Energy Services of America Corporation (ESOA) reported solid third quarter results for 2024 (quarter ended 2024-06-30), characterized by a modest year-over-year revenue uptick and a meaningful step-up in profitability driven by strong operating leverage and a material contribution from non-operating income. Revenue reached $85.92 million, up slightly versus the prior-year period, while gross margin held at 17.8%. Quarterly EBITDA climbed to $26.36 million, yielding an EBITDA margin of approximately 30.7%, and operating income of $8.49 million (margin ~9.88%). Net income totaled $17.51 million with basic EPS of $1.06, aided by a notable positive influx from total other income and expenses net of $15.06 million that elevated pretax income to $23.55 million and net income to $17.51 million. Absent this item, core performance remains healthy but would imply a more modest net outcome.
The company generated robust operating cash flow of $19.34 million, delivering free cash flow of about $16.26 million for the quarter. Balance sheet metrics show prudent liquidity with cash and equivalents of $14.54 million, total assets of $148.85 million, and total equity of $52.04 million. Leverage remains moderate: total debt of $34.43 million and debt-to-capitalization at 0.398, with a healthy interest coverage of 15.5x. Working capital dynamics were modestly negative on a change-in-working-capital basis, driven largely by higher receivables during the period, but cash generation remained strong. Management did not issue formal forward-looking guidance in the available materials, so the outlook relies on continued project activity in the utilities and energy pipeline sector, project award visibility, and macro conditions affecting utility capital expenditure.
If the non-operating income reverts to a normalized level, ESOA’s earnings trajectory will hinge on core operations, utilization of existing capacity, and the pace of pipeline-related projects. The stock trades with a modest multiple profile (P/E ~1.65x, P/B ~2.22x, P/S ~1.34x) alongside strong free cash flow generation, suggesting a defensive bias for investors who value cash flow stability and balance-sheet health in an industrial services niche.