Energy Services of America CORP
For the period ended Mar 31, 2026. Filed May 11, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 11, 2026
ESOA$8.62+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-09.
0001104659-26-012099
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001104659-26-058681
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 209 previous paragraphs and 218 current paragraphs.
106 unchanged; 76 reworded; 34 added; 23 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 29 previous and 34 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
Total revenues increased by $16.5 million to $93.2 million for the three months ended March 31, 2026, compared to $76.7 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, total revenues increased by $30.0 million to $207.3 million, compared to $177.3 million for the same period in 2025. These increases were driven by higher revenues across all business lines during the three- and six-month periods ended March 31, 2026, compared to the corresponding periods in 2025.
Current report
Gas & Petroleum Transmission revenues were $11.0 million for the three months ended March 31, 2026, an increase of $7.6 million from $3.4 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, revenues were $35.1 million, an increase of $13.3 million from $21.9 million for the same period in 2025. These increases were primarily due to new transmission projects awarded in the first quarter of fiscal 2026, as well as the timing of project execution, with most transmission work in fiscal 2025 commencing in the third fiscal quarter.
Current report
*Cost of Revenues.*The following table compares the Company’s cost of revenues for the three and six months ended March 31, 2026 to the corresponding periods in 2025:
Current report
Total cost of revenues increased by $6.3 million to $82.9 million for the three months ended March 31, 2026, compared to $76.6 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, total cost of revenues increased by $16.1 million to $183.1 million, compared to $167.0 million for the same period in 2025. These increases were primarily attributable to higher levels of work across all business lines during the 2026 periods, partially offset by a $312,000 decrease in cost of revenues for Electrical, Mechanical, and General Construction Services for the six months ended March 31, 2026.
Current report
Electrical, Mechanical, & General Construction Services cost of revenues was $43.7 million for the three months ended March 31, 2026, an increase of $1.2 million from $42.4 million for the prior-year period. For the six months ended March 31, 2026, cost of revenues was $88.2 million, a decrease of $312,000 from $88.5 million for the same period in 2025. While activity levels increased, the
Current report
Company achieved improved margins during the 2026 periods, resulting in a modest decrease in cost of revenues for the current six-month period.
Current report
Unallocated shop expenses were $1.8 million for the three months ended March 31, 2026, an increase of $235,000 from $1.6 million for the prior-year period. For the six months ended March 31, 2026, unallocated shop expenses were $3.0 million, an increase of $805,000 from $2.2 million for the same period in 2025. The increase in the 2026 periods was primarily due to higher depreciation, insurance, and equipment repair costs, without a corresponding increase in internal equipment charges to projects during the 2026 periods.
Current report
Gas & Water Distribution gross profit was $2.4 million for the three months ended March 31, 2026, an increase of $3.3 million from a gross loss of $911,000 for the prior-year period. For the six months ended March 31, 2026, gross profit was $8.9 million, an increase of $4.6 million from $4.3 million for the same period in 2025. These increases were primarily attributable to higher levels of water distribution activity and improved project profitability.
Current report
Electrical, Mechanical, & General Construction Services gross profit was $7.2 million for the three months ended March 31, 2026, an increase of $3.4 million from $3.8 million for the prior-year period. For the six months ended March 31, 2026, gross profit was $12.0 million, an increase of $3.4 million from $8.6 million for the same period in 2025. These increases were primarily attributable to improved margins on relatively consistent levels of work performed.
Current report
total selling and administrative expenses increased by $1.5 million to $18.3 million, compared to $16.8 million for the same period in 2025. These increases were primarily attributable to higher labor and related burden costs associated with the Company’s growth.
Current report
Interest expense. Interest expense was $622,000 for the three months ended March 31, 2026, a decrease of $254,000 from $876,000 for the same period in 2025. This decrease was primarily attributable to lower interest expense on line of credit borrowings and the repayment of other long-term debt using proceeds from an equity raise completed in February 2026.
Current report
For the six months ended March 31, 2026, interest expense was $1.6 million, an increase of $252,000 from $1.4 million for the same period in 2025. This increase was primarily attributable to higher average borrowings on the Company’s line of credit during the three months ended December 31, 2025, compared to the corresponding period in the prior fiscal year.
Current report
The Company periodically sells underutilized or non-operating equipment as part of its asset management practices. As a result, gains and losses on such sales may vary from period to period.
Current report
Net income (loss). Income (loss) before income taxes was $412,000 for the three months ended March 31, 2026, compared to a loss of $9.0 million for the same period in the prior year. For the six months ended March 31, 2026, income before income taxes was $4.3 million, compared to a loss of $7.7 million for the same period in the prior year. These increases were primarily attributable to the factors discussed above.
Current report
Net income was $216,000 for the three months ended March 31, 2026, compared to a net loss of $6.8 million for the same period in the prior year. For the six months ended March 31, 2026, net income was $2.9 million, compared to a net loss of $5.9 million for the same period in the prior year.
Current report
Variance Between Three Months Ended March 31, 2026 and 2025
Current report
Variance Between Six Months Ended March 31, 2026 and 2025
Current report
Income from operations. The $2.1 million and $1.8 million increases in income from operations for the three and six months ended March 31, 2026 as compared to the same period in 2025 were primarily due to an increase in industrial work and an increase in profitability.
Current report
Corporate and Non-Allocated Costs increased by $113,000 for the three months ended March 31, 2026 and decreased by $123,000 for the six months ended March 31, 2026, respectively, as compared to the same periods in 2025. The variances are attributed to various factors; however, the Company has added additional safety and risk management personnel at the corporate level.
Current report
Contract assets totaled $26.8 million at March 31, 2026, a decrease of $7.7 million from $34.5 million at September 30, 2025. The decrease was due to the timing of project billing activity at March 31, 2026 compared to September 30, 2025.
Current report
Prepaid expenses and other totaled $6.4 million at March 31, 2026, an increase of $1.4 million from $5.0 million at September 30, 2025. The increase was primarily due to insurance premium payments, partially offset by insurance expense recognized during the six months ended March 31, 2026.
Current report
Net property, plant and equipment totaled $54.2 million at March 31, 2026, an increase of $708,000 from $53.5 million at September 30, 2025. The increase reflected $7.6 million of equipment acquisitions, partially offset by $6.7 million of depreciation expense and $214,000 of net equipment disposals.
Current report
Right-of-use assets totaled $2.4 million at March 31, 2026, an increase of $339,000 from $2.1 million at September 30, 2025. The increase was primarily due to $940,000 in additions from new operating lease agreements, partially offset by $600,000 of amortization of right-of-use assets during the period.
Current report
Accounts payable totaled $21.3 million at March 31, 2026, a decrease of $9.4 million from $30.7 million at September 30, 2025. The decrease was primarily due to the timing of vendor payments.
Current report
Deferred tax liabilities totaled $7.9 million at March 31, 2026, an increase of $1.2 million from $6.8 million at September 30, 2025. This increase was primarily attributable to a $450,000 increase in deferred tax liabilities related to timing differences between book and tax depreciation, a $188,000 decrease in federal and state net operating loss carryforwards, and a $524,000 decrease in other deferred tax assets.
Current report
Shareholders’ equity was $81.5 million at March 31, 2026, an increase of $22.3 million from $59.2 million at September 30, 2025. The increase was primarily due to $21.2 million in net proceeds from an equity raise and net income of $2.9 million for the six months ended March 31, 2026, partially offset by $848,000 in share repurchases and $1.1 million in declared dividends.
Current report
Equity Raise
Current report
On February 18, 2026, The Company entered into an underwriting agreement (the “Underwriting Agreement”) with Lake Street Capital Markets, LLC (the “Underwriter”). Pursuant to the Underwriting Agreement, the Company agreed to issue and sell, and the Underwriter agreed to purchase, subject to the terms and conditions therein, 1,740,000 shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”), in a registered public offering pursuant to an effective shelf registration statement on Form S-3 (File No. 333-280025) and related prospectus, including the prospectus supplement filed with the Securities and Exchange Commission (the “Offering”). The Company also granted the Underwriter a 30-day option to purchase up to an additional 261,000 shares of Common Stock.
Current report
The Offering closed on February 20, 2026, with the Underwriter purchasing 1,740,000 shares of Common Stock at a public offering price of $11.50 per share. Net proceeds to the Company were approximately $18.4 million, after deducting underwriting discounts and commissions and estimated offering expenses.
Current report
On February 24, 2026, the Underwriter exercised its overallotment option and purchased an additional 261,000 shares of Common Stock at the public offering price of $11.50 per share. Net proceeds from the exercise of the option were approximately $2.8 million, after deducting underwriting discounts and commissions but before deducting other offering expenses payable by the Company.
Current report
The Company intends to use the net proceeds from the Offering for strategic growth initiatives, working capital needs, and general corporate purposes.
Current report
The Company has a right-of-use operating lease acquired on January 1, 2026 for the Oklahoma City, Oklahoma facility. The lease had a net present value of $208,000 at inception and a carrying value of $186,000 at March 31, 2026. The lease bears interest at 6.75%, based on the Company’s incremental borrowing rate at inception.
Current report
The Company also has a right-of-use operating lease acquired on January 1, 2026 for the Louisville, Kentucky facility. The lease had a net present value of $128,000 at inception and a carrying value of $128,000 at March 31, 2026. The lease bears interest at 6.75%, based on the Company’s incremental borrowing rate at inception. Lease payments do not commence until April 1, 2026.
Current report
Allowance for credit losses
Removed paragraphs (23)
Previous report
Total revenues increased by $13.5 million to $114.1 million for the three months ended December 31, 2025, as compared to $100.6 million for the three months ended December 31, 2024. The increase was a result of $9.3 million and $5.7 million in increased work in the Gas & Water Distribution and Gas & Petroleum Transmission categories, respectively, partially offset by a $1.5 million decrease in Electrical, Mechanical, & General work for the three months ended December 31, 2025 as compared to the same period in 2024.
Previous report
Gas & Petroleum Transmission revenues totaled $24.1 million for the three months ended December 31, 2025, a $5.7 million increase from $18.5 million for the three months ended December 31, 2024. The revenue increase was primarily due to two new transmission projects awarded in the first quarter of fiscal year 2026.
Previous report
*Cost of Revenues.*A table comparing the Company’s costs of revenues for the three months ended December 31, 2025, compared to the three months ended December 31, 2024, is below:
Previous report
Total cost of revenues increased by $9.7 million to $100.1 million for the three months ended December 31, 2025, as compared to $90.4 million for the three months ended December 31, 2024. The cost of revenues increase was the result of increased work in the Gas & Water Distribution and Gas & Petroleum Transmission business categories, partially offset by a decrease in Electrical, Mechanical, & General work.
Previous report
Electrical, Mechanical, & General construction services cost revenues totaled $44.5 million for the three months ended December 31, 2025, a $1.5 million decrease from $46.1 million for the three months ended December 31, 2024. The cost of revenues decrease was primarily related to a decrease in electrical services performed during the three months ended December 31, 2025, as compared to the same period in 2024.
Previous report
Unallocated shop expenses totaled $1.2 million for the three months ended December 31, 2025, a $570,000 increase from $674,000 for the three months ended December 31, 2024. The increase in unallocated shop expenses was primarily due to an increase in depreciation, insurance, and equipment repair costs without an offsetting increase to internal equipment charged to projects for the three months ended December 31, 2025, as compared to the same period in the prior year.
Previous report
Gas & Water Distribution gross profit totaled $6.5 million for the three months ended December 31, 2025, a $1.4 million increase from $5.2 million for the three months ended December 31, 2024. The gross profit increase was primarily related to increased water distribution services performed during the three months ended December 31, 2025, as compared to the same period in 2024.
Previous report
Electrical, Mechanical, & General construction services gross profit totaled $4.9 million for the three months ended December 31, 2025, a $30,000 increase from $4.8 million for the three months ended December 31, 2024. The gross profit increase was primarily related to increased profitability on work performed offsetting the $1.5 million decrease in revenue for the three months ended December 31, 2025 compared to the same period in 2024.
Previous report
Interest expense. Interest expense totaled $990,000 for the three months ended December 31, 2025, an increase of $506,000 from $484,000 for the same period in 2024. The increase was primarily due to increased interest expense related to line of credit borrowings during the three months ended December 31, 2025, as compared to same period in the prior fiscal year.
Previous report
Net income. Income before income taxes was $3.8 million for the three months ended December 31, 2025, as compared to $1.3 million for the same period in the prior year. The increase was primarily related to the items mentioned above.
Previous report
Net income for the three months ended December 31, 2025, was $2.7 million, as compared to $854,000 for the same period in the prior year.
Previous report
Income from operations. The $339,000 decrease in income from operations for the three months ended December 31, 2025 as compared to the same period in 2024 was primarily due to a slight decrease in gross profit resulting from less work performed and an increase in indirect operating expenses.
Previous report
The $236,000 decrease in Corporate and Non-Allocated Costs for the three months ended December 31, 2025 as compared to the same period in 2024 was primarily due to decreased indirect operating costs.
Previous report
Contract assets totaled $23.3 million at December 31, 2025, a decrease of $11.1 million from the prior fiscal year end balance of $34.5 million. The decrease was due to a difference in the timing of project billings at December 31, 2025, compared to September 30, 2025.
Previous report
Prepaid expenses and other totaled $3.6 million at December 31, 2025, a decrease of $1.4 million from the prior fiscal year end balance of $5.0 million. The decrease was primarily due to a decrease in prepaid insurance that was expensed during the three months ended December 31, 2025.
Previous report
The Company had net property, plant and equipment of $52.9 million at December 31, 2025, a decrease of $592,000 from the prior fiscal year end balance of $53.5 million. The decrease was due to $3.4 million in depreciation expense, and $91,000 in net equipment disposals, partially offset by 2.9 million in equipment acquisitions.
Previous report
Right-of-use assets totaled $2.0 million at December 31, 2025, a decrease of $44,000 from the prior fiscal year end balance of $2.1 million. The decrease was primarily due to the amortization of operating leases during the three months ended December 31, 2025, partially offset by the addition of one new right-of-use asset resulting from a new operating lease.
Previous report
Accounts payable totaled $24.3 million at December 31, 2025, a decrease of $6.4 million from the prior fiscal year end balance of $30.7 million. The decrease was due to the timing of accounts payable payments as compared to September 30, 2025.
Previous report
Income tax payable totaled $168,000 at December 31, 2025, an increase of $168,000 from the prior fiscal year end balance. The increase was primarily related to the taxable income generated during the three months ended December 31, 2025.
Previous report
Deferred tax liabilities totaled $7.7 million at December 31, 2025, a $978,000 increase from the prior fiscal year end balance of $6.8 million. The increase was primarily related to a $171,000 deferred tax liability increase related to bonus depreciation on equipment acquired, a $445,000 decrease in federal and state NOL carryforwards, and a $382,000 decrease to other deferred tax assets.
Previous report
Shareholders’ equity was $60.6 million at December 31, 2025, an increase of $1.4 million from the prior fiscal year end balance of $59.2 million. The increase was primarily due to net income of $2.7 million for the three months ended December 31, 2025, partially offset by $847,000 in repurchases of the Company’s common stock and a $499,000 declared quarterly dividend that was paid on January 2, 2026.
Previous report
term with monthly interest paid at a fixed interest rate of 5.0% on the $3.0 million sellers’ note, which equates to 7.05% on the carrying value of the note.
Previous report
Allowance for doubtful accounts
Reworded paragraphs (76)
Previous wording
The Company had consolidated operating revenues of $114.1 million for the three months ended December 31, 2025, of which 43.3% was attributable to electrical, mechanical, and general contract services, 21.1% to gas and petroleum transmission projects, and 35.6% to gas & water distributions services. The Company had consolidated operating revenues of $100.6 million for the three months ended December 31, 2024, of which 53.2% was attributable to electrical, mechanical, and general contract services, 23.5% to gas and petroleum transmission projects, and 23.3% to gas & water distributions services.
Current wording
The Company had consolidated operating revenues of $93.2 million for the three months ended March 31, 2026, of which 54.6% was attributable to electrical, mechanical, and general contract services, 11.8% to gas and petroleum transmission projects, and 33.6% to gas & water distributions services. The Company had consolidated operating revenues of $76.7 million for the three months ended March 31, 2025, of which 60.3% was attributable to electrical, mechanical, and general contract services, 4.4% to gas and petroleum transmission projects, and 35.3% to gas & water distributions services.
Previous wording
Three months ended December 31, 2025 and 2024 Overview
Current wording
Three and six months ended March 31, 2026 and 2025 Overview
Previous wording
The following is an overview of results from operations for the three months ended December 31, 2025 and 2024:
Current wording
The following is an overview of results from operations for the three and six months ended March 31, 2026 and 2025:
Previous wording
Results of Operations for the Three Months Ended December 31, 2025 Compared to the Three Months Ended December 31, 2024
Current wording
Results of Operations for the Three and Six Months Ended March 31, 2026 Compared to the Three and Six Months Ended March 31, 2025
Previous wording
Revenues. A table comparing the Company’s revenues for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 is below:
Current wording
Revenues. The following table compares the Company’s revenues for the three and six months ended March 31, 2026 to the corresponding periods in 2025:
Previous wording
Gas & Water Distribution revenues totaled $40.6 million for the three months ended December 31, 2025, a $9.3 million increase from $31.3 million for the three months ended December 31, 2024. The revenue increase was primarily related to increased water distribution services performed during the three months ended December 31, 2025, as compared to the same period in 2024.
Current wording
Gas & Water Distribution revenues were $31.3 million for the three months ended March 31, 2026, an increase of $4.2 million from $27.1 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, revenues were $71.9 million, an increase of $13.5 million from $58.4 million for the same period in 2025. These increases were primarily attributable to higher levels of water distribution services performed during the 2026 periods.
Previous wording
Electrical, Mechanical, & General construction services revenues totaled $49.4 million for the three months ended December 31, 2025, a $1.5 million decrease from $50.9 million for the three months ended December 31, 2024. The revenue decrease was primarily related to a decrease in electrical services performed during the three months ended December 31, 2025, as compared to the same period in 2024.
Current wording
Electrical, Mechanical, & General Construction Services revenues were $50.8 million for the three months ended March 31, 2026, an increase of $4.6 million from $46.2 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, revenues were $100.2 million, an increase of $3.1 million from $97.1 million for the same period in 2025. These increases were primarily attributable to higher levels of electrical services performed during the 2026 periods.
Previous wording
Gas & Water Distribution cost of revenues totaled $34.1 million for the three months ended December 31, 2025, a $8.0 million increase from $26.1 million for the three months ended December 31, 2024. The cost of revenues increase was primarily related to increased water distribution services performed during the three months ended December 31, 2025, as compared to the same period in 2024.
Current wording
Gas & Water Distribution cost of revenues was $29.0 million for the three months ended March 31, 2026, an increase of $962,000 from $28.0 million for the prior-year period. For the six months ended March 31, 2026, cost of revenues was $63.1 million, an increase of $8.9 million from $54.1 million for the same period in 2025. These increases were primarily attributable to higher levels of water distribution activity.
Previous wording
Gas & Petroleum Transmission cost of revenues totaled $20.3 million for the three months ended December 31, 2025, a $2.8 million increase from $17.5 million for the three months ended December 31, 2024. The cost of revenues increase for the three months ended December 31, 2025 was primarily due to two new transmission projects awarded in the first quarter of fiscal year 2026.
Current wording
Gas & Petroleum Transmission cost of revenues was $8.5 million for the three months ended March 31, 2026, an increase of $3.9 million from $4.6 million for the prior-year period. For the six months ended March 31, 2026, cost of revenues was $28.8 million, an increase of $6.7 million from $22.1 million for the same period in 2025. These increases were primarily due to new transmission projects awarded in the first quarter of fiscal 2026 and the timing of project execution, as most transmission work in fiscal 2025 commenced in the third fiscal quarter.
Previous wording
Gross Profit (Loss).* *A table comparing the Company’s gross profit for the three months ended December 31, 2025, compared to the three months ended December 31, 2024, is below:
Current wording
Gross Profit (Loss).* *The following table compares the Company’s gross profit for the three and six months ended March 31, 2026 to the corresponding periods in 2025:
Previous wording
Total gross profit increased by $3.7 million to $14.0 million for the three months ended December 31, 2025, as compared to $10.3 million for the three months ended December 31, 2024. The increase was primarily due to increased profit in all business lines, partially offset by increased unallocated shop expense during the first quarter of fiscal year 2026, as compared to the same period in the prior year.
Current wording
Total gross profit increased by $10.1 million to $10.2 million for the three months ended March 31, 2026, compared to $78,000 for the three months ended March 31, 2025. For the six months ended March 31, 2026, total gross profit increased by $13.9 million to $24.2 million, compared to $10.3 million for the same period in 2025. These increases were primarily attributable to higher activity levels and improved profitability across all business lines, partially offset by higher unallocated shop expenses during the 2026 periods.
Previous wording
Gas & Petroleum Transmission gross profit totaled $3.8 million for the three months ended December 31, 2025, a $2.9 million increase from $934,000 for the three months ended December 31, 2024. The gross profit increase for the three months ended December 31, 2025 was primarily due to two new transmission projects awarded in the first quarter of fiscal year 2026.
Current wording
Gas & Petroleum Transmission gross profit was $2.5 million for the three months ended March 31, 2026, an increase of $3.7 million from a gross loss of $1.2 million for the prior-year period. For the six months ended March 31, 2026, gross profit was $6.4 million, an increase of $6.6 million from a gross loss of $271,000 for the same period in 2025. These increases were primarily due to transmission projects awarded in the first and second quarters of fiscal 2026, as well as improved profitability and project execution.
Previous wording
Gross loss attributable to unallocated shop expenses totaled ($1.2 million) for the three months ended December 31, 2025, a $570,000 increase from ($674,000) for the three months ended December 31, 2024. The increase in gross loss related to unallocated shop expenses was primarily due to an increase in depreciation, insurance, and equipment repair costs without an offsetting increase to internal equipment charged to projects for the three months ended December 31, 2025, as compared to the same period in the prior year.
Current wording
Gross loss attributable to unallocated shop expenses was $1.8 million for the three months ended March 31, 2026, an increase of $235,000 from $1.6 million for the prior-year period. For the six months ended March 31, 2026, gross loss attributable to unallocated shop expenses was $3.0 million, an increase of $805,000 from $2.2 million for the same period in 2025. The increase in the 2026 periods was primarily due to higher depreciation, insurance, and equipment repair costs, without a corresponding increase in internal equipment charges to projects during the 2026 periods.
Previous wording
Selling and administrative expenses. Total selling and administrative expenses increased by $463,000 to $9.1 million for the three months ended December 31, 2025, as compared to $8.6 million for the same period in 2024. The increase was primarily related to increased selling and administrative expenses for the three months ended December 31, 2025 related to a fiscal year 2025 acquisition that only operated for one month during the three months ended December 31, 2024.
Current wording
Selling and administrative expenses. Total selling and administrative expenses increased by $1.0 million to $9.2 million for the three months ended March 31, 2026, compared to $8.2 million for the same period in 2025. For the six months ended March 31, 2026,
Previous wording
Other non-operating expense.* *Other non-operating expenses totaled $103,000 for the three months ended December 31, 2025, as compared to $48,000 in non-operating expense for the same period in 2024. The increase was primarily due to intangible asset amortization related to an acquisition closed on September 30, 2025.
Current wording
Other non-operating expense. Other non-operating expenses were $94,000 for the three months ended March 31, 2026, compared to $21,000 for the same period in 2025. For the six months ended March 31, 2026, other non-operating expenses were $197,000, compared to $69,000 for the same period in 2025. The increases were primarily attributable to amortization of intangible assets associated with an acquisition completed on September 30, 2025.
Previous wording
Gain on sale of equipment. Gain on sale of equipment totaled $19,000 for the three months ended December 31, 2025, a decrease of $177,000 from $196,000 for the same period in the prior year. The Company sold certain underutilized or non-working pieces of equipment during the three months ended December 31, 2024, with no comparable sale occurring during the three months ended December 31, 2025.
Current wording
Gain on sale of equipment. Gain on sale of equipment was $70,000 for the three months ended March 31, 2026, an increase of $87,000 from a loss of $17,000 for the same period in the prior year. For the six months ended March 31, 2026, gain on sale of equipment was $89,000, a decrease of $90,000 from $179,000 for the same period in the prior year.
Previous wording
Income tax expense for the three months ended December 31, 2025, was $1.1 million compared to $455,000 for the same period in the prior year. The increase in income tax expense was due to an increase in taxable income during the three months ended December 31, 2025, as compared to the same period in the prior year.
Current wording
Income tax expense was $197,000 for the three months ended March 31, 2026, compared to an income tax benefit of $2.2 million for the same period in the prior year. For the six months ended March 31, 2026, income tax expense was $1.3 million, compared to an income tax benefit of $1.8 million for the same period in the prior year. The increase in income tax expense was primarily due to higher pre-tax income during the 2026 periods.
Previous wording
Revenues. The $16.4 million increase in revenues for the three months ended December 31, 2025 as compared to the same period in 2024 was primarily due to the Company’s focus on growing its natural gas and water distribution business lines. Additionally, two new natural gas transmission projects were started during the three months ended December 31, 2025.
Current wording
*Revenues.*The $13.7 million and $30.0 million increases in revenues for the three and six months ended March 31, 2026 as compared to the same periods in 2025 were primarily due to the Company’s focus on growing its natural gas and water distribution business lines. Additionally, natural gas transmission projects started earlier in fiscal year 2026 as compared to fiscal year 2025.
Previous wording
Income from operations. The $3.5 million increase in income from operations for the three months ended December 31, 2025 as compared to the same period in 2024 was primarily due to an increased volume of work and profitability from gas transmission projects.
Current wording
*Income from operations.*The $8.1 million and $11.6 million increases in income from operations for the three and six months ended March 31, 2026 as compared to the same period in 2025 were primarily due to an increased volume of work and profitability from underground infrastructure projects.
Previous wording
Revenues. The $1.7 million decrease in revenues for the three months ended December 31, 2025 as compared to the same period in 2024 was primarily due to a decrease in the amount of electrical work performed.
Current wording
Revenues. The $3.7 million and $2.1 million increases in revenues for the three and six months ended March 31, 2026 as compared to the same periods in 2025 were primarily due to an increase in the amount of electrical and mechanical work performed.
Previous wording
Revenues. The $1.2 million decrease in revenues for the three months ended December 31, 2025 as compared to the same period in 2024 was primarily due to working to complete projects under contract while bidding on projects with projected start dates in the Company’s third quarter of fiscal year 2026.
Current wording
Revenues. The $933,000 and $2.2 million decreases in revenues for the three and six months ended March 31, 2026 as compared to the same period in 2025 were primarily due to winding down work on substantially complete projects while bidding on potential new projects with projected start dates in the Company’s third quarter of fiscal year 2026.
Previous wording
Income from operations. The $83,000 decrease in income from operations for the three months ended December 31, 2025 as compared to the same period in 2024 was primarily due to the decreased volume of work completed in the Company’s first quarter of fiscal year 2026.
Current wording
Income from operations. The $1.0 million and $1.1 million decreases in income from operations for the three and six months ended March 31, 2026 as compared to the same period in 2025 were primarily due to the decreased volume of work completed in the Company’s first quarter of fiscal year 2026.
Previous wording
The Company had total assets of $201.0 million at December 31, 2025, a decrease of $14.2 million from the prior fiscal year end balance of $215.2 million.
Current wording
The Company had total assets of $193.9 million at March 31, 2026, a decrease of $21.3 million from $215.2 million at September 30, 2025.
Previous wording
Accounts receivable, net of allowance for doubtful accounts, totaled $69.1 million at December 31, 2025, a decrease of $7.5 million from the prior fiscal year end balance of $76.6 million. The decrease was primarily due to the timing of cash collections and project invoicing since September 30, 2025.
Current wording
Accounts receivable, net of allowance for credit losses, totaled $60.1 million at March 31, 2026, a decrease of $16.0 million from $76.0 million at September 30, 2025. The decrease was primarily due to the timing of cash collections and project billings since September 30, 2025.
Previous wording
Cash and cash equivalents totaled $16.7 million at December 31, 2025, an increase of $4.4 million from the prior fiscal year end balance of $12.2 million. The increase was primarily due to a net $18.8 million provided by operating activities, partially offset by a net $12.5 million used in financing activities, and by a $1.9 million net investment in equipment.
Current wording
Cash and cash equivalents totaled $10.1 million at March 31, 2026, a decrease of $2.1 million from $12.2 million at September 30, 2025. The decrease was primarily due to $19.1 million used in financing activities and $5.4 million used for net investment in equipment, partially offset by $22.5 million of cash provided by operating activities.
Previous wording
Intangible assets, net totaled $4.5 million at December 31, 2025, a decrease of $406,000 from the prior fiscal year end balance of $4.9 million. The decrease was primarily due to the amortization of intangible assets during the three months ended December 31, 2025.
Current wording
Intangible assets, net totaled $4.2 million at March 31, 2026, a decrease of $690,000 from $4.9 million at September 30, 2025. The decrease was primarily due to amortization of intangible assets during the period.
Previous wording
Retainage receivable totaled $18.3 million at December 31, 2025, an increase of $2.2 million from the prior fiscal year end balance of $16.0 million. The increase was primarily due to the timing of retention billings and increased work in the three months ended December 31, 2025 as compared to the same period in the prior fiscal year.
Current wording
Retainage receivable totaled $18.6 million at March 31, 2026, an increase of $2.6 million from $16.0 million at September 30, 2025. The increase was primarily due to the timing of retention billings and increased project activity during the period.
Previous wording
Other receivables totaled $1.2 million at December 31, 2025, an increase of $138,000 from the prior fiscal year end balance of $1.1 million. The increase was primarily due to an expected refund on insurance premiums paid.
Current wording
Other receivables totaled $1.2 million at March 31, 2026, an increase of $137,000 from $1.1 million at September 30, 2025. The increase was primarily due to an expected insurance premium refund.
Previous wording
Goodwill totaled $9.9 million at December 31, 2025, unchanged from the prior fiscal year end balance.
Current wording
Goodwill totaled $9.9 million at March 31, 2026, unchanged from September 30, 2025.
Previous wording
The Company had total liabilities of $140.4 million at December 31, 2025, a decrease of $15.6 million from the prior fiscal year end balance of $156.0 million.
Current wording
The Company had total liabilities of $112.4 million at March 31, 2026, a decrease of $43.6 million from $156.0 million at September 30, 2025.
Previous wording
The aggregate balance of current maturities of long-term debt and long-term debt totaled $51.5 million at December 31, 2025, a decrease of $10.3 million from the prior fiscal year-end balance of $61.8 million. The decrease was primarily due to $3.4 million in principal payments on long-term debt and $7.8 million in repayments on the operating line of credit, partially offset by $840,000 in new equipment financing.
Current wording
The aggregate balance of current maturities of long-term debt and long-term debt was $24.7 million at March 31, 2026, a decrease of $37.1 million from $61.8 million at September 30, 2025. The decrease was primarily due to $14.3 million in principal repayments on long-term debt and $24.8 million in repayments on the operating line of credit, partially offset by $1.9 million in new equipment financing.
Previous wording
Contract liabilities totaled $31.0 million at December 31, 2025, an increase of $2.7 million from the prior fiscal year end balance of $28.3 million. The increase was due to a difference in the timing of project billings at December 31, 2025, as compared to September 30, 2025.
Current wording
Contract liabilities totaled $29.5 million at March 31, 2026, an increase of $1.2 million from $28.3 million at September 30, 2025. The increase was due to the timing of project billing activity.
Previous wording
Accrued expenses and other current liabilities totaled $13.2 million at December 31, 2025, a decrease of $2.7 million from the prior fiscal year end balance of $15.9 million. The decrease was due to the timing of accrued expense payments, as compared to September 30, 2025.
Current wording
Accrued expenses and other current liabilities totaled $16.2 million at March 31, 2026, an increase of $234,000 from $15.9 million at September 30, 2025. The increase was primarily due to the timing of accrued expense payments.
Previous wording
Current and long-term operating lease liabilities totaled $2.0 million at December 31, 2025, a decrease of $44,000 from the prior fiscal year end balance. The decrease was primarily due to lease payments made during the three months ended December 31, 2025, partially offset by the addition of one new operating lease.
Current wording
Current and long-term operating lease liabilities totaled $2.4 million at March 31, 2026, an increase of $342,000 from $2.0 million at September 30, 2025. The increase was primarily due to $937,000 in new operating lease additions, partially offset by $686,000 in lease payments during the period.
Previous wording
Lines of credit and short-term borrowings totaled $10.4 million at December 31, 2025, an increase of $16,000 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.
Current wording
Lines of credit and short-term borrowings totaled $10.5 million at March 31, 2026, an increase of $50,000 from September 30, 2025. The increase was due to accrued interest on PPP loans. Refer to Note 3, “Accounting for PPP Loans,” in the accompanying consolidated financial statements for additional information.
Previous wording
The Company’s $17.0 million and $24.8 million line of credit borrowings are recorded as a long-term debt as of December 31, 2025 and September 30, 2025, respectively.
Current wording
The Company did not have any line of credit borrowings at March 31, 2026. The Company’s $24.8 million line of credit borrowings are recorded as a long-term debt as of September 30, 2025.
Previous wording
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 in compliance with all covenants at December 31, 2025 except for the debt service coverage for which the Company received a waiver from its lender. The Company is projected to meet all covenant requirements for the next twelve months.
Current wording
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 in compliance with all covenants at March 31, 2026. The Company is projected to meet all covenant requirements for the next twelve months.
Previous wording
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,
Current wording
On March 16, 2014, the Company’s Nitro subsidiary entered into a $1.2 million, 20-year loan agreement with a bank to purchase an office building and property previously held under lease. The loan bears interest at 4.82% with monthly payments of $7,800. The interest rate is subject to periodic adjustment based on changes in the U.S. Treasury yield, adjusted to a constant maturity of three years, as published weekly by the Federal Reserve. As of March 31, 2026, the Company had made principal payments of $517,000. The loan is collateralized by the related building and is currently held by Peoples Bank, Inc.
Previous wording
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 December 31, 2025, the Company had paid off the seller’s note.
Current wording
On March 31, 2020, West Virginia Pipeline Acquisition Company (subsequently renamed West Virginia Pipeline, Inc.) entered into a $3.0 million seller’s note agreement with David and Daniel Bolton for the remaining purchase price of the business. For purchase accounting purposes, the note had a fair value of $2.85 million. As part of the $6.35 million total acquisition price, the Company paid $3.5 million in cash in addition to the note. The unsecured five-year note required annual principal payments of at least $500,000 and bore interest at a fixed rate of 3.25% on the $3.0 million stated principal balance (approximately 5.35% on the carrying value). Final payment on this note was made in December 2025.
Previous wording
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 December 31, 2025, the Company had made principal payments of $3.3 million.
Current wording
On April 2, 2021, the Company entered into a $3.5 million non-revolving term note with United Bank. The proceeds were used to repay an outstanding line of credit utilized for the down payment on the West Virginia Pipeline acquisition. The loan required monthly payments of $64,853 and bore interest at a fixed rate of 4.25%. The loan was collateralized by the Company’s equipment and receivables. Final payment on this note was made in February 2026.
Showing the first 40 of 76 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The Company had consolidated operating revenues of $207.3 million for the six months ended March 31, 2026, of which 48.3% was attributable to electrical, mechanical, and general contract services, 17.0% to gas and petroleum transmission projects, and 34.7% to gas & water distributions services. The Company had consolidated operating revenues of $177.3 million for the six months ended March 31, 2025, of which 54.8% was attributable to electrical, mechanical, and general contract services, 12.3% to gas and petroleum transmission projects, and 32.9% to gas & water distributions services.
Current report — wording carried from elsewhere
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
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
adjusted to a constant maturity of three years as published by the Federal Reserve weekly. As of December 31, 2025, the Company had made principal payments of $503,000. The loan is collateralized by the building purchased under this agreement. The note is currently held by Peoples Bank, Inc.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
Other than described above, at December 31, 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
Previous report — wording carried elsewhere
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