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.

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 segment financial information for the periods presented. All revenues are from external customers.


	Underground Infrastructure			Industrial			Building
Year Ended September 30, 2025	Construction			Construction			Construction			Total

Revenues	$	222,966,841		$	138,935,139		$	49,099,393		$	411,001,373

Segment direct operating expenses (excluding depreciation)		195,094,334			123,226,874			42,305,970			360,627,178
Direct depreciation expense		9,080,976			2,517,506			—			11,598,482
Segment gross profit		18,791,531			13,190,759			6,793,423			38,775,713
Segment gross profit percentage		8.4	%		9.5	%		13.8	%		9.4	%
Selling, general, and administrative expenses		19,685,274			3,966,742			3,169,360			26,821,376
Indirect depreciation expense		—			—			357,763			357,763
Intangible asset amortization expenses		1,040,277			24,216			—			1,064,493
Segment indirect operating expenses		20,725,551			3,990,958			3,527,123			28,243,632
Segment income from operations		(1,934,020)			9,199,801			3,266,300			10,532,081
Segment operating margin percentage		(0.9)	%		6.6	%		6.7	%		2.6	%
Corporate and non-allocated costs											6,310,429
Corprate depreciation expense											6,179
Total consolidated income from operations										$	4,215,473


	Underground Infrastructure			Industrial			Building
Year Ended September 30, 2024	Construction			Construction			Construction			Total

Revenues	$	189,104,106		$	104,054,034		$	58,718,721		$	351,876,861

Segment direct operating expenses (excluding depreciation)		152,792,852			90,504,731			50,393,467			293,691,050
Direct depreciation expense		5,955,467			2,276,028			—			8,231,495
Segment gross profit		30,355,787			11,273,275			8,325,254			49,954,316
Segment gross profit percentage		16.1	%		10.8	%		14.2	%		14.2	%
Selling, general, and administrative expenses		18,365,153			3,358,644			3,132,795			24,856,592
Indirect depreciation expense		—			—			303,278			303,278
Intangible asset amortization expenses		432,569			6,054			—			438,623
Segment indirect operating expenses		18,797,722			3,364,698			3,436,073			25,598,493
Segment income from operations		11,558,065			7,908,577			4,889,181			24,355,823
Segment operating margin percentage		6.1	%		7.6	%		8.3	%		6.9	%
Corporate and non-allocated costs											4,515,950
Corprate depreciation expense											4,627
Total consolidated income from operations										$	19,835,246

The following tables show segment property, plant and equipment, at cost, less accumulated depreciation for the periods presented:


At September 30, 2025
	Underground Infrastructure		Industrial		Building
Property, plant and equipment, at cost, less accumulated depreciation	Construction		Construction		Construction		Total

Segments	$	38,062,083	$	14,206,055	$	1,161,970	$	53,430,108

Corporate		—		—		—		37,859

Total	$	38,062,083	$	14,206,055	$	1,161,970	$	53,467,967


At September 30, 2024
	Underground Infrastructure		Industrial		Building
Property, plant and equipment, at cost, less accumulated depreciation	Construction		Construction		Construction		Total

Segments	$	22,807,607	$	14,279,280	$	1,036,669	$	38,123,556

Corporate		—		—		—		12,158

Total	$	22,807,607	$	14,279,280	$	1,036,669	$	38,135,714

The following tables show interim segment financial information for the fiscal year ended September 30, 2024:


		Underground Infrastructure			Industrial			Building
Three Months Ended December 31, 2023		Construction			Construction			Construction			Total

Revenues		$	52,107,145		$	22,637,486		$	15,418,556		$	90,163,187

Segment direct operating expenses (excluding depreciation)			43,570,180			20,443,726			13,318,109			77,332,015
Direct depreciation expense			1,459,758			532,453			—			1,992,211
Segment gross profit			7,077,207			1,661,307			2,100,447			10,838,961
Segment gross profit percentage			13.6	%		7.3	%		13.6	%		12.0	%
Selling, general, and administrative expenses			4,473,880			766,937			736,131			5,976,948
Indirect depreciation expense			—			—			75,111			75,111
Intangible asset amortization expenses			108,142			—			—			108,142
Segment indirect operating expenses			4,582,022			766,937			811,242			6,160,201
Segment income from operations			2,495,185			894,370			1,289,205			4,678,760
Segment operating margin percentage			4.8	%		4.0	%		8.4	%		5.2	%
Corporate and non-allocated costs												1,037,362
Corprate depreciation expense												1,157
Total consolidated income from operations											$	3,640,241


		Underground Infrastructure			Industrial			Building
Three Months Ended March 31, 2024		Construction			Construction			Construction			Total

Revenues		$	34,330,863		$	24,473,527		$	12,323,265		$	71,127,655

Segment direct operating expenses (excluding depreciation)			30,237,638			21,994,382			10,619,858			62,851,878
Direct depreciation expense			1,473,250			562,973			—			2,036,223
Segment gross profit			2,619,975			1,916,172			1,703,407			6,239,554
Segment gross profit percentage			7.6	%		7.8	%		13.8	%		8.8	%
Selling, general, and administrative expenses			4,523,010			796,106			820,744			6,139,860
Indirect depreciation expense			—			—			76,089			76,089
Intangible asset amortization expenses			108,142			—			—			108,142
Segment indirect operating expenses			4,631,152			796,106			896,833			6,324,091
Segment (losss) income from operations			(2,011,177)			1,120,066			806,574			(84,537)
Segment operating margin percentage			(5.9)	%		4.6	%		6.5	%		(0.1)	%
Corporate and non-allocated costs												996,703
Corprate depreciation expense												1,157
Total consolidated loss from operations											$	(1,082,397)


		Underground Infrastructure			Industrial			Building
Six Months Ended March 31, 2024		Construction			Construction			Construction			Total

Revenues		$	86,438,008		$	47,111,013		$	27,741,821		$	161,290,842

Segment direct operating expenses (excluding depreciation)			73,807,818			42,438,108			23,937,967			140,183,893
Direct depreciation expense			2,933,008			1,095,426			—			4,028,434
Segment gross profit			9,697,182			3,577,479			3,803,854			17,078,515
Segment gross profit percentage			11.2	%		7.6	%		13.7	%		10.6	%
Selling, general, and administrative expenses			8,996,890			1,563,043			1,556,875			12,116,808
Indirect depreciation expense			—			—			151,200			151,200
Intangible asset amortization expenses			216,284			—			—			216,284
Segment indirect operating expenses			9,213,174			1,563,043			1,708,075			12,484,292
Segment income from operations			484,008			2,014,436			2,095,779			4,594,223
Segment operating margin percentage			0.6	%		4.3	%		7.6	%		2.8	%
Corporate and non-allocated costs												2,034,065
Corprate depreciation expense												2,314
Total consolidated income from operations											$	2,557,844


		Underground Infrastructure			Industrial			Building
Three Months Ended June 30, 2024		Construction			Construction			Construction			Total

Revenues		$	45,477,986		$	26,634,201		$	13,811,573		$	85,923,760

Segment direct operating expenses (excluding depreciation)			34,784,050			21,887,962			11,864,998			68,537,010
Direct depreciation expense			1,494,558			584,368			-			2,078,926
Segment gross profit			9,199,378			4,161,871			1,946,575			15,307,824
Segment gross profit percentage			20.2	%		15.6	%		14.1	%		17.8	%
Selling, general, and administrative expenses			4,090,563			862,948			781,805			5,735,316
Indirect depreciation expense			—			—			76,194			76,194
Intangible asset amortization expenses			108,142			—			—			108,142
Segment indirect operating expenses			4,198,705			862,948			857,999			5,919,652
Segment income from operations			5,000,673			3,298,923			1,088,576			9,388,172
Segment operating margin percentage			11.0	%		12.4	%		7.9	%		10.9	%
Corporate and non-allocated costs												894,383
Corprate depreciation expense												1,156
Total consolidated income from operations											$	8,492,633


		Underground Infrastructure			Industrial			Building
Nine months Ended June 30, 2024		Construction			Construction			Construction			Total

Revenues		$	131,915,994		$	73,745,214		$	41,553,394		$	247,214,602

Segment direct operating expenses (excluding depreciation)			108,591,868			64,326,070			35,802,965			208,720,903
Direct depreciation expense			4,427,566			1,679,794			—			6,107,360
Segment gross profit			18,896,560			7,739,350			5,750,429			32,386,339
Segment gross profit percentage			14.3	%		10.5	%		13.8	%		13.1	%
Selling, general, and administrative expenses			13,087,453			2,425,991			2,338,680			17,852,124
Indirect depreciation expense			—			—			227,394			227,394
Intangible asset amortization expenses			324,426			—			—			324,426
Segment indirect operating expenses			13,411,879			2,425,991			2,566,074			18,403,944
Segment income from operations			5,484,681			5,313,359			3,184,355			13,982,395
Segment operating margin percentage			4.2	%		7.2	%		7.7	%		5.7	%
Corporate and non-allocated costs												2,928,448
Corprate depreciation expense												3,470
Total consolidated income from operations											$	11,050,477

The following tables show interim segment financial information for the fiscal year ended September 30, 2025:


		Underground Infrastructure			Industrial			Building
Three Months Ended December 31, 2024		Construction			Construction			Construction			Total

Revenues		$	52,820,146		$	35,396,513		$	12,429,455		$	100,646,114

Segment direct operating expenses (excluding depreciation)			45,045,769			31,870,920			10,981,521			87,898,210
Direct depreciation expense			1,842,414			641,908			—			2,484,322
Segment gross profit			5,931,963			2,883,685			1,447,934			10,263,582
Segment gross profit percentage			11.2	%		8.1	%		11.6	%		10.2	%
Selling, general, and administrative expenses			4,759,449			983,393			781,811			6,524,653
Indirect depreciation expense			—			—			82,486			82,486
Intangible asset amortization expenses			124,809			—			—			124,809
Segment indirect operating expenses			4,884,258			983,393			864,297			6,731,948
Segment income from operations			1,047,705			1,900,292			583,637			3,531,634
Segment operating margin percentage			2.0	%		5.4	%		4.7	%		3.5	%
Corporate and non-allocated costs												1,884,516
Corprate depreciation expense												1,157
Total consolidated income from operations											$	1,645,961


		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
Corprate depreciation expense												2,188
Total consolidated loss from operations											$	(8,092,227)


		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
Corprate depreciation expense												3,345
Total consolidated loss from operations											$	(6,446,266)


		Underground Infrastructure			Industrial			Building
Three Months Ended June 30, 2025		Construction			Construction			Construction			Total

Revenues		$	55,384,307		$	35,044,725		$	13,172,553		$	103,601,585

Segment direct operating expenses (excluding depreciation)			45,879,667			31,393,379			11,310,572			88,583,618
Direct depreciation expense			2,410,049			625,320			—			3,035,369
Segment gross profit			7,094,591			3,026,026			1,861,981			11,982,598
Segment gross profit percentage			12.8	%		8.6	%		14.1	%		11.6	%
Selling, general, and administrative expenses			5,530,973			1,029,731			713,973			7,274,677
Indirect depreciation expense			—			—			90,429			90,429
Intangible asset amortization expenses			174,812			18,162			—			192,974
Segment indirect operating expenses			5,705,785			1,047,893			804,402			7,558,080
Segment income from operations			1,388,806			1,978,133			1,057,579			4,424,518
Segment operating margin percentage			2.5	%		5.6	%		8.0	%		4.3	%
Corporate and non-allocated costs												1,255,048
Corprate depreciation expense												1,417
Total consolidated income from operations											$	3,168,053


		Underground Infrastructure			Industrial			Building
Nine Months Ended June 30, 2025		Construction			Construction			Construction			Total

Revenues		$	140,748,952		$	103,135,570		$	37,042,328		$	280,926,850

Segment direct operating expenses (excluding depreciation)			125,397,809			92,609,898			32,144,288			250,151,995
Direct depreciation expense			6,551,528			1,899,287			—			8,450,815
Segment gross profit			8,799,615			8,626,385			4,898,040			22,324,040
Segment gross profit percentage			6.3	%		8.4	%		13.2	%		7.9	%
Selling, general, and administrative expenses			15,070,458			2,993,889			2,291,594			20,355,941
Indirect depreciation expense			—			—			257,868			257,868
Intangible asset amortization expenses			441,097			18,162			—			459,259
Segment indirect operating expenses			15,511,555			3,012,051			2,549,462			21,073,068
Segment (loss) income from operations			(6,711,940)			5,614,334			2,348,578			1,250,972
Segment operating margin percentage			(4.8)	%		5.4	%		6.3	%		0.4	%
Corporate and non-allocated costs												4,524,423
Corprate depreciation expense												4,762
Total loss from operations											$	(3,278,213)

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Energy Services of America CORP Segments Disclosure

About Segments Disclosures

Other Available Disclosures