10-Q - ESOA - Equibles

Table of Contents

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 December 31, 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 3^rd^ 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 February 8, 2026, there were 16,659,039 outstanding shares of the Registrant’s Common Stock.

Table of Contents

Part 1: Financial Information
Item 1. Financial Statements (Unaudited):
Consolidated Balance Sheets		2
Consolidated Statements of Income		3
Consolidated Statements of Cash Flows		4
Consolidated Statements of Changes in Shareholders’ Equity		5
Notes to Unaudited Consolidated Financial Statements		6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
Item 3. Quantitative and Qualitative Disclosures About Market Risk		41
Item 4. Controls and Procedures		41
Part II: Other Information
Item 1. Legal Proceedings		42
Item 1A. Risk Factors		42
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities		42
Item 5. Other Information		42

Item 6. Exhibits		43
Signatures		44

Table of Contents Part 1. Financial Information

Item 1. Financial Statements (Unaudited):

Energy Services of America Corporation

Consolidated Balance Sheets

Unaudited


	December 31,		September 30,
	2025		2025
Assets
Current assets
Cash and cash equivalents	$	16,680,033	$	12,241,408
Accounts receivable-trade		69,115,327		76,570,064
Allowance for doubtful accounts		(489,634)		(521,616)
Retainages receivable		18,257,080		16,049,557
Other receivables		1,241,758		1,103,687
Contract assets		23,334,573		34,455,011
Prepaid expenses and other		3,608,136		5,025,476
Total current assets		131,747,273		144,923,587

Property, plant and equipment, at cost		118,010,356		115,448,972
less accumulated depreciation		(65,134,657)		(61,981,005)
Total fixed assets		52,875,699		53,467,967

Right-of-use assets-operating leases		2,010,283		2,054,615
Intangible assets, net		4,489,141		4,895,083
Goodwill		9,865,804		9,865,804
Total assets	$	200,988,200	$	215,207,056

Liabilities and shareholders’ equity
Current liabilities
Current maturities of long-term debt	$	11,037,491	$	11,546,816
Current maturities of lines of credit and short-term borrowings		10,417,572		10,401,366
Current maturities of operating lease liabilities		1,060,631		1,061,021
Accounts payable		24,331,364		30,732,523
Accrued expenses and other current liabilities		13,185,433		15,918,593
Contract liabilities		31,017,410		28,318,765
Income tax payable		168,280		—
Total current liabilities		91,218,181		97,979,084

Long-term debt, less current maturities		40,503,450		50,256,031
Long-term operating lease liabilities, less current maturities		938,576		982,621
Deferred tax liability		7,731,973		6,753,527
Total liabilities		140,392,180		155,971,263

Shareholders’ equity
Common stock, $.0001 par value
Authorized 50,000,000 shares, 16,653,998 shares issued (net of treasury shares) and 16,609,071 shares outstanding (excluding 44,927 shares from unvested stock awards) at December 31, 2025 and 16,748,702 shares issued (net of treasury shares) and 16,715,026 shares outstanding (excluding 33,676 unvested shares from restricted stock awards) at September 30, 2025		1,813		1,813
Treasury stock, 1,502,075 shares at December 31, 2025 and 1,396,120 shares at September 30, 2025		(154)		(143)
Additional paid in capital		61,603,895		62,450,414
Retained deficit		(1,009,534)		(3,216,291)
Total shareholders’ equity		60,596,020		59,235,793
Total liabilities and shareholders’ equity	$	200,988,200	$	215,207,056

The Accompanying Notes are an Integral Part of These Financial Statements

Table of Contents Energy Services of America Corporation

Consolidated Statements of Income

Unaudited


	Three Months Ended		Three Months Ended
	December 31,		December 31,
	2025		2024
Revenue	$	114,112,200	$	100,646,114

Cost of revenue		100,118,408		90,382,532

Gross profit		13,993,792		10,263,582

Selling and administrative expenses		9,081,029		8,618,188
Income from operations		4,912,763		1,645,394

Other income (expense)
Other nonoperating expense		(102,642)		(48,262)
Interest expense		(989,851)		(483,718)
Gain on sale of equipment		18,756		195,782
		(1,073,737)		(336,198)

Income before income taxes		3,839,026		1,309,196

Income tax expense		1,133,544		455,463

Net income		2,705,482		853,733

Weighted average shares outstanding-basic		16,703,674		16,585,334

Weighted average shares-diluted		16,742,867		16,636,561

Earnings per share available to common shareholders	$	0.16	$	0.05

Earnings per share-diluted available to common shareholders	$	0.16	$	0.05

The Accompanying Notes are an Integral Part of These Financial Statements

Table of Contents Energy Services of America Corporation

Consolidated Statements of Cash Flows

Unaudited


	Three Months Ended		Three Months Ended
	December 31,		December 31,
	2025		2024
Cash flows from operating activities:
Net income	$	2,705,482	$	853,733
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		3,352,708		2,567,965
Accreted interest on PPP loans		16,206		25,142
Gain on sale of equipment		(18,756)		(195,782)
Provision for deferred taxes		978,446		378,172
Amortization of intangible assets		405,942		130,863
Accreted interest on note payable		1,950		15,000
Decrease (increase) in accounts receivable-trade		7,422,755		(2,274,866)
Increase in retainage receivable		(2,207,523)		(731,991)
Increase in other receivables		(138,071)		(305,287)
Decrease in contract assets		11,120,438		6,811,884
Decrease in prepaid expenses and other		1,417,340		985,901
Decrease increase in accounts payable		(6,401,159)		(323,528)
Decrease in accrued expenses and other current liabilities		(2,564,316)		(3,956,671)
Increase in contract liabilities		2,698,645		4,897,945
Net cash provided by operating activities		18,790,087		8,878,480

Cash flows from investing activities:
Investment in property and equipment		(2,011,997)		(2,890,223)
Acquistion of Tribute Contracting & Consultants		—		(20,783,224)
Proceeds from sales of property and equipment		110,776		486,012
Net cash used in investing activities		(1,901,221)		(23,187,435)

Cash flows from financing activities:
Proceeds from long-term debt		—		16,000,000
Borrowings on lines of credit and short-term debt, net of (repayments)		(7,750,000)		7,500,000
Treasury stock purchased		(846,530)		—
Cash dividend on common stock		(501,342)		—
Principal payments on long-term debt		(3,352,369)		(1,768,659)
Net cash (used in) provided by financing activities		(12,450,241)		21,731,341

Increase in cash and cash equivalents		4,438,625		7,422,386
Cash and cash equivalents beginning of period		12,241,408		12,926,036
Cash and cash equivalents end of period	$	16,680,033	$	20,348,422

Supplemental schedule of noncash investing and financing activities:
Purchases of property & equipment under financing agreements	$	840,463	$	201,538
Net operating lease right-of-use assets received in exchange for operating lease liabilities	$	245,726	$	342,606
Common dividends declared but not paid	$	498,725	$	501,164
Common stock issued in Tribute Contracting & Consultants acquisition	$	—	$	2,000,000

Supplemental disclosures of cash flows information:
Cash paid during the year for:
Interest	$	941,616	$	441,424

The Accompanying Notes are an Integral Part of These Financial Statements

Table of Contents Energy Services of America Corporation

Consolidated Statements of Changes in Shareholders’ Equity

For the three months ended December 31, 2025 and 2024


										Total
	Common Stock			Additional Paid		Retained		Treasury		Shareholders’
	Shares	Amount		in Capital		Deficit		Stock		Equity
Balance at September 30, 2025	16,748,702	$	1,813	$	62,450,414	$	(3,216,291)	$	(143)	$	59,235,793

Net income	—		—		—		2,705,482		—		2,705,482

Restricted stock awards issued	11,251		—		100,004		—		—		100,004

Unearned share-based compensation	—		—		(100,004)		—		—		(100,004)

Dividends on common stock ($0.03 per share on 16,624,181 shares)	—		—		—		(498,725)		—		(498,725)

Shares repurchased	(105,955)		—		(846,519)		—		(11)		(846,530)

Balance at December 31, 2025	16,653,998	$	1,813	$	61,603,895	$	(1,009,534)	$	(154)	$	60,596,020

											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

The Accompanying Notes are an Integral Part of These Financial Statements

Table of Contents 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 solar electric systems and perform civil and general contracting services.

Segments

Energy Services’ reportable segments are: Underground Infrastructure Construction, Industrial Construction, and Building Construction.

Underground Infrastructure Construction primarily includes new construction and maintenance work in the following areas: water and wastewater pipelines, natural gas distribution pipelines, natural gas transmission pipelines, natural gas stations and ancillary facilities, corrosion protection services, and horizontal drilling services.

Industrial Constructions primarily includes new construction and maintenance work in the following areas: electrical, mechanical, HVAC/R, controls, and fire protection services in automotive, chemical, power, and manufacturing facilities.

Building Construction primarily includes new construction and rehabilitation activities in the following areas: school projects, local and state building projects, and small bridge projects. Most services performed by the legal entity in this segment are subcontracted both to outside contractors and internally to other legal entities within the Company. Services subcontracted internally are eliminated from segmented reporting.

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, 2025, and 2024 included in the Company’s Annual Report on Form 10-K filed with the SEC on December 15, 2025. 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 months ended December 31, 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. 6

Table of Contents 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.

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, 2025, for a more detailed discussion of our significant accounting policies. There were no material changes to these significant accounting policies during the three months ended December 31, 2025.

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 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. As of December 31, 2025, there have been no further requests or communications from the SBA relating to the PPP Loans.

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.

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
---	---

Table of Contents

●	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.

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.

5. SEGMENT INFORMATION

Energy Services’ operations are managed by senior executives who report to the Company’s President and CEO (the “President”), the chief operating decision maker. The President uses operating income for each of Energy Services’ reportable segments and considers forecast to actual variances to assess performance and when making decisions about allocating capital and other resources.

Energy Services’ reportable segments are: Underground Infrastructure Construction, Industrial Construction, and Building Construction.

Table of Contents Building Construction primarily includes new construction and rehabilitation activities in the following areas: school projects, local and state building projects, and small bridge projects. Most services performed by the legal entity in this segment are subcontracted both to outside contractors and internally to other legal entities within the Company. Services subcontracted internally are eliminated from segmented reporting.

Energy Services’ segment results are derived from the types of services provided across its operating companies in each of its end-user markets. The Company’s business model allows multiple operating companies to serve the same or similar customers and to provide a range of services across end-user markets. Reportable segment information, including revenues and operating income by type of work, is gathered from each operating company. Classification of operating company revenues by type of work for segment reporting purposes can require judgment on the part of management. Segment operating expenses (excluding depreciation expense) primarily include cost of services, such as wages and benefits; subcontractor costs; materials; certain equipment rental and maintenance costs, and other direct and indirect project costs.

Separate measures of the Company’s assets and cash flows by reportable segment, including capital expenditures, are utilized by the President to evaluate segment performance since the Company’s fixed assets are not used on an interchangeable basis across its reportable segments.

Corporate and non-allocated costs include non-allocated corporate salaries, benefits and incentive compensation, acquisition and integration costs, non-cash stock-based compensation, investor relation expenses, and accounting review and audit fees.

The following tables show interim segment financial information for the three months ended and at December 31, 2025:


	Underground
	Infrastructure			Industrial			Building
Three Months Ended December 31, 2025	Construction			Construction			Construction			Total
Revenues	$	69,177,084		$	33,746,447		$	11,188,669		$	114,112,200
Segment direct operating expenses (excluding depreciation)		56,926,976			30,385,586			9,563,454			96,876,016
Direct depreciation expense		2,600,494			641,898			—			3,242,392
Segment gross profit		9,649,614			2,718,963			1,625,215			13,993,792
Segment gross profit percentage		13.9	%		8.1	%		14.5	%		12.3	%
Selling, general, and administrative expenses		4,797,016			1,103,946			1,015,670			6,916,632
Indirect depreciation expense		—			—			108,722			108,722
Intangible asset amortization expenses		351,222			54,720			—			405,942
Segment indirect operating expenses		5,148,238			1,158,666			1,124,392			7,431,296
Segment income from operations		4,501,376			1,560,297			500,823			6,562,496
Segment operating margin percentage		6.5	%		4.6	%		4.5	%		5.8	%
Corporate and non-allocated costs											1,648,139
Corporate depreciation expense											1,594
Total consolidated income from operations										$	4,912,763


At December 31, 2025
	Underground
	Infrastructure			Industrial	Building
Property, plant and equipment, at cost, less accumulated depreciation	Construction		Construction		Construction		Total
Segments	$	37,357,166	$	14,346,025	$	1,136,243	$	52,839,434
Corporate		—		—		—		36,265
Total	$	37,357,166	$	14,346,025	$	1,136,243	$	52,875,699

Table of Contents The following tables show interim segment financial information for the three months ended and at December 31, 2024:


	Underground
	Infrastructure			Industrial			Building
Three Months Ended December 31, 2024	Construction			Construction			Construction			Total
Revenues	$	52,820,146		$	35,396,513		$	12,429,455		$	100,646,114
Segment direct operating expenses (excluding depreciation)		45,045,769			31,870,920			10,981,521			87,898,210
Direct depreciation expense		1,842,414			641,908			—			2,484,322
Segment gross profit		5,931,963			2,883,685			1,447,934			10,263,582
Segment gross profit percentage		11.2	%		8.1	%		11.6	%		10.2	%
Selling, general, and administrative expenses		4,759,449			977,906			781,811			6,519,166
Indirect depreciation expense		—			—			82,486			82,486
Intangible asset amortization expenses		124,809			6,054			—			130,863
Segment indirect operating expenses		4,884,258			983,960			864,297			6,732,515
Segment income from operations		1,047,705			1,899,725			583,637			3,531,067
Segment operating margin percentage		2.0	%		5.4	%		4.7	%		3.5	%
Corporate and non-allocated costs											1,884,516
Corporate depreciation expense											1,157
Total consolidated income from operations										$	1,645,394


At December 31, 2024
	Underground
	Infrastructure			Industrial	Building
Property, plant and equipment, at cost, less accumulated depreciation	Construction		Construction		Construction		Total
Segments	$	37,781,123	$	14,537,312	$	940,369	$	53,258,804
Corporate		—		—		—		11,002
Total	$	37,781,123	$	14,537,312	$	940,369	$	53,269,806

6. 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 T&M. The following tables present our disaggregated revenue for the three months ended December 31, 2025 and 2024:


	Three Months Ended December 31, 2025
					Electrical,
	Gas & Water		Gas & Petroleum		Mechanical, &		Total revenue
	Distribution		Transmission		General		from contracts
Lump sum contracts	$	—	$	—	$	33,282,853	$	33,282,853
Unit price contracts		40,610,268		856,203		765,250		42,231,721
Cost plus and T&M contracts		—		23,270,021		15,327,605		38,597,626
Total revenue from contracts	$	40,610,268	$	24,126,224	$	49,375,708	$	114,112,200

Earned over time	$	22,677,256	$	856,203	$	35,670,911	$	59,204,370
Earned at point in time		17,933,012		23,270,021		13,704,797		54,907,830
Total revenue from contracts	$	40,610,268	$	24,126,224	$	49,375,708	$	114,112,200

Table of Contents


	Three Months Ended December 31, 2024
					Electrical,
	Gas &Water		Gas & Petroleum		Mechanical, &		Total revenue
	Distribution		Transmission		General		from contracts
Lump sum contracts	$	—	$	—	$	37,733,823	$	37,733,823
Unit price contracts		31,300,009		18,418,317		993,395		50,711,721
Cost plus and T&M contracts		—		37,900		12,162,670		12,200,570
Total revenue from contracts	$	31,300,009	$	18,456,217	$	50,889,888	$	100,646,114

Earned over time	$	19,487,205	$	18,418,317	$	38,682,101	$	76,587,623
Earned at point in time		11,812,804		37,900		12,207,787		24,058,491
Total revenue from contracts	$	31,300,009	$	18,456,217	$	50,889,888	$	100,646,114

The Company’s disaggregated revenue does vary slightly from the Company’s segment reporting due to combining the Industrial and Building Construction into Electrical, Mechanical, & and General, and one legal entity in the Underground Infrastructure Construction segment that performs services other than underground construction that are included in Electrical, Mechanical, & General. The volume of these services is not material to the Company’s segment reporting.

7. 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 months ended December 31, 2025, we recognized revenue of $14.7 million that was included in the contract liability balance at September 30, 2025.

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


	December 31, 2025		September 30, 2025		Change
Accounts receivable-trade, net of allowance for doubtful accounts	$	68,625,693	$	76,048,448	$	(7,422,755)

Contract assets
Cost and estimated earnings in excess of billings	$	23,334,573	$	34,455,011	$	(11,120,438)

Contract liabilities
Billings in excess of cost and estimated earnings	$	31,017,410	$	28,318,765	$	2,698,645

8. PERFORMANCE OBLIGATIONS

For the three months ended December 31, 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, 2025. Changes in contract transaction price can result from items such as executed or estimated change orders, and unresolved contract modifications and claims.

At December 31, 2025, the Company had $236.0 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months.

Table of Contents 9. UNCOMPLETED CONTRACTS

Costs, estimated earnings, and billings on uncompleted contracts as of December 31, 2025 and September 30, 2025, are summarized as follows:


	December 31, 2025		September 30, 2025
Costs incurred on contracts in progress	$	473,568,702	$	471,208,654
Estimated earnings, net of estimated losses		75,713,201		71,159,322
		549,281,903		542,367,976
Less billings to date		556,964,740		536,231,730
	$	(7,682,837)	$	6,136,246

Costs and estimated earnings in excess of billed on uncompleted contracts	$	23,334,573	$	34,455,011

Less billings in excess of costs and estimated earnings on uncompleted contracts		31,017,410		28,318,765

	$	(7,682,837)	$	6,136,246

The Company’s unaudited backlog at December 31, 2025 and September 30, 2025 was $301.4 million and $259.7 million, respectively.

10. 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 include 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 $41.2 million at December 31, 2025 was $40.7 million. The fair value of the aggregate principal amount of the Company’s fixed-rate debt of $43.8 million at September 30, 2025 was $42.8 million. 12

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

11. EARNINGS PER SHARE

The amounts used to compute the earnings per share for the three months ended December 31, 2025 and 2024 are summarized below.


	Three Months Ended		Three Months Ended
	December 31, 2025		December 31, 2024
Net income	$	2,705,482	$	853,733

Weighted average shares outstanding-basic		16,703,674		16,585,334

Weighted average shares outstanding-diluted		16,742,867		16,636,561

Earnings per share available to common shareholders	$	0.16	$	0.05

Earnings per share-diluted available to common shareholders	$	0.16	$	0.05

12. INCOME TAXES

The components of income taxes are as follows:


	Three Months Ended
	December 31, 2025		December 31, 2024
Federal
Current	$	87,772	$	—
Deferred		750,208		294,974
Total		837,980		294,974

State
Current		67,326		77,291
Deferred		228,238		83,198
Total		295,564		160,489
Total income tax expense	$	1,133,544	$	455,463

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 December 31, 2025 was 29.5%, as compared to 34.8%, 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. 13

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


	December 31, 2025		September 30, 2025
Deferred tax liabilities
Property and equipment	$	10,228,455	$	10,057,004
Other		1,463,413		1,483,362
Total deferred tax liabilities	$	11,691,868	$	11,540,366

Deferred income tax assets
Accruals & Other	$	2,833,576	$	3,215,102
Net operating loss carryforward-Federal		1,100,038		1,451,126
Net operating loss carryforward-States		730,209		824,539
Net operating loss valuation allowance-States		(703,928)		(703,928)
Total deferred tax assets	$	3,959,895	$	4,786,839

Total net deferred tax liabilities	$	7,731,973	$	6,753,527

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 $5.2 million and $6.9 million of federal net operating loss carryforwards at December 31, 2025 and September 30, 2025, respectively. The Company had $26.0 million and $41.9 million of state net operating loss carryforwards at December 31, 2025 and September 30, 2025, respectively. The state net operating loss carryforwards begin to expire in 2026.

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.

13. SHORT-TERM AND LONG-TERM DEBT

Operating Line of Credit

In July 2025, the Company renewed its $30.0 million line of credit 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:


	December 31, 2025			September 30, 2025
Eligible borrowing base	$	30,000,000		$	27,657,997

Borrowed on line of credit		17,000,000			24,750,000

Line of credit balance available	$	13,000,000		$	2,907,997

Interest rate		6.75	%		7.50	%

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.

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,
---	---

Table of Contents

●	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 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 non-waived 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 issued audited financial statements of the Company for fiscal 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.

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 in 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. 15

Table of Contents A summary of short-term and long-term debt as of December 31, 2025 and September 30, 2025 is as follows:


	December 31, 2025		September 30, 2025
Line of credit payable to bank, monthly interest at 6.75%, final payment due by June 28, 2027, guaranteed by certain directors of the Company.	$	17,000,000	$	24,750,000

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.		5,375,481		5,878,041

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.		10,417,572		10,401,366

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.		199,323		390,328

Notes payable to finance companies, due in monthly installments totaling $260,000 at December 31, 2025 and $244,000 at September 30, 2025, including interest ranging from 0.00% to 6.0%, final payments due January 2026 through November 2029, secured by equipment.		5,473,704		5,415,401

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.		13,594,831		14,164,413

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.		696,734		710,466

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.		1,252,707		1,411,890

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. Final payment due August 2029. The agreement is guaranteed by certain directors of the Company.		4,633,328		4,910,097

Unsecured notes payable to Joe and Cathy Rigney, five-year agreement for monthly fixed interest at 5.0% of sellers’ notes, with $500,000 due September 30, 2030. $462,950,000 fair value at September 30, 2025.		462,950		461,000
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.		—		500,000

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.		2,601,883		2,961,211

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	$	61,958,513	$	72,204,213

Less current maturities		21,455,063		21,948,182

Total long term debt	$	40,503,450	$	50,256,031

Table of Contents 14. ACQUISITIONS

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.

On December 2, 2024, the Company completed the acquisition of substantially all the physical assets of Tribute Contracting & Consultants, LLC (“Tribute LLC”), an Ohio corporation located in South Point, Ohio for $21.2 million cash and $2.0 million in the Company’s common stock. 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 periods presented due to the lack of availability of meaningful financial statements of the acquired companies that comply with U.S. GAAP.

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


Considerations
Cash	$	21,158,981
Common stock issued		2,000,000
Total consideration		23,158,981
Assets acquired
Property and equipment		15,034,900
Accounts Receivable and Retainages acquired from seller		8,360,373
Contract assets acquired from seller		1,715,984
Receivable for cash due to buyer		1,708,846
Intangible assets		1,930,000
Total assets acquired		28,750,103
Liabilities assumed
Accounts payable assumed		(3,476,871)
Long-term debt assumed		(3,789,962)
Contract liabilities assumed		(681,013)
Total liabilities assumed		(7,947,846)
Net assets acquired		20,802,257
Goodwill recognized	$	2,356,724

On September 30, 2025, the Company completed the acquisition of substantially all the physical assets of Rigney Digital Systems Ltd. (“Rigney Digital”), a West Virginia corporation located in Hurricane, West Virginia for $3.0 million cash, $1.0 million in the Company’s common stock, and a five-year $500,000 sellers’ note. 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 periods presented due to the lack of availability of meaningful financial statements of the acquired companies that comply with U.S. GAAP. 17

Table of Contents The Rigney Digital acquisition purchase price is allocated in the table below:


Considerations
Cash	$	3,000,000
Common stock issued		1,000,000
Sellers’ note		500,000
Total consideration		4,500,000
Assets acquired
Property and equipment		130,865
Accounts Receivable acquired from seller		84,194
Intangible assets		964,000
Total assets acquired		1,179,059
Liabilities assumed
Long-term debt assumed		(100,585)
Total liabilities assumed		(100,585)
Net assets acquired		1,078,474
Goodwill recognized	$	3,421,526

15. 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 December 31, 2025 or September 30, 2025.

A table of the Company’s goodwill as of December 31, 2025 and September 30, 2025 is below:



	December 31, 2025		September 30, 2025
Beginning balance	$	9,865,804	$	4,087,554
Acquired		—		5,778,250
Ending balance	$	9,865,804	$	9,865,804

Table of Contents A table of the Company’s intangible assets subject to amortization at December 31, 2025 and September 30, 2025 is below:


				Accumulated		Accumulated		Amortization		Amortization
	Remaining Life			Amortization and		Amortization and		and Impairment		and Impairment
	(in months) at			Impairment at		Impairment at		Three Months		Three Months		Net Book Value		Net Book Value
	December 31,			December 31,		September 30,		Ended December 31,		Ended December 31,		at December 31,		at September 30,
	2025	Original Cost		2025		2025		2025		2024		2025		2025
Intangible assets:
West Virginia Pipeline:
Customer relationships	60	$	2,209,724		1,104,855	$	1,049,610		55,245		55,245	$	1,104,869	$	1,160,114
Tradename	60		263,584		131,803		125,215		6,588		6,588		131,781		138,369
Non-competes	—		83,203		83,203		83,203		—		—		—		—

Heritage Painting
Customer relationships	42		121,100		36,324		30,270		6,054		6,054		84,776		90,830

Tri-State Paving:
Customer relationships	76		1,649,159		604,692		563,463		41,229		41,229		1,044,467		1,085,696
Tradename	76		203,213		74,511		69,431		5,080		5,080		128,702		133,782
Non-competes	—		39,960		39,960		39,960		—		—		—		—

Tribute Contracting & Consultants
Non-compete 1	107		520,000		56,332		43,333		12,999		2,084		463,668		476,667
Non-compete 2	83		10,000		1,354		1,042		312		2,083		8,646		8,958
Tradename	47		80,000		17,332		13,333		3,999		12,500		62,668		66,667
Backlog	11		1,320,000		775,770		550,000		225,770		—		544,230		770,000

Rigney Digital Systems
Tradename	129		657,100		14,934		—		14,934		—		642,166		657,100
Backlog	21		260,600		32,574		—		32,574		—		228,026		260,600
Non-compete	117		46,300		1,158		—		1,158		—		45,142		46,300

Total intangible assets	—	$	7,463,943	$	2,974,802	$	2,568,860	$	405,942	$	130,863	$	4,489,141	$	4,895,083

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


January 2026 to December 2026	$	1,264,902
January 2027 to December 2027		688,106
January 2028 to December 2028		590,376
January 2029 to December 2029		576,972
January 2030 to December 2030		550,214
After		818,571
Total	$	4,489,141

16. 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. As of December 31, 2025, the Company has only committed to a one-year renewal and is evaluating whether 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 December 31, 2025. The 4.5% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. The Company signed an amendment to extend the lease for one year after the original lease expired. As of December 31, 2025, the Company has only committed to a one-year renewal and is evaluating whether 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 $30,000 at December 31, 2025. The 8.5% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. 19

Table of Contents The Company has a right-of-use operating lease with Enterprise acquired on August 11, 2022, as part of the Ryan Environmental acquisition. This lease agreement was initially for thirty-one vehicles with a net present value of $1.2 million. The Company subsequently netted fifty additional leased vehicles. The right-of-use operating lease had a carrying value of $1.7 million at December 31, 2025. Each vehicle leased under the master lease program has its own implicit rate.

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 $17,000 at December 31, 2025. The 7.5% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception.

The Company has a right-of-use operating lease acquired on December 1, 2025. This lease, for the Columbus, Ohio facility, had a net present value of $255,000 at inception and a carrying value of $250,000 at December 31, 2025. The 6.75% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception.

Schedules related to the Company’s operating leases at the fiscal year ended December 31, 2025 and 2024 can be found below:

Operating Lease-Weighted Average Remaining Term


		Remaining
	Years left	liability			Lease end	Fiscal year end
Operating lease 2	0.3		30,397		8/31/2026	2026
Operating lease 3	3.3		1,701,664		9/30/2028	2028
Operating lease 4	0.5		17,349		3/31/2026	2026
Operating lease 5	3.0		249,797		11/30/2028	2029
		$	1,999,207

Weighted average remaining term			2.8	years


Operating Lease Maturity Schedule
January 2026 to December 2026	$	1,290,257
January 2027 to December 2027		727,949
January 2028 to December 2028		356,553
January 2029 to December 2029		40,928
		2,415,687
Less amounts representing interest		(416,480)
Present value of operating lease liabilities	$	1,999,207


	Three Months Ended		Three Months Ended
	December 31,		December 31,
Operating Lease Expense	2025		2024
Amortization
Operating lease 1	$	—	$	20,691
Operating lease 2		18,198		17,213
Operating lease 3		237,250		195,170
Operating lease 4		27,118		24,502
Operating lease 5		6,154		—
Total amortization		288,720		257,576

Interest
Operating lease 1	$	—	$	309
Operating lease 2		1,060		2,587
Operating lease 3		42,656		63,722
Operating lease 4		512		2,453
Operating lease 5		1,441		—
Total interest		45,669		69,071
Total amortization and interest	$	334,389	$	326,647

Table of Contents


	Three Months Ended		Three Months Ended
	December 31,		December 31,
Cash Paid for Operating Leases	2025		2024
Operating lease 1	$	—	$	21,000
Operating lease 2		19,258		19,800
Operating lease 3		279,906		258,892
Operating lease 4		27,630		26,955
Operating lease 5		7,595		—
	$	334,389	$	326,647

The Company rents equipment for use on construction projects with rental agreements week to week or month to month. Rental expense can vary by fiscal year due to equipment requirements on construction projects and the availability of Company owned equipment. Rental expenses, which is included in cost of goods sold on the consolidated statements of income, was $7.0 million and $5.0 million for the three months ended December 31, 2025, and 2024, respectively.

17. SHARE-BASED COMPENSATION

The Company has a stock-based compensation plan, under which restricted stock awards are available for issuance to eligible participants. Non-cash stock-based compensation expense is included within general and administrative expense in the consolidated financial statements. Share-based payments are recognized based on their grant date fair values. Forfeitures are recorded as they occur.

Grants of restricted stock awards are valued based on the closing market share price of the Company’s common stock as reported on the Nasdaq Stock Market, LLC (the “market price”) on the date of grant. Non-cash-based compensation expense arising from restricted shares is recognized on a straight-line basis over the vesting period. Grants of restricted shares generally vest one-third annually over a period of three years.

Some participants may choose the net share settlement method to cover withholding tax requirements, in which case shares withheld for taxes are not issued, but are treated as common stock repurchases in the consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting. The Company then pays the corresponding withholding taxes to the appropriate taxing authorities in cash on behalf of the recipient. Withheld shares, which are valued at the market price on the date of grant, are recorded as a reduction to additional paid-in capital, and related payments to taxing authorities are reflected within financing activities in the consolidated statements of cash flows.

For the three months ended December 31, 2025 and 2024, the Company granted 11,251 and 0 shares, respectively, related to restricted stock awards.

The table below represents all unvested restricted stock awards at December 31, 2025:


							Vesting (1/3 Annual)		at December 31, 2025
	Grant Date	Shares Granted	Grant Price		Grant Value		Beginning	Ending	Unvested Shares	Unvested Value
Award 1	2/15/2023	40,000	$	2.65	$	106,000	2/15/2024	2/15/2026	13,333	$	35,332
Award 2	1/17/2024	3,663	$	5.46	$	20,000	1/17/2025	1/17/2027	2,442	$	13,333
Award 3	6/20/2024	6,684	$	7.48	$	50,000	6/20/2025	6/20/2027	4,456	$	33,333
Award 4	8/21/2024	10,153	$	9.85	$	100,007	8/21/2025	8/21/2027	6,768	$	66,665
Award 5	8/21/2024	4,061	$	9.85	$	40,001	8/21/2025	8/21/2027	2,707	$	26,664
Award 6	1/15/2025	1,985	$	12.60	$	25,011	1/15/2026	1/15/2028	1,985	$	25,011
Award 7	1/15/2025	1,985	$	12.60	$	25,011	1/15/2026	1/15/2028	1,985	$	25,011
Award 8	11/18/2025	5,291	$	9.45	$	50,000	11/18/2026	11/18/2028	5,291	$	50,000
Award 9	12/17/2025	2,980	$	8.39	$	25,002	12/17/2026	12/17/2028	2,980	$	25,002
Award 10	12/17/2025	2,980	$	8.39	$	25,002	12/17/2026	12/17/2028	2,980	$	25,002
		79,782			$	466,034			44,927		325,353

Weighted average grant-date fair value			$	5.84

Table of Contents The table below represents all restricted stock awards to Named Executive Officers as of December 31, 2025:


							Vesting (1/3 Annual)		at December 31, 2025
	Grant Date	Shares Granted	Grant Price		Grant Value		Beginning	Ending	Unvested Shares	Unvested Value
Douglas Reynolds	2/15/2023	40,000	$	2.65	$	106,000	2/15/2024	2/15/2026	13,333	$	35,332
Charles Crimmel	1/17/2024	3,663	$	5.46	$	20,000	1/17/2025	1/17/2027	2,442	$	13,333
Douglas Reynolds	8/21/2024	4,061	$	9.85	$	40,001	8/21/2025	8/21/2027	2,707	$	26,664
Charles Crimmel	1/15/2025	1,985	$	12.60	$	25,011	1/15/2026	1/15/2028	1,985	$	25,011
		49,709			$	191,012			20,467		100,340

Weighted average grant-date fair value			$	3.84

The table below represents the total unvested restricted stock awards and grant amounts that will vest in future periods at December 31, 2025:


	Grant Vesting	Grant Amount
January 2026-December 2026	26,596	$	155,367
January 2027-December 2027	13,260		120,008
January 2028-December 2028	5,071		49,978
	44,927	$	325,353

The table below represents the total unrecognized compensation expense for unvested restricted stock awards to be expensed in future periods at December 31, 2025:


January 2026-December 2026	$	124,428
January 2027-December 2027		87,991
January 2028-December 2028		31,252
	$	243,671

18. SUBSEQUENT EVENTS

On January 15, 2026, the Company paid a quarterly dividend of $0.03 per common share to shareholders of record as of December 31, 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.

Table of Contents 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 perform horizontal directional drilling, civil, and general contracting services.

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.

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

TransCanada Corporation

NiSource, Inc.

Marathon Petroleum

Mountaineer Gas

Nucor Steel West Virginia

American Electric Power 23

Table of Contents Toyota Motor Manufacturing

Bayer Chemical

Dow Chemical

Kentucky American Water

WV American Water

Various state, county, and municipal public service districts.

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. On September 30, 2025, Nitro completed the asset acquisition of Rigney Digital System Ltd. (“Rigney”), an HVAC/R controls company located in Hurricane, WV, which operates as a division of Nitro.

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, 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 and Pennsylvania. The employees of RCS are non-union and are managed independently of the Company’s union subsidiaries. 24

Table of Contents 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”). 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. Information on our website is not part of this Quarterly Report on Form 10-Q unless otherwise stated.

The Securities and Exchange Commission (the “SEC”) maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding the Company. The Company makes available free of charge through its website its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed with the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. These items are available as soon as reasonably practicable after we electronically file or furnish such material with the SEC. These materials are also available free of charge by written request to: Charles Crimmel, Chief Financial Officer and Corporate Secretary, Energy Services of America Corporation, 75 West 3^rd^ Ave., Huntington, West Virginia 25701.

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. 25

Table of Contents Three months ended December 31, 2025 and 2024 Overview

The following is an overview of results from operations for the three months ended December 31, 2025 and 2024:


	Three Months Ended		Three Months Ended
	December 31,		December 31,
	2025		2024
Revenue	$	114,112,200	$	100,646,114

Cost of revenue		100,118,408		90,382,532

Gross profit		13,993,792		10,263,582

Selling and administrative expenses		9,081,029		8,618,188
Income from operations		4,912,763		1,645,394

Other income (expense)
Interest income		—		—
Paycheck Protection Program (“PPP”) loan forgiveness		—		—
Proceeds from lawsuit judgement		—		—
Other nonoperating expense		(102,642)		(48,262)
Interest expense		(989,851)		(483,718)
Gain on sale of equipment		18,756		195,782
		(1,073,737)		(336,198)

Income before income taxes		3,839,026		1,309,196

Income tax expense		1,133,544		455,463

Net income		2,705,482		853,733

Weighted average shares outstanding-basic		16,703,674		16,585,334

Weighted average shares-diluted		16,742,867		16,636,561

Earnings per share available to common shareholders	$	0.16	$	0.05

Earnings per share-diluted available to common shareholders	$	0.16	$	0.05

Results of Operations for the Three Months Ended December 31, 2025 Compared to the Three Months Ended December 31, 2024

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:


	Three Months Ended
	December 31, 2025		% of total		December 31, 2024		% of total		Change		% Change
Gas & Water Distribution	$	40,610,268	35.6	%		31,300,009	23.3	%	$	9,310,259	29.7	%
Gas & Petroleum Transmission		24,126,224	21.1	%		18,456,217	23.5	%		5,670,007	30.7	%
Electrical, Mechanical, & General		49,375,708	43.3	%		50,889,888	53.2	%		(1,514,180)	-3.0	%
Total	$	114,112,200	100.0	%		100,646,114	100.0	%	$	13,466,086	13.4	%

Table of Contents 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.

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.

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.

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.

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:


	Three Months Ended
	December 31, 2025		% of total		December 31, 2024		% of total		Change		% Change
Gas & Water Distribution	$	34,090,278	34.0	%	$	26,136,503	28.9	%	$	7,953,775	30.4	%
Gas & Petroleum Transmission		20,278,021	20.3	%		17,521,937	19.4	%		2,756,084	15.7	%
Electrical, Mechanical, & General		44,505,721	44.5	%		46,050,004	51.0	%		(1,544,283)	-3.4	%
Unallocated Shop Expense		1,244,388	1.2	%		674,088	0.7	%		570,300	84.6	%
Total	$	100,118,408	100.0	%	$	90,382,532	100.0	%	$	9,735,876	10.8	%

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.

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.

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.

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.

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. 27

Table of Contents 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:


	Three Months Ended
	December 31, 2025		% of revenue		December 31, 2024		% of revenue		Change		% Change
Gas & Water Distribution	$	6,519,990	16.06	%	$	5,163,506	16.50	%	$	1,356,484	26.3	%
Gas & Petroleum Transmission		3,848,203	15.95	%		934,280	5.06	%		2,913,923	311.9	%
Electrical, Mechanical, & General		4,869,987	9.86	%		4,839,884	9.51	%		30,103	0.6	%
Unallocated Shop Expense		(1,244,388)	—			(674,088)	—			(570,300)	84.6	%
Total	$	13,993,792	12.3	%	$	10,263,582	10.2	%	$	3,730,210	36.3	%

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.

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.

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.

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.

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.

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.

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.

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.

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.

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. 28

Table of Contents 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.

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.

Segment Results

The following table sets forth segment revenues, segment income (loss) from operations and operating margins for the periods indicated, as well as the dollar and percentage change from the prior period:


	Three Months Ended December 31,								Change
Revenues:	2025				2024					%
Underground Infrastructure Construction	$	69,177,084	60.6	%	$	52,820,146	52.5	%		31.0	%
Industrial Construction		33,746,447	29.6	%		35,396,513	35.2	%		(4.7)	%
Building Construction		11,188,669	9.8	%		12,429,455	12.3	%		(10.0)	%
Consolidated revenues	$	114,112,200	100.0	%	$	100,646,114	100.0	%		13.4	%
Income (loss) from operations:
Underground Infrastructure Construction	$	4,501,376	6.5	%	$	1,047,705	2.0	%		329.6	%
Industrial Construction		1,560,297	4.6	%		1,899,725	5.4	%		(17.9)	%
Building Construction		500,823	4.5	%		583,637	4.7	%		(14.2)	%
Corporate and Non-Allocated Costs		(1,649,733)	(1.4)	%		(1,885,673)	(1.9)	%		(12.5)	%
Consolidated income from operations	$	4,912,763	4.3	%	$	1,645,394	1.6	%		198.6	%

All values are in US Dollars.

Underground Infrastructure Construction

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.

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.

Industrial Construction

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.

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.

Building Construction

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.

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. 29

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Corporate and Non-Allocated Costs

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.

The Company’s disaggregated revenue does vary slightly from the Company’s segment reporting due to combining the Industrial and Building Construction into Electrical, Mechanical and General, and one legal entity in the Underground Infrastructure Construction segment that performs services other than underground construction that are included in Electrical, Mechanical and General. The volume of these services is not material to the Company’s segment reporting.

Comparison of Financial Condition at December 31, 2025, and September 30, 2025

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Goodwill totaled $9.9 million at December 31, 2025, unchanged from the prior fiscal year end balance.

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. 30

Table of Contents 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.

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.

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.

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 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.

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.

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.

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.

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.

Liquidity and Capital Resources

Operating Line of Credit

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


	December 31, 2025			September 30, 2025
Eligible borrowing base	$	30,000,000		$	27,657,997

Borrowed on line of credit		17,000,000			24,750,000

Line of credit balance available	$	13,000,000		$	2,907,997

Interest rate		6.75	%		7.50	%

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. 31

Table of Contents

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.
---	---

Paycheck Protection Program Loans

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.

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, 32

Table of Contents 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.

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.

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.

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 December 31, 2025, the Company had made principal payments of $4.9 million.

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 until his retirement in May 2025. 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 will 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 December 31, 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 December 31, 2025, the Company had made principal payments of $1.8 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 December 31, 2025, the Company had borrowed $9.3 million against this line of credit and made $3.9 million in principal payments.

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 were 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 December 31, 2025, the Company had borrowed $5.0 million against this equipment line of credit and made repayments of $367,000 in 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 December 31, 2025, the Company had made $2.4 million in principal payments.

On September 30, 2025, the Company entered into a $500,000 sellers’ note agreement with Joe and Cathy Rigney for the remaining purchase price of Rigney Digital Systems Ltd. For the purchase price allocation, the $500,000 note had a fair carrying value of $461,000. As part of the $4.6 million acquisition price, the Company paid $3.0 million in cash in addition to the note and issued $1.0 million in common shares of the Company’s stock. The unsecured five-year term note requires a $500,000 payment at the end of the 33

Table of Contents 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.

Operating Leases

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 December 31, 2025. The 4.5% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception. The Company signed a an amendment to extend the lease for one year after the original lease expired. As of December 31, 2025, the Company has only committed to a one-year renewal and is evaluating whether 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 $30,000 at December 31, 2025. The 8.5% interest rate on the operating lease is based on the Company’s incremental borrowing rate at inception.

The Company has a right-of-use operating lease with Enterprise acquired on August 11, 2022, as part of the Ryan Environmental acquisition. This lease agreement was initially for thirty-one vehicles with a net present value of $1.2 million. The Company subsequently netted fifty additional leased vehicles. The right-of-use operating lease had a carrying value of $1.7 million at December 31, 2025. Each vehicle leased under the master lease program has its own implicit rate.

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 $7.0 million and $5.0 million, respectively, for the three months ended December 31, 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 December 31, 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 34

Table of Contents 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 December 31, 2025, the Company had $71.7 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 services provided. 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 months ended December 31, 2025 and 2024:


	Three Months Ended		Three Months Ended	****
	December 31,		December 31,
Revenue	2025		2024	****
NiSource and subsidiaries	13.5	%	11.8	%
All other	86.5	%	88.2	%
Total	100.0	%	100.0	%

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

Please see the tables below for customers that represent 10.0% or more of the Company’s accounts receivable, net of retention at December 31, 2025 and September 30, 2025:


Accounts receivable, net of retention	at December 31, 2025		at September 30, 2025	****
TransCanada Corporation	18.2	%	13.9	%
NiSource and subsidiaries	15.8	%	*
All other	66.0	%	86.1	%
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 complied with the demand according to 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 months ended December 31, 2025 or 2024.

Table of Contents 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 December 31, 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 will be calculated on the principal balance remaining and will be at the stated rate of 3.5% per year. The Company has made $750,000 in principal payments on this note as of December 31, 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. For the three months ended December 31, 2025 and 2024, the rental amounts for these specific periods were $146,000, and $53,000, respectively.

Other than mentioned above, there were no new material related party transactions entered into during the three months ended December 31, 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 cost 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 months ended December 31, 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 36

Table of Contents 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.

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 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 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. 37

Table of Contents The following table presents our costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings at December 31, 2025 and September 30, 2025:


		December 31, 2025			September 30, 2025
Costs incurred on contracts in progress		$	473,568,702		$	471,208,654
Estimated earnings, net of estimated losses			75,713,201			71,159,322
			549,281,903			542,367,976
Less billings to date			556,964,740			536,231,730
		$	(7,682,837)		$	6,136,246

Costs and estimated earnings in excess of billed on uncompleted contracts		$	23,334,573		$
						34,455,011
Less billings in excess of costs and estimated earnings on uncompleted contracts			31,017,410			28,318,765

		$	(7,682,837)		$	6,136,246

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 December 31, 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 three months ended December 31, 2025 and as of fiscal year ended September 30, 2025:


	December 31, 2025		September 30, 2025
Balance at beginning of period	$	521,616	$	738,526
Charged to expense		—		423,750
Deductions for uncollectible receivables written off, net of recoveries		(31,982)		(640,660)
Balance at end of period	$	489,634	$	521,616

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 December 31, 2025.

Materially incorrect estimates could cause an impairment of goodwill or intangible assets and result in a loss in profitability for the Company. 38

Table of Contents A table of the Company’s intangible assets subject to amortization at December 31, 2025 and September 30, 2025 is below:


				Accumulated		Accumulated		Amortization		Amortization
	Remaining Life			Amortization		Amortization		and Impairment		and Impairment
	(in months) at			and Impairment		and Impairment		Three Months		Three Months		Net Book Value		Net Book Value
	December 31,			at December 31,		at September 30,		Ended December 31,		Ended December 31,		at December 31,		at September 30,
Intangible assets:	2025	Original Cost		2025		2025		2025		2024		2025		2025

West Virginia Pipeline:
Customer relationships	60	$	2,209,724		1,104,855	$	1,049,610		55,245		55,245	$	1,104,869	$	1,160,114
Tradename	60		263,584		131,803		125,215		6,588		6,588		131,781		138,369
Non-competes	—		83,203		83,203		83,203		—		—		—		—

Heritage Painting
Customer relationships	42		121,100		36,324		30,270		6,054		6,054		84,776		90,830

Tri-State Paving:
Customer relationships	76		1,649,159		604,692		563,463		41,229		41,229		1,044,467		1,085,696
Tradename	76		203,213		74,511		69,431		5,080		5,080		128,702		133,782
Non-competes	—		39,960		39,960		39,960		—		—		—		—

Tribute Contracting & Consultants
Non-compete 1	107		520,000		56,332		43,333		12,999		2,084		463,668		476,667
Non-compete 2	83		10,000		1,354		1,042		312		2,083		8,646		8,958
Tradename	47		80,000		17,332		13,333		3,999		12,500		62,668		66,667
Backlog	11		1,320,000		775,770		550,000		225,770		—		544,230		770,000

Rigney Digital Systems
Tradename	129		657,100		14,934		—		14,934		—		642,166		657,100
Backlog	21		260,600		32,574		—		32,574		—		228,026		260,600
Non-compete	117		46,300		1,158		—		1,158		—		45,142		46,300

Total intangible assets	—	$	7,463,943	$	2,974,802	$	2,568,860	$	405,942	$	130,863	$	4,489,141	$	4,895,083

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 December 31, 2025 and 2024 were $3.4 million and $2.6 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 December 31, 2025 and 2024 were $405,942 and $130,863, 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. 39

Table of Contents Income Taxes

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

New Accounting Pronouncements

In November 2024, the FASB issued an update that requires incremental disclosures about specific expense categories. Entities are required to disclose in the notes to financial statements the amounts of purchases of inventory, employee compensation, depreciation, intangible asset amortization and selling expenses included in each relevant expense caption of the statements of operations. The standard also requires disclosure of the amount, and a qualitative description of, other items remaining in relevant expense captions that are not separately disaggregated. This update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption and both prospective and retrospective application are permitted. The Company is currently assessing the effect of this update.

In December 2023, the FASB issued an update that expands disclosures for tax rate reconciliation tables, primarily by requiring disaggregation of income taxes paid by jurisdiction, as well as greater disaggregation within the rate reconciliation. This update is effective for fiscal years beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025. Early adoption and retrospective application are permitted. The Company is currently assessing the effect of this update.

Subsequent Events

On January 15, 2026, the Company paid a quarterly dividend of $0.03 per common share to shareholders of record as of December 31, 2025. 40

Table of Contents 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 is receiving significant bid opportunities for water and wastewater projects, natural gas transmission and distribution projects and electrical, mechanical, and general construction projects. The Company’s unaudited backlog at December 31, 2025, was $301.4 million, as compared to $260.2 million and $259.7 million at December 31, 2024, and September 30, 2025, respectively.

The $9.3 million and $5.7 million revenue increases, respectively, for Gas & Water Distribution and Gas & Petroleum Transmission projects for the three months ended December 31, 2025, as compared to the same period in 2024, aligns with the opportunities the Company is seeing for fiscal year 2026. Backlog for these categories was projected to be $161.7 million at December 31, 2025.

Electrical, Mechanical, & General revenue decreased by $1.5 million for the three months ended December 31, 2025, as compared to the same period in 2024. However, the Company projects a $139.7 million backlog in this category and continues to see bidding opportunities for large construction projects in fiscal year 2026.

While adding additional projects appears likely, no assurance 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.

ITEM 3. Quantitative and Quantitative Disclosures About Market Risk

Not required for a smaller reporting company.

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 first quarter of fiscal year 2026 that has materially affected, or is reasonably likely to materially affect, Energy Services of America Corporation’s internal control over financial reporting.

Table of Contents 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 months ended December 31, 2025 and 2024.

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 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 December 31, 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.

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 15, 2025. There have been no material changes to the risk factors since the filing of the Annual Report on Form 10-K.

ITEM 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

(a)	There have been no unregistered sales of equity securities during the period covered by the report.
(b)	None.
---	---
(c)	The table below summarizes the Company’s repurchased shares of its common stock during the three months ended December 31, 2025:
---	---


				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
Beginning						786,707
October 2025	—	$	—	$	—	786,707
November 2025	—	$	—	$	—	786,707
December 2025	105,955	$	7.99	$	846,530	680,752
Total	105,955	$	7.99	$	846,530

ITEM 5. Other Information

During the first fiscal quarter of 2026, 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.

Table of Contents 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

Table of Contents 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

Date:	February 9, 2026	By:	/s/ Douglas V. Reynolds
			Douglas V. Reynolds
			Chief Executive Officer
Date:	February 9, 2026	By:	/s/ Charles P. Crimmel
			Charles P. Crimmel
			Chief Financial Officer

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Douglas V. Reynolds, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Energy Services of America Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
---	---
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
---	---
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
---	---
a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
---	---
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
---	---
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
---	---
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
---	---
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
---	---
a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
---	---
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
---	---

---	---	---	---
Date:	February 9, 2026		/s/ Douglas V. Reynolds
			Douglas V. Reynolds
			Chief Executive Officer

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Charles P. Crimmel, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Energy Services of America Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
---	---
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
---	---
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
---	---
a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
---	---
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
---	---
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
---	---
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
---	---
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
---	---
a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
---	---
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
---	---

---	---	---	---
Date:	February 9, 2026		/s/ Charles P. Crimmel
			Charles P. Crimmel
			Chief Financial Officer

Exhibit 32

Certification pursuant to

18 U.S.C. Section 1350,

as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Douglas V. Reynolds, Chief Executive Officer and Charles P. Crimmel, Chief Financial Officer of Energy Services of America Corporation (the “Company”) each certify in their capacity as officers of the Company that they have reviewed this Quarterly Report on Form 10-Q for the quarter ended December 31, 2025, and that to the best of their knowledge:

1.	the report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
---	---

---	---	---	---
Date:	February 9, 2026		/s/ Douglas V. Reynolds
			Douglas V. Reynolds
			Chief Executive Officer


Date:	February 9, 2026	/s/ Charles P. Crimmel
		Charles P. Crimmel
		Chief Financial Officer