Financial Analysis

25. COMMITMENTS AND CONTINGENCIES During the normal course of operations, the Company is subject to certain subcontractor claims, mechanics liens, and other litigation. Management is of the opinion that no material obligations will arise from any pending legal proceedings. Accordingly, no provision has been made in the financial statements for such litigation. 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. In February 2014, the Company entered into an agreement with a surety company to provide bonding which will suit the Companys 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 on. 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 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

15. SHORT-TERM AND LONG-TERM DEBT A summary of short-term and long-term debt as of September 30, 2025 and 2024 is as follows: September 30, September 30, 2025 2024 Line of credit payable to bank, monthly interest at 7.25% , final payment due by June 28, 2027, guaranteed by certain directors of the Company. $ 24,750,000 $ 4,500,000 Equipment line of credit with a total of $9.3 million with payments of $202,809 due in monthly installments, including fixed interest at 7.25% and final payment due February 2028, secured by equipment, guaranteed by certain directors of the Company. 5,878,041 7,802,313 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. 10,401,366 10,292,676 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 1,134,185 Notes payable to finance companies, due in monthly installments totaling $244,000 at September 30, 2025 and $76,000 at September 30, 2024, including interest ranging from 0.00% to 6.0% , final payments due October 2025 through September 2028, secured by equipment. 5,415,401 1,787,009 Notes payable to United Bank, Tribute acquisition finance, due in monthly installments totaling $272,016 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Twelve Months Ended September 30, 2025 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission & General from contracts Lump sum contracts $ $ $ 141,753,561 $ 141,753,561 Unit price contracts 149,574,917 48,061,502 4,139,223 201,775,642 Cost plus and T&M contracts 16,524,635 50,947,535 67,472,170 Total revenue from contracts $ 149,574,917 $ 64,586,137 $ 196,840,319 $ 411,001,373 Earned over time $ 84,260,791 $ 48,061,502 $ 152,546,419 $ 284,868,712 Earned at point in time 65,314,126 16,524,635 44,293,900 126,132,661 Total revenue from contracts $ 149,574,917 $ 64,586,137 $ 196,840,319 $ 411,001,373 Twelve Months Ended September 30, 2024 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission & General from contracts Lump sum contracts $ $ $ 121,997,872 $ 121,997,872 Unit price contracts 82,426,199 71,265,020 4,141,938 157,833,157 Cost plus and T&M contracts 9,790,155 62,255,677 72,045,832 Total revenue from contracts $ 82,426,199 $ 81,055,175 $ 188,395,487 $ 351,876,861 Earned over time $ 9,541,650 $ 71,265,020 $ 133,898,665 $ 214,705,335 Earned at point in time 72,884,549 9,790,155 54,496,822 137,171,526 Total revenue from contracts $ 82,426,199 $ 81,055,175 $ 188,395,487 $ 351,876,861 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

27. GOODWILL AND INTANGIBLE ASSETS The Company follows the guidance of 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 units 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 September 30, 2025 or 2024. A table of the Companys goodwill is below: September 30, September 30, 2025 2024 Beginning balance $ 4,087,554 $ 4,087,554 Acquired 5,778,250 Ending balance $ 9,865,804 $ 4,087,554 A table of the Companys intangible assets subject to amortization at September 30, 2025 and 2024, is below: Accumulated Accumulated Amortization and Amortization and Remaining Life Amortization and Amortization and Impairment Impairment Net Book Net Book (in months) at Impairment at Impairment at Twelve Months Ended Twelve Months Ended Value at Value at September 30, Original September 30, September 30, September 30, September 30, September 30, September 30, Intangible assets: 2025 Cost 2025 2024 2025 2024 2025 2024 West Virginia Pipeline: Customer relationships 63 $ 2,209,724 1,049,610 $ 828,630 220,980 220,969 $ 1,160,114 $ 1,381,094 Tradename 63 263,584 125,215 98,863 26,352 26,363 138,369 164,721 Non- …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

16. INCOME TAXES The components of income taxes are as follows: Year Ended September 30, 2025 2024 Federal Current $ $ 7,218,772 Deferred (10,255) (364,036) Total (10,255) 6,854,736 State Current 222,535 1,576,518 Deferred 272,894 (15,587) Total 495,429 1,560,931 Total income tax expense $ 485,174 $ 8,415,667 The Companys income tax expense and deferred tax assets and liabilities reflect managements 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 Companys 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 income tax expense for the fiscal year ended September 30, 2025 was $485,000 as compared to $8.4 million for the fiscal year ended September 30, 2024. The decrease was due to a decrease in taxable income for the fiscal year ended September 30, 2025, as compared to the fiscal year ended September 30, 2024. The effective income tax rate for the fiscal year ended September 30, 2025 was 56.1%, as compared to an effective income tax rate of 25.1% for the fiscal year ended September 30, 2024. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income or loss, non-taxable and non-deductible expenses. Twelve Months Ended September 30, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

21. LEASE OBLIGATIONS The Company leases office space for SQP for $1,500 per month. The lease, which was originally signed on March 25, 2021, is for a period of two years with five one-year renewals available immediately following the end of the base term. As of September 30, 2025, the Company has only committed to one-year renewals and is evaluating whether to renew for additional periods. The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC transaction. The first operating lease, for the Hurricane, West Virginia facility, had a net present value of $236,000 at inception, and a carrying value of $0 at September 30, 2025. The 4.5% interest rate on the operating lease is based on the Companys incremental borrowing rate at inception. The Company signed a one-year renewal after the lease expired and as of September 30, 2025 is evaluating whether to renew for additional periods. The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $144,000 at inception, and expired on August 31, 2024. The lease was renewed for a two-year period with a net present value of $140,000 and had a carrying value of $50,000 at September 30, 2025. The 8.5% interest rate on the operating lease is based on the Companys incremental borrowing rate at inception. The Company has a right-of-use operating lease with Enterprise acquired on August 11, 2022, as part of the Ryan Environmental acquisition. This lea …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements In November 2024, the FASB issued an update that requires incremental disclosures about specific expense categories. Entities are required to disclose in the notes to financial statements the amounts of purchases of inventory, employee compensation, depreciation, intangible asset amortization and selling expenses included in each relevant expense caption of the statements of operations. The standard also requires disclosure of the amount, and a qualitative description of, other items remaining in relevant expense captions that are not separately disaggregated. This update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption and both prospective and retrospective application are permitted. The Company is currently assessing the effect of this update. In December 2023, the FASB issued an update that expands disclosures for tax rate reconciliation tables, primarily by requiring disaggregation of income taxes paid by jurisdiction, as well as greater disaggregation within the rate reconciliation. This update is effective for fiscal years beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025. Early adoption and retrospective application are permitted. The Company is currently assessing the effect of this update.

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23. RETIREMENT AND EMPLOYEE BENEFIT PLANS In 2025 and 2024, C. J. Hughes maintained a tax-qualified 401(k) retirement plan for union employees. Employees can contribute up to 15% of eligible wages, provided the compensation deferred for a plan year does not exceed the indexed dollar amount set by the Internal Revenue Service which was $23,500 for 2025 and $23,000 for 2024. C. J. Hughes matches $0.25 on each dollar contributed up to 6% of eligible wages. C. J. Hughes contributed $74,000 and $37,000 to the union plan for the fiscal years September 30, 2025 and 2024, respectively. Additionally, each plan year, C. J. Hughes may make a discretionary profit-sharing contribution for participants who are actively employed on the last day of the plan year. No discretionary profit-sharing contribution was made for the 2025 or 2024 plan year. Effective January 1, 2010, Energy Services became the successor plan sponsor of the C. J. Hughes Construction Company, Inc. 401(k) Plan for non-union employees (the Plan). The Plan was renamed the Energy Services of America Staff 401(k) Retirement Savings Plan. Employees are eligible to participate in the Plan upon completion of six months of service but must wait until a quarterly entry to join the Plan. In addition, participants who are age 50 or older by the end of the Plan year may elect to defer up to an additional $7,500 into the Plan for 2025. A new special catch-up of $11,250 is available for employees who are ages 60 through 63. The overal …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

20 . 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 September 30, 2025. Subsequent to the April 29, 2022 acquisition of Tri-State Paving, the Company entered into an operating lease for facilities in Hurricane, West Virginia with Corns Enterprises. This thirty-six-month lease is treated as a right to use asset and has payments of $7,000 per month. The total net present value at inception was $236,000 with no carrying value at September 30, 2025. The Company signed a one-year renewal after the lease expired and is evaluating whether to renew for additional periods. In May 2025, David E. Corns, membe …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

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 fiscal years ended September 30, 2025 and 2024: Twelve Months Ended September 30, 2025 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission & General from contracts Lump sum contracts $ $ $ 141,753,561 $ 141,753,561 Unit price contracts 149,574,917 48,061,502 4,139,223 201,775,642 Cost plus and T&M contracts 16,524,635 50,947,535 67,472,170 Total revenue from contracts $ 149,574,917 $ 64,586,137 $ 196,840,319 $ 411,001,373 Earned over time $ 84,260,791 $ 48,061,502 $ 152,546,419 $ 284,868,712 Earned at point in time 65,314,126 16,524,635 44,293,900 126,132,661 Total revenue from contracts $ 149,574,917 $ 64,586,137 $ 196,840,319 $ 411,001,373 Twelve Months Ended September 30, 2024 Electrical, Gas & Water Gas & Petroleum Mechanical, Total revenue Distribution Transmission & General from contracts Lump sum contracts $ $ $ 121,997,872 $ 121,997,872 Unit price contracts 82,426,199 71,265,020 4,141,938 157,833,157 Cost plus and T&M contracts 9,790,155 62,255,677 72,045,832 Total revenue from contracts $ 82,426,199 $ 81,055,175 $ 188,395 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

5. SEGMENT INFORMATION Energy Services operations are managed by senior executives who report to the Companys 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 internall …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition 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 does have certain service and maintenance contracts in which each customer purchase order is considered its own performance obligation recognized over time and would be recognized depending on the type of contract mentioned above. 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. All contract costs, including those associated with affirmative claims, change orders and back charges, are recorded as incurred and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Contract costs consist of direct costs on contracts, including labor and materials, amounts payable to subcontractors and outside equipment providers, direct overhead …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

28. SUBSEQUENT EVENTS On October 15, the Company paid a quarterly dividend of $0.03 per share to holders of record as of October 6, 2025. Management has evaluated all subsequent events for accounting and disclosure. There have been no other material events during the period, other than noted above, that would either impact the results reflected in the report or the Companys results going forward. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

13. SHORT-TERM AND LONG-TERM DEBT Operating Line of Credit In July 2025, the Company renewed its $30.0 million line of credit with a maturity date of June 28, 2027. The interest rate on the line of credit is the Wall Street Journal Prime Rate (the index) with a floor of 4.99%. The line of credit is limited to a borrowing base calculation as summarized below: December 31, 2025 September 30, 2025 Eligible borrowing base $ 30,000,000 $ 27,657,997 Borrowed on line of credit 17,000,000 24,750,000 Line of credit balance available $ 13,000,000 $ 2,907,997 Interest rate 6.75 % 7.50 % The Companys $17.0 million and $24.8 million line of credit borrowings are recorded as a long-term debt as of December 31, 2025 and September 30, 2025, respectively. The financial covenants required by the Companys 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 EB …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended December 31, 2025 Electrical, Gas & Water Gas & Petroleum Mechanical, & Total revenue Distribution Transmission General from contracts Lump sum contracts $ $ $ 33,282,853 $ 33,282,853 Unit price contracts 40,610,268 856,203 765,250 42,231,721 Cost plus and T&M contracts 23,270,021 15,327,605 38,597,626 Total revenue from contracts $ 40,610,268 $ 24,126,224 $ 49,375,708 $ 114,112,200 Earned over time $ 22,677,256 $ 856,203 $ 35,670,911 $ 59,204,370 Earned at point in time 17,933,012 23,270,021 13,704,797 54,907,830 Total revenue from contracts $ 40,610,268 $ 24,126,224 $ 49,375,708 $ 114,112,200 Three Months Ended December 31, 2024 Electrical, Gas &Water Gas & Petroleum Mechanical, & Total revenue Distribution Transmission General from contracts Lump sum contracts $ $ $ 37,733,823 $ 37,733,823 Unit price contracts 31,300,009 18,418,317 993,395 50,711,721 Cost plus and T&M contracts 37,900 12,162,670 12,200,570 Total revenue from contracts $ 31,300,009 $ 18,456,217 $ 50,889,888 $ 100,646,114 Earned over time $ 19,487,205 $ 18,418,317 $ 38,682,101 $ 76,587,623 Earned at point in time 11,812,804 37,900 12,207,787 24,058,491 Total revenue from contracts $ 31,300,009 $ 18,456,217 $ 50,889,888 $ 100,646,114 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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 Companys 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 financ …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 FASBs 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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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 units carrying amount of goodwill over its fair value. Under the current guidance, companies can first choose to assess any impairment based on qualitative factors (Step 0). If a company fails this test or decides to bypass this step, it must proceed with a quantitative assessment of goodwill impairment. The Company did not have a goodwill impairment at December 31, 2025 or September 30, 2025. A table of the Companys goodwill as of December 31, 2025 and September 30, 2025 is below: December 31, 2025 September 30, 2025 Beginning balance $ 9,865,804 $ 4,087,554 Acquired 5,778,250 Ending balance $ 9,865,804 $ 9,865,804 A table of the Companys intangible assets subject to amortization at December 31, 2025 and September 30, 2025 is below: Accumulated Accumulated Amortization Amortization Remaining Life Amortization and Amortization and and Impairment and Impairment (in months) at Impairment at Impairment at Three Months Three Months Net Book Value Net Book Value December 31, December 31, September 30, Ended December 31, Ended December 31, at December 31, at September 30, 2025 Original Cost 2025 2025 2025 2024 2025 2025 Intangible assets: West Virginia Pipeline: Customer relationships 60 $ 2,209,724 1,104,855 $ 1,049,610 55,245 55,245 $ 1,104,869 $ 1,160,114 Tradename 60 263, …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

12. INCOME TAXES The components of income taxes are as follows: Three Months Ended December 31, 2025 December 31, 2024 Federal Current $ 87,772 $ Deferred 750,208 294,974 Total 837,980 294,974 State Current 67,326 77,291 Deferred 228,238 83,198 Total 295,564 160,489 Total income tax expense $ 1,133,544 $ 455,463 The Companys income tax expense and deferred tax assets and liabilities reflect managements 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 Companys provision for income taxes is computed by applying a federal rate of 21.0% and a blended state rate of approximately 5.0% to 6.0% to taxable income or loss after consideration of non-taxable and non-deductible items. The effective income tax rate for the three months ended December 31, 2025 was 29.5%, as compared to 34.8%, for the same period in 2024. Effective income tax rates are estimates and may vary from period to period due to changes in the amount of taxable income and non-deductible expenses. Major items that can affect the effective tax rate include amortization of goodwill and intangible assets and non-deductible amounts for per diem expenses. The income tax effects of temporary differences giving rise to the deferred tax assets and liabilities are as follows: December 31, 2025 September 30, 2025 Deferred tax liabilities Property and equipment $ 10,228,455 $ 10,057,004 Other 1,463,413 1,483,362 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

16. LEASE OBLIGATIONS The Company leases office space for SQP for $1,500 per month. The lease, which was originally signed on March 25, 2021, is for a period of two years with five one-year renewals available immediately following the end of the base term. As of December 31, 2025, the Company has only committed to a one-year renewal and is evaluating whether to renew for additional periods. The Company has two right-of-use operating leases acquired on April 29, 2022, as part of the Tri-State Paving, LLC transaction. The first operating lease, for the Hurricane, West Virginia facility, had a net present value of $236,000 at inception, and a carrying value of $0 at December 31, 2025. The 4.5% interest rate on the operating lease is based on the Companys incremental borrowing rate at inception. The Company signed an amendment to extend the lease for one year after the original lease expired. As of December 31, 2025, the Company has only committed to a one-year renewal and is evaluating whether to renew for additional periods. The second operating lease, for the Chattanooga, Tennessee facility, had a net present value of $144,000 at inception, and expired on August 31, 2024. The lease was renewed for a two - year period with a net present value of $140,000 and had a carrying value of $30,000 at December 31, 2025. The 8.5% interest rate on the operating lease is based on the Companys incremental borrowing rate at inception. The Company has a right-of-use operating lease with Enter …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

6. DISAGGREGATION OF REVENUE The Company disaggregates revenue based on the following lines of service: (1) Gas & Water Distribution, (2) Gas & Petroleum Transmission, and (3) Electrical, Mechanical, & General services and construction. Our contract types are: Lump Sum, Unit Price, Cost Plus and T&M. The following tables present our disaggregated revenue for the three months ended December 31, 2025 and 2024: Three Months Ended December 31, 2025 Electrical, Gas & Water Gas & Petroleum Mechanical, & Total revenue Distribution Transmission General from contracts Lump sum contracts $ $ $ 33,282,853 $ 33,282,853 Unit price contracts 40,610,268 856,203 765,250 42,231,721 Cost plus and T&M contracts 23,270,021 15,327,605 38,597,626 Total revenue from contracts $ 40,610,268 $ 24,126,224 $ 49,375,708 $ 114,112,200 Earned over time $ 22,677,256 $ 856,203 $ 35,670,911 $ 59,204,370 Earned at point in time 17,933,012 23,270,021 13,704,797 54,907,830 Total revenue from contracts $ 40,610,268 $ 24,126,224 $ 49,375,708 $ 114,112,200 Three Months Ended December 31, 2024 Electrical, Gas &Water Gas & Petroleum Mechanical, & Total revenue Distribution Transmission General from contracts Lump sum contracts $ $ $ 37,733,823 $ 37,733,823 Unit price contracts 31,300,009 18,418,317 993,395 50,711,721 Cost plus and T&M contracts 37,900 12,162,670 12,200,570 Total revenue from contracts $ 31,300,009 $ 18,456,217 $ 50,889,888 $ 100,646,114 Earned over time …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

5. SEGMENT INFORMATION Energy Services operations are managed by senior executives who report to the Companys 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 internall …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Please refer to Note 2 Summary of Significant Accounting Policies of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended September 30, 2025, for a more detailed discussion of our significant accounting policies. There were no material changes to these significant accounting policies during the three months ended December 31, 2025. …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

18. SUBSEQUENT EVENTS On January 15, 2026, the Company paid a quarterly dividend of $0.03 per common share to shareholders of record as of December 31, 2025. Management has evaluated all subsequent events for accounting and disclosure. There have been no other material events during the period, other than noted above, that would either impact the results reflected in the report or the Companys results going forward. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing