Energy Services of America CORP 10-Q

Energy Services of America CORP_March 31, 2026 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 March 31, 2026 . 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 May 8, 2026, there were 18,659,679 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 27 Item 3. Quantitative and Qualitative Disclosures About Market Risk 49 Item 4. Controls and Procedures 49 Part II: Other Information Item 1. Legal Proceedings 50 Item 1A. Risk Factors 50 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 51 Item 5. Other Information ​ 51 ​ ​ ​ Item 6. Exhibits 52 Signatures 53 ​ ​ ​ 1 Table of Contents Part 1. Financial Information Item 1. Financial Statements (Unaudited): Energy Services of America Corporation Consolidated Balance Sheets Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Assets ​ ​ ​ ​ ​ ​ Current assets ​ ​ ​ ​ Cash and cash equivalents ​ $ 10,110,449 ​ $ 12,241,408 Accounts receivable-trade ​ 60,372,358 ​ 76,570,064 Allowance for credit losses ​ ( 303,722 ) ​ ( 521,616 ) Retainages receivable ​ 18,601,638 ​ 16,049,557 Other receivables ​ 1,241,166 ​ 1,103,687 Contract assets ​ 26,773,714 ​ 34,455,011 Prepaid expenses and other ​ 6,445,709 ​ 5,025,476 Total current assets ​ 123,241,312 ​ 144,923,587 ​ ​ ​ ​ ​ Property, plant and equipment, at cost ​ 121,611,925 ​ 115,448,972 less accumulated depreciation ​ ( 67,435,755 ) ​ ( 61,981,005 ) Total fixed assets ​ 54,176,170 ​ 53,467,967 ​ ​ ​ ​ ​ ​ ​ Right-of-use assets-operating leases ​ ​ 2,393,665 ​ ​ 2,054,615 Intangible assets, net ​ ​ 4,204,738 ​ ​ 4,895,083 Goodwill ​ ​ 9,865,804 ​ ​ 9,865,804 Total assets ​ $ 193,881,689 ​ $ 215,207,056 ​ ​ ​ ​ ​ Liabilities and shareholders’ equity ​ ​ ​ ​ Current liabilities ​ ​ ​ ​ Current maturities of long-term debt ​ $ 9,289,546 ​ $ 11,546,816 Current maturities of lines of credit and short-term borrowings ​ 10,450,998 ​ 10,401,366 Current maturities of operating lease liabilities ​ ​ 1,213,982 ​ ​ 1,061,021 Accounts payable ​ 21,271,471 ​ 30,732,523 Accrued expenses and other current liabilities ​ 16,152,668 ​ 15,918,593 Contract liabilities ​ 29,474,281 ​ 28,318,765 Total current liabilities ​ 87,852,946 ​ 97,979,084 ​ ​ ​ ​ ​ Long-term debt, less current maturities ​ 15,411,686 ​ 50,256,031 Long-term operating lease liabilities, less current maturities ​ ​ 1,171,456 ​ ​ 982,621 Deferred tax liability ​ 7,916,026 ​ 6,753,527 Total liabilities ​ 112,352,114 ​ 155,971,263 ​ ​ ​ ​ ​ Shareholders’ equity ​ ​ ​ ​ Common stock, $ .0001 par value ​ ​ ​ ​ ​ ​ Authorized 50,000,000 shares, 18,659,679 shares issued (net of treasury shares) and 18,622,287 shares outstanding (excluding 37,392 shares from unvested stock awards) at March 31, 2026 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 ​ 2,013 ​ 1,813 Treasury stock, 1,502,236 shares at March 31, 2026 and 1,396,120 shares at September 30, 2025 ​ ( 154 ) ​ ( 143 ) Additional paid in capital ​ 82,880,372 ​ 62,450,414 Retained deficit ​ ( 1,352,656 ) ​ ( 3,216,291 ) Total shareholders’ equity ​ 81,529,575 ​ 59,235,793 Total liabilities and shareholders’ equity ​ $ 193,881,689 ​ $ 215,207,056 ​ The Accompanying Notes are an Integral Part of These Consolidated Financial Statements ​ 2 Table of Contents Energy Services of America Corporation Consolidated Statements of Income Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ Six Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Revenue ​ $ 93,173,442 ​ $ 76,679,151 ​ $ 207,285,642 ​ $ 177,325,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of revenue ​ 82,941,106 ​ 76,601,291 ​ 183,059,514 ​ 166,983,823 ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ 10,232,336 ​ 77,860 ​ 24,226,128 ​ 10,341,442 ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling and administrative expenses ​ 9,173,925 ​ 8,170,087 ​ 18,254,952 ​ 16,787,708 Income (loss) from operations ​ 1,058,411 ​ ( 8,092,227 ) ​ 5,971,176 ​ ( 6,446,266 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Other (expense) income ​ ​ ​ ​ ​ ​ ​ ​ Other nonoperating expense ​ ​ ( 94,224 ) ​ ​ ( 20,616 ) ​ ​ ( 196,865 ) ​ ​ ( 68,878 ) Interest expense ​ ​ ( 621,835 ) ​ ​ ( 875,770 ) ​ ​ ( 1,611,686 ) ​ ​ ( 1,359,488 ) Gain on sale of equipment ​ 69,993 ​ ( 16,540 ) ​ 88,749 ​ 179,242 ​ ​ ( 646,066 ) ​ ( 912,926 ) ​ ( 1,719,802 ) ​ ( 1,249,124 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ 412,345 ​ ( 9,005,153 ) ​ 4,251,374 ​ ( 7,695,390 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense (benefit) ​ 196,797 ​ ( 2,206,735 ) ​ 1,330,345 ​ ( 1,750,705 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 215,548 ​ $ ( 6,798,418 ) ​ $ 2,921,029 ​ $ ( 5,944,685 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding-basic ​ 17,526,126 ​ 16,716,809 ​ 17,110,381 ​ 16,630,245 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares-diluted ​ 17,568,110 ​ 16,716,809 ​ 17,150,954 ​ 16,630,245 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) per share available to common shareholders ​ $ 0.01 ​ $ ( 0.41 ) ​ $ 0.17 ​ $ ( 0.36 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) per share-diluted available to common shareholders ​ $ 0.01 ​ $ ( 0.41 ) ​ $ 0.17 ​ $ ( 0.36 ) ​ The Accompanying Notes are an Integral Part of These Consolidated Financial Statements ​ 3 Table of Contents Energy Services of America Corporation Consolidated Statements of Cash Flows Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Cash flows from operating activities: ​ ​ ​ ​ Net income (loss) ​ $ 2,921,029 ​ $ ( 5,944,685 ) Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ Depreciation expense ​ 6,724,766 ​ 5,586,230 Accreted interest on PPP loans ​ ​ 49,632 ​ ​ 49,738 Gain on sale of equipment ​ ​ ( 88,749 ) ​ ​ ( 179,242 ) Provision for deferred taxes ​ 1,162,499 ​ ( 1,839,881 ) Vested restricted stock award compensation ​ ​ 58,680 ​ ​ 32,758 Tax settlement on shares repurchased ​ ( 12,048 ) ​ — Amortization of intangible assets ​ ​ 690,345 ​ ​ 295,060 Accreted interest on note payable ​ 3,900 ​ 25,000 Decrease in accounts receivable-trade ​ ​ 15,979,812 ​ ​ 10,162,409 (Increase) decrease in retainage receivable ​ ( 2,552,081 ) ​ 599,786 (Increase) decrease in other receivables ​ ​ ( 137,479 ) ​ ​ 1,389,784 Decrease in contract assets ​ ​ 7,681,297 ​ ​ 3,581,095 Increase in prepaid expenses and other ​ ​ ( 1,420,233 ) ​ ​ ( 1,020,822 ) Decrease in accounts payable ​ ​ ( 9,461,052 ) ​ ​ ( 4,561,534 ) Decrease in accrued expenses and other current liabilities ​ ​ ( 320,788 ) ​ ​ ( 3,497,456 ) Increase in contract liabilities ​ 1,155,516 ​ 5,311,068 Net cash provided by operating activities ​ ​ 22,435,046 ​ ​ 9,989,308 ​ ​ ​ ​ ​ Cash flows from investing activities: ​ ​ ​ ​ Investment in property and equipment ​ ( 5,719,129 ) ​ ( 5,087,101 ) Acquisition of Tribute Contracting & Consultants ​ ​ — ​ ​ ( 20,783,224 ) Proceeds from sales of property and equipment ​ 301,763 ​ 596,314 Net cash used in investing activities ​ ( 5,417,366 ) ​ ( 25,274,011 ) ​ ​ ​ ​ ​ ​ ​ 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) ​ ​ ( 24,750,000 ) ​ ​ 1,250,000 Treasury stock purchased ​ ​ ( 847,818 ) ​ ​ — Cash dividend on common stock ​ ​ ( 498,725 ) ​ ​ ( 501,164 ) Proceeds from capital raise, net of discounts and fees ​ ​ 21,231,333 ​ ​ — Principal payments on long-term debt ​ ​ ( 14,283,429 ) ​ ​ ( 4,463,936 ) Net cash (used in) provided by financing activities ​ ( 19,148,639 ) ​ 12,284,900 ​ ​ ​ ​ ​ ​ ​ Decrease in cash and cash equivalents ​ ( 2,130,959 ) ​ ( 2,999,803 ) Cash and cash equivalents beginning of period ​ 12,241,408 ​ 12,926,036 Cash and cash equivalents end of period ​ $ 10,110,449 ​ $ 9,926,233 ​ ​ ​ ​ ​ Supplemental schedule of noncash investing and financing activities: ​ ​ ​ ​ Purchases of property & equipment under financing agreements ​ $ 1,927,914 ​ $ 201,538 Net operating lease right-of-use assets received in exchange for operating lease liabilities ​ $ 936,611 ​ $ 506,305 Common dividends declared but not paid ​ $ 558,669 ​ $ 501,504 Common stock issued in Tribute Contracting & Consultants acquisition ​ $ — ​ $ 2,000,000 ​ ​ ​ ​ ​ Supplemental disclosures of cash flows information: ​ ​ ​ ​ Cash paid during the year for: ​ ​ ​ ​ Interest ​ $ 1,498,051 ​ $ 1,232,072 Income taxes ​ $ 405,263 ​ $ 1,170,000 ​ The Accompanying Notes are an Integral Part of These Consolidated Financial Statements ​ 4 Table of Contents Energy Services of America Corporation Consolidated Statements of Changes in Shareholders’ Equity For the three and six months ended March 31, 2026 and 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ — ​ ​ — ​ ​ — ​ ​ 2,705,481 ​ ​ — ​ ​ 2,705,481 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ $ ( 1,009,535 ) ​ $ ( 154 ) ​ $ 60,596,019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ — ​ ​ — ​ ​ — ​ ​ 215,548 ​ ​ — ​ ​ 215,548 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock awards issued ​ 8,343 ​ ​ — ​ ​ 75,000 ​ ​ — ​ ​ — ​ ​ 75,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unearned share-based compensation ​ — ​ ​ — ​ ​ ( 75,000 ) ​ ​ — ​ ​ — ​ ​ ( 75,000 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares repurchased as part of net settlement of restricted stock awards ​ ( 3,501 ) ​ ​ — ​ ​ ( 12,048 ) ​ ​ — ​ ​ — ​ ​ ( 12,048 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested share compensation expense ​ — ​ ​ — ​ ​ 58,680 ​ ​ — ​ ​ — ​ ​ 58,680 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends on common stock ($ 0.03 per share on 18,622,287 shares) ​ — ​ ​ — ​ ​ — ​ ​ ( 558,669 ) ​ ​ — ​ ​ ( 558,669 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares repurchased ​ ( 161 ) ​ ​ — ​ ​ ( 1,288 ) ​ ​ — ​ ​ — ​ ​ ( 1,288 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity raise, net of fees and offering expenses ​ 2,001,000 ​ ​ 200 ​ ​ 21,231,133 ​ ​ — ​ ​ — ​ ​ 21,231,333 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2026 ​ 18,659,679 ​ $ 2,013 ​ $ 82,880,372 ​ $ ( 1,352,656 ) ​ $ ( 154 ) ​ $ 81,529,575 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Common Stock ​ Additional Paid ​ Retained ​ Treasury ​ Shareholders’ ​ ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ in Capital ​ ​ ​ Deficit ​ ​ ​ Stock ​ ​ ​ Equity Balance at September 30, 2024 ​ 16,570,685 ​ $ 1,790 ​ $ 60,282,921 ​ $ ( 1,590,434 ) ​ $ ( 133 ) ​ $ 58,694,144 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ — ​ ​ — ​ ​ — ​ ​ 853,733 ​ ​ — ​ ​ 853,733 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends on common stock ($ 0.03 per share on 16,705,457 shares) ​ — ​ ​ — ​ ​ — ​ ​ ( 501,164 ) ​ ​ — ​ ​ ( 501,164 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common shares issued as part of acquisition ​ 134,772 ​ ​ 13 ​ ​ 1,999,987 ​ ​ — ​ ​ — ​ ​ 2,000,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2024 16,705,457 ​ $ 1,803 ​ $ 62,282,908 ​ $ ( 1,237,865 ) ​ $ ( 133 ) ​ $ 61,046,713 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss — ​ — ​ — ​ ( 6,798,418 ) ​ — ​ ( 6,798,418 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends on common stock ($ 0.03 per share on 16,716,809 shares) ​ — ​ ​ — ​ ​ — ​ ​ ( 501,504 ) ​ ​ — ​ ​ ( 501,504 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested restricted stock award ​ 11,352 ​ ​ 1 ​ ​ 32,757 ​ ​ — ​ ​ — ​ ​ 32,758 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2025 ​ 16,716,809 ​ $ 1,804 ​ $ 62,315,665 ​ $ ( 8,537,787 ) ​ $ ( 133 ) ​ $ 53,779,549 ​ The Accompanying Notes are an Integral Part of These Consolidated Financial Statements ​ 5 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 and six months ended March 31, 2026 and 2025 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 six months ended March 31, 2026. ​ 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 March 31, 2026, 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 7 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. 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. 8 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 and six months ended and at March 31, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Three Months Ended March 31, 2026 ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction Total ​ Revenues ​ $ 46,269,524 ​ $ 36,397,052 ​ $ 10,506,866 ​ $ 93,173,442 ​ Segment direct operating expenses (excluding depreciation) ​ ​ 39,322,151 ​ ​ 30,761,593 ​ ​ 9,605,535 ​ ​ 79,689,279 ​ Direct depreciation expense ​ ​ 2,586,777 ​ ​ 665,050 ​ ​ — ​ ​ 3,251,827 ​ Segment gross profit ​ ​ 4,360,596 ​ ​ 4,970,409 ​ ​ 901,331 ​ ​ 10,232,336 ​ Segment gross profit percentage ​ ​ 9.4 % ​ 13.7 % ​ 8.6 % ​ 11.0 % Selling, general, and administrative expenses ​ ​ 5,153,550 ​ ​ 1,031,731 ​ ​ 1,085,811 ​ ​ 7,271,092 ​ Indirect depreciation expense ​ ​ — ​ ​ — ​ ​ 116,552 ​ ​ 116,552 ​ Intangible asset amortization expenses ​ ​ 229,683 ​ ​ 54,720 ​ ​ — ​ ​ 284,403 ​ Segment indirect operating expenses ​ ​ 5,383,233 ​ ​ 1,086,451 ​ ​ 1,202,363 ​ ​ 7,672,047 ​ Segment income from operations ​ ​ ( 1,022,637 ) ​ ​ 3,883,958 ​ ​ ( 301,032 ) ​ ​ 2,560,289 ​ Segment operating margin percentage ​ ​ ( 2.2 ) % ​ 10.7 % ​ ( 2.9 ) % ​ 2.7 % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,498,199 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,679 ​ Total consolidated income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,058,411 ​ ​ ​ 9 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Six Months Ended March 31, 2026 ​ Construction ​ Construction ​ Construction ​ Total Revenues ​ $ 115,446,608 ​ $ 70,143,499 ​ $ 21,695,535 ​ $ 207,285,642 ​ Segment direct operating expenses (excluding depreciation) ​ 96,249,127 ​ 61,147,179 ​ 19,168,989 ​ 176,565,295 ​ Direct depreciation expense ​ 5,187,271 ​ 1,306,948 ​ — ​ 6,494,219 ​ Segment gross profit ​ 14,010,210 ​ 7,689,372 ​ 2,526,546 ​ 24,226,128 ​ Segment gross profit percentage ​ 12.1 % 11.0 % 11.6 % 11.7 % Selling, general, and administrative expenses ​ 9,950,564 ​ 2,135,677 ​ 2,101,481 ​ 14,187,722 ​ Indirect depreciation expense ​ — ​ — ​ 225,274 ​ 225,274 ​ Intangible asset amortization expenses ​ 580,905 ​ 109,440 ​ — ​ 690,345 ​ Segment indirect operating expenses ​ 10,531,469 ​ 2,245,117 ​ 2,326,755 ​ 15,103,341 ​ Segment income from operations ​ 3,478,741 ​ 5,444,255 ​ 199,791 ​ 9,122,787 ​ Segment operating margin percentage ​ 3.0 % 7.8 % 0.9 % 4.4 % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ 3,146,338 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ 5,273 ​ Total consolidated income from operations ​ ​ ​ ​ ​ ​ ​ $ 5,971,176 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ ​ Industrial ​ Building ​ ​ ​ Property, plant and equipment, at cost, less accumulated depreciation ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total Segments ​ $ 38,467,067 ​ $ 14,382,021 ​ $ 1,231,954 ​ $ 54,081,042 Corporate ​ ​ — ​ ​ — ​ ​ — ​ ​ 95,128 Total ​ $ 38,467,067 ​ $ 14,382,021 ​ $ 1,231,954 ​ $ 54,176,170 ​ The following tables show interim segment financial information for the three and six months ended and at March 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total ​ Revenues ​ $ 32,544,499 ​ $ 32,694,332 ​ $ 11,440,320 ​ $ 76,679,151 ​ Segment direct operating expenses (excluding depreciation) ​ ​ 34,472,373 ​ ​ 29,345,599 ​ ​ 9,852,195 ​ ​ 73,670,167 ​ Direct depreciation expense ​ ​ 2,299,065 ​ ​ 632,059 ​ ​ — ​ ​ 2,931,124 ​ Segment gross (loss) profit ​ ​ ( 4,226,939 ) ​ ​ 2,716,674 ​ ​ 1,588,125 ​ ​ 77,860 ​ Segment gross profit percentage ​ ​ ( 13.0 ) % ​ 8.3 % ​ 13.9 % ​ 0.1 % Selling, general, and administrative expenses ​ ​ 4,780,036 ​ ​ 980,765 ​ ​ 795,810 ​ ​ 6,556,611 ​ Indirect depreciation expense ​ ​ — ​ ​ — ​ ​ 84,953 ​ ​ 84,953 ​ Intangible asset amortization expenses ​ ​ 141,476 ​ ​ — ​ ​ — ​ ​ 141,476 ​ Segment indirect operating expenses ​ ​ 4,921,512 ​ ​ 980,765 ​ ​ 880,763 ​ ​ 6,783,040 ​ Segment (loss) income from operations ​ ​ ( 9,148,451 ) ​ ​ 1,735,909 ​ ​ 707,362 ​ ​ ( 6,705,180 ) ​ Segment operating margin percentage ​ ​ ( 28.1 ) % ​ 5.3 % ​ 6.2 % ​ ( 8.7 ) % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,384,859 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,188 ​ Total consolidated (loss) income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ( 8,092,227 ) ​ ​ ​ 10 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ Six Months Ended March 31, 2025 ​ Construction ​ Construction ​ Construction ​ Total Revenues ​ $ 85,364,645 ​ $ 68,090,845 ​ $ 23,869,775 ​ $ 177,325,265 ​ Segment direct operating expenses (excluding depreciation) ​ 79,518,142 ​ 61,216,519 ​ 20,833,716 ​ 161,568,377 ​ Direct depreciation expense ​ 4,141,479 ​ 1,273,967 ​ — ​ 5,415,446 ​ Segment gross profit ​ 1,705,024 ​ 5,600,359 ​ 3,036,059 ​ 10,341,442 ​ Segment gross profit percentage ​ 2.0 % 8.2 % 12.7 % 5.8 % Selling, general, and administrative expenses ​ 9,539,485 ​ 1,964,158 ​ 1,577,621 ​ 13,081,264 ​ Indirect depreciation expense ​ — ​ — ​ 167,439 ​ 167,439 ​ Intangible asset amortization expenses ​ 266,285 ​ — ​ — ​ 266,285 ​ Segment indirect operating expenses ​ 9,805,770 ​ 1,964,158 ​ 1,745,060 ​ 13,514,988 ​ Segment (loss) income from operations ​ ( 8,100,746 ) ​ 3,636,201 ​ 1,290,999 ​ ( 3,173,546 ) ​ Segment operating margin percentage ​ ( 9.5 ) % 5.3 % 5.4 % ( 1.8 ) % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ 3,269,375 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ 3,345 ​ Total consolidated (loss) income from operations ​ ​ ​ ​ ​ ​ ​ $ ( 6,446,266 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ ​ Industrial ​ Building ​ ​ ​ Property, plant and equipment, at cost, less accumulated depreciation ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total Segments ​ $ 36,867,738 ​ $ 14,406,528 ​ $ 1,006,618 ​ $ 52,280,884 Corporate ​ ​ — ​ ​ — ​ ​ — ​ ​ 40,693 Total ​ $ 36,867,738 ​ $ 14,406,528 ​ $ 1,006,618 ​ $ 52,321,577 ​ ​ 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 and six months ended March 31, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2026 ​ ​ ​ ​ ​ ​ Electrical, ​ ​ ​ ​ Gas & Water ​ Gas & Petroleum ​ Mechanical, & ​ Total revenue ​ ​ ​ ​ Distribution ​ ​ ​ Transmission ​ ​ ​ General ​ ​ ​ from contracts Lump sum contracts ​ $ — ​ $ — ​ $ 34,054,782 ​ $ 34,054,782 Unit price contracts ​ 31,337,808 ​ 2,640,547 ​ 972,913 ​ 34,951,268 Cost plus and T&M contracts ​ — ​ 8,382,045 ​ 15,785,347 ​ 24,167,392 Total revenue from contracts ​ $ 31,337,808 ​ $ 11,022,592 ​ $ 50,813,042 ​ $ 93,173,442 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time ​ $ 10,528,750 ​ $ 2,640,547 ​ $ 39,470,809 ​ $ 52,640,106 Earned at point in time ​ 20,809,058 ​ 8,382,045 ​ 11,342,233 ​ 40,533,336 Total revenue from contracts ​ $ 31,337,808 ​ $ 11,022,592 ​ $ 50,813,042 ​ $ 93,173,442 ​ 11 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ Electrical, ​ ​ ​ ​ ​ Gas & Water ​ Gas & Petroleum ​ Mechanical, & ​ Total revenue ​ ​ ​ ​ Distribution ​ ​ ​ Transmission ​ ​ ​ General ​ ​ ​ from contracts Lump sum contracts ​ $ — ​ $ — ​ $ 67,337,635 ​ $ 67,337,635 Unit price contracts ​ 71,948,076 ​ 3,496,750 ​ 1,738,163 ​ 77,182,989 Cost plus and T&M contracts ​ — ​ 31,652,066 ​ 31,112,952 ​ 62,765,018 Total revenue from contracts ​ $ 71,948,076 ​ $ 35,148,816 ​ $ 100,188,750 ​ $ 207,285,642 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time ​ $ 33,206,006 ​ $ 3,496,750 ​ $ 75,141,720 ​ $ 111,844,476 Earned at point in time ​ 38,742,070 ​ 31,652,066 ​ 25,047,030 ​ 95,441,166 Total revenue from contracts ​ $ 71,948,076 ​ $ 35,148,816 ​ $ 100,188,750 ​ $ 207,285,642 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ ​ ​ ​ ​ ​ Electrical, ​ ​ ​ ​ Gas & Water ​ Gas & Petroleum ​ Mechanical, & ​ Total revenue ​ ​ ​ ​ Distribution ​ ​ ​ Transmission ​ ​ ​ General ​ ​ ​ from contracts Lump sum contracts ​ $ — ​ $ — ​ $ 34,195,376 ​ $ 34,195,376 Unit price contracts ​ 27,101,115 ​ 3,116,781 ​ 970,926 ​ 31,188,822 Cost plus and T&M contracts ​ — ​ 278,277 ​ 11,016,676 ​ 11,294,953 Total revenue from contracts ​ $ 27,101,115 ​ $ 3,395,058 ​ $ 46,182,978 ​ $ 76,679,151 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time ​ $ 18,473,790 ​ $ 3,116,781 ​ $ 35,811,712 ​ $ 57,402,283 Earned at point in time ​ 8,627,325 ​ 278,277 ​ 10,371,266 ​ 19,276,868 Total revenue from contracts ​ $ 27,101,115 ​ $ 3,395,058 ​ $ 46,182,978 ​ $ 76,679,151 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended March 31, 2025 ​ ​ ​ ​ ​ ​ Electrical, ​ ​ ​ ​ ​ Gas &Water ​ Gas & Petroleum ​ Mechanical, & ​ Total revenue ​ ​ ​ ​ Distribution ​ ​ ​ Transmission ​ ​ ​ General ​ ​ ​ from contracts Lump sum contracts ​ $ — ​ $ — ​ $ 71,929,199 ​ $ 71,929,199 Unit price contracts ​ 58,401,124 ​ 21,535,098 ​ 1,964,321 ​ 81,900,543 Cost plus and T&M contracts ​ — ​ 316,177 ​ 23,179,346 ​ 23,495,523 Total revenue from contracts ​ $ 58,401,124 ​ $ 21,851,275 ​ $ 97,072,866 ​ $ 177,325,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earned over time ​ $ 37,960,995 ​ $ 21,535,098 ​ $ 74,493,813 ​ $ 133,989,906 Earned at point in time ​ 20,440,129 ​ 316,177 ​ 22,579,053 ​ 43,335,359 Total revenue from contracts ​ $ 58,401,124 ​ $ 21,851,275 ​ $ 97,072,866 ​ $ 177,325,265 ​ 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. ​ ​ 12 Table of Contents 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 and six months ended March 31, 2026, we recognized revenue of $ 11.2 million and $ 25.9 million, respectively, that was included in the contract liability balance at September 30, 2025. Accounts receivable-trade, net of allowance for credit losses, contract assets and contract liabilities consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ September 30, 2025 ​ ​ ​ Change Accounts receivable-trade, net of allowance for credit losses ​ $ 60,068,636 ​ $ 76,048,448 ​ $ ( 15,979,812 ) ​ ​ ​ ​ ​ ​ ​ Contract assets ​ ​ ​ ​ ​ ​ Cost and estimated earnings in excess of billings ​ $ 26,773,714 ​ $ 34,455,011 ​ $ ( 7,681,297 ) ​ ​ ​ ​ ​ ​ ​ Contract liabilities ​ ​ ​ ​ ​ ​ Billings in excess of cost and estimated earnings ​ $ 29,474,281 ​ $ 28,318,765 ​ $ 1,155,516 ​ ​ 8. PERFORMANCE OBLIGATIONS For the three and six months ended March 31, 2026, 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 March 31, 2026, the Company had $ 256.6 million in remaining unsatisfied performance obligations, in which revenue is expected to be recognized over the next twelve months. ​ 9. UNCOMPLETED CONTRACTS Costs, estimated earnings, and billings on uncompleted contracts as of March 31, 2026 and September 30, 2025, are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ September 30, 2025 Costs incurred on contracts in progress ​ $ 478,785,961 ​ $ 471,208,654 Estimated earnings, net of estimated losses ​ 80,553,250 ​ 71,159,322 ​ ​ 559,339,211 ​ 542,367,976 Less billings to date ​ 562,039,778 ​ 536,231,730 ​ ​ $ ( 2,700,567 ) ​ $ 6,136,246 ​ ​ ​ ​ ​ ​ ​ Costs and estimated earnings in excess of billed on uncompleted contracts ​ $ 26,773,714 ​ $ 34,455,011 ​ ​ ​ ​ ​ ​ ​ Less billings in excess of costs and estimated earnings on uncompleted contracts ​ 29,474,281 ​ 28,318,765 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ( 2,700,567 ) ​ $ 6,136,246 ​ The Company’s unaudited backlog at March 31, 2026 and September 30, 2025 was $ 325.1 million and $ 259.7 million, respectively. ​ 13 Table of Contents 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 $ 31.4 million at March 31, 2026 was $ 31.1 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. 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 and six months ended March 31, 2026 and 2025 are summarized below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ Three Months Ended ​ ​ ​ Six Months Ended ​ ​ ​ Six Months Ended ​ ​ March 31, 2026 ​ March 31, 2025 ​ March 31, 2026 ​ March 31, 2025 Net income (loss) ​ $ 215,548 ​ $ ( 6,798,418 ) ​ $ 2,921,029 ​ $ ( 5,944,685 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding-basic ​ 17,526,126 ​ 16,716,809 ​ 17,110,381 ​ 16,630,245 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding-diluted ​ 17,568,110 ​ 16,716,809 ​ 17,150,954 ​ 16,630,245 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) per share available to common shareholders ​ $ 0.01 ​ $ ( 0.41 ) ​ $ 0.17 ​ $ ( 0.36 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) per share-diluted available to common shareholders ​ $ 0.01 ​ $ ( 0.41 ) ​ $ 0.17 ​ $ ( 0.36 ) ​ ​ 14 Table of Contents 12. INCOME TAXES The components of income taxes are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ ​ March 31, 2026 ​ ​ ​ March 31, 2025 ​ ​ ​ March 31, 2026 ​ ​ ​ March 31, 2025 Federal ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ ( 45,145 ) ​ $ — ​ $ 42,631 ​ $ — Deferred ​ 179,669 ​ ( 1,687,935 ) ​ 929,877 ​ ( 1,392,961 ) Total ​ ​ 134,524 ​ ​ ( 1,687,935 ) ​ 972,508 ​ ( 1,392,961 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ State ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 57,888 ​ ​ 11,317 ​ ​ 125,214 ​ 89,175 Deferred ​ 4,385 ​ ( 530,117 ) ​ 232,623 ​ ( 446,919 ) Total ​ ​ 62,273 ​ ​ ( 518,800 ) ​ 357,837 ​ ( 357,744 ) Total income tax expense ​ $ 196,797 ​ $ ( 2,206,735 ) ​ $ 1,330,345 ​ $ ( 1,750,705 ) ​ 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 March 31, 2026 was 47.7 %, as compared to 24.5 %, for the same period in 2025. The effective income tax rate for the six months ended March 31, 2026 was 31.3 %, as compared to 22.8 %, for the same period in 2025. 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. The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ September 30, 2025 Deferred tax liabilities ​ ​ ​ ​ Property and equipment ​ $ 10,537,214 ​ $ 10,057,004 Other ​ 1,454,053 ​ 1,483,362 Total deferred tax liabilities ​ $ 11,991,267 ​ $ 11,540,366 ​ ​ ​ ​ ​ Deferred income tax assets ​ ​ ​ ​ Accruals & Other ​ $ 2,691,302 ​ $ 3,215,102 Net operating loss carryforward-Federal ​ ​ 1,280,607 ​ ​ 1,451,126 Net operating loss carryforward-States ​ ​ 807,260 ​ ​ 824,539 Net operating loss valuation allowance-States ​ ​ ( 703,928 ) ​ ​ ( 703,928 ) Total deferred tax assets ​ $ 4,075,241 ​ $ 4,786,839 ​ ​ ​ ​ ​ Total net deferred tax liabilities ​ $ 7,916,026 ​ $ 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 $ 6.1 million and $ 6.9 million of federal net operating loss carryforwards at March 31, 2026 and September 30, 2025, respectively. The Company had $ 35.1 million and $ 41.9 million of state net operating loss carryforwards at March 31, 2026 and September 30, 2025, respectively. The state net operating loss carryforwards begin to expire in 2026. 15 Table of Contents 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ September 30, 2025 Eligible borrowing base ​ $ 18,196,189 ​ $ 27,657,997 ​ ​ ​ ​ ​ ​ ​ ​ ​ Borrowings on line of credit ​ — ​ 24,750,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ Line of credit balance available ​ $ 18,196,189 ​ $ 2,907,997 ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate ​ 6.75 % 7.50 % ​ The Company did no t have any line of credit borrowings at March 31, 2026. The Company’s $ 24.8 million line of credit borrowings are recorded as a long-term debt as of September 30, 2025. The financial covenants required by the Company’s lender are below: ● Minimum tangible net worth of $ 28.0 million, ● Minimum traditional debt service coverage of 1.50x on a rolling twelve- month basis, ● Minimum current ratio of 1.20x , ● Maximum debt to tangible net worth ratio (“TNW”) of 2.75x , ● Each ratio and covenant shall be determined, tested, and measured as of each calendar quarter beginning June 30, 2023, ● The Company shall maintain a ratio of Maximum Senior Funded Debt (“SFD”) to Earnings before Interest, Taxes, Depreciation and Amortization (“EBDITA”) equal to or less than 3.5 :1. SFD shall mean any funded debt or lease of the Company, other than subordinated debt. The covenant shall be tested quarterly, at the end of each fiscal quarter, with EBITDA based on the preceding four quarters. The Company’s lender has agreed to omit the effect of the PPP loan restatement from the Company’s covenant compliance calculations while a final decision on PPP loan forgiveness remains in question. The Company was in compliance with all covenants at March 31, 2026. The Company is projected to meet all covenant requirements for the next twelve months. ​ 16 Table of Contents 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. 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 March 31, 2026, 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 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. 17 Table of Contents A summary of short-term and long-term debt as of March 31, 2026 and September 30, 2025 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ 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. ​ $ — ​ $ 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. ​ ​ 4,860,476 ​ ​ 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. ​ 10,450,998 ​ 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. ​ ​ — ​ ​ 390,328 ​ ​ ​ ​ ​ ​ ​ Notes payable to finance companies, due in monthly installments totaling $ 281,000 at March 31, 2026 and $ 244,000 at September 30, 2025, including interest ranging from 0.00 % to 6.0 %, final payments due April 2026 through February 2030, secured by equipment. ​ 5,855,044 ​ 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. ​ 8,237,000 ​ 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. ​ 682,624 ​ 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. ​ — ​ 1,411,890 ​ ​ ​ ​ ​ 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. ​ ​ 4,351,188 ​ ​ 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. ​ ​ 464,900 ​ ​ 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. ​ ​ — ​ ​ 2,961,211 ​ ​ ​ ​ ​ ​ ​ 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 ​ $ 35,152,230 ​ $ 72,204,213 ​ ​ ​ ​ ​ Less current maturities ​ 19,740,544 ​ 21,948,182 ​ ​ ​ ​ ​ Total long-term debt ​ $ 15,411,686 ​ $ 50,256,031 ​ ​ 18 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. 19 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 no t have a goodwill impairment at March 31, 2026 or September 30, 2025. A table of the Company’s goodwill as of March 31, 2026 and September 30, 2025 is below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ September 30, 2025 Beginning balance ​ $ 9,865,804 ​ $ 4,087,554 Acquired ​ — ​ 5,778,250 Ending balance ​ $ 9,865,804 ​ $ 9,865,804 ​ 20 Table of Contents A table of the Company’s intangible assets subject to amortization at March 31, 2026 and September 30, 2025 is below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Accumulated ​ Amortization ​ Amortization ​ Amortization ​ Amortization ​ ​ ​ ​ ​ ​ ​ ​ Remaining Life ​ ​ ​ ​ Amortization and ​ Amortization and ​ and Impairment ​ and Impairment ​ and Impairment ​ and Impairment ​ ​ ​ ​ ​ ​ ​ (in months) at ​ ​ ​ Impairment at ​ Impairment at ​ Three Months ​ Three Months ​ Six Months ​ Six Months ​ Net Book Value Net Book Value ​ ​ March 31, ​ ​ ​ March 31, ​ September 30, ​ Ended March 31, ​ Ended March 31, ​ Ended March 31, ​ Ended March 31, ​ at March 31, ​ at September 30, ​ ​ ​ ​ 2026 ​ ​ ​ Original Cost ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ West Virginia Pipeline: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 57 ​ $ 2,209,724 ​ ​ 1,160,100 ​ $ 1,049,610 ​ ​ 55,245 ​ ​ 55,245 ​ ​ 110,490 ​ ​ 110,490 ​ $ 1,049,624 $ 1,160,114 Tradename ​ 57 ​ ​ 263,584 ​ ​ 138,391 ​ ​ 125,215 ​ ​ 6,588 ​ ​ 6,588 ​ ​ 13,176 ​ ​ 13,176 ​ ​ 125,193 ​ 138,369 Non-competes — ​ 83,203 ​ 83,203 ​ 83,203 ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heritage Painting ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 39 ​ ​ 121,100 ​ ​ 42,378 ​ ​ 30,270 ​ ​ 6,054 ​ ​ 6,054 ​ ​ 12,108 ​ ​ 12,108 ​ ​ 78,722 ​ ​ 90,830 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tri-State Paving: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 73 ​ ​ 1,649,159 ​ ​ 645,921 ​ ​ 563,463 ​ ​ 41,229 ​ ​ 41,229 ​ ​ 82,458 ​ ​ 82,458 ​ ​ 1,003,238 ​ ​ 1,085,696 Tradename ​ 73 ​ ​ 203,213 ​ ​ 79,592 ​ ​ 69,431 ​ ​ 5,081 ​ ​ 5,080 ​ ​ 10,161 ​ ​ 10,160 ​ ​ 123,621 ​ ​ 133,782 Non-competes ​ — ​ ​ 39,960 ​ ​ 39,960 ​ ​ 39,960 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tribute Contracting & Consultants ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-compete 1 ​ 104 ​ ​ 520,000 ​ ​ 69,331 ​ ​ 43,333 ​ ​ 12,999 ​ ​ 12,501 ​ ​ 25,998 ​ ​ 16,668 ​ ​ 450,669 ​ ​ 476,667 Non-compete 2 ​ 80 ​ ​ 10,000 ​ ​ 1,666 ​ ​ 1,042 ​ ​ 312 ​ ​ — ​ ​ 624 ​ ​ — ​ ​ 8,334 ​ ​ 8,958 Tradename ​ 44 ​ ​ 80,000 ​ ​ 21,331 ​ ​ 13,333 ​ ​ 3,999 ​ ​ 37,500 ​ ​ 7,998 ​ ​ 50,000 ​ ​ 58,669 ​ ​ 66,667 Backlog ​ 8 ​ ​ 1,320,000 ​ ​ 880,000 ​ ​ 550,000 ​ ​ 104,230 ​ ​ — ​ ​ 330,000 ​ ​ — ​ ​ 440,000 ​ ​ 770,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rigney Digital Systems ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tradename ​ 126 ​ ​ 657,100 ​ ​ 29,868 ​ ​ — ​ ​ 14,934 ​ ​ — ​ ​ 29,868 ​ ​ — ​ ​ 627,232 ​ ​ 657,100 Backlog ​ 18 ​ ​ 260,600 ​ ​ 65,148 ​ ​ — ​ ​ 32,574 ​ ​ — ​ ​ 65,148 ​ ​ — ​ ​ 195,452 ​ ​ 260,600 Non-compete ​ 114 ​ ​ 46,300 ​ ​ 2,316 ​ ​ — ​ ​ 1,158 ​ ​ — ​ ​ 2,316 ​ ​ — ​ ​ 43,984 ​ ​ 46,300 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets ​ ​ ​ $ 7,463,943 ​ $ 3,259,205 ​ $ 2,568,860 ​ $ 284,403 ​ $ 164,197 ​ $ 690,345 ​ $ 295,060 ​ $ 4,204,738 ​ $ 4,895,083 ​ Amortization expense associated with the identifiable intangible assets is expected to be as follows: ​ ​ ​ ​ ​ April 2026 to March 2027 ​ ​ ​ $ 1,160,684 April 2027 to March 2028 ​ 655,544 April 2028 to March 2029 ​ 590,388 April 2029 to March 2030 ​ 566,883 April 2030 to March 2031 ​ 488,381 After ​ 742,858 Total ​ $ 4,204,738 ​ The weighted-average amortization period by major intangible asset class and in total are as follows: ​ ​ ​ ​ Intangible asset class ​ ​ ​ Remaining Years Customer relationships ​ 5.3 Tradename 8.7 Non-competes 8.7 Backlog 0.9 All intangible assets 5.8 ​ ​ 16. LEASE OBLIGATIONS The Company leases office space for SQP at a rate of $ 1,500 per month. The lease, originally executed on March 25, 2021, has a two-year base term with five one-year renewal options available following expiration of the base term. As of March 31, 2026, the Company has committed to a one-year renewal period and is evaluating the exercise of additional renewal options. The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC acquisition. The first lease, for the Hurricane, West Virginia facility, had a net present value of $ 236,000 at inception and a carrying value of $ 0 at March 31, 2026. The lease bears interest at 4.5 %, based on the Company’s incremental borrowing rate at inception. The Company executed an amendment to extend the lease for one additional year following the expiration of the original term. As of March 31, 2026, the Company has committed to one renewal period and is evaluating additional renewals. 21 Table of Contents The second 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 term with a net present value of $ 140,000 and had a carrying value of $ 17,000 at March 31, 2026. The lease bears interest at 8.5 %, based on the Company’s incremental borrowing rate at inception. The Company has a right-of-use operating lease with Enterprise Fleet Management, acquired on August 11, 2022, as part of the Ryan Environmental acquisition. The master lease initially covered 31 vehicles with a net present value of $ 1.2 million. The Company subsequently added 58 additional vehicles under the arrangement. The lease had a carrying value of $ 1.8 million at March 31, 2026. Each vehicle under the master lease arrangement carries its own implicit rate. The Company has a right-of-use operating lease acquired on March 28, 2023 for the Winchester, Kentucky facility. The lease had a net present value of $ 290,000 at inception and a carrying value of $ 0 at March 31, 2026. The lease bears interest at 7.5 %, based on the Company’s incremental borrowing rate at inception. The lease was renewed for a three-year term in April 2026. The Company has a right-of-use operating lease acquired on December 1, 2025 for the Columbus, Ohio facility. The lease had a net present value of $ 255,000 at inception and a carrying value of $ 236,000 at March 31, 2026. The lease bears interest at 6.75 %, based on the Company’s incremental borrowing rate at inception. The Company has a right-of-use operating lease acquired on January 1, 2026 for the Oklahoma City, Oklahoma facility. The lease had a net present value of $ 208,000 at inception and a carrying value of $ 186,000 at March 31, 2026. The lease bears interest at 6.75 %, based on the Company’s incremental borrowing rate at inception. The Company also has a right-of-use operating lease acquired on January 1, 2026 for the Louisville, Kentucky facility. The lease had a net present value of $ 128,000 at inception and a carrying value of $ 128,000 at March 31, 2026. The lease bears interest at 6.75 %, based on the Company’s incremental borrowing rate at inception. Lease payments do not commence until April 1, 2026. Schedules related to the Company’s operating leases for the three and six months ended March 31, 2026 and 2025 and at March 31, 2026 can be found below: Operating Lease-Weighted Average Remaining Term ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ Years left ​ ​ ​ liability ​ ​ ​ Lease end ​ ​ ​ Fiscal year end Operating lease 1 ​ ​ ​ 0.0 ​ $ — ​ 3/31/2025 ​ 2025 Operating lease 2 0.4 ​ ​ 16,989 ​ 8/31/2026 2026 Operating lease 3 ​ 4.0 ​ ​ 1,817,835 ​ 3/31/2030 ​ 2030 Operating lease 4 ​ 0.0 ​ ​ — ​ 3/31/2026 ​ 2026 Operating lease 5 ​ 2.7 ​ ​ 236,029 ​ 11/30/2028 ​ 2029 Operating lease 6 ​ 2.8 ​ ​ 186,330 ​ 12/31/2028 ​ 2029 Operating lease 7 ​ 2.8 ​ ​ 128,255 ​ 12/31/2028 ​ 2029 ​ ​ ​ ​ $ 2,385,438 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average remaining term ​ ​ ​ ​ 3.1 years ​ ​ ​ ​ ​ ​ ​ Operating Lease Maturity Schedule ​ ​ ​ April 2026 to March 2027 ​ ​ ​ $ 1,464,340 April 2027 to March 2028 ​ 785,969 April 2028 to March 2029 ​ 466,207 April 2029 to March 2030 ​ ​ 129,274 ​ ​ ​ 2,845,790 Less amounts representing interest ​ ( 460,352 ) Present value of operating lease liabilities ​ $ 2,385,438 ​ ​ 22 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ Six Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, Operating Lease Expense ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease 1 $ — ​ $ 18,257 ​ $ — ​ $ 38,948 Operating lease 2 ​ ​ 14,950 ​ ​ 17,581 ​ ​ 33,148 ​ ​ 34,794 Operating lease 3 ​ 239,952 ​ 215,566 ​ 477,202 ​ 410,736 Operating lease 4 ​ ​ 17,349 ​ ​ 24,967 ​ ​ 44,467 ​ ​ 49,469 Operating lease 5 ​ ​ 15,317 ​ ​ — ​ ​ 21,471 ​ ​ — Operating lease 6 ​ ​ 18,527 ​ ​ — ​ ​ 18,527 ​ ​ — Operating lease 7 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total amortization ​ ​ 306,095 ​ ​ 276,371 ​ ​ 594,815 ​ ​ 533,947 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ ​ ​ Operating lease 1 ​ $ — ​ $ 236 ​ $ — ​ $ 545 Operating lease 2 ​ 709 ​ 2,219 ​ 1,769 ​ 4,806 Operating lease 3 ​ ​ 37,313 ​ ​ 54,787 ​ ​ 79,969 ​ ​ 118,509 Operating lease 4 ​ ​ 502 ​ ​ 1,988 ​ ​ 1,014 ​ ​ 4,441 Operating lease 5 ​ ​ 1,888 ​ ​ — ​ ​ 3,329 ​ ​ — Operating lease 6 ​ ​ 5,413 ​ ​ — ​ ​ 5,413 ​ ​ — Operating lease 7 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total interest ​ ​ 45,825 ​ ​ 59,230 ​ ​ 91,494 ​ ​ 128,301 Total amortization and interest ​ $ 351,920 ​ $ 335,601 ​ $ 686,309 ​ $ 662,248 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ Six Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, Cash Paid for Operating Leases ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Operating lease 1 $ — ​ $ 18,493 ​ $ — ​ $ 39,493 Operating lease 2 ​ ​ 15,659 ​ ​ 19,800 ​ ​ 34,917 ​ ​ 39,600 Operating lease 3 ​ ​ 277,265 ​ ​ 270,353 ​ ​ 557,171 ​ ​ 529,245 Operating lease 4 ​ ​ 17,851 ​ ​ 26,955 ​ ​ 45,481 ​ ​ 53,910 Operating lease 5 ​ ​ 17,205 ​ ​ — ​ ​ 24,800 ​ ​ — Operating lease 6 ​ ​ 23,940 ​ ​ — ​ ​ 23,940 ​ ​ — Operating lease 7 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 351,920 ​ $ 335,601 ​ $ 686,309 ​ $ 662,248 ​ 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, were $ 4.8 million and $ 3.9 million for the three months ended March 31, 2026, and 2025, respectively, and $ 11.8 million and $ 9.0 million for the six months ended March 31, 2026 and 2025, respectively. ​ 23 Table of Contents 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 and six months ended March 31, 2026, the Company granted 8,343 and 19,594 shares, respectively, related to restricted stock awards. The Company granted 3,970 shares related to restricted stock awards for the three and six months ended March 31, 2025. The table below represents all unvested restricted stock awards at March 31, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vesting (1/3 Annual) ​ ​ ​ at March 31, 2026 ​ ​ ​ ​ 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 ​ — ​ $ — Award 2 1/17/2024 3,663 ​ ​ 5.46 ​ ​ 20,000 1/17/2025 1/17/2027 1,221 ​ ​ 6,667 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 1,323 ​ ​ 16,670 Award 7 ​ 1/15/2025 ​ 1,985 ​ ​ 12.60 ​ ​ 25,011 ​ 1/15/2026 ​ 1/15/2028 ​ 1,323 ​ ​ 16,670 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 Award 11 1/21/2026 2,781 ​ ​ 8.99 ​ ​ 25,001 1/21/2027 1/21/2029 2,781 ​ ​ 25,001 Award 12 1/21/2026 2,781 ​ ​ 8.99 ​ ​ 25,001 1/21/2027 1/21/2029 2,781 ​ ​ 25,001 Award 13 1/21/2026 2,781 ​ ​ 8.99 ​ ​ 25,001 1/21/2027 1/21/2029 2,781 ​ ​ 25,001 ​ ​ ​ 88,125 ​ ​ ​ ​ $ 541,037 ​ ​ ​ ​ ​ 37,392 ​ $ 341,676 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average grant-date fair value ​ ​ ​ ​ ​ $ 6.14 ​ ​ ​ ​ ​ ​ ​ ​ 24 Table of Contents The table below represents all restricted stock awards to Named Executive Officers as of March 31, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vesting (1/3 Annual) ​ ​ ​ at March 31, 2026 ​ ​ ​ ​ 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 ​ — ​ $ — Charles Crimmel 1/17/2024 3,663 ​ ​ 5.46 ​ ​ 20,000 1/17/2025 1/17/2027 1,221 ​ ​ 6,667 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 1,323 ​ ​ 16,670 Charles Crimmel 1/21/2026 2,781 ​ ​ 8.99 ​ ​ 25,001 1/21/2027 1/21/2029 2,781 ​ ​ 25,001 ​ ​ ​ 52,490 ​ ​ ​ $ 216,013 ​ ​ ​ ​ ​ 8,032 ​ 75,002 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average grant-date fair value ​ ​ ​ ​ ​ $ 4.12 ​ ​ ​ ​ ​ ​ ​ ​ The table below represents the total unvested restricted stock awards and grant amounts that will vest in future periods at March 31, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant Vesting ​ ​ ​ Grant Amount April 2026-March 2027 ​ 16,044 ​ $ 145,037 April 2027-March 2028 ​ 14,818 ​ ​ 138,318 April 2028-March 2029 6,530 ​ 58,321 ​ 37,392 ​ $ 341,676 ​ The table below represents the total unrecognized compensation expense for unvested restricted stock awards to be expensed in future periods at March 31, 2026: ​ ​ ​ ​ ​ April 2026-March 2027 ​ ​ ​ $ 143,067 April 2027-March 2028 ​ ​ 93,405 April 2028-March 2029 ​ 42,015 ​ ​ $ 243,671 ​ ​ ​ 25 Table of Contents 18. EQUITY RAISE On February 18, 2026, The Company entered into an underwriting agreement (the “Underwriting Agreement”) with Lake Street Capital Markets, LLC (the “Underwriter”). Pursuant to the terms of the Underwriting Agreement, the Company agreed to issue and sell, and the Underwriter agreed to purchase, subject to and on the conditions set forth therein, 1,740,000 shares of the Company’s common stock, par value $ 0.0001 per share (“Common Stock”), in a registered public offering pursuant to an effective shelf registration statement on Form S-3 (File No. 333-280025) and a related prospectus, including the related prospectus supplement, filed with the Securities and Exchange Commission (the “Offering”). Under the terms of the Underwriting Agreement, the Company granted the Underwriter a 30 -day option to purchase up to an additional 261,000 shares of Common Stock. The Offering closed on February 20, 2026, with the Underwriter purchasing 1,740,000 shares of the Company’s Common Stock at the public offering price of $ 11.50 per share. Net proceeds from the Offering to the Company were approximately $ 18.4 million, after deducting underwriting discounts and commissions and estimated offering expenses. On February 24, 2026, the Underwriter exercised its overallotment option and completed the sale of an additional 261,000 shares of common stock at the public offering price of $ 11.50 per share. The proceeds to the Company in connection with the exercise of the option and the issuance of the additional shares, after deducting the underwriting discount and commissions but before deducting other expenses payable by the Company, were approximately $ 2.8 million. ​ 19. SUBSEQUENT EVENTS On April 15, 2026, the Company paid a quarterly dividend of $ 0.03 per common share to shareholders of record as of March 31, 2026. 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. ​ 26 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 $93.2 million for the three months ended March 31, 2026, of which 54.6% was attributable to electrical, mechanical, and general contract services, 11.8% to gas and petroleum transmission projects, and 33.6% to gas & water distributions services. The Company had consolidated operating revenues of $76.7 million for the three months ended March 31, 2025, of which 60.3% was attributable to electrical, mechanical, and general contract services, 4.4% to gas and petroleum transmission projects, and 35.3% to gas & water distributions services. The Company had consolidated operating revenues of $207.3 million for the six months ended March 31, 2026, of which 48.3% was attributable to electrical, mechanical, and general contract services, 17.0% to gas and petroleum transmission projects, and 34.7% to gas & water distributions services. The Company had consolidated operating revenues of $177.3 million for the six months ended March 31, 2025, of which 54.8% was attributable to electrical, mechanical, and general contract services, 12.3% to gas and petroleum transmission projects, and 32.9% to gas & water distributions services. 27 Table of Contents 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 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. 28 Table of Contents 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. 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. 29 Table of Contents Three and six months ended March 31, 2026 and 2025 Overview The following is an overview of results from operations for the three and six months ended March 31, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ Six Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Revenue ​ $ 93,173,442 ​ $ 76,679,151 ​ $ 207,285,642 ​ $ 177,325,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of revenue ​ 82,941,106 ​ 76,601,291 ​ 183,059,514 ​ 166,983,823 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ 10,232,336 ​ 77,860 ​ 24,226,128 ​ 10,341,442 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling and administrative expenses ​ 9,173,925 ​ 8,170,087 ​ 18,254,952 ​ 16,787,708 Income (loss) from operations ​ 1,058,411 ​ (8,092,227) ​ 5,971,176 ​ (6,446,266) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other (expense) income ​ ​ ​ ​ ​ ​ ​ ​ Other nonoperating expense ​ ​ (94,224) ​ ​ (20,616) ​ ​ (196,865) ​ ​ (68,878) Interest expense ​ (621,835) ​ (875,770) ​ (1,611,686) ​ (1,359,488) Gain on sale of equipment ​ 69,993 ​ (16,540) ​ 88,749 ​ 179,242 ​ ​ (646,066) ​ (912,926) ​ (1,719,802) ​ (1,249,124) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ 412,345 ​ (9,005,153) ​ 4,251,374 ​ (7,695,390) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense (benefit) ​ 196,797 ​ (2,206,735) ​ 1,330,345 ​ (1,750,705) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ ​ 215,548 ​ ​ (6,798,418) ​ ​ 2,921,029 ​ ​ (5,944,685) ​ Results of Operations for the Three and Six Months Ended March 31, 2026 Compared to the Three and Six Months Ended March 31, 2025 Revenues. The following table compares the Company’s revenues for the three and six months ended March 31, 2026 to the corresponding periods in 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ % of total ​ ​ ​ March 31, 2025 ​ ​ ​ % of total ​ ​ ​ Change ​ ​ ​ % Change Gas & Water Distribution ​ $ 31,337,808 ​ 33.6 % $ 27,101,115 ​ 35.3 % ​ 4,236,693 15.6 % Gas & Petroleum Transmission ​ 11,022,592 ​ 11.8 % 3,395,058 ​ 4.4 % ​ 7,627,534 224.7 % Electrical, Mechanical, & General ​ 50,813,042 ​ 54.6 % 46,182,978 ​ 60.3 % ​ 4,630,064 10.0 % Total ​ $ 93,173,442 ​ 100.0 % $ 76,679,151 ​ 100.0 % ​ 16,494,291 21.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ % of total ​ March 31, 2025 ​ % of total ​ Change ​ % Change ​ Gas & Water Distribution ​ $ 71,948,076 ​ 34.7 % $ 58,401,124 ​ 32.9 % $ 13,546,952 23.2 % Gas & Petroleum Transmission ​ 35,148,816 ​ 17.0 % 21,851,275 ​ 12.3 % 13,297,541 60.9 % Electrical, Mechanical, & General ​ 100,188,750 ​ 48.3 % 97,072,866 ​ 54.8 % ​ 3,115,884 3.2 % Total ​ $ 207,285,642 ​ 100.0 % $ 177,325,265 ​ 100.0 % $ 29,960,377 16.9 % ​ Total revenues increased by $16.5 million to $93.2 million for the three months ended March 31, 2026, compared to $76.7 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, total revenues increased by $30.0 million to $207.3 million, compared to $177.3 million for the same period in 2025. These increases were driven by higher revenues across all business lines during the three- and six-month periods ended March 31, 2026, compared to the corresponding periods in 2025. 30 Table of Contents Gas & Water Distribution revenues were $31.3 million for the three months ended March 31, 2026, an increase of $4.2 million from $27.1 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, revenues were $71.9 million, an increase of $13.5 million from $58.4 million for the same period in 2025. These increases were primarily attributable to higher levels of water distribution services performed during the 2026 periods. Gas & Petroleum Transmission revenues were $11.0 million for the three months ended March 31, 2026, an increase of $7.6 million from $3.4 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, revenues were $35.1 million, an increase of $13.3 million from $21.9 million for the same period in 2025. These increases were primarily due to new transmission projects awarded in the first quarter of fiscal 2026, as well as the timing of project execution, with most transmission work in fiscal 2025 commencing in the third fiscal quarter. Electrical, Mechanical, & General Construction Services revenues were $50.8 million for the three months ended March 31, 2026, an increase of $4.6 million from $46.2 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, revenues were $100.2 million, an increase of $3.1 million from $97.1 million for the same period in 2025. These increases were primarily attributable to higher levels of electrical services performed during the 2026 periods. Cost of Revenues. The following table compares the Company’s cost of revenues for the three and six months ended March 31, 2026 to the corresponding periods in 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ ​ ​ ​ ​ March 31, 2025 ​ ​ ​ % of total ​ ​ ​ Change ​ ​ ​ % Change Gas & Water Distribution ​ $ 28,973,961 ​ 34.9 % $ 28,012,217 ​ 36.6 % $ 961,744 3.4 % Gas & Petroleum Transmission ​ 8,511,055 ​ 10.3 % 4,600,615 ​ 6.0 % 3,910,440 85.0 % Electrical, Mechanical, & General ​ 43,662,087 ​ 52.6 % 42,429,570 ​ 55.4 % 1,232,517 2.9 % Unallocated Shop Expenses ​ 1,794,003 ​ 2.2 % 1,558,889 ​ 2.0 % 235,114 15.1 % Total ​ $ 82,941,106 ​ 100.0 % $ 76,601,291 ​ 100.0 % $ 6,339,815 8.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ March 31, 2025 ​ % of total ​ Change ​ % Change ​ Gas & Water Distribution ​ $ 63,064,239 ​ 34.5 % $ 54,148,720 ​ 32.4 % $ 8,915,519 16.5 % Gas & Petroleum Transmission ​ 28,789,076 ​ 15.7 % 22,122,552 ​ 13.2 % 6,666,524 30.1 % Electrical, Mechanical, & General ​ 88,167,808 ​ 48.1 % 88,479,574 ​ 53.1 % (311,766) (0.4) % Unallocated Shop Expenses ​ 3,038,391 ​ 1.7 % 2,232,977 ​ 1.3 % 805,414 36.1 % Total ​ $ 183,059,514 ​ 100.0 % $ 166,983,823 ​ 100.0 % $ 16,075,691 9.6 % ​ Total cost of revenues increased by $6.3 million to $82.9 million for the three months ended March 31, 2026, compared to $76.6 million for the three months ended March 31, 2025. For the six months ended March 31, 2026, total cost of revenues increased by $16.1 million to $183.1 million, compared to $167.0 million for the same period in 2025. These increases were primarily attributable to higher levels of work across all business lines during the 2026 periods, partially offset by a $312,000 decrease in cost of revenues for Electrical, Mechanical, and General Construction Services for the six months ended March 31, 2026. Gas & Water Distribution cost of revenues was $29.0 million for the three months ended March 31, 2026, an increase of $962,000 from $28.0 million for the prior-year period. For the six months ended March 31, 2026, cost of revenues was $63.1 million, an increase of $8.9 million from $54.1 million for the same period in 2025. These increases were primarily attributable to higher levels of water distribution activity. Gas & Petroleum Transmission cost of revenues was $8.5 million for the three months ended March 31, 2026, an increase of $3.9 million from $4.6 million for the prior-year period. For the six months ended March 31, 2026, cost of revenues was $28.8 million, an increase of $6.7 million from $22.1 million for the same period in 2025. These increases were primarily due to new transmission projects awarded in the first quarter of fiscal 2026 and the timing of project execution, as most transmission work in fiscal 2025 commenced in the third fiscal quarter. Electrical, Mechanical, & General Construction Services cost of revenues was $43.7 million for the three months ended March 31, 2026, an increase of $1.2 million from $42.4 million for the prior-year period. For the six months ended March 31, 2026, cost of revenues was $88.2 million, a decrease of $312,000 from $88.5 million for the same period in 2025. While activity levels increased, the 31 Table of Contents Company achieved improved margins during the 2026 periods, resulting in a modest decrease in cost of revenues for the current six-month period. Unallocated shop expenses were $1.8 million for the three months ended March 31, 2026, an increase of $235,000 from $1.6 million for the prior-year period. For the six months ended March 31, 2026, unallocated shop expenses were $3.0 million, an increase of $805,000 from $2.2 million for the same period in 2025. The increase in the 2026 periods was primarily due to higher depreciation, insurance, and equipment repair costs, without a corresponding increase in internal equipment charges to projects during the 2026 periods. Gross Profit (Loss) . The following table compares the Company’s gross profit for the three and six months ended March 31, 2026 to the corresponding periods in 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ % of revenue ​ ​ ​ March 31, 2025 ​ ​ ​ % of revenue ​ ​ ​ Change ​ ​ ​ Pct. Gas & Water Distribution ​ $ 2,363,847 ​ 7.54 % $ (911,102) ​ (3.36) % $ 3,274,949 ​ 359.4 % Gas & Petroleum Transmission ​ 2,511,537 ​ 22.79 % (1,205,557) ​ (35.51) % 3,717,094 ​ 308.3 % Electrical, Mechanical, & General ​ 7,150,955 ​ 14.07 % 3,753,408 ​ 8.13 % 3,397,547 ​ 90.5 % Unallocated Shop Expense ​ (1,794,003) ​ ​ ​ (1,558,889) ​ ​ ​ (235,114) ​ 15.1 % Total ​ $ 10,232,336 ​ 11.0 % $ 77,860 ​ 0.1 % $ 10,154,476 ​ 13042.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ % of revenue ​ ​ ​ March 31, 2025 ​ ​ ​ % of revenue ​ ​ ​ Change ​ ​ ​ % Change Gas & Water Distribution ​ $ 8,883,837 ​ 12.35 % $ 4,252,404 ​ 7.28 % $ 4,631,433 ​ 108.9 % Gas & Petroleum Transmission ​ 6,359,740 ​ 18.09 % (271,277) ​ (1.24) % 6,631,017 ​ 2,444.4 % Electrical, Mechanical, & General ​ 12,020,942 ​ 12.00 % 8,593,292 ​ 8.85 % 3,427,650 ​ 39.9 % Unallocated Shop Expense ​ (3,038,391) ​ ​ ​ (2,232,977) ​ ​ ​ (805,414) ​ 36.1 % Total ​ $ 24,226,128 ​ 11.7 % $ 10,341,442 ​ 5.8 % $ 13,884,686 ​ 134.3 % ​ Total gross profit increased by $10.1 million to $10.2 million for the three months ended March 31, 2026, compared to $78,000 for the three months ended March 31, 2025. For the six months ended March 31, 2026, total gross profit increased by $13.9 million to $24.2 million, compared to $10.3 million for the same period in 2025. These increases were primarily attributable to higher activity levels and improved profitability across all business lines, partially offset by higher unallocated shop expenses during the 2026 periods. Gas & Water Distribution gross profit was $2.4 million for the three months ended March 31, 2026, an increase of $3.3 million from a gross loss of $911,000 for the prior-year period. For the six months ended March 31, 2026, gross profit was $8.9 million, an increase of $4.6 million from $4.3 million for the same period in 2025. These increases were primarily attributable to higher levels of water distribution activity and improved project profitability. Gas & Petroleum Transmission gross profit was $2.5 million for the three months ended March 31, 2026, an increase of $3.7 million from a gross loss of $1.2 million for the prior-year period. For the six months ended March 31, 2026, gross profit was $6.4 million, an increase of $6.6 million from a gross loss of $271,000 for the same period in 2025. These increases were primarily due to transmission projects awarded in the first and second quarters of fiscal 2026, as well as improved profitability and project execution. Electrical, Mechanical, & General Construction Services gross profit was $7.2 million for the three months ended March 31, 2026, an increase of $3.4 million from $3.8 million for the prior-year period. For the six months ended March 31, 2026, gross profit was $12.0 million, an increase of $3.4 million from $8.6 million for the same period in 2025. These increases were primarily attributable to improved margins on relatively consistent levels of work performed. Gross loss attributable to unallocated shop expenses was $1.8 million for the three months ended March 31, 2026, an increase of $235,000 from $1.6 million for the prior-year period. For the six months ended March 31, 2026, gross loss attributable to unallocated shop expenses was $3.0 million, an increase of $805,000 from $2.2 million for the same period in 2025. The increase in the 2026 periods was primarily due to higher depreciation, insurance, and equipment repair costs, without a corresponding increase in internal equipment charges to projects during the 2026 periods. Selling and administrative expenses . Total selling and administrative expenses increased by $1.0 million to $9.2 million for the three months ended March 31, 2026, compared to $8.2 million for the same period in 2025. For the six months ended March 31, 2026, 32 Table of Contents total selling and administrative expenses increased by $1.5 million to $18.3 million, compared to $16.8 million for the same period in 2025. These increases were primarily attributable to higher labor and related burden costs associated with the Company’s growth. Other non-operating expense . Other non-operating expenses were $94,000 for the three months ended March 31, 2026, compared to $21,000 for the same period in 2025. For the six months ended March 31, 2026, other non-operating expenses were $197,000, compared to $69,000 for the same period in 2025. The increases were primarily attributable to amortization of intangible assets associated with an acquisition completed on September 30, 2025. Interest expense . Interest expense was $622,000 for the three months ended March 31, 2026, a decrease of $254,000 from $876,000 for the same period in 2025. This decrease was primarily attributable to lower interest expense on line of credit borrowings and the repayment of other long-term debt using proceeds from an equity raise completed in February 2026. For the six months ended March 31, 2026, interest expense was $1.6 million, an increase of $252,000 from $1.4 million for the same period in 2025. This increase was primarily attributable to higher average borrowings on the Company’s line of credit during the three months ended December 31, 2025, compared to the corresponding period in the prior fiscal year. Gain on sale of equipment . Gain on sale of equipment was $70,000 for the three months ended March 31, 2026, an increase of $87,000 from a loss of $17,000 for the same period in the prior year. For the six months ended March 31, 2026, gain on sale of equipment was $89,000, a decrease of $90,000 from $179,000 for the same period in the prior year. The Company periodically sells underutilized or non-operating equipment as part of its asset management practices. As a result, gains and losses on such sales may vary from period to period. Net income (loss) . Income (loss) before income taxes was $412,000 for the three months ended March 31, 2026, compared to a loss of $9.0 million for the same period in the prior year. For the six months ended March 31, 2026, income before income taxes was $4.3 million, compared to a loss of $7.7 million for the same period in the prior year. These increases were primarily attributable to the factors discussed above. Income tax expense was $197,000 for the three months ended March 31, 2026, compared to an income tax benefit of $2.2 million for the same period in the prior year. For the six months ended March 31, 2026, income tax expense was $1.3 million, compared to an income tax benefit of $1.8 million for the same period in the prior year. The increase in income tax expense was primarily due to higher pre-tax income during the 2026 periods. Net income was $216,000 for the three months ended March 31, 2026, compared to a net loss of $6.8 million for the same period in the prior year. For the six months ended March 31, 2026, net income was $2.9 million, compared to a net loss of $5.9 million for the same period in the prior year. ​ 33 Table of Contents 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Three Months Ended March 31, 2026 ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ $ 46,269,524 ​ $ 36,397,052 ​ $ 10,506,866 ​ $ 93,173,442 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment direct operating expenses (excluding depreciation) ​ 39,322,151 ​ 30,761,593 ​ 9,605,535 ​ ​ 79,689,279 ​ Direct depreciation expense ​ ​ 2,586,777 ​ ​ 665,050 ​ ​ — ​ ​ 3,251,827 ​ Segment gross profit ​ ​ 4,360,596 ​ ​ 4,970,409 ​ ​ 901,331 ​ ​ 10,232,336 ​ Segment gross profit percentage ​ ​ 9.4 % ​ 13.7 % ​ 8.6 % ​ 11.0 % Selling, general, and administrative expenses ​ ​ 5,153,550 ​ ​ 1,031,731 ​ ​ 1,085,811 ​ ​ 7,271,092 ​ Indirect depreciation expense ​ ​ — ​ ​ — ​ ​ 116,552 ​ ​ 116,552 ​ Intangible asset amortization expenses ​ ​ 229,683 ​ ​ 54,720 ​ ​ — ​ ​ 284,403 ​ Segment indirect operating expenses ​ ​ 5,383,233 ​ ​ 1,086,451 ​ ​ 1,202,363 ​ ​ 7,672,047 ​ Segment income from operations ​ ​ (1,022,637) ​ ​ 3,883,958 ​ ​ (301,032) ​ ​ 2,560,289 ​ Segment operating margin percentage ​ ​ (2.2) % ​ 10.7 % ​ (2.9) % ​ 2.7 % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,498,199 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,679 ​ Total consolidated income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,058,411 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ $ 32,544,499 ​ $ 32,694,332 ​ $ 11,440,320 ​ $ 76,679,151 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment direct operating expenses (excluding depreciation) ​ 34,472,373 ​ 29,345,599 ​ 9,852,195 ​ ​ 73,670,167 ​ Direct depreciation expense ​ ​ 2,299,065 ​ ​ 632,059 ​ ​ — ​ ​ 2,931,124 ​ Segment gross (loss) profit ​ ​ (4,226,939) ​ ​ 2,716,674 ​ ​ 1,588,125 ​ ​ 77,860 ​ Segment gross profit percentage ​ ​ (13.0) % ​ 8.3 % ​ 13.9 % ​ 0.1 % Selling, general, and administrative expenses ​ ​ 4,780,036 ​ ​ 980,765 ​ ​ 795,810 ​ ​ 6,556,611 ​ Indirect depreciation expense ​ ​ — ​ ​ — ​ ​ 84,953 ​ ​ 84,953 ​ Intangible asset amortization expenses ​ ​ 141,476 ​ ​ — ​ ​ — ​ ​ 141,476 ​ Segment indirect operating expenses ​ ​ 4,921,512 ​ ​ 980,765 ​ ​ 880,763 ​ ​ 6,783,040 ​ Segment (loss) income from operations ​ ​ (9,148,451) ​ ​ 1,735,909 ​ ​ 707,362 ​ ​ (6,705,180) ​ Segment operating margin percentage ​ ​ (28.1) % ​ 5.3 % ​ 6.2 % ​ (8.7) % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,384,859 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,188 ​ Total consolidated (loss) income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ (8,092,227) ​ ​ ​ 34 Table of Contents Variance Between Three Months Ended March 31, 2026 and 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ ​ ​ Industrial ​ ​ ​ Building ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ $ 13,725,025 ​ ​ ​ 42.2 % $ 3,702,720 ​ ​ ​ 11.3 % $ (933,454) ​ (8.2) % $ 16,494,291 ​ 21.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment direct operating expenses (excluding depreciation) ​ 4,849,778 14.1 % 1,415,994 4.8 % (246,660) ​ (2.5) % ​ 6,019,112 8.2 % Direct depreciation expense ​ ​ 287,712 12.5 % ​ 32,991 5.2 % ​ — ​ 0.0 % ​ 320,703 10.9 % Segment gross profit ​ ​ 8,587,535 (203.2) % ​ 2,253,735 83.0 % ​ (686,794) ​ (43.2) % ​ 10,154,476 13042.0 % Segment gross profit percentage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general, and administrative expenses ​ ​ 373,514 7.8 % ​ 50,966 5.2 % ​ 290,001 ​ 36.4 % ​ 714,481 10.9 % Indirect depreciation expense ​ ​ — ​ 0.0 % ​ — ​ 0.0 % ​ 31,599 ​ 0.0 % ​ 31,599 ​ 0.0 % Intangible asset amortization expenses ​ ​ 88,207 ​ 62.3 % ​ 54,720 ​ 0.0 % ​ — ​ 0.0 % ​ 142,927 ​ 101.0 % Segment indirect operating expenses ​ ​ 461,721 ​ 9.4 % ​ 105,686 ​ 10.8 % ​ 321,600 ​ 36.5 % ​ 889,007 ​ 13.1 % Segment income from operations ​ ​ 8,125,814 ​ (88.8) % ​ 2,148,049 ​ 123.7 % ​ (1,008,394) ​ (142.6) % ​ 9,265,469 ​ (138.2) % Segment operating margin percentage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 113,340 8.2 % Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,491 68.1 % Total consolidated income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 9,150,638 113.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Six Months Ended March 31, 2026 ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ $ 115,446,608 ​ $ 70,143,499 ​ $ 21,695,535 ​ $ 207,285,642 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment direct operating expenses (excluding depreciation) ​ 96,249,127 ​ 61,147,179 ​ 19,168,989 ​ ​ 176,565,295 ​ Direct depreciation expense ​ ​ 5,187,271 ​ ​ 1,306,948 ​ ​ — ​ ​ 6,494,219 ​ Segment gross profit ​ ​ 14,010,210 ​ ​ 7,689,372 ​ ​ 2,526,546 ​ ​ 24,226,128 ​ Segment gross profit percentage ​ ​ 12.1 % ​ 11.0 % ​ 11.6 % ​ 11.7 % Selling, general, and administrative expenses ​ ​ 9,950,564 ​ ​ 2,135,677 ​ ​ 2,101,481 ​ ​ 14,187,722 ​ Indirect depreciation expense ​ ​ — ​ ​ — ​ ​ 225,274 ​ ​ 225,274 ​ Intangible asset amortization expenses ​ ​ 580,905 ​ ​ 109,440 ​ ​ — ​ ​ 690,345 ​ Segment indirect operating expenses ​ ​ 10,531,469 ​ ​ 2,245,117 ​ ​ 2,326,755 ​ ​ 15,103,341 ​ Segment income from operations ​ ​ 3,478,741 ​ ​ 5,444,255 ​ ​ 199,791 ​ ​ 9,122,787 ​ Segment operating margin percentage ​ ​ 3.0 % ​ 7.8 % ​ 0.9 % ​ 4.4 % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,146,338 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5,273 ​ Total consolidated income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 5,971,176 ​ ​ ​ 35 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ Industrial ​ Building ​ ​ ​ ​ Six Months Ended March 31, 2025 ​ Construction ​ ​ ​ Construction ​ ​ ​ Construction ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ $ 85,364,645 ​ $ 68,090,845 ​ $ 23,869,775 ​ $ 177,325,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment direct operating expenses (excluding depreciation) ​ 79,518,142 ​ 61,216,519 ​ 20,833,716 ​ ​ 161,568,377 ​ Direct depreciation expense ​ ​ 4,141,479 ​ ​ 1,273,967 ​ ​ — ​ ​ 5,415,446 ​ Segment gross profit ​ ​ 1,705,024 ​ ​ 5,600,359 ​ ​ 3,036,059 ​ ​ 10,341,442 ​ Segment gross profit percentage ​ ​ 2.0 % ​ 8.2 % ​ 12.7 % ​ 5.8 % Selling, general, and administrative expenses ​ ​ 9,539,485 ​ ​ 1,964,158 ​ ​ 1,577,621 ​ ​ 13,081,264 ​ Indirect depreciation expense ​ ​ — ​ ​ — ​ ​ 167,439 ​ ​ 167,439 ​ Intangible asset amortization expenses ​ ​ 266,285 ​ ​ — ​ ​ — ​ ​ 266,285 ​ Segment indirect operating expenses ​ ​ 9,805,770 ​ ​ 1,964,158 ​ ​ 1,745,060 ​ ​ 13,514,988 ​ Segment (loss) income from operations ​ ​ (8,100,746) ​ ​ 3,636,201 ​ ​ 1,290,999 ​ ​ (3,173,546) ​ Segment operating margin percentage ​ ​ (9.5) % ​ 5.3 % ​ 5.4 % ​ (1.8) % Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,269,375 ​ Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,345 ​ Total consolidated (loss) income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ (6,446,266) ​ ​ Variance Between Six Months Ended March 31, 2026 and 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Underground ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Infrastructure ​ ​ ​ Industrial ​ ​ ​ Building ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ $ 30,081,963 ​ ​ ​ 35.2 % $ 2,052,654 ​ ​ ​ 3.0 % $ (2,174,240) ​ (9.1) % $ 29,960,377 ​ 16.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment direct operating expenses (excluding depreciation) ​ 16,730,985 21.0 % (69,340) (0.1) % (1,664,727) ​ (8.0) % ​ 14,996,918 9.3 % Direct depreciation expense ​ ​ 1,045,792 25.3 % ​ 32,981 2.6 % ​ — ​ 0.0 % ​ 1,078,773 19.9 % Segment gross profit ​ ​ 12,305,186 721.7 % ​ 2,089,013 37.3 % ​ (509,513) ​ (16.8) % ​ 13,884,686 134.3 % Segment gross profit percentage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general, and administrative expenses ​ ​ 411,079 4.3 % ​ 171,519 8.7 % ​ 523,860 ​ 33.2 % ​ 1,106,458 8.5 % Indirect depreciation expense ​ ​ — ​ 0.0 % ​ — ​ 0.0 % ​ 57,835 ​ 34.5 % ​ 57,835 ​ 34.5 % Intangible asset amortization expenses ​ ​ 314,620 ​ 118.2 % ​ 109,440 ​ 0.0 % ​ — ​ 0.0 % ​ 424,060 ​ 159.3 % Segment indirect operating expenses ​ ​ 725,699 ​ 7.4 % ​ 280,959 ​ 14.3 % ​ 581,695 ​ 33.3 % ​ 1,588,353 ​ 11.8 % Segment income from operations ​ ​ 11,579,487 ​ (142.9) % ​ 1,808,054 ​ 49.7 % ​ (1,091,208) ​ (84.5) % ​ 12,296,333 ​ (387.5) % Segment operating margin percentage ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and non-allocated costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (123,037) (3.8) % Corporate depreciation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,928 57.6 % Total consolidated income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 12,417,442 (192.6) % ​ Underground Infrastructure Construction Revenues. The $13.7 million and $30.0 million increases in revenues for the three and six months ended March 31, 2026 as compared to the same periods in 2025 were primarily due to the Company’s focus on growing its natural gas and water distribution business lines. Additionally, natural gas transmission projects started earlier in fiscal year 2026 as compared to fiscal year 2025. Income from operations. The $8.1 million and $11.6 million increases in income from operations for the three and six months ended March 31, 2026 as compared to the same period in 2025 were primarily due to an increased volume of work and profitability from underground infrastructure projects. Industrial Construction Revenues. The $3.7 million and $2.1 million increases in revenues for the three and six months ended March 31, 2026 as compared to the same periods in 2025 were primarily due to an increase in the amount of electrical and mechanical work performed. 36 Table of Contents Income from operations. The $2.1 million and $1.8 million increases in income from operations for the three and six months ended March 31, 2026 as compared to the same period in 2025 were primarily due to an increase in industrial work and an increase in profitability. Building Construction Revenues. The $933,000 and $2.2 million decreases in revenues for the three and six months ended March 31, 2026 as compared to the same period in 2025 were primarily due to winding down work on substantially complete projects while bidding on potential new projects with projected start dates in the Company’s third quarter of fiscal year 2026. Income from operations. The $1.0 million and $1.1 million decreases in income from operations for the three and six months ended March 31, 2026 as compared to the same period in 2025 were primarily due to the decreased volume of work completed in the Company’s first quarter of fiscal year 2026. Corporate and Non-Allocated Costs Corporate and Non-Allocated Costs increased by $113,000 for the three months ended March 31, 2026 and decreased by $123,000 for the six months ended March 31, 2026, respectively, as compared to the same periods in 2025. The variances are attributed to various factors; however, the Company has added additional safety and risk management personnel at the corporate level. 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 March 31, 2026 and September 30, 2025 The Company had total assets of $193.9 million at March 31, 2026, a decrease of $21.3 million from $215.2 million at September 30, 2025. Accounts receivable, net of allowance for credit losses, totaled $60.1 million at March 31, 2026, a decrease of $16.0 million from $76.0 million at September 30, 2025. The decrease was primarily due to the timing of cash collections and project billings since September 30, 2025. Contract assets totaled $26.8 million at March 31, 2026, a decrease of $7.7 million from $34.5 million at September 30, 2025. The decrease was due to the timing of project billing activity at March 31, 2026 compared to September 30, 2025. Cash and cash equivalents totaled $10.1 million at March 31, 2026, a decrease of $2.1 million from $12.2 million at September 30, 2025. The decrease was primarily due to $19.1 million used in financing activities and $5.4 million used for net investment in equipment, partially offset by $22.5 million of cash provided by operating activities. Intangible assets, net totaled $4.2 million at March 31, 2026, a decrease of $690,000 from $4.9 million at September 30, 2025. The decrease was primarily due to amortization of intangible assets during the period. Retainage receivable totaled $18.6 million at March 31, 2026, an increase of $2.6 million from $16.0 million at September 30, 2025. The increase was primarily due to the timing of retention billings and increased project activity during the period. Prepaid expenses and other totaled $6.4 million at March 31, 2026, an increase of $1.4 million from $5.0 million at September 30, 2025. The increase was primarily due to insurance premium payments, partially offset by insurance expense recognized during the six months ended March 31, 2026. Net property, plant and equipment totaled $54.2 million at March 31, 2026, an increase of $708,000 from $53.5 million at September 30, 2025. The increase reflected $7.6 million of equipment acquisitions, partially offset by $6.7 million of depreciation expense and $214,000 of net equipment disposals. 37 Table of Contents Right-of-use assets totaled $2.4 million at March 31, 2026, an increase of $339,000 from $2.1 million at September 30, 2025. The increase was primarily due to $940,000 in additions from new operating lease agreements, partially offset by $600,000 of amortization of right-of-use assets during the period. Other receivables totaled $1.2 million at March 31, 2026, an increase of $137,000 from $1.1 million at September 30, 2025. The increase was primarily due to an expected insurance premium refund. Goodwill totaled $9.9 million at March 31, 2026, unchanged from September 30, 2025. The Company had total liabilities of $112.4 million at March 31, 2026, a decrease of $43.6 million from $156.0 million at September 30, 2025. The aggregate balance of current maturities of long-term debt and long-term debt was $24.7 million at March 31, 2026, a decrease of $37.1 million from $61.8 million at September 30, 2025. The decrease was primarily due to $14.3 million in principal repayments on long-term debt and $24.8 million in repayments on the operating line of credit, partially offset by $1.9 million in new equipment financing. Accounts payable totaled $21.3 million at March 31, 2026, a decrease of $9.4 million from $30.7 million at September 30, 2025. The decrease was primarily due to the timing of vendor payments. Contract liabilities totaled $29.5 million at March 31, 2026, an increase of $1.2 million from $28.3 million at September 30, 2025. The increase was due to the timing of project billing activity. Accrued expenses and other current liabilities totaled $16.2 million at March 31, 2026, an increase of $234,000 from $15.9 million at September 30, 2025. The increase was primarily due to the timing of accrued expense payments. Deferred tax liabilities totaled $7.9 million at March 31, 2026, an increase of $1.2 million from $6.8 million at September 30, 2025. This increase was primarily attributable to a $450,000 increase in deferred tax liabilities related to timing differences between book and tax depreciation, a $188,000 decrease in federal and state net operating loss carryforwards, and a $524,000 decrease in other deferred tax assets. Current and long-term operating lease liabilities totaled $2.4 million at March 31, 2026, an increase of $342,000 from $2.0 million at September 30, 2025. The increase was primarily due to $937,000 in new operating lease additions, partially offset by $686,000 in lease payments during the period. Lines of credit and short-term borrowings totaled $10.5 million at March 31, 2026, an increase of $50,000 from September 30, 2025. The increase was due to accrued interest on PPP loans. Refer to Note 3, “Accounting for PPP Loans,” in the accompanying consolidated financial statements for additional information. Shareholders’ equity was $81.5 million at March 31, 2026, an increase of $22.3 million from $59.2 million at September 30, 2025. The increase was primarily due to $21.2 million in net proceeds from an equity raise and net income of $2.9 million for the six months ended March 31, 2026, partially offset by $848,000 in share repurchases and $1.1 million in declared dividends. Liquidity and Capital Resources Equity Raise On February 18, 2026, The Company entered into an underwriting agreement (the “Underwriting Agreement”) with Lake Street Capital Markets, LLC (the “Underwriter”). Pursuant to the Underwriting Agreement, the Company agreed to issue and sell, and the Underwriter agreed to purchase, subject to the terms and conditions therein, 1,740,000 shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”), in a registered public offering pursuant to an effective shelf registration statement on Form S-3 (File No. 333-280025) and related prospectus, including the prospectus supplement filed with the Securities and Exchange Commission (the “Offering”). The Company also granted the Underwriter a 30-day option to purchase up to an additional 261,000 shares of Common Stock. 38 Table of Contents The Offering closed on February 20, 2026, with the Underwriter purchasing 1,740,000 shares of Common Stock at a public offering price of $11.50 per share. Net proceeds to the Company were approximately $18.4 million, after deducting underwriting discounts and commissions and estimated offering expenses. On February 24, 2026, the Underwriter exercised its overallotment option and purchased an additional 261,000 shares of Common Stock at the public offering price of $11.50 per share. Net proceeds from the exercise of the option were approximately $2.8 million, after deducting underwriting discounts and commissions but before deducting other offering expenses payable by the Company. The Company intends to use the net proceeds from the Offering for strategic growth initiatives, working capital needs, and general corporate purposes. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ September 30, 2025 Eligible borrowing base ​ $ 18,196,189 ​ $ 27,657,997 ​ ​ ​ ​ ​ ​ ​ ​ ​ Borrowings on line of credit ​ — ​ 24,750,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ Line of credit balance available ​ $ 18,196,189 ​ $ 2,907,997 ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate ​ 6.75 % 7.50 % ​ The Company did not have any line of credit borrowings at March 31, 2026. The Company’s $24.8 million line of credit borrowings are recorded as a long-term debt as of September 30, 2025. The financial covenants required by the Company’s lender are below: ● Minimum tangible net worth of $28.0 million, ● Minimum traditional debt service coverage of 1.50x on a rolling twelve- month basis, ● Minimum current ratio of 1.20x, ● Maximum debt to tangible net worth ratio (“TNW”) of 2.75x, ● Each ratio and covenant shall be determined, tested, and measured as of each calendar quarter beginning June 30, 2023, ● The Company shall maintain a ratio of Maximum Senior Funded Debt (“SFD”) to Earnings before Interest, Taxes, Depreciation and Amortization (“EBDITA”) equal to or less than 3.5:1. SFD shall mean any funded debt or lease of the Company, other than subordinated debt. The covenant shall be tested quarterly, at the end of each fiscal quarter, with EBITDA based on the preceding four quarters. The Company’s lender has agreed to omit the effect of the PPP loan restatement from the Company’s covenant compliance calculations while a final decision on PPP loan forgiveness remains in question. The Company was in compliance with all covenants at March 31, 2026. The Company is projected to meet all covenant requirements for the next twelve months. Paycheck Protection Program Loans Due to the economic uncertainties created by COVID-19 and limited operating funds available, the Company applied for loans under the PPP. On April 15, 2020, the Company and its subsidiaries, C.J. Hughes, Contractors Rental and Nitro, entered into separate PPP notes effective April 7, 2020, with its Lender in an aggregate principal amount of $13.1 million pursuant to the PPP Loans. In a special meeting held on April 27, 2020, the Board of Directors of the Company unanimously voted to return $3.3 million of the PPP Loans after discussing the financing needs of the Company and subsidiaries. That left the Company and subsidiaries with $9.8 million in PPP Loans to fund operations. During fiscal year 2021, the Company received notice that the SBA had granted forgiveness of the $9.8 million of PPP Loans and the SBA repaid the Lender in full. The forgiveness was recorded as other income for the fiscal year ended September 30, 2021. 39 Table of Contents During April 2023, management received notification from the SBA that one of the Company’s forgiveness applications related to the PPP Loans was under review. As part of the review, the SBA requested additional payroll information. Additionally, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. The Company recognizes that there is a possibility that the SBA could reverse its previous determination on the forgiveness of the PPP Loans. As a result of this uncertainty, the Company restated the previously audited financial statements of the Company for the fiscal years 2022 and 2021. The Company has recorded a short-term borrowing due to the SBA inquiry for the full $9.8 million, plus accrued interest. During July 2023, management received notification from the SBA that two additional forgiveness applications related to the PPP Loans were under review. As part of the review, the SBA requested information regarding the ability of the Company’s affiliates to meet SBA size standards and/or PPP corporate maximum limits. The requested information was subsequently provided to the SBA through the Lender. As of March 31, 2026, 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. Long-Term Debt On March 16, 2014, the Company’s Nitro subsidiary entered into a $1.2 million, 20-year loan agreement with a bank to purchase an office building and property previously held under lease. The loan bears interest at 4.82% with monthly payments of $7,800. The interest rate is subject to periodic adjustment based on changes in the U.S. Treasury yield, adjusted to a constant maturity of three years, as published weekly by the Federal Reserve. As of March 31, 2026, the Company had made principal payments of $517,000. The loan is collateralized by the related building and is currently held by Peoples Bank, Inc. On March 31, 2020, West Virginia Pipeline Acquisition Company (subsequently renamed West Virginia Pipeline, Inc.) entered into a $3.0 million seller’s note agreement with David and Daniel Bolton for the remaining purchase price of the business. For purchase accounting purposes, the note had a fair value of $2.85 million. As part of the $6.35 million total acquisition price, the Company paid $3.5 million in cash in addition to the note. The unsecured five-year note required annual principal payments of at least $500,000 and bore interest at a fixed rate of 3.25% on the $3.0 million stated principal balance (approximately 5.35% on the carrying value). Final payment on this note was made in December 2025. On April 2, 2021, the Company entered into a $3.5 million non-revolving term note with United Bank. The proceeds were used to repay an outstanding line of credit utilized for the down payment on the West Virginia Pipeline acquisition. The loan required monthly payments of $64,853 and bore interest at a fixed rate of 4.25%. The loan was collateralized by the Company’s equipment and receivables. Final payment on this note was made in February 2026. On April 29, 2022, the Company entered into a $7.5 million non-revolving term note with United Bank to finance the acquisition of Tri-State Paving. The loan required monthly payments of $129,910 and bore interest at a fixed rate of 4.25%. Final payment on this note was made in February 2026. On April 29, 2022, the Company also entered into a $1.0 million promissory note with Corns Enterprises, a related party, as partial consideration for the acquisition of Tri-State Paving. David E. Corns served as President of the Company’s Tri-State Paving subsidiary until his retirement in May 2025. The note required annual principal payments of $250,000 beginning on the first anniversary of the agreement date, with interest on the outstanding balance at 3.5% per annum. As of March 31, 2026, $750,000 of principal had been repaid. Final payment on this note was made in April 2026. On October 10, 2022, the Company entered into a $3.1 million term note with United Bank to finance equipment acquired in the Ryan Construction acquisition. The loan required monthly payments of $60,000 and bore interest at a fixed rate of 6.0%. The loan was collateralized by equipment and receivables. Final payment on this note was made in February 2026. 40 Table of Contents On June 1, 2023, the Company entered into a $9.3 million non-revolving equipment line of credit with United Bank (“Equipment Line of Credit 2023”). The facility provided borrowing availability for six months at a fixed interest rate of 7.25%, after which all borrowings converted into a 54-month term note at the same fixed rate. The loan is collateralized by the related equipment purchases. As of March 31, 2026, the Company had borrowed $9.3 million under the facility and had repaid $4.4 million of principal. On August 8, 2024, the Company entered into a $5.0 million non-revolving equipment line of credit with United Bank. The facility provided borrowing availability for twelve months at a variable rate based on the Wall Street Journal Prime Rate (initially 8.5%). After twelve months, outstanding borrowings convert to a 48-month term loan bearing interest at a fixed rate equal to the U.S. Treasury Rate plus 2.75%. The loan is collateralized by the related equipment. As of March 31, 2026, the Company had borrowed $5.0 million and repaid $649,000 of principal. On December 2, 2024, the Company entered into a $16.0 million term loan with United Bank to finance the acquisition of Tribute. The six-year loan requires monthly payments of approximately $272,000 and bears interest at a fixed rate of 6.9%. As of March 31, 2026, the Company had repaid $7.8 million of principal. On September 30, 2025, the Company entered into a $500,000 seller’s note agreement with Joe and Cathy Rigney in connection with the acquisition of Rigney Digital Systems Ltd. For purchase accounting purposes, the note had a fair value of $461,000. As part of the $4.6 million total acquisition price, the Company paid $3.0 million in cash and issued $1.0 million in common stock. The unsecured five-year note requires a $500,000 payment at maturity and bears interest at 5.0% on the stated principal amount (approximately 7.05% on the carrying value). As of March 31, 2026, the carrying value of the note was $465,000. Operating Leases The Company leases office space for SQP at a rate of $1,500 per month. The lease, originally executed on March 25, 2021, has a two-year base term with five one-year renewal options available following expiration of the base term. As of March 31, 2026, the Company has committed to a one-year renewal period and is evaluating the exercise of additional renewal options. The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC acquisition. The first lease, for the Hurricane, West Virginia facility, had a net present value of $236,000 at inception and a carrying value of $0 at March 31, 2026. The lease bears interest at 4.5%, based on the Company’s incremental borrowing rate at inception. The Company executed an amendment to extend the lease for one additional year following the expiration of the original term. As of March 31, 2026, the Company has committed to one renewal period and is evaluating additional renewals. The second 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 term with a net present value of $140,000 and had a carrying value of $17,000 at March 31, 2026. The lease bears interest at 8.5%, based on the Company’s incremental borrowing rate at inception. The Company has a right-of-use operating lease with Enterprise Fleet Management, acquired on August 11, 2022, as part of the Ryan Environmental acquisition. The master lease initially covered 31 vehicles with a net present value of $1.2 million. The Company subsequently added 58 additional vehicles under the arrangement. The lease had a carrying value of $1.8 million at March 31, 2026. Each vehicle under the master lease arrangement carries its own implicit rate. The Company has a right-of-use operating lease acquired on March 28, 2023 for the Winchester, Kentucky facility. The lease had a net present value of $290,000 at inception and a carrying value of $0 at March 31, 2026. The lease bears interest at 7.5%, based on the Company’s incremental borrowing rate at inception. The lease was renewed for a three-year term in April 2026. The Company has a right-of-use operating lease acquired on December 1, 2025 for the Columbus, Ohio facility. The lease had a net present value of $255,000 at inception and a carrying value of $236,000 at March 31, 2026. The lease bears interest at 6.75%, based on the Company’s incremental borrowing rate at inception. The Company has a right-of-use operating lease acquired on January 1, 2026 for the Oklahoma City, Oklahoma facility. The lease had a net present value of $208,000 at inception and a carrying value of $186,000 at March 31, 2026. The lease bears interest at 6.75%, based on the Company’s incremental borrowing rate at inception. 41 Table of Contents The Company also has a right-of-use operating lease acquired on January 1, 2026 for the Louisville, Kentucky facility. The lease had a net present value of $128,000 at inception and a carrying value of $128,000 at March 31, 2026. The lease bears interest at 6.75%, based on the Company’s incremental borrowing rate at inception. Lease payments do not commence until April 1, 2026. 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 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, were $4.8 million and $3.9 million for the three months ended March 31, 2026, and 2025, respectively, and $11.8 million and $9.0 million for the six months ended March 31, 2026 and 2025, respectively. 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 March 31, 2026, the Company did not have any letters of credit outstanding. Performance Bonds Some customers, particularly new ones or governmental agencies require the Company to post bid bonds, performance bonds and payment bonds (collectively, performance bonds). These performance bonds are obtained through insurance carriers and guarantee to the customer that we will perform under the terms of a contract and that we will pay subcontractors and vendors. If the Company fails to perform under a contract or to pay subcontractors and vendors, the customer may demand that the insurer make payments or provide services under the bond. The Company must reimburse the insurer for any expenses or outlays it is required to make. Currently, the Company has an agreement with a surety company to provide bonding which will suit the Company’s immediate needs. The ability to obtain bonding for future contracts is an important factor in the contracting industry with respect to the type and value of contracts that can be bid. Depending upon the size and conditions of a particular contract, the Company may be required to post letters of credit or other collateral in favor of the insurer. Posting these letters or other collateral will reduce our borrowing capabilities. The Company does not anticipate any claims in the foreseeable future. At March 31, 2026, the Company had $130.6 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. ​ 42 Table of Contents Please see the tables below for customers that represent 10.0% or more of the Company’s revenue for the three and six months ended March 31, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended Six Months Ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, ​ Revenue ​ ​ ​ 2026 ​ ​ ​ 2025 2026 ​ ​ ​ 2025 Customers 10.0% or greater * ​ * ​ * ​ * ​ All other ​ 100.0 % 100.0 % 100.0 % 100.0 % Total 100.0 % 100.0 % 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 March 31, 2026 and September 30, 2025: ​ ​ ​ ​ ​ ​ Accounts receivable, net of retention ​ ​ ​ at March 31, 2026 ​ ​ ​ at September 30, 2025 TransCanada Corporation ​ * ​ 13.9 % All other 100.0 % 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 March 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 and six months ended March 31, 2026 or 2025. Other than described above, at March 31, 2026, 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 March 31, 2026, 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 March 31, 2026. Final payment on this note was made in April 2026. 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 43 Table of Contents 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 March 31, 2026 and 2025, the rental amounts for these specific periods were $72,000, and $123,000, respectively. For the six months ended March 31, 2026 and 2025, the rental amounts for these specific periods were $218,000, and $176,000, respectively. Other than mentioned above, there were no new material related party transactions entered into during the three and six months ended March 31, 2026. 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 and six months ended March 31, 2026 and 2025. Critical Accounting Estimates The discussion and analysis of the Company’s financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. Management believes the following accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements. 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. 44 Table of Contents The accuracy of our revenue and profit recognition in a given period depends on the accuracy of our estimates of the cost to complete each project. We believe our experience allows us to create materially reliable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability. The most significant of these include: ● the completeness and accuracy of the original bid; ● costs associated with scope changes; ● changes in costs of labor and/or materials; ● extended overhead and other costs due to owner, weather and other delays; ● subcontractor performance issues; ● changes in productivity expectations; ● site conditions that differ from those assumed in the original bid; ● changes from original design on design-build projects; ● the availability and skill level of workers in the geographic location of the project; ● a change in the availability and proximity of equipment and materials; ● our ability to fully and promptly recover on affirmative claims and back charges for additional contract costs; and ● the customer’s ability to properly administer the contract. The foregoing factors, as well as the stage of completion of contracts in process and the mix of contracts at different margins may cause fluctuations in gross profit from period to period. Significant changes in cost estimates, particularly in our larger, more complex projects could have a significant effect on our profitability. Our contract assets include cost and estimated earnings in excess of billings that represent amounts earned and reimbursable under contracts, including claim recovery estimates, but have a conditional right for billing and payment such as achievement of milestones or completion of the project. With the exception of customer affirmative claims, generally, such unbilled amounts will become billable according to the contract terms and generally will be billed and collected over the next three months. Settlement with the customer of outstanding affirmative claims is dependent on the claims resolution process and could extend beyond one year. Based on our historical experience, we generally consider the collection risk related to billable amounts to be low. When events or conditions indicate that it is probable that the amounts outstanding become unbillable, the transaction price and associated contract asset is reduced. Our contract liabilities consist of provisions for losses and billings in excess of costs and estimated earnings. Provisions for losses are recognized in the consolidated statements of income at the uncompleted performance obligation level for the amount of total estimated losses in the period that evidence indicates that the estimated total cost of a performance obligation exceeds its estimated total revenue. Billings in excess of costs and estimated earnings are billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months. The following table presents our costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings at March 31, 2026 and September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ September 30, 2025 Costs incurred on contracts in progress ​ $ 478,785,961 ​ $ 471,208,654 Estimated earnings, net of estimated losses ​ 80,553,250 ​ 71,159,322 ​ ​ 559,339,211 ​ 542,367,976 Less billings to date ​ 562,039,778 ​ 536,231,730 ​ ​ $ (2,700,567) $ 6,136,246 ​ ​ ​ ​ ​ Costs and estimated earnings in excess of billed on uncompleted contracts ​ $ 26,773,714 ​ $ 34,455,011 ​ ​ ​ ​ ​ ​ ​ Less billings in excess of costs and estimated earnings on uncompleted contracts ​ 29,474,281 ​ 28,318,765 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ (2,700,567) ​ $ 6,136,246 ​ 45 Table of Contents Allowance for credit losses The Company provides an allowance for credit losses when collection of an account is considered doubtful. Inherent in the assessment of the allowance for credit losses 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 March 31, 2026, the management review deemed that the allowance for credit losses was adequate. Please see the allowance for credit losses table below as of and for the six months ended March 31, 2026 and as of fiscal year ended September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ 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 ​ (217,894) ​ (640,660) Balance at end of period ​ $ 303,722 ​ $ 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 March 31, 2026. Materially incorrect estimates could cause an impairment of goodwill or intangible assets and result in a loss in profitability for the Company. A table of the Company’s intangible assets subject to amortization at March 31, 2026 and September 30, 2025 is below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Accumulated ​ Amortization ​ Amortization ​ Amortization ​ Amortization ​ ​ ​ ​ ​ ​ ​ ​ Remaining Life ​ ​ ​ ​ Amortization ​ Amortization ​ and Impairment ​ and Impairment ​ and Impairment ​ and Impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in months) at ​ ​ ​ ​ ​ ​ ​ ​ and Impairment ​ ​ ​ and Impairment ​ ​ ​ Three Months ​ ​ ​ Three Months ​ ​ ​ Six Months ​ Six Months ​ Net Book Value Net Book Value ​ ​ March 31, ​ ​ ​ ​ at March 31, ​ at September 30, ​ Ended March 31, ​ Ended March 31, ​ Ended March 31, ​ Ended March 31, ​ at March 31, at September 30, ​ ​ ​ ​ 2026 ​ ​ ​ Original Cost ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ West Virginia Pipeline: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 57 ​ $ 2,209,724 ​ ​ 1,160,100 ​ $ 1,049,610 ​ ​ 55,245 ​ ​ 55,245 ​ ​ 110,490 ​ ​ 110,490 ​ $ 1,049,624 $ 1,160,114 Tradename ​ 57 ​ ​ 263,584 ​ ​ 138,391 ​ ​ 125,215 ​ ​ 6,588 ​ ​ 6,588 ​ ​ 13,176 ​ ​ 13,176 ​ ​ 125,193 ​ ​ 138,369 Non-competes ​ — ​ ​ 83,203 ​ ​ 83,203 ​ ​ 83,203 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heritage Painting ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 39 ​ ​ 121,100 ​ ​ 42,378 ​ ​ 30,270 ​ ​ 6,054 ​ ​ 6,054 ​ ​ 12,108 ​ ​ 12,108 ​ ​ 78,722 ​ ​ 90,830 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tri-State Paving: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ 73 ​ ​ 1,649,159 ​ ​ 645,921 ​ ​ 563,463 ​ ​ 41,229 ​ ​ 41,229 ​ ​ 82,458 ​ ​ 82,458 ​ ​ 1,003,238 ​ ​ 1,085,696 Tradename 73 ​ 203,213 ​ 79,592 ​ 69,431 ​ 5,081 ​ 5,080 ​ 10,161 ​ ​ 10,160 ​ 123,621 ​ ​ 133,782 Non-competes — ​ 39,960 ​ 39,960 ​ 39,960 ​ — ​ — ​ — ​ ​ — ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tribute Contracting & Consultants ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-compete 1 ​ 104 ​ ​ 520,000 ​ ​ 69,331 ​ ​ 43,333 ​ ​ 12,999 ​ ​ 12,501 ​ ​ 25,998 ​ ​ 16,668 ​ ​ 450,669 ​ ​ 476,667 Non-compete 2 ​ 80 ​ ​ 10,000 ​ ​ 1,666 ​ ​ 1,042 ​ ​ 312 ​ ​ — ​ ​ 624 ​ ​ — ​ ​ 8,334 ​ ​ 8,958 Tradename ​ 44 ​ ​ 80,000 ​ ​ 21,331 ​ ​ 13,333 ​ ​ 3,999 ​ ​ 37,500 ​ ​ 7,998 ​ ​ 50,000 ​ ​ 58,669 ​ ​ 66,667 Backlog ​ 8 ​ ​ 1,320,000 ​ ​ 880,000 ​ ​ 550,000 ​ ​ 104,230 ​ ​ — ​ ​ 330,000 ​ ​ — ​ ​ 440,000 ​ ​ 770,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rigney Digital Systems ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tradename ​ 126 ​ ​ 657,100 ​ ​ 29,868 ​ ​ — ​ ​ 14,934 ​ ​ — ​ ​ 29,868 ​ ​ — ​ ​ 627,232 ​ ​ 657,100 Backlog ​ 18 ​ ​ 260,600 ​ ​ 65,148 ​ ​ — ​ ​ 32,574 ​ ​ — ​ ​ 65,148 ​ ​ — ​ ​ 195,452 ​ ​ 260,600 Non-compete ​ 114 ​ ​ 46,300 ​ ​ 2,316 ​ ​ — ​ ​ 1,158 ​ ​ — ​ ​ 2,316 ​ ​ — ​ ​ 43,984 ​ ​ 46,300 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets ​ ​ ​ $ 7,463,943 ​ $ 3,259,205 ​ $ 2,568,860 ​ $ 284,403 ​ $ 164,197 ​ $ 690,345 ​ $ 295,060 ​ $ 4,204,738 ​ $ 4,895,083 ​ 46 Table of Contents 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 March 31, 2026 and 2025 were $3.4 million and $3.0 million, respectively. The Company’s depreciation expenses for the six months ended March 31, 2026 and 2025 were $6.7 million and $5.6 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 March 31, 2026 and 2025 were $284,403 and $164,197, respectively. The Company’s amortization expenses for the six months ended March 31, 2026 and 2025 were $690,345 and $295,060, 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. Income Taxes The Company’s income tax expense and deferred tax assets and liabilities reflect management’s best estimate of current and future taxes to be paid. Significant judgments and estimates are required in the determination of the consolidated income tax expense. The Company’s provision for income taxes is computed by applying a federal rate of 21.0% and a blended state rate of approximately 5.0% to 6.0% to taxable income or loss after consideration of non-taxable and non-deductible items. The effective income tax rate for the three months ended March 31, 2026 was 47.7%, as compared to 24.5%, for the same period in 2025. The effective income tax rate for the six months ended March 31, 2026 was 31.3%, as compared to 22.8%, for the same period in 2025. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses. Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company had $6.1 million and $6.9 million of federal net operating loss carryforwards at March 31, 2026 and September 30, 2025, respectively. The Company had $35.1 million and $41.9 million of state net operating loss carryforwards at March 31, 2026 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. 47 Table of Contents 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 March 15, 2026, and interim periods within fiscal years beginning after March 15, 2027. Early adoption and both prospective and retrospective application are permitted. The Company is currently assessing the effect of this update. In March 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 March 15, 2024 and interim periods within fiscal years beginning after March 15, 2025. Early adoption and retrospective application are permitted. The Company is currently assessing the effect of this update. Subsequent Events On April 15, 2026, the Company paid a quarterly dividend of $0.03 per common share to shareholders of record as of March 31, 2026. 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 continues to receive 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 March 31, 2026, was $325.1 million, compared to $280.7 million at March 31, 2025, and $259.7 million at September 30, 2025. ​ The $13.5 million and $13.3 million increases in revenue for Gas & Water Distribution and Gas & Petroleum Transmission, respectively, for the six months ended March 31, 2026, compared to the same period in 2025, are consistent with the increased project opportunities the Company is experiencing in fiscal year 2026. Backlog for these categories was $154.7 million at March 31, 2026. ​ Electrical, Mechanical, & General Construction Services revenue increased by $3.1 million for the six months ended March 31, 2026, compared to the same period in 2025. The Company’s backlog in this category was $170.4 million at March 31, 2026, and the Company continues to experience bidding opportunities for larger construction projects in fiscal year 2026. ​ While the addition of further projects appears likely, no assurance can be given that the Company will be successful in securing projects for which it bids. Moreover, even if contracts are awarded, there can be no assurance that the related projects will proceed as planned or at all. ​ ​ 48 Table of Contents 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 second 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. ​ 49 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 March 15, 2021. The Company must comply with the demand under federal pension law; however, the Company firmly believes no withdrawal liability exists. The Company is in negotiations with the pension fund to resolve the matter and all future payments have been suspended as part of the negotiation. The Company has expensed all $164,000 in payments made through September 30, 2022 and does not expect any future liabilities related to this claim. The Company did not make any payments during the three and six months ended March 31, 2026 and 2025. Other than described above, at March 31, 2026, 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 March 31, 2026, 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. ​ 50 Table of Contents 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 March 31, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 (1) Beginning ​ ​ ​ ​ ​ ​ ​ ​ ​ 680,752 January 2026 161 ​ $ 8.00 ​ $ 1,288 680,591 February 2026 3,501 (2) $ 3.44 ​ $ 12,048 680,591 March 2026 — ​ $ — ​ $ — 680,591 Total 3,662 ​ $ 3.64 ​ $ 13,336 ​ ​ (1) On July 6, 2022, the Company’s Board of Directors authorized a share repurchase program (the “Program”), pursuant to which the Company may, from time to time, purchase shares of its common stock for an aggregate repurchase amount not to exceed 1,000,000 shares, which was approximately 6.0% of its outstanding common stock as of the date of the announcement. The Program does not obligate the Company to purchase any number of shares, and there is no guarantee as to the exact number of shares to be repurchased by the Company. (2) Tax settlement on vested Restricted Stock Awards. Repurchases do not affect the maximum number of shares that may yet be purchased under the Program. ​ ITEM 5. Other Information During the second 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. ​ 51 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 ​ ​ 52 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: May 11, 2026 ​ ​ ​By: /s/ Douglas V. Reynolds ​ ​ ​ ​ ​Douglas V. Reynolds ​ ​ ​ ​ ​Chief Executive Officer Date: May 11, 2026 ​ ​ ​By: /s/ Charles P. Crimmel ​ ​ ​ ​ ​Charles P. Crimmel ​ ​ ​ ​ ​Chief Financial Officer ​ ​ ​ 53