevention services, and civil construction services. Ryan Construction operates primarily in West Virginia, Tennessee, and Pennsylvania. The employees of RCS are non-union and are managed independently of the Company’s union subsidiaries.

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Tribute Contracting & Consultants, Inc. (“Tribute” or “TCC”), a wholly owned subsidiary of Energy Services, was formed in October 2024 in connection with the acquisition of substantially all the assets of Tribute Contracting & Consultants, LLC (“Tribute LLC”). The acquisition of Tribute LLC closed on December 2, 2024. Tribute constructs water distribution and wastewater systems primarily for public municipalities in West Virginia, Ohio, and Kentucky. The employees of TCC are non-union and are managed independently of the Company’s union subsidiaries.

Interim Financial Statements

The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto for the years ended September 30, 2024, and 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 19, 2024. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted pursuant to the interim financial reporting rules and regulations of the SEC. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations. The operating results for the three and nine months ended June 30, 2025 and 2024 are not necessarily indicative of the results to be expected for the full year or any other interim period.

Principles of Consolidation

The consolidated financial statements of Energy Services include the accounts of Energy Services, its wholly owned subsidiaries West Virginia Pipeline, SQP, Ryan Construction, Tri-State Paving, Tribute and C.J. Hughes and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Unless the context requires otherwise, references to Energy Services include Energy Services, West Virginia Pipeline, SQP, Ryan Construction, Tri-State Paving, Tribute, and C.J. Hughes and its subsidiaries.

Use of Estimates and Assumptions

The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and loss during the reporting period. Actual results could differ materially from those estimates.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Please refer to Note 2 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended September 30, 2024, for a more detailed discussion of our significant accounting policies. There were no material changes to these significant accounting policies during the three and nine months ended June 30, 2025.

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3. ACCOUNTING FOR PAYCHECK PROTECTION PROGRAM LOANS

Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the Paycheck Protection Program (“PPP”). On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with United Bank as its lender (the “Lender”) in an aggregate principal amount of $13.1 million pursuant to the PPP (collectively, the (“PPP Loans”). In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the SBA had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021.

During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously issued audited financial statements of the Company for the fiscal years 2022 and 2021. The

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Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest for all periods presented.

During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender.

Borrowers must retain PPP documentation for at least six years after the date the loan is forgiven or paid in full, and the SBA and SBA Inspector General must be granted these files upon request. The SBA could revisit its forgiveness decision and determine that the Company does not qualify as a whole or in part for loan forgiveness and demand repayment of the loans. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company’s certification. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects.

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4. REVENUE RECOGNITION

Our revenue is primarily derived from construction contracts that can span several quarters. We recognize revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606” or “Topic 606”) which provides for a five-step model for recognizing revenue from contracts with customers as follows:

| ● | Identify the contract

| ● | Identify performance obligations

| ● | Determine the transaction price

| ● | Allocate the transaction price

| ● | Recognize revenue

The accuracy of our revenue and profit recognition in a given period depends on the accuracy of our estimates of the cost to complete each project. We believe our experience allows us to create materially reliable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability. The most significant of these include:

| ● | the completeness and accuracy of the original bid;

| ● | costs associated with scope changes;

| ● | changes in costs of labor and/or materials;

| ● | extended overhead and other costs due to owner, weather and other delays;

| ● | subcontractor performance issues;

| ● | changes in productivity expectations;

| ● | site conditions that differ from those assumed in the original bid;

| ● | changes from original design on design-build projects;

| ● | the availability and skill level of workers in the geographic location of the project;

| ● | a change in the availability and proximity of equipment and materials;

| ● | our ability to fully and promptly recover on affirmative claims and back charges for additional contract costs; and

| ● | the customer’s ability to properly administer the contract.

The foregoing factors, as well as the stage of completion of contracts in process and the mix of contracts at different margins may cause fluctuations in gross profit from period to period. Significant changes in cost estimates, particularly in our larger, more complex projects, could have a significant effect on our profitability.

Our contract assets include cost and estimated earnings in excess of billings that represent amounts earned and reimbursable under contracts, including claim recovery estimates, but have a conditional right for billing and payment such as achievement of milestones or completion of the project. With the exception of customer affirmative claims, generally, such unbilled amounts will become billable according to the contract terms and generally will be billed and collected over the next three months. Settlement with the customer of outstanding affirmative claims is dependent on the claims resolution process and could extend beyond one year. Based on our historical experience, we generally consider the collection risk related to billable amounts to be low. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced.

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Our contract liabilities consist of provisions for losses and billings in excess of costs and estimated earnings. Provisions for losses, if incurred, are recognized in the consolidated statements of income at the uncompleted performance obligation level for the amount of total estimated losses in the period that evidence indicates that the estimated total cost of a performance obligation exceeds its estimated total revenue. Billings in excess of costs and estimated earnings are billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months.

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5. DISAGGREGATION OF REVENUE

The Company disaggregates revenue based on the following lines of service: (1) Gas & Water Distribution, (2) Gas & Petroleum Transmission, and (3) Electrical, Mechanical, & General services and construction. Our contract types are: Lump Sum, Unit Price, Cost Plus and Time and Materials (“T&M”). The following tables present our disaggregated revenue for the three and nine months ended June 30, 2025 and 2024:

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, 2025
​ | ​ | ​ | ​ | ​ | ​ | Electrical, | ​ | ​
​ | ​ | Gas & Water | ​ | Gas & Petroleum | ​ | Mechanical, & | ​ | Total revenue
​ |  | Distribution |  | Transmission |  | General |  | from contracts
Lump sum contracts | ​ | $ | — | ​ | $ | — | ​ | $ | 34,447,972 | ​ | $ | 34,447,972
Unit price contracts | ​ |  | 38,566,422 | ​ |  | 9,669,098 | ​ |  | 781,248 | ​ |  | 49,016,768
Cost plus and T&M contracts | ​ |  | — | ​ |  | 5,656,852 | ​ |  | 14,479,993 | ​ |  | 20,136,845
Total revenue from contracts | ​ | $ | 38,566,422 | ​ | $ | 15,325,950 | ​ | $ | 49,709,213 | ​ | $ | 103,601,585
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Earned over time | ​ | $ | 19,921,978 | ​ | $ | 9,669,098 | ​ | $ | 39,791,305 | ​ | $ | 69,382,381
Earned at point in time | ​ |  | 18,644,444 | ​ |  | 5,656,852 | ​ |  | 9,917,908 | ​ |  | 34,219,204
Total revenue from contracts | ​ | $ | 38,566,422 | ​ | $ | 15,325,950 | ​ | $ | 49,709,213 | ​ | $ | 103,601,585

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended June 30, 2025
​ | ​ | ​ | ​ | ​ | ​ | Electrical, | ​ | ​ | ​
​ | ​ | Gas &Water | ​ | Gas & Petroleum | ​ | Mechanical, & | ​ | Total revenue
​ |  | Distribution |  | Transmission |  | General |  | from contracts
Lump sum contracts | ​ | $ | — | ​ | $ | — | ​ | $ | 106,377,171 | ​ | $ | 106,377,171
Unit price contracts | ​ |  | 96,967,546 | ​ |  | 31,204,196 | ​ |  | 2,745,569 | ​ |  | 130,917,311
Cost plus and T&M contracts | ​ |  | — | ​ |  | 5,973,029 | ​ |  | 37,659,339 | ​ |  | 43,632,368
Total revenue from contracts | ​ | $ | 96,967,546 | ​ | $ | 37,177,225 | ​ | $ | 146,782,079 | ​ | $ | 280,926,850
​ | ​ |  | ​ | ​ |  |  | ​ |  |  | ​ |  |
Earned over time | ​ | $ | 57,882,973 | ​ | $ | 31,204,196 | ​ | $ | 114,285,118 | ​ | $ | 203,372,287
Earned at point in time | ​ |  | 39,084,573 | ​ |  | 5,973,029 | ​ |  | 32,496,961 | ​ |  | 77,554,563
Total revenue from contracts | ​ | $ | 96,967,546 | ​ | $ | 37,177,225 | ​ | $ | 146,782,079 | ​ | $ | 280,926,850

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, 2024
​ |  | Gas & Water |  | Gas & Petroleum |  | Electrical, Mechanical, |  | Total revenue
​ | ​ | Distribution | ​ | Transmission | ​ | & General | ​ | from contracts
Lump sum contracts |  | $ | — |  | $ | — |  | $ | 30,678,722 |  | $ | 30,678,722
Unit price contracts | ​ | ​ | 22,536,366 | ​ | ​ | 16,687,458 | ​ | ​ | 579,567 | ​ | ​ | 39,803,391
Cost plus and T&M contracts | ​ | ​ | — | ​ | ​ | 451,348 | ​ | ​ | 14,990,299 | ​ | ​ | 15,441,647
Total revenue from contracts |  | $ | 22,536,366 |  | $ | 17,138,806 |  | $ | 46,248,588 |  | $ | 85,923,760
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earned over time |  | $ | 605,362 |  | $ | 16,687,458 | ​ | $ | 32,717,660 |  | $ | 50,010,480
Earned at point in time | ​ | ​ | 21,931,004 | ​ | ​ | 451,348 | ​ | ​ | 13,530,928 | ​ | ​ | 35,913,280
Total revenue from contracts |  | $ | 22,536,366 |  | $ | 17,138,806 |  | $ | 46,248,588 |  | $ | 85,923,760

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended June 30, 2024
​ |  | Gas & Water |  | Gas & Petroleum |  | Electrical, Mechanical, |  | Total revenue
​ | ​ | Distribution | ​ | Transmission | ​ | & General | ​ | from contracts
Lump sum contracts |  | $ | — |  | $ | — |  | $ | 86,311,693 |  | $ | 86,311,693
Unit price contracts | ​ | ​ | 53,892,952 | ​ | ​ | 53,580,598 | ​ | ​ | 3,290,437 | ​ | ​ | 110,763,987
Cost plus and T&M contracts | ​ | ​ | — | ​ | ​ | 1,884,529 | ​ | ​ | 48,254,393 | ​ | ​ | 50,138,922
Total revenue from contracts |  | $ | 53,892,952 |  | $ | 55,465,127 |  | $ | 137,856,523 |  | $ | 247,214,602
​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Earned over time |  | $ | 10,746,633 |  | $ | 53,580,598 |  | $ | 95,859,496 |  | $ | 160,186,727
Earned at point in time | ​ | ​ | 43,146,319 | ​ | ​ | 1,884,529 | ​ | ​ | 41,997,027 | ​ | ​ | 87,027,875
Total revenue from contracts |  | $ | 53,892,952 |  | $ | 55,465,127 |  | $ | 137,856,523 |  | $ | 247,214,602

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6. CONTRACT BALANCES

The Company’s accounts receivable consists of amounts that have been billed to customers and collateral is generally not required. Most of the Company’s contracts have monthly billing terms; however, billing terms for some are based on project completion. Payment terms are generally within 30 to 45 days after invoices have been issued. The Company attempts to negotiate two-week billing terms and 15-day payment terms on larger projects. The timing of billings to customers may generate contract assets or contract liabilities.

During the three and nine months ended June 30, 2025, we recognized revenue of $0 and $16.9 million, respectively, that was included in the contract liability balance at September 30, 2024.

Accounts receivable-trade, net of allowance for doubtful accounts, contract assets and contract liabilities consisted of the following:

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024 |  | Change
Accounts receivable-trade, net of allowance for doubtful accounts | ​ | $ | 57,652,791 | ​ | $ | 56,064,318 | ​ | $ | 1,588,473
​ | ​ |  |  | ​ |  |  | ​ |  |
Contract assets | ​ |  |  | ​ |  |  | ​ |  |
Cost and estimated earnings in excess of billings | ​ | $ | 26,685,573 | ​ | $ | 24,595,792 | ​ | $ | 2,089,781
​ | ​ |  |  | ​ |  | ​ | ​ |  | ​
Contract liabilities | ​ |  |  | ​ |  | ​ | ​ |  | ​
Billings in excess of cost and estimated earnings | ​ | $ | 27,660,163 | ​ | $ | 16,950,988 | ​ | $ | 10,709,175

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7. PERFORMANCE OBLIGATIONS

For the three and nine months ended June 30, 2025, there was no significant revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied prior to September 30, 2024. Changes in contract transaction price can result from items such as executed or estimated change orders, and unresolved contract modifications and claims.

At June 30, 2025, the Company had $258.2 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months.

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8. UNCOMPLETED CONTRACTS

Costs, estimated earnings, and billings on uncompleted contracts as of June 30, 2025 and September 30, 2024, are summarized as follows:

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024
Costs incurred on contracts in progress | ​ | $ | 444,808,043 | ​ | $ | 347,180,901
Estimated earnings, net of estimated losses | ​ |  | 77,668,447 | ​ |  | 59,349,378
​ | ​ |  | 522,476,490 | ​ |  | 406,530,279
Less billings to date | ​ |  | 523,451,080 | ​ |  | 398,885,475
​ | ​ | $ | (974,590) | ​ | $ | 7,644,804
​ | ​ | ​ | ​ | ​ | ​ | ​
Costs and estimated earnings in excess of billed on uncompleted contracts | ​ | $ | 26,685,573 | ​ | $ | 24,595,792
​ | ​ | ​ | ​ | ​ | ​ | ​
Less billings in excess of costs and estimated earnings on uncompleted contracts | ​ |  | 27,660,163 | ​ |  | 16,950,988
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | $ | (974,590) | ​ | $ | 7,644,804

​

The Company’s unaudited backlog at June 30, 2025 and September 30, 2024 was $304.4 million and $243.2 million, respectively.

​

9. FAIR VALUE MEASUREMENTS

The fair value measurement guidance of the Financial Accounting Standards Board (“FASB”) ASC 820, Fair Measurement defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and specifies disclosures about fair value measurements.

Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement guidance of the FASB ASC establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

Level 1 — Quoted prices for identical assets and liabilities traded in active exchange markets, such as the New York Stock Exchange.

Level 2 — Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. Level 2 also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data.

Level 3 — Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for nonbinding single dealer quotes not corroborated by observable market data.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The carrying amount for borrowings under the Company’s revolving credit facility approximates fair value because of the variable market interest rate charged to the Company for these borrowings. The fair value of the Company’s long term fixed-rate debt was estimated using a discounted cash flow analysis and a yield rate that was estimated based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $43.1 million at June 30, 2025 was $42.0 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $25.6 million at September 30, 2024 was $24.7 million.

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All other current assets and liabilities are carried at net realizable value which approximates fair value because of their short duration to maturity.

​

10. EARNINGS PER SHARE

The amounts used to compute the earnings per share for the three and nine months ended June 30, 2025 and 2024 are summarized below.

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three Months Ended |  | Three Months Ended |  | Nine Months Ended |  | Nine Months Ended
​ | ​ | June 30, 2025 | ​ | June 30, 2024 | ​ | June 30, 2025 | ​ | June 30, 2024
Net income (loss) | ​ | $ | 2,081,629 | ​ | $ | 17,513,627 | ​ | $ | (3,863,056) | ​ | $ | 18,446,994
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Weighted average shares outstanding-basic | ​ |  | 16,625,761 | ​ |  | 16,565,827 | ​ |  | 16,644,028 | ​ |  | 16,567,034
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Weighted average shares outstanding-diluted | ​ |  | 16,666,135 | ​ |  | 16,597,982 | ​ |  | 16,644,028 | ​ |  | 16,602,903
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Earnings (loss) per share available to common shareholders | ​ | $ | 0.13 | ​ | $ | 1.06 | ​ | $ | (0.23) | ​ | $ | 1.11
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Earnings (loss) per share available to common shareholders-diluted | ​ | $ | 0.12 | ​ | $ | 1.06 | ​ | $ | (0.23) | ​ | $ | 1.11

​

​

11. INCOME TAXES

The components of income taxes are as follows:

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended
​ |  | June 30, 2025 |  | June 30, 2024 |  | June 30, 2025 |  | June 30, 2024
Federal |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Current | ​ | $ | — | ​ | $ | 4,634,449 | ​ | $ | — | ​ | $ | 4,909,486
Deferred | ​ |  | 89,756 | ​ |  | 63,072 | ​ |  | (1,303,205) | ​ |  | 320,800
Total | ​ | ​ | 89,756 | ​ | ​ | 4,697,521 | ​ |  | (1,303,205) | ​ |  | 5,230,286
​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
State | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
Current | ​ | ​ | 58,613 | ​ | ​ | 1,324,128 | ​ | ​ | 147,788 | ​ |  | 1,402,710
Deferred | ​ |  | (10,382) | ​ |  | 18,021 | ​ |  | (457,301) | ​ |  | 91,657
Total | ​ | ​ | 48,231 | ​ | ​ | 1,342,149 | ​ |  | (309,513) | ​ |  | 1,494,367
Total income tax (benefit) expense | ​ | $ | 137,987 | ​ | $ | 6,039,670 | ​ | $ | (1,612,718) | ​ | $ | 6,724,653

​

The Company’s income tax expense and deferred tax assets and liabilities reflect management’s best estimate of current and future taxes to be paid. Significant judgments and estimates are required in the determination of the consolidated income tax expense. The Company’s provision for income taxes is computed by applying a federal rate of 21.0% and a blended state rate of approximately 5.0% to 6.0% to taxable income or loss after consideration of non-taxable and non-deductible items.

The effective income tax rate for the three months ended June 30, 2025 was 6.2%, as compared to 25.6%, for the same period in 2024. The effective income tax rate for the nine months ended June 30, 2025 was (29.5)%, as compared to 26.7%, for the same period in 2024. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses.

Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses.

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The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows:

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024
Deferred tax liabilities |  | ​ |  |  | ​ |
Property and equipment | ​ | $ | 9,543,124 | ​ | $ | 7,437,645
Other | ​ |  | 1,621,785 | ​ |  | 1,509,487
Total deferred tax liabilities | ​ | $ | 11,164,909 | ​ | $ | 8,947,132
​ | ​ |  | ​ | ​ |  | ​
Deferred income tax assets | ​ |  | ​ | ​ |  | ​
Accruals & Other | ​ | $ | 2,908,231 | ​ | $ | 2,325,671
Net operating loss carry forward-Federal | ​ | ​ | 2,830,323 | ​ | ​ | —
Net operating loss carryforward-States | ​ | ​ | 1,222,123 | ​ | ​ | 663,548
Net operating loss valuation allowance-States | ​ | ​ | (532,975) | ​ | ​ | (532,975)
Total deferred tax assets | ​ | $ | 6,427,702 | ​ | $ | 2,456,244
​ | ​ |  | ​ | ​ |  | ​
Total net deferred tax liabilities | ​ | $ | 4,737,207 | ​ | $ | 6,490,888

​

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company had $13.5 million and $0 million of federal net operating loss carryforwards at June 30, 2025 and September 30, 2024, respectively. The Company had $84.5 million and $20.5 million of state net operating loss carryforwards at June 30, 2025 and September 30, 2024, respectively. The state net operating loss carryforwards begin to expire in 2025. The increases in federal and state NOL carryforwards were primarily due to a temporary difference resulting from bonus depreciation on equipment obtained as part of the Tribute acquisition.

The Company does not believe that it has any unrecognized tax benefits included in its consolidated financial statements that require recognition. The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in general and administrative expenses.

​

12. SHORT-TERM AND LONG-TERM DEBT

Operating Line of Credit

In July 2025, the Company renewed its $30.0 million line of credit effective June 28, 2025 with a maturity date of June 28, 2027. The interest rate on the line of credit is the “Wall Street Journal” Prime Rate (the index) with a floor of 4.99%.

The line of credit is limited to a borrowing base calculation as summarized below:

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024 |
Eligible borrowing base | ​ | $ | 23,878,282 | ​ | $ | 25,089,446 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Borrowed on line of credit | ​ |  | 11,573,976 | ​ |  | 4,500,000 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Line of credit balance available | ​ | $ | 12,304,306 | ​ | $ | 20,589,446 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate | ​ |  | 7.5 | % |  | 8.0 | %

​

The Company’s $11.6 million and $4.5 million line of credit borrowings are recorded as a long-term debt as of June 30, 2025 and September 30, 2024, respectively.

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The financial covenants required by the Company’s lender are below:

| ● | Minimum tangible net worth of $28.0 million,

| ● | Minimum traditional debt service coverage of 1.50x on a rolling twelve- month basis,

| ● | Minimum current ratio of 1.20x,

| ● | Maximum debt to tangible net worth ratio (“TNW”) of 2.75x,

| ● | Each ratio and covenant shall be determined, tested, and measured as of each calendar quarter beginning June 30, 2023,

| ● | The Company shall maintain a ratio of Maximum Senior Funded Debt (“SFD”) to Earnings before Interest, Taxes, Depreciation and Amortization (“EBDITA”) equal to or less than 3.5:1. SFD shall mean any funded debt or lease of the Company, other than subordinated debt. The covenant shall be tested quarterly, at the end of each fiscal quarter, with EBITDA based on the preceding four quarters.

The Company’s lender has agreed to omit the effect of the PPP loan restatement from the Company’s covenant compliance calculations while a final decision on PPP loan forgiveness remains in question. The Company was not in compliance with all covenants at June 30, 2025 and received a waiver from its lender. The Company projects to meet all covenant requirements for the next twelve months.

Paycheck Protection Program Loans

Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the PPP. On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with its Lender in an aggregate principal amount of $13.1 million pursuant to the PPP Loans. In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the SBA had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021.

During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously audited financial statements of the Company for the fiscal years 2022 and 2021. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest.

During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender.

Borrowers must retain PPP documentation for at least six years after the date the loan is forgiven or paid in full, and the SBA and SBA Inspector General must be granted these files upon request. The SBA could revisit its forgiveness decision and determine that the Company does not qualify as a whole or in part for loan forgiveness and demand repayment of the loans. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company’s certification. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects.

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Short and Long - Term Debt

A summary of short-term and long-term debt as of June 30, 2025 and September 30, 2024 is as follows:

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024
Line of credit payable to bank, monthly interest at 7.5%, final payment due by June 28, 2026, guaranteed by certain directors of the Company. | ​ | $ | 11,573,976 | ​ | $ | 4,500,000
​ | ​ |  | ​ | ​ |  | ​
Equipment line of credit with a total of $9.3 million with payments of $202,809 due in monthly installments, including fixed interest at 7.25% and final payment due February 2028, secured by equipment, guaranteed by certain directors of the Company. | ​ | ​ | 6,371,527 | ​ | $ | 7,802,313
​ | ​ | ​ | ​ | ​ | ​ | ​
Paycheck Protection Program loans from Small Business Administration, 1.0% simple interest, initially forgiven in the fiscal year ended September 30, 2021. Final forgiveness decision has not been determined. | ​ |  | 10,367,394 | ​ |  | 10,292,676
​ | ​ | ​ | ​ | ​ | ​ | ​
Term note payable to United Bank, WV Pipeline acquisition, due in monthly installments of $64,853, including fixed interest at 4.25%, final payment due by March 25, 2026, secured by receivables and equipment, guaranteed by certain directors of the Company. | ​ | ​ | 579,100 | ​ | ​ | 1,134,185
​ | ​ | ​ | ​ | ​ | ​ | ​
Notes payable to finance companies, due in monthly installments totaling $219,000 at June 30, 2025 and $76,000 at September 30, 2024, including interest ranging from 0.00% to 6.0%, final payments due July 2025 through September 2028, secured by equipment. | ​ |  | 5,465,337 | ​ |  | 1,787,009
​ | ​ |  | ​ | ​ |  | ​
Notes payable to United Bank, Tribute acquisition finance, due in monthly installments totaling $272,016, including fixed interest at 6.9%, final payment due December 2030 secured by receivables and equipment, guaranteed by certain directors of the Company. | ​ |  | 14,723,984 | ​ |  | —
​ | ​ |  | ​ | ​ |  | ​
Notes payable to bank, due in monthly installments totaling $7,848, including interest at 4.82%, final payment due November 2034 secured by building and property. | ​ |  | 723,930 | ​ |  | 762,670
​ | ​ |  | ​ | ​ |  | ​
Notes payable to bank, due in monthly installments totaling $59,932, including fixed interest at 6.0%, final payment due October 2027 secured by receivables and equipment, guaranteed by certain directors of the Company. | ​ |  | 1,568,442 | ​ |  | 2,024,847
​ | ​ |  | ​ | ​ |  | ​
Equipment line of credit with a total of $5.0 million borrowings available, including fixed interest at 8.5% for purchases made in the first twelve months. After twelve months the borrowings will be converted to a forty-eight month term note agreement with a fixed interest rate equal to the “U.S. Treasury Rate” plus 2.75% per annum. As of June 30, 2025, the Company had borrowed $3.7 million against this line of credit and made no principal payments. The agreement is guaranteed by certain directors of the Company. | ​ | ​ | 3,676,024 | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​
Notes payable to David Bolton and Daniel Bolton, due in annual installments totaling $500,000, including interest at 3.25%, final payment due December 31, 2025, unsecured. | ​ | ​ | 485,000 | ​ | ​ | 940,000
​ | ​ | ​ | ​ | ​ | ​ | ​
Note payable to United Bank, Tri-State Paving acquisition, due in monthly installments of $129,910, including fixed interest at 4.50%, final payment due by June 1, 2027, secured by receivables and equipment, guaranteed by certain directors of the Company. | ​ | ​ | 3,316,236 | ​ | ​ | 4,359,883
​ | ​ | ​ | ​ | ​ | ​ | ​
Notes payable to Corns Enterprises, $1,000,000 with fair value of $936,000, due in annual installments totaling $250,000, including interest at 3.50%, final payment due April 29, 2026, unsecured. | ​ | ​ | 250,000 | ​ | ​ | 250,000
​ | ​ | ​ | ​ | ​ | ​ | ​
Total debt | ​ | $ | 59,100,950 | ​ | $ | 33,853,583
​ | ​ |  | ​ | ​ |  | ​
Less current maturities | ​ |  | 21,500,764 | ​ |  | 16,665,591
​ | ​ |  | ​ | ​ |  | ​
Total long term debt | ​ | $ | 37,600,186 | ​ | $ | 17,187,992

​

​

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13. ACQUISITIONS

On December 2, 2024, the Company completed the acquisition of Tribute Contracting & Consultants, LLC (“Tribute LLC”), located in South Point, Ohio. Pursuant to the Asset Purchase Agreement (“Agreement”) signed on October 31, 2024, the Company acquired substantially all the assets (including but not limited to customer contracts, employees, account receivable and equipment) of Tribute LLC for $22.0 million in cash at closing, less an initial $1.2 million working capital adjustment, and $2.0 million in Energy Services Common Stock (“Stock”). Of the $20.8 million paid in cash, $16.0 million was funded by a loan from United Bank, Inc., Huntington, West Virginia. The final working capital adjustment was reduced by $296,000, which was deducted from the approximately $2.0 million receivable for cash due to the Company.

Todd Harrah and Tom Enyart (the “Sellers”) continued their employment with the Company’s new subsidiary, Tribute Contracting & Consultants, Inc. (“Tribute”). The Sellers each received $1.0 million in Stock pursuant to an exemption under the Securities Act of 1933. Based on the market value calculation in the Agreement, the Sellers each received 67,386 shares of Stock.

Tribute earned revenues of $10.2 million and $18.1 million for the three and nine months ended June 30, 2025, respectively.

Energy Services accounts for business combinations under the acquisition method in accordance with ASC Topic 805, Business Combinations. Accordingly, for the transaction, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of the acquisition. In conjunction with ASC 805, upon receipt of final fair value estimates during the measurement period, which must be within one year of the acquisition date, Energy Services records any adjustments to the preliminary fair value estimates in the reporting period in which the adjustments are determined. The Company is continuing to finalize the purchase price allocations related to the Tribute LLC acquisition.

The preliminary purchase price for the Tribute LLC acquisition is allocated in the table below:

​

​ | ​ | ​ | ​
Accounts Receivable and Retainages acquired from seller |  | $ | 8,360,373
Receivable for cash due to buyer | ​ |  | 1,708,847
Contract assets acquired from seller | ​ |  | 1,715,984
Equipment | ​ |  | 14,250,526
Land and Building | ​ |  | 650,000
Goodwill | ​ |  | 3,341,207
Intangible assets | ​ |  | 1,000,000
Accounts payable assumed | ​ |  | (3,476,871)
Long-term debt assumed | ​ |  | (3,789,962)
Contract liabilities assumed | ​ |  | (681,013)
​ | ​ | $ | 23,079,091

​

ASC 805-10-50-2 requires public companies that present comparative financial statements to present pro forma financial statements as though the business combination that occurred during the current fiscal year had occurred as of the beginning of the comparable prior annual reporting period. As allowed under ASC 805-10-50-2, the Company finds this information impracticable to provide for the interim periods presented due to the lack of availability of meaningful financial statements of the acquired company that comply with U.S. GAAP.

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14. GOODWILL AND INTANGIBLE ASSETS

The Company follows the guidance of ASC Topic 350, Intangibles-Goodwill and Other, which requires a company to record an impairment charge based on the excess of a reporting unit’s carrying amount of goodwill over its fair value. Under the current guidance, companies can first choose to assess any impairment based on qualitative factors (Step 0). If a company fails this test or decides to bypass this step, it must proceed with a quantitative assessment of goodwill impairment. The Company did not have a goodwill impairment at June 30, 2025 or September 30, 2024.

A table of the Company’s goodwill as of June 30, 2025 and September 30, 2024 is below:

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024
Beginning balance | ​ | $ | 4,087,554 | ​ | $ | 4,087,554
Acquired | ​ |  | 3,341,207 | ​ |  | —
Ending balance | ​ | $ | 7,428,761 | ​ | $ | 4,087,554

​

A table of the Company’s intangible assets subject to amortization is below:

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | Accumulated | ​ | Amortization | ​ | Amortization | ​ | Amortization | ​ | Amortization | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Remaining Life | ​ | ​ | ​ | ​ | Amortization and | ​ | Amortization and | ​ | and Impairment | ​ | and Impairment | ​ | and Impairment | ​ | and Impairment | ​ | ​ | ​ | ​ | ​
​ | ​ | (in months) at | ​ | ​ | ​ | Impairment at | ​ | Impairment at | ​ | Three Months | ​ | Nine Months | ​ | Three Months | ​ | Nine Months | ​ | Net Book Value |  | Net Book Value
​ | ​ | June 30, | ​ | ​ | ​ | June 30, | ​ | September 30, | ​ | Ended June 30, | ​ | Ended June 30, | ​ | Ended June 30, | ​ | Ended June 30, | ​ | at June 30, | ​ | at September 30,
​ |  | 2025 |  | Original Cost |  | 2025 |  | 2024 |  | 2025 |  | 2025 |  | 2024 |  | 2024 |  | 2025 |  | 2024
Intangible assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
West Virginia Pipeline: | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  |  | ​ | ​
Customer relationships | ​ | 66 | ​ | $ | 2,209,724 | ​ | $ | 994,365 | ​ | $ | 828,630 | ​ | $ | 55,245 | ​ | $ | 165,735 | ​ | $ | 55,242 | ​ | $ | 165,726 | ​ | $ | 1,215,359 |  | $ | 1,381,094
Tradename | ​ | 66 | ​ | ​ | 263,584 | ​ | ​ | 118,627 | ​ | ​ | 98,863 | ​ | ​ | 6,588 | ​ | ​ | 19,764 | ​ | ​ | 6,591 | ​ | ​ | 19,773 | ​ | ​ | 144,957 |  | ​ | 164,721
Non-competes |  | — |  | ​ | 83,203 |  | ​ | 83,203 |  | ​ | 83,203 |  | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ |  | — | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Revolt Energy: |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​
Employment agreement/non-compete |  | — |  | ​ | 100,000 |  | ​ | 100,000 |  | ​ | 100,000 |  | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ |  | — | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Heritage Painting | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Customer relationships | ​ | 48 | ​ | ​ | 121,100 | ​ | ​ | 24,216 | ​ | ​ | 6,054 | ​ | ​ | 6,054 | ​ | ​ | 18,162 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 96,884 | ​ | ​ | 115,046
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tri-State Paving: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Customer relationships | ​ | 82 | ​ | ​ | 1,649,159 | ​ | ​ | 522,234 | ​ | ​ | 398,547 | ​ | ​ | 41,229 | ​ | ​ | 123,687 | ​ | ​ | 41,229 | ​ | ​ | 123,687 | ​ | ​ | 1,126,925 | ​ | ​ | 1,250,612
Tradename | ​ | 82 | ​ | ​ | 203,213 | ​ | ​ | 64,351 | ​ | ​ | 49,110 | ​ | ​ | 5,081 | ​ | ​ | 15,241 | ​ | ​ | 5,080 | ​ | ​ | 15,240 | ​ | ​ | 138,862 | ​ | ​ | 154,103
Non-competes | ​ | — | ​ | ​ | 39,960 | ​ | ​ | 39,960 | ​ | ​ | 39,960 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tribute Contracting & Consultants | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Customer relationships | ​ | 53 | ​ | ​ | 500,000 | ​ | ​ | 58,332 | ​ | ​ | — | ​ | ​ | 25,000 | ​ | ​ | 58,332 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 441,668 | ​ | ​ | —
Tradename | ​ | 53 | ​ | ​ | 250,000 | ​ | ​ | 29,169 | ​ | ​ | — | ​ | ​ | 12,501 | ​ | ​ | 29,169 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 220,831 | ​ | ​ | —
Non-competes | ​ | 53 | ​ | ​ | 250,000 | ​ | ​ | 29,169 | ​ | ​ | — | ​ | ​ | 12,501 | ​ | ​ | 29,169 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 220,831 | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total intangible assets | ​ | ​ | ​ | $ | 5,669,943 | ​ | $ | 2,063,626 | ​ | $ | 1,604,367 | ​ | $ | 164,199 | ​ | $ | 459,259 | ​ | $ | 108,142 | ​ | $ | 324,426 | ​ | $ | 3,606,317 | ​ | $ | 3,065,576

​

The amortization on identifiable intangible assets for the three months ended June 30, 2025 and 2024 was $164,199 and $108,142, respectively. The amortization on identifiable intangible assets for the nine months ended June 30, 2025 and 2024 was $459,259 and $324,426, respectively.

​

Amortization expense associated with the identifiable intangible assets is expected to be as follows:

​

​ | ​ | ​ | ​
​ |  | Amortization Expense
July 2025 to June 2026 |  | $ | 656,784
July 2026 to June 2027 |  | ​ | 656,784
July 2027 to June 2028 |  | ​ | 656,784
July 2028 to June 2029 |  | ​ | 656,804
July 2029 to June 2030 |  | ​ | 515,878
After |  | ​ | 463,283
Total | ​ | $ | 3,606,317

​

​

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15. LEASE OBLIGATIONS

The Company leases office space for SQP for $1,500 per month. The lease, which was originally signed on March 25, 2021, is for a period of two years with five one-year renewals available immediately following the end of the base term. The Company has only committed to a one-year renewal and is evaluating the intent to renew for additional periods.

The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC transaction. The first operating lease, for the Hurricane, West Virginia facility, had a net present value of $236,000 at inception, and a carrying value of $0 at June 30, 2025. The 4.5% interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception. The Company intends to sign a one-year renewal and is evaluating the intent to renew for additional periods.

The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $144,000 at inception, and expired on August 31, 2024. The lease was renewed for a two - year period with a net present value of $140,000 and had a carrying value of $81,000 at June 30, 2025. The 8.5% interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception.

The Company has a right-of-use operating lease with Enterprise Fleet Management, Inc. The Company had eighty – six vehicles on lease at June 30, 2025. The right-of-use operating lease has a carrying value of $2.2 million at June 30, 2025. Each vehicle leased under the master lease program has its own implicit rate ranging from 12.8% to 15.6%.

The Company leases office and shop space for Ryan Construction’s headquarters in Bridgeport, West Virginia. The Company renewed the lease for one year effective October 1, 2024 through September 30, 2025. The Company has only committed to a one-year renewal and is evaluating the intent to renew for additional periods.

The Company has a right-of-use operating lease acquired on March 28, 2023. This lease, for the Winchester, Kentucky facility, had a net present value of $290,000 at inception and a carrying value of $72,000 at June 30, 2025. The 7.75% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception.

The Company rents equipment for use on construction projects with rental agreements being week to week or month to month. Rental expense can vary by reporting period due to equipment requirements on construction projects and the availability of Company owned equipment. Rental expense, which is included in cost of goods sold on the consolidated statements of income, was $4.8 million and $2.5 million, respectively, for the three months ended June 30, 2025 and 2024. Rental expense was $13.8 million and $6.8 million, respectively, for the nine months ended June 30, 2025 and 2024.

Schedules related to the Company’s operating leases at June 30, 2025 can be found below:

Operating Lease-Weighted Average Remaining Term

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Present value of | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | remaining | ​ | ​ | ​ | ​
​ |  | Years left |  | liability |  | Lease end |  | Fiscal year end
Operating lease 1 |  | 0.0 | ​ | $ | — | ​ | 4/30/2025 | ​ | 2025
Operating lease 2 |  | 0.8 | ​ | ​ | 81,302 | ​ | 3/31/2026 |  | 2026
Operating lease 3 | ​ | 3.8 | ​ | ​ | 2,227,124 | ​ | 3/31/2028 | ​ | 2028
Operating lease 4 | ​ | 0.0 | ​ | ​ | — | ​ | 9/30/2024 | ​ | 2024
Operating lease 5 | ​ | 1.0 | ​ | ​ | 72,097 | ​ | 6/30/2026 | ​ | 2026
​ | ​ | ​ | ​ | $ | 2,380,523 | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average remaining term | ​ | ​ | ​ | ​ | 3.6 | years |  |  |

​

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​ | ​ | ​ | ​
Operating Lease Maturity Schedule | ​ | ​ | ​
July 2025 to June 2026 |  | $ | 1,388,100
July 2026 to June 2027 | ​ |  | 1,009,213
July 2027 to June 2028 | ​ |  | 345,171
July 2028 to June 2029 | ​ | ​ | 166,817
July 2029 to June 2030 | ​ | ​ | 4,191
​ | ​ | ​ | 2,913,492
Less amounts representing interest | ​ |  | (532,969)
Present value of operating lease liabilities | ​ | $ | 2,380,523

​

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ | Three Months Ended | ​ | Nine Months Ended
​ | ​ | June 30, | ​ | June 30, | ​ | June 30, | ​ | June 30,
Operating Lease Expense |  | 2025 |  | 2025 |  | 2024 |  | 2024
Amortization | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating lease 1 |  | $ | 6,885 | ​ | $ | 45,833 | ​ | $ | 17,529 | ​ | $ | 64,165
Operating lease 2 | ​ | ​ | 6,605 | ​ | ​ | 41,399 | ​ | ​ | 18,042 | ​ | ​ | 51,438
Operating lease 3 | ​ |  | 234,661 | ​ |  | 645,397 | ​ |  | 185,132 | ​ |  | 515,530
Operating lease 4 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 42,299 | ​ | ​ | 103,329
Operating lease 5 | ​ | ​ | 39,362 | ​ | ​ | 88,831 | ​ | ​ | 39,498 | ​ | ​ | 92,866
Total amortization | ​ | ​ | 287,513 | ​ | ​ | 821,460 | ​ | ​ | 302,500 | ​ | ​ | 827,328
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Operating lease 1 | ​ | ​ | — | ​ | ​ | 545 | ​ | ​ | 846 | ​ | ​ | 3,210
Operating lease 2 | ​ |  | 1,842 | ​ |  | 6,648 | ​ |  | 129 | ​ |  | 951
Operating lease 3 | ​ | ​ | 56,336 | ​ | ​ | 174,845 | ​ | ​ | 50,204 | ​ | ​ | 168,942
Operating lease 4 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 901 | ​ | ​ | 4,671
Operating lease 5 | ​ | ​ | 950 | ​ | ​ | 5,391 | ​ | ​ | 3,351 | ​ | ​ | 11,345
Total interest | ​ | ​ | 59,128 | ​ | ​ | 187,429 | ​ | ​ | 55,431 | ​ | ​ | 189,119
Total amortization and interest | ​ | $ | 346,641 | ​ | $ | 1,008,889 | ​ | $ | 357,931 | ​ | $ | 1,016,447

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ | Three Months Ended | ​ | Nine Months Ended
​ | ​ | June 30, | ​ | June 30, | ​ | June 30, | ​ | June 30,
Cash Paid for Operating Leases |  | 2025 |  | 2025 |  | 2024 |  | 2024
Operating lease 1 |  | $ | 6,885 | ​ | $ | 46,378 | ​ | $ | 18,375 | ​ | $ | 67,375
Operating lease 2 | ​ | ​ | 8,447 | ​ | ​ | 48,047 | ​ | ​ | 18,171 | ​ | ​ | 52,389
Operating lease 3 | ​ | ​ | 290,997 | ​ | ​ | 820,242 | ​ | ​ | 235,336 | ​ | ​ | 684,472
Operating lease 4 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 43,200 | ​ | ​ | 108,000
Operating lease 5 | ​ | ​ | 40,312 | ​ | ​ | 94,222 | ​ | ​ | 42,849 | ​ | ​ | 104,211
​ |  | $ | 346,641 | ​ | $ | 1,008,889 | ​ | $ | 357,931 | ​ | $ | 1,016,447

​

​

16. SUBSEQUENT EVENTS

On July 15, 2025, the Company paid $502,000 in quarterly dividends to holders of record as of July 3, 2025.

Management has evaluated all subsequent events for accounting and disclosure. There have been no other material events during the period, other than noted above, that would either impact the results reflected in the report or the Company’s results going forward.

​

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion of the financial condition and results of operations of Energy Services in conjunction with the “Financial Statements” appearing in this report as well as the historical financial statements and related notes contained elsewhere herein. Among other things, those historical consolidated financial statements include more detailed information regarding the basis of presentation for the following information. The term “Energy Services” refers to the Company, West Virginia Pipeline, SQP, Tri-State Paving, Ryan Construction, Tribute, and C.J. Hughes and C.J. Hughes’ wholly owned subsidiaries on a consolidated basis.

Forward Looking Statements

Within Energy Services’ (as defined below) consolidated financial statements and this Quarterly Report on Form 10-Q, there are included statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events that are intended as “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “project,” “forecast,” “may,” “will,” “should,” “could,” “expect,” “believe,” “intend” and other words of similar meaning.

These forward-looking statements do not guarantee future performance and involve or rely on risks, uncertainties, and assumptions that are difficult to predict or beyond Energy Services’ control. Energy Services has based its forward-looking statements on management’s beliefs and assumptions based on information available to management at the time the statements are made. Actual outcomes and results may differ materially from what is expressed, implied, and forecasted by forward-looking statements and any or all of Energy Services’ forward-looking statements may turn out to be wrong. The accuracy of such statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties.

All the forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements or that are otherwise included in this report. In addition, Energy Services does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report or otherwise.

Company Overview

Energy Services of America Corporation (“Energy Services” or the “Company”), formed in 2006, 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 gas industry, the Company is primarily engaged in the construction, replacement and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. Energy Services is involved in the construction of both interstate and intrastate pipelines, with an emphasis on the latter. For the oil industry, the Company provides a variety of services relating to pipeline, storage facilities and plant work. For the power, chemical, and automotive industries, the Company provides a full range of electrical and mechanical installations and repairs including substation and switchyard services, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary work with regards thereto. Energy Services’ other pipeline services include corrosion protection services, horizontal drilling services, liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction. The Company has also added the ability to install broadband and perform civil and general contracting services.

Energy Services’ customers include many of the leading companies in the industries it serves, including:

TransCanada Corporation

NiSource, Inc.

Marathon Petroleum

Mountaineer Gas

American Electric Power

Toyota Motor Manufacturing

Bayer Chemical

Dow Chemical

Kentucky American Water

West Virginia American Water

Various state, county and municipal public service districts.

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The majority of the Company’s customers are in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. However, the Company also performs work in other states including Alabama, Michigan, Illinois, Tennessee, North Carolina, and Indiana.

Energy Services’ sales force consists of industry professionals with significant relevant sales experience, who utilize industry contacts and available public data to determine how to market the Company’s line of products most appropriately. The Company relies on direct contact between its sales force and customers’ engineering and contracting departments to obtain new business.

A substantial portion of the Company’s workforce are union members of various construction-related trade unions and are subject to separately negotiated collective bargaining agreements that expire at varying time intervals. The Company believes its relationship with its unionized workforce is good.

C.J. Hughes Construction Company, Inc. (“C.J. Hughes”), a wholly owned subsidiary of the Company, is a general contractor primarily engaged in pipeline construction for utility companies. Contractors Rental Corporation (“Contractors Rental”), a wholly owned subsidiary of C.J. Hughes, provides union building trade employees for projects managed by C.J. Hughes.

Nitro Construction Services, Inc. (“NCS”), a wholly owned subsidiary of C.J. Hughes, provides electrical, mechanical, HVAC/R, and fire protection services to customers primarily in the automotive, chemical, and power industries. Nitro Electric Company, LLC (“Nitro Electric”), a wholly owned subsidiary of NCS, performs industrial electrical work and has a satellite office registered in Michigan. Pinnacle Technical Solutions, Inc. (“Pinnacle”), a wholly owned subsidiary of NCS, operates as a data storage facility within Nitro’s office building. Pinnacle is supported by NCS and has no employees of its own. NCS and its subsidiaries will collectively be referred to “Nitro”. Revolt Energy, LLC (“Revolt”), formerly a wholly owned subsidiary of NCS, that performed residential solar installations projects, was sold for a nominal consideration on March 1, 2025 in a transaction that was not material to the Company’s Consolidated Financial Statements.

All C.J. Hughes, Nitro, and Contractors Rental construction personnel are union members of various related construction trade unions and are subject to collective bargaining agreements that expire at varying time intervals.

West Virginia Pipeline, Inc. (“West Virginia Pipeline” or “WVP”), a wholly owned subsidiary of Energy Services, operates as a gas and water distribution contractor primarily in southern West Virginia. The employees of West Virginia Pipeline are non-union and are managed independently of the Company’s union subsidiaries.

SQP Construction Group, Inc. (“SQP”), a wholly owned subsidiary of Energy Services, operates as a general contractor primarily in West Virginia. SQP engages in the construction and renovation of buildings and other civil construction projects for state and local government agencies and commercial customers. As a general contractor, SQP manages the overall construction project and subcontracts most of the work. The employees of SQP are non-union and are managed independently of the Company’s union subsidiaries.

Tri-State Paving & Sealcoating, Inc. (“TSP” or “Tri-State Paving”), a wholly owned subsidiary of Energy Services, completed the acquisition of substantially all the assets of Tri-State Paving & Sealcoating, LLC (“Tri-State Paving, LLC”) on April 29, 2022. Tri-State Paving provides utility paving services to water distribution customers in the Charleston, West Virginia, Lexington, Kentucky, and Chattanooga, Tennessee markets. The employees of TSP are non-union and are managed independently of the Company’s union subsidiaries.

Ryan Construction Services Inc. (“Ryan Construction” or “RCS”), a wholly owned subsidiary of Energy Services, provides directional drilling services for broadband service providers along with offering natural gas distribution services, cathodic protection and corrosion prevention services, and civil construction services. Ryan Construction operates primarily in West Virginia, Tennessee, and Pennsylvania. The employees of RCS are non-union and are managed independently of the Company’s union subsidiaries.

Tribute Contracting & Consultants, Inc. (“Tribute” or “TCC”), a wholly owned subsidiary of Energy Services, was formed in October 2024 in connection with the acquisition of substantially all the assets of Tribute Contracting & Consultants, LLC (“Tribute LLC”). The acquisition of Tribute LLC closed on December 2, 2024. Tribute constructs water distribution and wastewater systems primarily for public municipalities in West Virginia, Ohio, and Kentucky. The employees of TCC are non-union and are managed independently of the Company’s union subsidiaries.

The Company’s website address is www.energyservicesofamerica.com.

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Seasonality: Fluctuation of Results

Our revenues and results of operations can and usually are subject to seasonal variations. These variations are the result of weather, customer spending patterns, bidding seasons and holidays. The first quarter of the calendar year is typically the slowest in terms of revenues because inclement weather conditions cause delays in production and customers usually do not plan large projects during that time. While usually better than the first quarter, the second calendar year quarter often has some inclement weather which can cause delays in production, reducing the revenues the Company receives and/or increasing the production costs. The third and fourth calendar year quarters usually are less impacted by weather and usually have the largest number of projects underway. Many projects are completed in the fourth calendar year quarter and revenues are often impacted by customers seeking to either spend their capital budget for the year or scale back projects due to capital budget overruns.

In addition to the fluctuations discussed above, the pipeline industry can be highly cyclical, reflecting variances in capital expenditures in proportion to energy price fluctuations. As a result, our volume of business may be adversely affected by where our customers are in the cycle and thereby their financial condition as to their capital needs and access to capital to finance those needs.

Three and Nine Months Ended June 30, 2025 and 2024 Overview

The following is an overview of results from operations for the three and nine months ended June 30, 2025 and 2024:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Three Months Ended | ​ | Nine Months Ended | ​ | Nine Months Ended
​ | ​ | June 30, | ​ | June 30, | ​ | June 30, | ​ | June 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue | ​ | $ | 103,601,585 | ​ | $ | 85,923,760 | ​ | $ | 280,926,850 | ​ | $ | 247,214,602
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cost of revenue | ​ |  | 91,618,987 | ​ |  | 70,615,936 | ​ |  | 258,602,810 | ​ |  | 214,828,263
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gross profit | ​ |  | 11,982,598 | ​ |  | 15,307,824 | ​ |  | 22,324,040 | ​ |  | 32,386,339
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Selling and administrative expenses | ​ |  | 8,814,545 | ​ |  | 6,815,191 | ​ |  | 25,602,253 | ​ |  | 21,335,862
Income (loss) from operations | ​ |  | 3,168,053 | ​ |  | 8,492,633 | ​ |  | (3,278,213) | ​ |  | 11,050,477
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other income (expense) | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Proceeds from lawsuit judgement | ​ |  | — | ​ |  | 15,634,499 | ​ |  | — | ​ |  | 15,634,499
Other nonoperating expense | ​ | ​ | (38,529) | ​ | ​ | (27,446) | ​ | ​ | (107,407) | ​ | ​ | (33,935)
Interest expense | ​ |  | (781,198) | ​ |  | (546,960) | ​ |  | (2,140,686) | ​ |  | (1,771,560)
(Loss) gain on sale of equipment | ​ |  | (128,710) | ​ |  | 571 | ​ |  | 50,532 | ​ |  | 292,166
​ | ​ |  | (948,437) | ​ |  | 15,060,664 | ​ |  | (2,197,561) | ​ |  | 14,121,170
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income (loss) before income taxes | ​ |  | 2,219,616 | ​ |  | 23,553,297 | ​ |  | (5,475,774) | ​ |  | 25,171,647
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income tax expense (benefit) | ​ |  | 137,987 | ​ |  | 6,039,670 | ​ |  | (1,612,718) | ​ |  | 6,724,653
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (loss) | ​ | ​ | 2,081,629 | ​ | ​ | 17,513,627 | ​ | ​ | (3,863,056) | ​ | ​ | 18,446,994
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average shares outstanding-basic | ​ |  | 16,625,761 | ​ |  | 16,565,827 | ​ |  | 16,644,028 | ​ |  | 16,567,034
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average shares-diluted | ​ |  | 16,666,135 | ​ |  | 16,597,982 | ​ |  | 16,688,834 | ​ |  | 16,602,903
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings (loss) per share available to common shareholders | ​ | $ | 0.13 | ​ | $ | 1.06 | ​ | $ | (0.23) | ​ | $ | 1.11
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings (loss) per share-diluted available to common shareholders | ​ | $ | 0.12 | ​ | $ | 1.06 | ​ | $ | (0.23) | ​ | $ | 1.11

​

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Results of Operations for the Three and Nine Months Ended June 30, 2025 Compared to the Three and Nine Months Ended June 30, 2024

Revenues. A table comparing the Company’s revenues for the three and nine months ended June 30, 2025 compared to the three and nine months ended June 30, 2024 is below:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | ​ | ​ | ​ | ​ |  |  |
​ |  | June 30, 2025 |  | % of total |  | June 30, 2024 |  | % of total |  | Change |  | % Change |
Gas & Water Distribution | ​ | $ | 38,566,422 | ​ | 37.2 | % | $ | 22,536,366 | ​ | 26.2 | % | ​ | 16,030,056 |  | 71.1 | %
Gas & Petroleum Transmission | ​ |  | 15,325,950 | ​ | 14.8 | % |  | 17,138,806 | ​ | 19.9 | % |  | (1,812,856) |  | -10.6 | %
Electrical, Mechanical, & General | ​ |  | 49,709,213 | ​ | 48.0 | % |  | 46,248,588 | ​ | 53.8 | % | ​ | 3,460,625 |  | 7.5 | %
Total | ​ | $ | 103,601,585 | ​ | 100.0 | % | $ | 85,923,760 | ​ | 100.0 | % | ​ | 17,677,825 |  | 20.6 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2025 | ​ | % of total | ​ | June 30, 2024 | ​ | % of total | ​ | Change | ​ | % Change | ​
Gas & Water Distribution | ​ | $ | 96,967,546 | ​ | 34.5 | % | ​ | 53,892,952 | ​ | 21.8 | % | $ | 43,074,594 |  | 79.9 | %
Gas & Petroleum Transmission | ​ |  | 37,177,225 | ​ | 13.2 | % |  | 55,465,127 | ​ | 22.4 | % |  | (18,287,902) |  | -33.0 | %
Electrical, Mechanical, & General | ​ |  | 146,782,079 | ​ | 52.2 | % |  | 137,856,523 | ​ | 55.8 | % | ​ | 8,925,556 |  | 6.5 | %
Total | ​ | $ | 280,926,850 | ​ | 100.0 | % | $ | 247,214,602 | ​ | 100.0 | % | $ | 33,712,248 |  | 13.6 | %

​

Total revenues increased by $17.7 million to $103.6 million for the three months ended June 30, 2025, as compared to $85.9 million for the three months ended June 30, 2024. The increase was a result of a $16.0 million increase in Gas & Water Distribution and a $3.5 million increase in Electrical, Mechanical, & General construction services, partially offset by a $1.8 million decrease in Gas & Petroleum Transmission work for the three months ended June 30, 2025 as compared to the same period in 2024.

Total revenues increased by $33.7 million to $280.9 million for the nine months ended June 30, 2025, as compared to $247.2 million for the nine months ended June 30, 2024. The increase was a result of a $43.1 million increase in Gas & Water Distribution and a $8.9 million increase in Electrical, Mechanical, & General construction services, partially offset by an $18.3 million decrease in Gas & Petroleum Transmission work for the nine months ended June 30, 2025 as compared to the same period in 2024.

Gas & Water Distribution revenues totaled $38.6 million for the three months ended June 30, 2025, a $16.0 million increase from $22.5 million for the three months ended June 30, 2024. Gas & Water Distribution revenues totaled $97.0 million for the nine months ended June 30, 2025, a $43.1 million increase from $53.9 million for the nine months ended June 30, 2024. The revenue increases were primarily related to increased water distribution services performed during the three and nine months ended June 30, 2025, as compared to the same periods in 2024.

Electrical, Mechanical, & General construction services revenues totaled $49.7 million for the three months ended June 30, 2025, a $3.5 million increase from $46.2 million for the three months ended June 30, 2024. Electrical, Mechanical, & General construction services revenues totaled $146.8 million for the nine months ended June 30, 2025, a $8.9 million increase from $137.9 million for the nine months ended June 30, 2024. The revenue increases were primarily related to an increase in electrical & mechanical services performed during the three and nine months ended June 30, 2025, as compared to the same periods in the prior year.

Gas & Petroleum Transmission revenues totaled $15.3 million for the three months ended June 30, 2025, a $1.8 million decrease from $17.1 million for the three months ended June 30, 2024. Gas & Petroleum Transmission revenues totaled $37.2 million for the nine months ended June 30, 2025, an $18.3 million decrease from $55.5 million for the nine months ended June 30, 2024. The revenue decreases were primarily due to more transmission work being completed by the end of fiscal year 2024 and not extending into the first half of fiscal year 2025. Additionally, bid opportunities and project awards on transmission work were received later compared to previous fiscal years.

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Cost of Revenues. A table comparing the Company’s costs of revenues for the three and nine months ended June 30, 2025, compared to the three and nine months ended June 30, 2024, is below:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | ​ | ​ | ​ | ​ | ​ |  | ​
​ |  | June 30, 2025 |  | % of total |  | June 30, 2024 |  | % of total |  | Change |  | % Change |
Gas & Water Distribution | ​ | ​ | 31,887,569 | ​ | 34.8 | % | ​ | 16,141,729 | ​ | 22.9 | % | ​ | 15,745,840 |  | 97.5 | %
Gas & Petroleum Transmission | ​ |  | 14,202,197 | ​ | 15.5 | % |  | 12,549,506 | ​ | 17.8 | % |  | 1,652,691 |  | 13.2 | %
Electrical, Mechanical, & General | ​ |  | 44,434,633 | ​ | 48.5 | % |  | 40,219,956 | ​ | 57.0 | % |  | 4,214,677 |  | 10.5 | %
Unallocated Shop Expenses | ​ |  | 1,094,588 | ​ | 1.2 | % |  | 1,704,745 | ​ | 2.4 | % |  | (610,157) |  | -35.8 | %
Total | ​ | $ | 91,618,987 | ​ | 100.0 | % | $ | 70,615,936 | ​ | 100.0 | % | $ | 21,003,051 |  | 29.7 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | % of total | ​ | June 30, 2024 |  | % of total | ​ | Change |  | % Change | ​
Gas & Water Distribution | ​ | $ | 86,036,289 | ​ | 33.3 | % | $ | 41,110,876 | ​ | 19.1 | % | $ | 44,925,413 |  | 109.3 | %
Gas & Petroleum Transmission | ​ |  | 36,324,749 | ​ | 14.0 | % |  | 47,248,674 | ​ | 22.0 | % |  | (10,923,925) |  | -23.1 | %
Electrical, Mechanical, & General | ​ |  | 132,914,207 | ​ | 51.4 | % |  | 123,650,574 | ​ | 57.6 | % |  | 9,263,633 |  | 7.5 | %
Unallocated Shop Expense | ​ |  | 3,327,565 | ​ | 1.3 | % |  | 2,818,139 | ​ | 1.3 | % |  | 509,426 |  | 18.1 | %
Total | ​ | $ | 258,602,810 | ​ | 100.0 | % | $ | 214,828,263 | ​ | 100.0 | % | $ | 43,774,547 |  | 20.4 | %

​

Total cost of revenues increased by $21.0 million to $91.6 million for the three months ended June 30, 2025, as compared to $70.6 million for the three months ended June 30, 2024. Total cost of revenues increased by $43.8 million to $258.6 million for the nine months ended June 30, 2025, as compared to $214.8 million for the nine months ended June 30, 2024. The cost of revenues increased primarily as the result of increased work in the Gas & Water Distribution and Electrical, Mechanical, & General business categories and, additionally, due to less efficient work across all models of business.

Gas & Water Distribution cost of revenues totaled $31.9 million for the three months ended June 30, 2025, a $15.7 million increase from $16.1 million for the three months ended June 30, 2024. Gas & Water Distribution cost of revenues totaled $86.0 million for the nine months ended June 30, 2025, a $44.9 million increase from $41.1 million for the nine months ended June 30, 2024. The cost of revenues increase was primarily related to increased water distribution services performed during the three and nine months ended June 30, 2025, as compared to the same periods in 2024. Additionally, the second quarter of fiscal year 2025 was heavily impacted by inclement weather that resulted in a significant amount of lost workdays and lower productivity on projects.

Electrical, Mechanical, & General construction services cost of revenues totaled $44.4 million for the three months ended June 30, 2025, a $4.2 million increase from $40.2 million for the three months ended June 30, 2024. Electrical, Mechanical, & General construction services cost of revenues totaled $132.9 million for the nine months ended June 30, 2025, a $9.3 million increase from $123.7 million for the nine months ended June 30, 2024. The cost of revenues increases for the three and nine months ended June 30, 2025 were primarily related to an increase in services performed, as compared to the same periods in the prior year.

Gas & Petroleum Transmission cost of revenues totaled $14.2 million for the three months ended June 30, 2025, a $1.7 million increase from $12.5 million for the three months ended June 30, 2024. The increase in cost of revenues was primarily due to less efficient production on work performed and less work to cover fixed project management costs for the three months ended June 30, 2025, as compared to the same period in the prior year.

Gas & Petroleum Transmission cost of revenues totaled $36.3 million for the nine months ended June 30, 2025, a $10.9 million decrease from $47.2 million for the nine months ended June 30, 2024. The decrease in cost of revenues was primarily due to more transmission work being completed by the end of fiscal year 2024 and not extending into the first half of fiscal year 2025 and bid opportunities and project awards on transmission work being received later compared to previous fiscal years.

Unallocated shop expenses totaled $1.1 million for the three months ended June 30, 2025, a $600,000 decrease from $1.7 million for the three months ended June 30, 2024. Unallocated shop expenses totaled $3.3 million for the nine months ended June 30, 2025, a $500,000 increase from $2.8 million for the nine months ended June 30, 2024. The variances in unallocated shop expenses were primarily due to changes in the amount of internal equipment charged to projects and small tool purchases which are allocated to projects over time based on a percentage of labor costs during the three and nine months ended June 30, 2025, as compared to the same periods in the prior year.

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Gross Profit (Loss). A table comparing the Company’s gross profit for the three and nine months ended June 30, 2025, compared to the three and nine months ended June 30, 2024, is below:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | % of revenue |  | June 30, 2024 |  | % of revenue |  | Change |  | Pct. |
Gas & Water Distribution | ​ | $ | 6,678,853 | ​ | 17.32 | % | $ | 6,394,637 | ​ | 28.37 | % | ​ | 284,216 | ​ | 4.4 | %
Gas & Petroleum Transmission | ​ |  | 1,123,753 | ​ | 7.33 | % |  | 4,589,300 | ​ | 26.78 | % |  | (3,465,547) | ​ | -75.5 | %
Electrical, Mechanical, & General | ​ |  | 5,274,580 | ​ | 10.61 | % |  | 6,028,632 | ​ | 13.04 | % |  | (754,052) | ​ | -12.5 | %
Unallocated Shop Expense | ​ |  | (1,094,588) | ​ | ​ | ​ |  | (1,704,745) | ​ | ​ | ​ |  | 610,157 | ​ | -35.8 | %
Total | ​ | $ | 11,982,598 | ​ | 11.6 | % | $ | 15,307,824 | ​ | 17.8 | % | $ | (3,325,226) | ​ | -21.7 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | % of revenue |  | June 30, 2024 |  | % of revenue |  | Change |  | % Change |
Gas & Water Distribution | ​ | $ | 10,931,257 | ​ | 11.3 | % | $ | 12,782,076 | ​ | 23.7 | % | $ | (1,850,819) | ​ | -14.5 | %
Gas & Petroleum Transmission | ​ |  | 852,476 | ​ | 2.3 | % |  | 8,216,453 | ​ | 14.8 | % |  | (7,363,977) | ​ | -89.6 | %
Electrical, Mechanical, & General | ​ |  | 13,867,872 | ​ | 9.4 | % |  | 14,205,949 | ​ | 10.3 | % |  | (338,077) | ​ | -2.4 | %
Unallocated Shop Expense | ​ |  | (3,327,565) | ​ | ​ | ​ |  | (2,818,139) | ​ | ​ | ​ |  | (509,426) | ​ | 18.1 | %
Total | ​ | $ | 22,324,040 | ​ | 7.9 | % | $ | 32,386,339 | ​ | 13.1 | % | $ | (10,062,299) | ​ | -31.1 | %

​

​

Total gross profit decreased by $3.3 million to $12.0 million for the three months ended June 30, 2025, as compared to $15.3 million for the three months ended June 30, 2024. Total gross profit decreased by $10.1 million to $22.3 million for the nine months ended June 30, 2025, as compared to $32.4 million for the nine months ended June 30, 2024. The decreases in gross profit were primarily related to less efficient performance during the three and nine months ended June 30, 2025, as compared to the same periods in the prior year. The Company was significantly impacted by inclement weather during the second quarter of fiscal year 2025 and Gas & Petroleum Transmission work starting later in fiscal year 2025 as compared to the prior fiscal year.

Gas & Water Distribution gross profit totaled $6.7 million for the three months ended June 30, 2025, a $284,000 increase from a $6.4 million gross profit for the three months ended June 30, 2024. The increase in gross profit was primarily due to an increase in water work performed; however, gross profit decreased as a percentage of revenue.

Gas & Water Distribution gross profit totaled $10.9 million for the nine months ended June 30, 2025, a $1.9 million decrease from $12.8 million for the nine months ended June 30, 2024. The decrease in gross profit was primarily due to less efficient production during the nine months ended June 30, 2025 and significantly more inclement weather during the second quarter of fiscal year 2025, as compared to the same periods in the prior fiscal year.

Electrical, Mechanical, & General construction services gross profit totaled $5.3 million for the three months ended June 30, 2025, a $754,000 decrease from $6.0 million for the three months ended June 30, 2024. Electrical, Mechanical, & General construction services gross profit totaled $13.9 million for the nine months ended June 30, 2025, a $338,000 decrease from $14.2 million for the nine months ended June 30, 2024. The decreases in gross profit were primarily related to a large electrical project nearing completion during the three months ended June 30, 2024 which was more profitable than expected while profit margins during the three and nine months ended June 30, 2025 have been in line with expected profit margins over a larger volume of revenue.

Gas & Petroleum Transmission gross profit totaled $1.1 million for the three months ended June 30, 2025, a $3.5 million decrease from a gross profit of $4.6 million for the three months ended June 30, 2024. Gas & Petroleum Transmission gross profit totaled $852,000 for the nine months ended June 30, 2025, a $7.4 million decrease from a gross profit of $8.2 million for the nine months ended June 30, 2024. The decreases in gross profit were primarily due to a lower volume of transmission work being performed during the three and nine months ended June 30, 2025, as compared to the same periods in the prior year. Transmission work under contract was significantly impacted by inclement weather during the second quarter of fiscal year 2025. Additionally, new transmission work was sent out for bid and awarded later as compared to previous fiscal years.

Gross loss attributable to unallocated shop expenses totaled ($1.1 million) for the three months ended June 30, 2025, a $610,000 decrease from ($1.7 million) for the three months ended June 30, 2024. Gross loss attributable to unallocated shop expenses totaled ($3.3 million) for the nine months ended June 30, 2025, a $509,000 increase from ($2.8 million) for the nine months ended June 30, 2024. The variances in unallocated shop expenses were primarily due to changes in the amount of internal equipment charged to projects and small tool purchases which are allocated to projects over time based on a percentage of labor costs during the three and nine months ended June 30, 2025, as compared to the same periods in the prior year.

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Selling and administrative expenses. Total selling and administrative expenses increased by $2.0 million to $8.8 million for the three months ended June 30, 2025, as compared to $6.8 million for the same period in the prior year. Total selling and administrative expenses increased by $4.3 million to $25.6 million for the nine months ended June 30, 2025, as compared to $21.3 million for the same period in the prior year. The increases were primarily related to additional personnel hired to secure and manage work for expected growth and increased consulting and audit fees due to becoming an accelerated filer which requires a separate internal controls audit. The Company’s latest acquisition, Tribute, also accounted for $600,000 and $1.2 million of the increase, respectively, for the three and nine months ended June 30, 2025, as compared to the same periods in the prior year.

Other non-operating expense. Other non-operating expenses totaled $36,000 for the three months ended June 30, 2025, as compared to $27,000 for the same period in the prior year. Other non-operating expenses totaled $105,000 for the nine months ended June 30, 2025, as compared to $34,000 for the same period in the prior year. The increase for the nine months ended June 30, 2025, as compared to the same period in the prior year, was primarily related to a minor legal settlement received during the first quarter of fiscal year 2024 that recouped employee benefit costs expended in a prior period.

Interest expense. Interest expense totaled $781,000 for the three months ended June 30, 2025, an increase of $234,000 from $547,000 for the same period in the prior year. Interest expense totaled $2.1 million for the nine months ended June 30, 2025, an increase of $369,000 from $1.8 million for the same period in the prior year. The increases were primarily related to financing the acquisition of Tribute.

(Loss) gain on sale of equipment. Loss on sale of equipment totaled ($128,000) for the three months ended June 30, 2025, compared to a gain on sale of $1,000 for the same period in the prior year. Gain on sale of equipment totaled $51,000 for the nine months ended June 30, 2025, a decrease of $242,000 from $292,000 for the same period in the prior year. The Company sold certain underutilized or non-working pieces of equipment during the first quarter of fiscal year 2024, with no comparable sale occurring during the same period in 2025.

Income from lawsuit judgement. During the three and nine months ended June 30, 2024, the Company received and recognized $15.6 million from a previously disclosed lawsuit judgement. No such event occurred during the three and nine months ended June 30, 2025.

Net income (loss). Income before income taxes was $2.2 million for the three months ended June 30, 2025, as compared to $23.6 million for the same period in the prior year. Loss before income taxes was ($5.5 million) for the nine months ended June 30, 2025, as compared to a net income of $25.2 million for the same period in the prior year. The decreases were primarily related to the items mentioned above.

Income tax expense (benefit) for the three months ended June 30, 2025, was $683,000 compared to $6.0 million for the same period in the prior year. Income tax (benefit) expense for the nine months ended June 30, 2025, was ($1.1 million) compared to $6.7 million for the same period in the prior year. The decrease in income tax expense and the increase in income tax benefit for the three and nine months ended June 30, 2025, respectively, as compared to the same periods in the prior year were due to a decrease in taxable income during the three and nine months ended June 30, 2025, as compared to the same periods in the prior year.

Net income for the three months ended June 30, 2025, was $1.5 million, as compared to $17.5 million for the same period in the prior year. Net (loss) income for the nine months ended June 30, 2025, was ($4.4 million), as compared to $18.4 million for the same period in the prior year.

Comparison of Financial Condition at June 30, 2025, and September 30, 2024

The Company had total assets of $189.1 million at June 30, 2025, an increase of $30.9 million from the prior fiscal year end balance of $158.2 million.

The Company had net property, plant and equipment of $54.1 million at June 30, 2025, an increase of $16.0 million from the prior fiscal year end balance of $38.1 million. The increase was due to $14.9 million in asset additions related to the Tribute acquisition, $10.4 million in other asset additions, partially offset by $8.7 million in depreciation and net equipment disposals of $674,000.

Accounts receivable, net of allowance for doubtful accounts, totaled $57.7 million at June 30, 2025, an increase of $1.6 million from the prior fiscal year end balance of $56.1 million. The increase was primarily due to the timing of cash collections and project invoicing since September 30, 2024.

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Cash and cash equivalents totaled $15.3 million at June 30, 2025, an increase of $2.4 million from the prior fiscal year end balance of $12.9 million. The increase was primarily due to a net $13.4 million provided by operating activities, and a net $18.2 million provided by financing activities, partially offset by a $20.8 million investment in the acquisition of Tribute and a net $8.4 million investment in equipment, less proceeds from the sale of equipment.

Retainage receivable totaled $16.3 million at June 30, 2025, an increase of $4.6 million from the prior fiscal year end balance of $11.7 million. The increase was primarily due to the timing of retention collections and project invoicing since September 30, 2024.

Goodwill totaled $7.4 million at June 30, 2025, an increase of $3.3 million from the prior fiscal year end balance of $4.1 million. The increase was due to the acquisition of Tribute.

Other receivables totaled $1.1 million at June 30, 2025, an increase of $47,000 from the prior fiscal year end balance of $1.0 million.

Intangible assets, net totaled $3.6 million at June 30, 2025, an increase of $541,000 from the prior fiscal year end balance of $3.1 million. The increase was primarily due to intangible assets acquired as part of the Tribute acquisition, partially offset by the amortization of intangible assets during the nine months ended June 30, 2025.

Right-of-use assets totaled $2.4 million at June 30, 2025, a decrease of $153,000 from the prior fiscal year end balance of $2.5 million. The decrease was primarily due to the amortization of operating leases, partially offset by an increase in leased vehicles during the nine months ended June 30, 2025.

Contract assets totaled $26.7 million at June 30, 2025, an increase of $2.1 million from the prior fiscal year end balance of $24.6 million. The increase was due to a difference in the timing of project billings at June 30, 2025, compared to September 30, 2024.

Prepaid expenses and other totaled $4.6 million at June 30, 2025, an increase of $474,000 from the prior fiscal year end balance of $4.1 million. The increase was primarily due to prepaid insurance payments, partially offset by insurance expensed during the nine months ended June 30, 2025.

The Company had total liabilities of $134.6 million at June 30, 2025, an increase of $35.0 million from the prior fiscal year end balance of $99.6 million.

The aggregate balance of current maturities of long-term debt and long-term debt totaled $48.7 million at June 30, 2025, an increase of $25.2 million from the prior fiscal year-end balance of $23.6 million. The increase was primarily due to $16.0 million related to financing the acquisition of Tribute and assumption of $3.8 million of Tribute equipment debt, $5.0 million in additional equipment financing and $7.1 million in line of credit borrowings, partially offset by $6.8 million in long-term debt payments.

Contract liabilities totaled $27.7 million at June 30, 2025, an increase of $10.7 million from the prior fiscal year end balance of $17.0 million. The increase was due to a difference in the timing of project billings at June 30, 2025, as compared to September 30, 2024.

Accounts payable totaled $24.4 million at June 30, 2025, an increase of $679,000 from the prior fiscal year end balance of $23.7 million. The increase was due to the timing of accounts payable payments as compared to September 30, 2024.

Income tax payable totaled $413,000 at June 30, 2025, a decrease of $1.8 million from the prior fiscal year end balance of $2.2 million. The decrease was primarily related to income tax payments made during the first nine months of fiscal year 2025 and a taxable loss generated during the nine months ended June 30, 2025.

Current and long-term operating lease liabilities totaled $2.4 million at June 30, 2025, a decrease of $152,000 from the prior fiscal year end balance. The decrease was primarily due to payments made during the nine months ended June 30, 2025, partially offset by an increase in leased vehicles.

Lines of credit and short-term borrowings totaled $10.4 million at June 30, 2025, an increase of $75,000 from the prior fiscal year end balance. The increase was due to interest accrued on PPP Loans. Refer to Note 3 “Accounting for PPP Loans” in the accompanying consolidated financial statements for additional details.

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Accrued expenses and other current liabilities totaled $15.9 million at June 30, 2025, an increase of $2.1 million from the prior fiscal year end balance of $13.9 million. The increase was due to the timing of accrued expense payments, as compared to September 30, 2024.

Deferred tax liabilities totaled $4.7 million at June 30, 2025, a decrease of $1.8 million from the prior fiscal year end balance of $6.5 million. The decrease was primarily related to a $3.4 million decrease related to an increase in federal and state NOL carryforwards and a net $470,000 decrease in other timing differences, partially offset by a $2.1 million increase due to timing differences for depreciation expense.

Shareholders’ equity was $54.5 million at June 30, 2025, a decrease of $4.2 million from the prior fiscal year end balance of $58.7 million. The decrease was primarily due to net loss of ($3.9 million) for the nine months ended June 30, 2025 and $1.0 million in quarterly dividends paid and $502,000 in accrued quarterly dividends that were paid on July 15, 2025 and common share repurchases of $844,000, partially offset by $2.0 million in common stock issued as part of the Tribute acquisition.

Liquidity and Capital Resources

Operating Line of Credit

In July 2025 the Company renewed its $30.0 million line of credit effective June 28, 2025 with a maturity date of June 28, 2027. The interest rate on the line of credit is the “Wall Street Journal” Prime Rate (the index) with a floor of 4.99%.

The line of credit is limited to a borrowing base calculation as summarized below:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024 |
Eligible borrowing base | ​ | $ | 23,878,282 | ​ | $ | 25,089,446 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Borrowed on line of credit | ​ |  | 11,573,976 | ​ |  | 4,500,000 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Line of credit balance available | ​ | $ | 12,304,306 | ​ | $ | 20,589,446 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate | ​ |  | 7.5 | % |  | 8.0 | %

​

The Company’s $11.6 million and $4.5 million line of credit borrowings are recorded as a long-term debt as of June 30, 2025 and September 30, 2024, respectively.

​

The financial covenants required by the Company’s lender are below:

| ● | Minimum tangible net worth of $28.0 million,

| ● | Minimum traditional debt service coverage of 1.50x on a rolling twelve- month basis,

| ● | Minimum current ratio of 1.20x,

| ● | Maximum debt to tangible net worth ratio (“TNW”) of 2.75x,

| ● | Each ratio and covenant shall be determined, tested, and measured as of each calendar quarter beginning June 30, 2023,

| ● | The Company shall maintain a ratio of Maximum Senior Funded Debt (“SFD”) to Earnings before Interest, Taxes, Depreciation and Amortization (“EBDITA”) equal to or less than 3.5:1. SFD shall mean any funded debt or lease of the Company, other than subordinated debt. The covenant shall be tested quarterly, at the end of each fiscal quarter, with EBITDA based on the preceding four quarters.

The Company’s lender has agreed to omit the effect of the PPP loan restatement from the Company’s covenant compliance calculations while a final decision on PPP loan forgiveness remains in question. The Company was not in compliance with all covenants at June 30, 2025 and received a waiver from its lender. The Company projects to meet all covenant requirements for the next twelve months.

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Paycheck Protection Program Loans

Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the PPP. On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with its Lender in an aggregate principal amount of $13.1 million pursuant to the PPP Loans. In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the SBA had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021.

During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously audited financial statements of the Company for the fiscal years 2022 and 2021. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest.

During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender.

Borrowers must retain PPP documentation for at least six years after the date the loan is forgiven or paid in full, and the SBA and SBA Inspector General must be granted these files upon request. The SBA could revisit its forgiveness decision and determine that the Company does not qualify as a whole or in part for loan forgiveness and demand repayment of the loans. In addition, it is unknown what type of penalties could be assessed against the Company if the SBA disagrees with the Company’s certification. Any penalties in addition to the potential repayment of the PPP Loans could negatively impact the Company’s business, financial condition and results of operations and prospects.

Long-Term Debt

On December 16, 2014, the Company’s Nitro subsidiary entered into a 20-year $1.2 million loan agreement with a bank to purchase the office building and property it had previously been leasing. The interest rate on this loan agreement is 4.82% with monthly payments of $7,800. The interest rate on this note is subject to change from time to time based on changes in the U.S. Treasury yield, adjusted to a constant maturity of three years as published by the Federal Reserve weekly. As of June 30, 2025, the Company had made principal payments of $476,000. The loan is collateralized by the building purchased under this agreement. The note is currently held by Peoples Bank, Inc.

On December 31, 2020, West Virginia Pipeline Acquisition Company, later renamed West Virginia Pipeline, Inc., entered into a $3.0 million sellers’ note agreement with David and Daniel Bolton for the remaining purchase price of West Virginia Pipeline, Inc. For the purchase price allocation, the $3.0 million note had a fair value of $2.85 million. As part of the $6.35 million acquisition price, the Company paid $3.5 million in cash in addition to the note. The unsecured five-year term note requires annual payments of at least $500,000 with a fixed interest rate of 3.25% on the $3.0 million sellers’ note, which equates to 5.35% on the carrying value of the note. As of June 30, 2025, the Company had made annual installment payments totaling $2,500,000.

On April 2, 2021, the Company entered into a $3.5 million Non-Revolving Note agreement with United Bank. This five-year agreement repaid the outstanding $3.5 million line of credit that was used for the down payment on the West Virginia Pipeline acquisition. This loan has monthly installment payments of $64,853 and has a fixed interest rate of 4.25%. The loan is collateralized by the Company’s equipment and receivables. As of June 30, 2025, the Company had made principal payments of $2.9 million.

On April 29, 2022, the Company entered into a $7.5 million Non-Revolving Note agreement with United Bank. This five-year agreement was used to finance the purchase of Tri-State Paving and has monthly payments of $129,910 with a fixed interest rate of 4.25%. As of June 30, 2025, the Company has made principal payments of $4.2 million.

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On April 29, 2022, the Company entered into a $1.0 million promissory note agreement with Corns Enterprises, a related party, as partial consideration for the purchase of Tri-State Paving. David E. Corns continued his role as President of the Company’s Tri-State Paving Subsidiary. This four-year agreement requires $250,000 principal installment payments on or before the end of each twelve (12) full calendar month period beginning April 29, 2022. Interest payments due shall be calculated on the principal balance remaining and shall be at the stated rate of 3.5% per year. The Company has made $750,000 in principal payments on this note as of June 30, 2025. David Corns retired as president of Tri-State Paving & Sealcoating, Inc. in May 2025.

On October 10, 2022, the Company entered into a $3.1 million promissory note agreement with United Bank. This five-year agreement financed the previous cash value of equipment purchased in the Ryan Construction acquisition. This loan has monthly installment payments of $60,000 and has a fixed interest rate of 6.0%. The loan is collateralized by the Company’s equipment and receivables. As of June 30, 2025, the Company had made principal payments of $1.5 million.

On June 1, 2023, the Company entered into a $9.3 million Non-Revolving Note agreement with United Bank. This five-year agreement gave the Company access to a $9.3 million line of credit (“Equipment Line of Credit 2023”), specifically for the purchase of equipment, for a period of six months with a fixed interest rate of 7.25%. After six months, all borrowings against the Equipment Line of Credit 2023 converted to a fifty-four-month term note agreement with a fixed interest rate of 7.25%. The loan is collateralized by the equipment purchased under this agreement. As of June 30, 2025, the Company had borrowed $9.3 million against this line of credit and made $2.9 million in principal payments.

In July 2025, the Company renewed its $30.0 million line of credit effective June 28, 2025 with a maturity date of June 28, 2027. The interest rate on the line of credit is the “Wall Street Journal” Prime Rate (the index) with a floor of 4.99%. The outstanding balance on the operating line of credit at June 30, 2025 was $11.6 million with an interest rate of 7.5%.

On August 8, 2024, the Company entered into a $5.0 million Non-Revolving Note agreement with United Bank. This five-year agreement gave the Company access to a $5.0 million equipment line of credit, specifically for the purchase of equipment, for a period of twelve months with a variable interest rate based on the “Wall Street Journal” Prime Rate (the index) and initially at 8.5%. After twelve months, all borrowings against the equipment line of credit will be converted to a forty-eight month term note agreement with a fixed interest rate equal to the “U.S. Treasury Rate” plus 2.75% per annum. The loan is collateralized by the equipment purchased under this agreement. As of June 30, 2025, the Company had borrowed $3.7 million against this line of credit and made no principal payments.

On December 2, 2024, the Company entered into a $16.0 million loan agreement with United Bank to finance the acquisition of Tribute. This six-year agreement has monthly payments of $272,000 including a fixed interest rate of 6.9%. As of June 30, 2025, the Company had made $1.3 million in principal payments.

Operating Leases

The Company leases office space for SQP for $1,500 per month. The lease, which was originally signed on March 25, 2021, is for a period of two years with five one-year renewals available immediately following the end of the base term. The Company has only committed to a one-year renewal and is evaluating the intent to renew for additional periods.

The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC transaction. The first operating lease, for the Hurricane, West Virginia facility, had a net present value of $236,000 at inception, and a carrying value of $0 at June 30, 2025. The 4.5% interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception. The Company intends to sign a one-year renewal and is evaluating the intent to renew for additional periods.

The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $144,000 at inception, and expired on August 31, 2024. The lease was renewed for a two-year period with a net present value of $140,000 and had a carrying value of $81,000 at June 30, 2025. The 8.5% interest rate on the operating leases is based on the Company’s incremental borrowing rate at inception.

The Company has a right-of-use operating lease with Enterprise Fleet Management, Inc. The Company had eighty-six vehicles on lease at June 30, 2025. The right-of-use operating lease has a carrying value of $2.2 million at June 30, 2025. Each vehicle leased under the master lease program has its own implicit rate ranging from 12.8% to 15.6%.

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The Company leases office and shop space for Ryan Construction’s headquarters in Bridgeport, West Virginia. The Company renewed the lease for one year effective October 1, 2024 through September 30, 2025. The Company has only committed to a one-year renewal and is evaluating the intent to renew for additional periods.

The Company has a right-of-use operating lease acquired on March 28, 2023. This lease, for the Winchester, Kentucky facility, had a net present value of $290,000 at inception and a carrying value of $72,000 at June 30, 2025. The 7.75% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception.

Off-Balance Sheet Arrangements

Due to the nature of our industry, we often enter into certain off-balance sheet arrangements in the ordinary course of business that result in risks not directly reflected in our balance sheets. Though for the most part not material in nature, some of these are:

Rental Agreements

The Company rents equipment for use on construction projects with rental agreements being week to week or month to month. Rental expense can vary by reporting period due to equipment requirements on construction projects and the availability of Company owned equipment. Rental expense, which is included in cost of goods sold on the consolidated statements of income, was $4.8 million and $2.5 million, respectively, for the three months ended June 30, 2025 and 2024. Rental expense was $13.8 million and $6.8 million, respectively, for the nine months ended June 30, 2025 and 2024.

Letters of Credit

Certain customers or vendors may require letters of credit to secure payments that the vendors are making on our behalf or to secure payments to subcontractors and vendors on various customer projects. At June 30, 2025, the Company did not have any letters of credit outstanding.

Performance Bonds

Some customers, particularly new ones or governmental agencies require the Company to post bid bonds, performance bonds and payment bonds (collectively, performance bonds). These performance bonds are obtained through insurance carriers and guarantee to the customer that we will perform under the terms of a contract and that we will pay subcontractors and vendors. If the Company fails to perform under a contract or to pay subcontractors and vendors, the customer may demand that the insurer make payments or provide services under the bond. The Company must reimburse the insurer for any expenses or outlays it is required to make.

Currently, the Company has an agreement with a surety company to provide bonding which will suit the Company’s immediate needs. The ability to obtain bonding for future contracts is an important factor in the contracting industry with respect to the type and value of contracts that can be bid. Depending upon the size and conditions of a particular contract, the Company may be required to post letters of credit or other collateral in favor of the insurer. Posting these letters or other collateral will reduce our borrowing capabilities. The Company does not anticipate any claims in the foreseeable future. At June 30, 2025, the Company had $86.9 million in performance bonds outstanding.

Concentration of Credit Risk

In the ordinary course of business, the Company grants credit under normal payment terms, generally without collateral, to our customers, which include natural gas and oil companies, general contractors, and various commercial and industrial customers located within the United States. Consequently, the Company is subject to potential credit risk related to business and economic factors that would affect these companies. However, the Company generally has certain statutory lien rights with respect to the services provided.

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Under certain circumstances such as foreclosure, the Company may take title to the underlying assets in lieu of cash in settlement of receivables.

Please see the tables below for customers that represent 10.0% or more of the Company’s revenue for the three and nine months ended June 30, 2025 and 2024:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three Months Ended | ​ | Three Months Ended |  | Nine Months Ended | ​ | Nine Months Ended |
​ | ​ | June 30, | ​ | June 30, | ​ | June 30, | ​ | June 30, | ​
Revenue |  | 2025 |  | 2024 |  | 2025 |  | 2024 |
TransCanada Corporation | ​ | * | ​ | 11.6 | % | * | ​ | 14.3 | %
American Water | ​ | 12.1 | % | * | ​ | 11.3 | % | * | ​
All other |  | 87.9 | % | 88.4 | % | 88.7 | % | 85.7 | %
Total |  | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | %

*Less than 10.0% and included in “All other” if applicable

Customers that represented 10.0% or more of the Company’s accounts receivable, net of retention at June 30, 2025 and September 30, 2024:

​ | ​ | ​ | ​ | ​ | ​
Accounts receivable, net of retention |  | at June 30, 2025 |  | at September 30, 2024 |
Nicholas Co. Board of Education |  | 11.1 | % | * | ​
All other |  | 88.9 | % | 100.0 | %
Total |  | 100.0 | % | 100.0 | %

*Less than 10.0% and included in “All other” if applicable

​

Litigation

On November 12, 2021, the Company received a withdrawal liability claim from a pension plan to which the Company made pension contributions for union construction employees performing covered work in a particular jurisdiction. The Company has not performed covered work in their jurisdiction since 2011; however, the Company disagrees with the withdrawal claim and believes it is covered by an exemption under federal law. The demand called for thirty-four quarterly installment payments of $41,000 starting December 15, 2021. The Company must comply with the demand under federal pension law; however, the Company firmly believes no withdrawal liability exists. The Company is in negotiations with the pension fund to resolve the matter and all future payments have been suspended as part of the negotiation. The Company has expensed all $164,000 in payments made through September 30, 2022 and does not expect any future liabilities related to this claim. The Company did not make any payments during the three and nine months ended June 30, 2025.

Other than described above, at June 30, 2025, the Company was not involved in any legal proceedings other than in the ordinary course of business. The Company is a party from time to time to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract and/or property damages, punitive damages, civil penalties, or other losses, or injunctive or declaratory relief. With respect to all such lawsuits, claims, and proceedings, we record reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. At June 30, 2025, the Company does not believe that any of these proceedings, separately or in aggregate, would be expected to have a material adverse effect on our financial position, results of operations or cash flows.

Related Party Transactions

We intend that all transactions between us and our executive officers, directors, holders of 10% or more of the shares of any class of our common stock and affiliates thereof, will be on terms no less favorable than those terms given to unaffiliated third parties and will be approved by a majority of our independent outside directors not having any interest in the transaction.

On April 29, 2022, the Company entered into a $1.0 million promissory note agreement with Corns Enterprises as partial consideration for the purchase of Tri-State Paving. This four-year agreement requires $250,000 principal installment payments on or before the end of each twelve (12) full calendar month period beginning April 29, 2022. Interest payments due shall be calculated on

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the principal balance remaining and shall be at the stated rate of 3.5% per year. The Company has made $750,000 in principal payments on this note as of June 30, 2025. David Corns retired as president of Tri-State Paving & Sealcoating, Inc. in May 2025.

Subsequent to the April 29, 2022 acquisition of Tri-State Paving, the Company entered into an operating lease for facilities in Hurricane, West Virginia with Corns Enterprises. This thirty-six-month lease is treated as a right to use asset and has payments of $7,000 per month. The total net present value at inception was $236,000 with a carrying value of $7,000 at June 30, 2025. The Company intends to sign a one-year renewal and is evaluating the intent to renew for additional periods. David Corns retired as president of Tri-State Paving & Sealcoating, Inc. in May 2025.

SQP made an equity investment of $156,000 in 1030 Quarrier Development, LLC (“Development”) in August 2022. Development is a variable interest entity (“VIE”) that is 75% owned by 1030 Quarrier Ventures, LLC (“Ventures”) and 25% owned by SQP. SQP is not the primary beneficiary of the VIE and therefore will not consolidate Development into its consolidated financial statements. Instead, SQP will apply the equity method of accounting for its investment in Development. Development, a 1% owner, and United Bank, a 99% owner, formed 1030 Quarrier Landlord, LLC (“Landlord”). Landlord decided to pursue the following development project (the “Project”): a historical building at 1030 Quarrier Street, Charleston, West Virginia as well as associated land (the “Property”) was purchased to be developed/rehabilitated into a commercial project including apartments and commercial space. Upon the completion of development, the Property will be used to generate rental income. SQP has been awarded the construction contract for the Project. United Bank provided $5.0 million in loans to fund the Project. SQP and Ventures have jointly provided an unconditional guarantee for the $5.0 million of obligations associated with the Project.

CJ Hughes entered into an agreement, cancelable at any time, with Construction Specialty Services (“CSS”), which is owned by Chuck Austin, the President of CJ Hughes. CSS rents equipment, periodically, to and as requested by CJ Hughes. The equipment rental rates are below the rates that the equipment can be rented from any unaffiliated rental company. CJ Hughes is not obliged to rent any equipment and does so only when CJ Hughes does not have equipment available of its own and would otherwise need to rent such equipment as the demand increases throughout the construction season. During the three months ended June 30, 2025 and 2024, the rental amounts were $74,000 and $144,000, respectively. During the nine months ended June 30, 2025 and 2024, the rental amounts were $250,000 and $357,000, respectively.

Other than mentioned above, there were no new material related party transactions entered into during the quarter ended June 30, 2025.

Certain Energy Services subsidiaries routinely engage in transactions in the normal course of business with each other, including sharing employee benefit plan coverage, payment for insurance and other expenses on behalf of other affiliates, and other services incidental to business of each of the affiliates. All revenue and related expense transactions, as well as the related accounts payable and accounts receivable have been eliminated in consolidation.

Inflation

Most significant project materials, such as pipe or electrical wire, are provided by the Company’s customers. When possible, the Company attempts to lock in pricing with vendors and include qualifications regarding material costs increases in bids. Where allowed by contract, the Company will address fuel cost increases with customers. Significant inflation or supply chain issues could cause customers to delay or cancel planned projects; however, inflation did not have a significant effect on our results for the three and nine months ended June 30, 2025 and 2024.

Critical Accounting Estimates

The discussion and analysis of the Company’s financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. Management believes the following accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

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Revenues

The Company recognizes revenue as performance obligations are satisfied and control of the promised goods and service is transferred to the customer. For Lump Sum and Unit Price contracts, revenue is ordinarily recognized over time as control is transferred to the customers by measuring the progress toward complete satisfaction of the performance obligation(s) using an input (i.e., “cost to cost”) method. For Cost Plus and Time and Material (“T&M”) contracts, revenue is ordinarily recognized over time as control is transferred to the customers by measuring the progress toward satisfaction of the performance obligation(s) using an output method. The Company also does certain T&M service work that is generally completed in a short duration and is recognized at a point in time.

The accuracy of our revenue and profit recognition in a given period depends on the accuracy of our estimates of the cost to complete each project. We believe our experience allows us to create materially reliable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability. The most significant of these include:

| ● | the completeness and accuracy of the original bid;

| ● | costs associated with scope changes;

| ● | changes in costs of labor and/or materials;

| ● | extended overhead and other costs due to owner, weather and other delays;

| ● | subcontractor performance issues;

| ● | changes in productivity expectations;

| ● | site conditions that differ from those assumed in the original bid;

| ● | changes from original design on design-build projects;

| ● | the availability and skill level of workers in the geographic location of the project;

| ● | a change in the availability and proximity of equipment and materials;

| ● | our ability to fully and promptly recover on affirmative claims and back charges for additional contract costs; and

| ● | the customer’s ability to properly administer the contract.

The foregoing factors, as well as the stage of completion of contracts in process and the mix of contracts at different margins may cause fluctuations in gross profit from period to period. Significant changes in cost estimates, particularly in our larger, more complex projects could have a significant effect on our profitability.

Our contract assets include cost and estimated earnings in excess of billings that represent amounts earned and reimbursable under contracts, including claim recovery estimates, but have a conditional right for billing and payment such as achievement of milestones or completion of the project. With the exception of customer affirmative claims, generally, such unbilled amounts will become billable according to the contract terms and generally will be billed and collected over the next three months. Settlement with the customer of outstanding affirmative claims is dependent on the claims resolution process and could extend beyond one year. Based on our historical experience, we generally consider the collection risk related to billable amounts to be low. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced.

Our contract liabilities consist of provisions for losses and billings in excess of costs and estimated earnings. Provisions for losses are recognized in the consolidated statements of income at the uncompleted performance obligation level for the amount of total estimated losses in the period that evidence indicates that the estimated total cost of a performance obligation exceeds its estimated total revenue. Billings in excess of costs and estimated earnings are billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months.

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The following table presents our costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings at June 30, 2025 and September 30, 2024:

​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024
Costs incurred on contracts in progress | ​ | $ | 444,808,043 | ​ | $ | 347,180,901
Estimated earnings, net of estimated losses |  | ​ | 77,668,447 |  | ​ | 59,349,378
​ |  | ​ | 522,476,490 |  | ​ | 406,530,279
Less billings to date |  | ​ | 523,451,080 |  | ​ | 398,885,475
​ | ​ | $ | (974,590) |  | $ | 7,644,804
​ | ​ |  | ​ |  | ​ |
Costs and estimated earnings in excess of billed on uncompleted contracts | ​ | $ | 26,685,573 | ​ | $ | 24,595,792
​ | ​ | ​ | ​ | ​ | ​ | ​
Less billings in excess of costs and estimated earnings on uncompleted contracts | ​ |  | 27,660,163 | ​ |  | 16,950,988
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | $ | (974,590) | ​ | $ | 7,644,804

​

Allowance for doubtful accounts

The Company provides an allowance for doubtful accounts when collection of an account is considered doubtful. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates relating to, among others, our customers’ access to capital, our customers’ willingness or ability to pay, general economic conditions and the ongoing relationship with the customers. While most of our customers are large well capitalized companies, should they experience material changes in their revenues and cash flows or incur other difficulties and not be able to pay the amounts owed, this could cause reduced cash flows and losses in excess of our current reserves.

Materially incorrect estimates of bad debt reserves could result in an unexpected loss in profitability for the Company. Additionally, frequently changing reserves could be an indication of risky or unreliable customers. At June 30, 2025, the management review deemed that the allowance for doubtful accounts was adequate.

Please see the allowance for doubtful accounts table below as of and for the nine months ended June 30, 2025 and as of and for the fiscal year ended September 30, 2024:

​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, 2025 |  | September 30, 2024
Balance at beginning of period | ​ | $ | 738,526 | ​ | $ | 51,063
Charged to expense | ​ |  | — | ​ |  | 687,463
Deductions for uncollectible receivables written off, net of recoveries | ​ |  | (37,651) | ​ |  | —
Balance at end of period | ​ | $ | 700,875 | ​ | $ | 738,526

​

Impairment of goodwill and intangible assets

The Company follows the guidance of Accounting Standards Codification (“ASC”) 350-20-35-3 “Intangibles-Goodwill and Other (Topic 350)” which requires a company to record an impairment charge based on the excess of a reporting unit’s carrying amount of goodwill over its fair value. Under the current guidance, companies can first choose to assess any impairment based on qualitative factors (Step 0). If a company fails this test or decides to bypass this step, it must proceed with a quantitative assessment of goodwill impairment. The Company did not have a goodwill impairment at June 30, 2025.

Materially incorrect estimates could cause an impairment of goodwill or intangible assets and result in a loss in profitability for the Company.

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A table of the Company’s intangible assets subject to amortization is below:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | Accumulated | ​ | Amortization | ​ | Amortization | ​ | Amortization | ​ | Amortization | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Remaining Life | ​ | ​ | ​ | ​ | Amortization | ​ | Amortization | ​ | and Impairment | ​ | and Impairment | ​ | and Impairment | ​ | and Impairment | ​ | ​ | ​ | ​ | ​ | ​
​ |  | (in months) at |  | ​ | ​ |  | and Impairment |  | and Impairment |  | Three Months |  | Nine Months |  | Three Months | ​ | Nine Months | ​ | Net Book Value |  | Net Book Value
​ | ​ | June 30, | ​ | ​ | ​ | ​ | at June 30, | ​ | at September 30, | ​ | Ended June 30, | ​ | Ended June 30, | ​ | Ended June 30, | ​ | Ended June 30, | ​ | at June 30, |  | at September 30,
Intangible assets: |  | 2025 |  | Original Cost |  | 2025 |  | 2024 |  | 2025 |  | 2025 |  | 2024 |  | 2024 |  | 2025 |  | 2024
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
West Virginia Pipeline: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Customer relationships | ​ | 66 | ​ | $ | 2,209,724 | ​ | $ | 994,365 | ​ | $ | 828,630 | ​ | $ | 55,245 | ​ | $ | 165,735 | ​ | $ | 55,242 | ​ | $ | 165,726 | ​ | $ | 1,215,359 |  | $ | 1,381,094
Tradename | ​ | 66 | ​ | ​ | 263,584 | ​ | ​ | 118,627 | ​ | ​ | 98,863 | ​ | ​ | 6,588 | ​ | ​ | 19,764 | ​ | ​ | 6,591 | ​ | ​ | 19,773 | ​ | ​ | 144,957 |  | ​ | 164,721
Non-competes | ​ | — | ​ | ​ | 83,203 | ​ | ​ | 83,203 | ​ | ​ | 83,203 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |  | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Revolt Energy: |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​
Employment agreement/non-compete |  | — |  | ​ | 100,000 |  | ​ | 100,000 |  | ​ | 100,000 |  | ​ | — |  | ​ | — |  | ​ | — | ​ | ​ | — | ​ |  | — | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Heritage Painting | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Customer relationships | ​ | 48 | ​ | ​ | 121,100 | ​ | ​ | 24,216 | ​ | ​ | 6,054 | ​ | ​ | 6,054 | ​ | ​ | 18,162 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 96,884 | ​ | ​ | 115,046
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tri-State Paving: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Customer relationships | ​ | 82 | ​ | ​ | 1,649,159 | ​ | ​ | 522,234 | ​ | ​ | 398,547 | ​ | ​ | 41,229 | ​ | ​ | 123,687 | ​ | ​ | 41,229 | ​ | ​ | 123,687 | ​ | ​ | 1,126,925 | ​ | ​ | 1,250,612
Tradename | ​ | 82 | ​ | ​ | 203,213 | ​ | ​ | 64,351 | ​ | ​ | 49,110 | ​ | ​ | 5,081 | ​ | ​ | 15,241 | ​ | ​ | 5,080 | ​ | ​ | 15,240 | ​ | ​ | 138,862 | ​ | ​ | 154,103
Non-competes | ​ | — | ​ | ​ | 39,960 | ​ | ​ | 39,960 | ​ | ​ | 39,960 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | - | ​ | ​ | — | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tribute Contracting & Consultants | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Customer relationships | ​ | 53 | ​ | ​ | 500,000 | ​ | ​ | 58,332 | ​ | ​ | — | ​ | ​ | 25,000 | ​ | ​ | 58,332 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 441,668 | ​ | ​ | —
Tradename | ​ | 53 | ​ | ​ | 250,000 | ​ | ​ | 29,169 | ​ | ​ | — | ​ | ​ | 12,501 | ​ | ​ | 29,169 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 220,831 | ​ | ​ | —
Non-competes | ​ | 53 | ​ | ​ | 250,000 | ​ | ​ | 29,169 | ​ | ​ | — | ​ | ​ | 12,501 | ​ | ​ | 29,169 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 220,831 | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total intangible assets | ​ | ​ | ​ | $ | 5,669,943 | ​ | $ | 2,063,626 | ​ | $ | 1,604,367 | ​ | $ | 164,199 | ​ | $ | 459,259 | ​ | $ | 108,142 | ​ | $ | 324,426 | ​ | $ | 3,606,317 | ​ | $ | 3,065,576

​

Depreciation and Amortization

The purpose of depreciation and amortization is to represent an accurate value of assets on the books. Every year, as assets are used, their values are reduced on the balance sheet and expensed on the income statement. As depreciation and amortization are a noncash expense, the amount must be estimated. Each year a certain amount of depreciation and amortization is written off and the book value of the asset is reduced.

Property and equipment are recorded at cost. Costs which extend the useful lives or increase the productivity of the assets are capitalized, while normal repairs and maintenance that do not extend the useful life or increase productivity of the asset are expensed as incurred. Property and equipment are depreciated principally on the straight-line method over the estimated useful lives of the assets: buildings 39 years; operating equipment and vehicles 5-7 years; and office equipment, furniture and fixtures 5-7 years.

Acquired intangible assets subject to amortization are amortized on a straight-line basis, which approximates the pattern in which the economic benefit of the respective intangible assets is realized, over their respective estimated useful lives. The definite-lived identifiable intangible assets recognized as part of the Company’s business combinations are initially recorded at their estimated fair value.

The Company’s depreciation expenses for the three months ended June 30, 2025 and 2024 were $3.1 million and $2.1 million, respectively. The Company’s depreciation expenses for the nine months ended June 30, 2025 and 2024 were $8.7 million and $6.3 million, respectively. In general, depreciation is included in “cost of revenues” on the Company’s consolidated statements of income.

The Company’s amortization expenses for the three months ended June 30, 2025 and 2024 were $164,199 and $108,142, respectively. The Company’s amortization expenses for the nine months ended June 30, 2025 and 2024 were $459,259 and $324,426, respectively. In general, amortization is included in “cost of revenues” on the Company’s consolidated statements of income.

Materially incorrect estimates of depreciation and amortization and/or the useful lives of assets could significantly impact the value of long-lived assets on the Company’s consolidated financial statements. A material overvaluation could result in impairment charges and reduced profitability for the Company.

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Income Taxes

The Company’s income tax expense and deferred tax assets and liabilities reflect management’s best estimate of current and future taxes to be paid. Significant judgments and estimates are required in the determination of the consolidated income tax expense. The Company’s provision for income taxes is computed by applying a federal rate of 21.0% and a blended state rate of approximately 5.0% to 6.0% to taxable income or loss after consideration of non-taxable and non-deductible items.

The effective income tax rate for the three months ended June 30, 2025 was 6.2%, as compared to 25.6%, for the same period in 2024. The effective income tax rate for the nine months ended June 30, 2025 was (29.5)%, as compared to 26.7%, for the same period in 2024. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses.

Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses.

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company had $13.5 million and $0 million of federal net operating loss carryforwards at June 30, 2025 and September 30, 2024, respectively. The Company had $84.5 million and $20.5 million of state net operating loss carryforwards at June 30, 2025 and September 30, 2024, respectively. The state net operating loss carryforwards begin to expire in 2025. The increases in federal and state NOL carryforwards were primarily due to a temporary difference resulting from bonus depreciation on equipment obtained as part of the Tribute acquisition.

The Company does not believe that it has any unrecognized tax benefits included in its consolidated financial statements that require recognition. The Company has not had any settlements in the current period with taxing authorities, nor has it recognized tax benefits as a result of a lapse of the applicable statute of limitations. The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in general and administrative expenses.

Accounting for PPP Loans

The Company’s accounting for PPP loans reflects management’s best estimate of current and future amounts to be paid. The Company applies significant judgment regarding the determination of PPP loan forgiveness based on the rules established, and subsequently clarified by the SBA, including rules related to the Company’s affiliations and meeting SBA size standards.

Refer to Note 3 “Accounting for PPP Loans” in the accompanying consolidated financial statements for additional details.

Subsequent Events

On July 15, 2025, the Company paid $502,000 in quarterly dividends to holders of record as of July 3, 2025.

Management has evaluated all subsequent events for accounting and disclosure. There have been no other material events during the period, other than noted above, that would either impact the results reflected in the report or the Company’s results going forward.

Outlook

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

The Company received significant bid opportunities for water and wastewater projects and electrical, mechanical, and general construction projects during the first nine months of fiscal year 2025. At June 30, 2025, the Company had an unaudited backlog of $133.0 million in electrical, mechanical, and general construction projects and $125.0 million in water projects.

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A significant amount of natural gas bid opportunities and project awards are occurring later than previous years. The Company has started to see increased bid opportunities for natural gas projects during the Company’s third fiscal quarter. The Company had an unaudited backlog of $30.0 million in transmission projects at June 30, 2025.

The Company’s unaudited backlog at June 30, 2025, was $304.4 million, as compared to $250.9 million and $243.2 million at June 30, 2024, and September 30, 2024, respectively. While adding additional projects appears likely, no assurances can be given that the Company will be successful in bidding on projects that become available. Moreover, even if the Company obtains contracts, there can be no guarantee that the projects will go forward.

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ITEM 3. Quantitative and Quantitative Disclosures About Market Risk

Not required for a smaller reporting company.

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ITEM 4. Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports that Energy Services of America Corporation files or submits under the Securities Exchange Act of 1934, is (1) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There has been no change in Energy Services of America Corporation’s internal control over financial reporting during Energy Services of America Corporation’s third quarter of fiscal year 2025 that has materially affected, or is reasonably likely to materially affect, Energy Services of America Corporation’s internal control over financial reporting.

On December 2, 2024, The Company’s newly formed wholly owned subsidiary, Tribute Contracting & Consultants, Inc., acquired substantially all the assets of Tribute Contracting & Consultants, LLC. When a public company acquires another business, there is typically a one-year grace period before the acquired company needs to fully comply with Sarbanes-Oxley (SOX) regulations. This allows time to assess in the internal controls of the acquired company and integrate it into the acquiring company’s SOX compliance program.

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PART II

OTHER INFORMATION

ITEM 1. Legal Proceedings

On November 12, 2021, the Company received a withdrawal liability claim from a pension plan to which the Company made pension contributions for union construction employees performing covered work in a particular jurisdiction. The Company has not performed covered work in their jurisdiction since 2011; however, the Company disagrees with the withdrawal claim and believes it is covered by an exemption under federal law. The demand called for thirty-four quarterly installment payments of $41,000 starting December 15, 2021. The Company must comply with the demand under federal pension law; however, the Company firmly believes no withdrawal liability exists. The Company is in negotiations with the pension fund to resolve the matter and all future payments have been suspended as part of the negotiation. The Company has expensed all $164,000 in payments made through September 30, 2022 and does not expect any future liabilities related to this claim. The Company did not make any payments during the three and nine months ended June 30, 2025.

Other than described above, at June 30, 2025, the Company was not involved in any legal proceedings other than in the ordinary course of business. The Company is a party from time to time to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract and/or property damages, punitive damages, civil penalties, or other losses, or injunctive or declaratory relief. With respect to all such lawsuits, claims, and proceedings, we record reserves when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. At June 30, 2025, the Company does not believe that any of these proceedings, separately or in aggregate, would be expected to have a material adverse effect on our financial position, results of operations or cash flows.

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ITEM 1A. Risk Factors

Please see the information disclosed in the “Risk Factors” section of our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on December 19, 2024. There have been no material changes to the risk factors since the filing of the Annual Report on Form 10-K.

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ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

| (a) | There have been no unregistered sales of equity securities during the period covered by the report.

| (b) | None.

| (c) | Please see the table below for repurchases or Company stock during the three months ended June 30, 2025:

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ |  | Value of Shares |  | Maximum Number of
​ | ​ | ​ | ​ | ​ |  | Purchased as Part of |  | Shares That May Yet Be
​ | ​ | Total Number of Shares | ​ | Average Price | ​ | Publicly Announced | ​ | Purchased Under the
Period |  | Purchased |  | Paid Per Share |  | Plans or Programs |  | Plans or Programs
April 2025 |  | — | ​ | $ | — | ​ | $ | — |  | 893,099
May 2025 |  | 106,392 | ​ | $ | 7.94 | ​ | $ | 844,230 |  | 786,707
June 2025 |  | — | ​ | $ | — | ​ | $ | — |  | 786,707
Total |  | 106,392 | ​ | $ | 7.94 | ​ | $ | 844,230 | ​ | ​

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ITEM 5. Other Information

During the third fiscal quarter of 2025, none of our directors or officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as that term is used in SEC regulations.

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ITEM 6. Exhibits

| ​ |
31.1 |  | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
| ​ |
31.2 | ​ | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
| ​ |
32 | ​ | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
| ​ |
101.INS | ​ | XBRL Instance Document
| ​ |
101.SCH | ​ | XBRL Taxonomy Extension Schema Document
| ​ |
101.CAL | ​ | XBRL Taxonomy Extension Calculation Linkbase Document
| ​ |
101.DEF | ​ | XBRL Taxonomy Extension Definition Linkbase Document
| ​ |
101.LAB | ​ | XBRL Taxonomy Extension Label Linkbase Document
| ​ |
101.PRE | ​ | XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ENERGY SERVICES OF AMERICA CORPORATION

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Date: | August 11, 2025 | By: | /s/ Douglas V. Reynolds
|  | Douglas V. Reynolds
|  | Chief Executive Officer
Date: | August 11, 2025 | By: | /s/ Charles P. Crimmel
|  | Charles P. Crimmel
|  | Chief Financial Officer

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