Project Backlog and Revenues - Fully-contracted project backlog increased to $2,596,325,000 as of March 31, 2025, compared to $1,459,600,000 in 2024, representing an increase of 77.9%[148] - Total project backlog reached $4,903,892,000 as of March 31, 2025, up from $4,020,062,000 in 2024, indicating a growth of 21.9%[148] - The 12-month project backlog was $1,118,025,000 as of March 31, 2025, compared to $774,931,000 in 2024, marking an increase of 43.4%[148] - Total revenues for the three months ended March 31, 2025, increased by $54.4 million, or 18.2%, to $352.8 million compared to $298.4 million in 2024[155] - Project revenues increased by $47.2 million, or 23%, primarily due to the timing of revenue recognized based on costs incurred relative to total expected costs on active projects[158] Financial Performance - Gross profit as a percentage of revenues decreased to 14.7% in 2025 from 15.7% in 2024, attributed to a higher mix of lower-margin projects[155] - Operating income rose to $13.7 million, a 71.3% increase from $8.0 million in the prior year[155] - Net loss attributable to common shareholders was $5.5 million, an increase of $2.546 million, or 86.7%, compared to the previous year[155] Cash Flow and Financing - Cash flows from operating activities decreased by $49.1 million to $(28.3) million for the three months ended March 31, 2025, compared to $20.8 million in 2024[180] - Total net cash flows for the three months ended March 31, 2025, were $(31.6) million, a decrease of $25.9 million compared to $(5.7) million in 2024[180] - The company reported a significant increase in cash outflows of $111.8 million in accounts payable and other liabilities during the three months ended March 31, 2025[181] - Financing activities generated $114.5 million in cash inflows, primarily from energy asset financings of $112.6 million during the three months ended March 31, 2025[184] Investments and Capital Expenditures - The company made capital investments of $107.9 million in new energy assets and $6.0 million in major maintenance during the three months ended March 31, 2025[182] - The company plans to invest approximately $200 million to $250 million in additional capital expenditures for new renewable energy plants during the remainder of 2025[183] - The company plans additional project financings of approximately $250 million to $300 million during the remainder of 2025 to fund new renewable energy plants[186] Agreements and Contracts - The Southern California Edison Agreement includes a total engineering, procurement, and construction price of approximately $892 million for three grid-scale battery energy storage systems[144] - The company received approximately $110 million in milestone payments from SCE on September 5, 2024, related to the substantial completion of two projects[144] - As of March 31, 2025, the company had Federal ESPC liabilities totaling $567.6 million, which are contingent upon project completion and customer acceptance[176] Market Conditions and Expectations - The company expects ongoing supply chain disruptions and inflationary pressures to impact project delivery and operational costs in the near term[138] - The company anticipates that federal policies and regulatory measures will continue to influence its business operations and project funding[135] - Assets in development estimated at $2.3 billion as of March 31, 2025, down from $2.6 billion in 2024, reflecting a decrease of 11.5%[152] Regional Performance - North America Regions revenues increased by $39.975 million, or 28.9%, while U.S. Federal revenues decreased by $35.643 million, or 58.5%[158] - Europe revenues surged by $52.535 million, or 119.1%, driven by increased project activity under a joint venture in Greece[158]

Core Insights - Ameresco reported revenue of $352.83 million for the quarter ended March 2025, reflecting an 18.2% increase year-over-year and surpassing the Zacks Consensus Estimate of $306.39 million by 15.16% [1] - The company's EPS was -$0.11, slightly worse than the -$0.10 reported in the same quarter last year, but it exceeded the consensus EPS estimate of -$0.26 by 57.69% [1] Revenue Breakdown - Revenue from Projects was $251.50 million, exceeding the average estimate of $191.61 million from four analysts [4] - Revenue from Other Services was $19.80 million, falling short of the estimated $27.12 million [4] - Revenue from O&M was $24.80 million, below the average estimate of $27.12 million [4] - Revenue from Energy Assets was $56.70 million, slightly below the average estimate of $57.12 million [4] Adjusted EBITDA Performance - Adjusted EBITDA from Projects was $8.70 million, significantly higher than the estimated $2.87 million [4] - Adjusted EBITDA from Other Services was $0.10 million, compared to the average estimate of $1.90 million [4] - Adjusted EBITDA from O&M was $1.70 million, below the average estimate of $3.90 million [4] - Adjusted EBITDA from Energy Assets was $30.10 million, exceeding the average estimate of $27.86 million [4] Stock Performance - Ameresco's shares have returned +10.9% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Ameresco (AMRC) Q1 2025 Earnings Call May 05, 2025 04:30 PM ET Company Participants Leila Dillon - Senior Vice President of Marketing & CommunicationsGeorge Sakellaris - Chairman, President & CEOMark Chiplock - EVP, CFO & Chief Accounting OfficerJoshua Baribeau - Senior Director of Finance & Corporate TreasuryJoseph Osha - Senior Managing Director - Equity Research Conference Call Participants Noah Kaye - Senior Research AnalystGeorge Gianarikas - Managing Director and Senior AnalystKashy Harrison - Senior ...

Financial Data and Key Metrics Changes - The company reported a total revenue growth of 18% and adjusted EBITDA growth of 32% for the first quarter [13][17] - The projects business revenue grew by 23%, while energy asset revenue increased by 31% [14][17] - The net income attributable to common shareholders was a loss of $5,500,000 or $0.10 per share [16] Business Line Data and Key Metrics Changes - The total project backlog increased by 22% to $4,900,000,000, with a contracted project backlog growing by 80% to $2,600,000,000 [17] - The energy asset operating base now stands at 742 megawatts, reflecting significant growth compared to the previous year [14] Market Data and Key Metrics Changes - The company experienced strong performance in Europe and Canada, contributing to the overall revenue growth [14] - Approximately 30% of the current total project backlog is attributed to federal government contracts, with military-related customers accounting for two-thirds [6] Company Strategy and Development Direction - The company aims to leverage federal lands for critical energy infrastructure projects, enhancing its project offerings [10] - The focus remains on diversifying energy solutions to meet the increasing demand for distributed and resilient energy systems [5][11] - The company is optimistic about capturing more infrastructure and resiliency projects as government priorities evolve [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the federal contracts, noting that recent cancellations have been rescoped and paused contracts have resumed [7][9] - The company anticipates continued growth in project revenue, with expectations for Q2 revenue to be in the range of $400,000,000 to $425,000,000 [18] - Management highlighted the importance of energy efficiency projects being budget-neutral, which aligns with government interests [24] Other Important Information - The company has a solid cash position of approximately $72,000,000 and total corporate debt of $270,000,000 [17] - The company is actively managing its supply chain to mitigate potential impacts from tariffs and inflation [12][41] Q&A Session Summary Question: Update on federal business visibility and contract situations - Management noted that a canceled contract has been rescoped and paused contracts have resumed, leading to a positive outlook for federal contracts [22][23] Question: Margins for Q2 and the rest of the year - Management expects gross margins for the full year to be in the range of 15.5% to 16%, despite Q1 being slightly lower due to a mix of European EPC contracts [26] Question: Impact of blackouts in Southern Europe on project opportunities - Management indicated that increasing reliance on renewable energy without adequate storage could lead to more outages, highlighting the need for distributed generation solutions [28][30] Question: Economics of projects sensitive to the Inflation Reduction Act - Management has safe harbored the ITC for many projects, minimizing short-term impacts from potential changes in the IRA [32][33] Question: Effects of reduced federal workforce on project timelines - Management has not yet seen negative impacts but acknowledged potential delays in award conversions due to administrative challenges [38][39] Question: Structure of contracts regarding tariffs - Management confirmed that new contracts include protective language against tariffs, allowing for pass-through adjustments to customers [48][50] Question: Observations on private versus public market valuations - Management noted robust private valuations for projects, despite public market fluctuations, indicating strong fundamentals in their offerings [45][46]

Q1 2025 Supplemental Information May 5, 2025 ameresco.com © 2025 Ameresco, Inc. All rights reserved. Safe Harbor Forward Looking Statements Any statements in this presentation about future expectations, plans and prospects for Ameresco, Inc., including statements about market conditions, pipeline, visibility, backlog, pending agreements, financial guidance including estimated future revenues, net income, adjusted EBITDA, Non-GAAP EPS, gross margin, effective tax rate, interest rate, depreciation, tax attrib ...

Financial Performance - Total revenue for Q1 2025 was $352.8 million, representing an 18% increase year-over-year[4] - Adjusted EBITDA for Q1 2025 was $40.6 million, reflecting a 32% growth compared to the previous year[4] - Projects revenue grew 23% to $251.5 million, driven by project execution and backlog conversion[7] - Energy asset revenue increased by 31% to $56.7 million due to the rise in operating energy assets[7] - Revenues for Q1 2025 increased to $352,829 thousand, up 18.2% from $298,406 thousand in Q1 2024[25] - Gross profit for Q1 2025 was $51,919 thousand, representing a gross margin of 14.7%, compared to $46,993 thousand in Q1 2024[25] - Operating income improved to $13,692 thousand in Q1 2025, compared to $7,993 thousand in Q1 2024, reflecting a 71.5% increase[25] - Adjusted EBITDA for Q1 2025 was $40,634,000, compared to $30,831,000 in Q1 2024, representing a 31.8% increase[29] - The adjusted EBITDA margin for Q1 2025 was 11.5%, up from 10.3% in Q1 2024[29] Guidance and Expectations - The company anticipates Q2 2025 revenue to be in the range of approximately $400 - $425 million[10] - The 2025 revenue guidance is reiterated at a range of $1.85 billion to $1.95 billion, with adjusted EBITDA guidance of $225 million to $245 million[13] - The company expects adjusted EBITDA for the year ending December 31, 2025, to be between $225 million and $245 million[31] Backlog and Revenue Visibility - Contracted backlog reached $2.6 billion, up nearly 80% from the previous year, contributing to a total project backlog of $4.9 billion, which is a 22% increase year-over-year[3] - Revenue visibility across the business is now nearly $10 billion, enhancing long-term resilience[3] - New contracts awarded in Q1 2025 totaled $367,288,000, compared to $339,798,000 in Q1 2024, indicating a 8.1% increase[31] - The company reported new contracts worth $333,734,000 in Q1 2025, slightly lower than $334,533,000 in Q1 2024[31] Financial Position - The company ended Q1 2025 with total corporate debt of $270 million and an energy asset debt of $1.4 billion[9] - Total current assets decreased to $1,257,068 thousand as of March 31, 2025, down from $1,301,134 thousand at December 31, 2024[21] - Total liabilities increased to $2,368,000 thousand as of March 31, 2025, compared to $2,367,000 thousand at December 31, 2024[22] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $166,773 thousand, down from $198,378 thousand at the beginning of the period[28] - Total stockholders' equity increased to $1,046,078 thousand as of March 31, 2025, compared to $1,045,149 thousand at December 31, 2024[23] Cash Flow and Investments - Cash flows from operating activities for Q1 2025 were $(28,304) thousand, a decline from $20,817 thousand in Q1 2024[27] - Capital investments in energy assets for Q1 2025 were $107,866 thousand, slightly up from $105,633 thousand in Q1 2024[27] - Adjusted cash from operations for Q1 2025 was $1,427,000, down from $40,398,000 in Q1 2024[30] Net Income and Loss - Net loss attributable to common shareholders for Q1 2025 was $(5,483) thousand, compared to $(2,937) thousand in Q1 2024, indicating a worsening of 86.7%[25] - Non-GAAP net loss for Q1 2025 was $5,621,000, slightly higher than the $5,384,000 loss in Q1 2024[30] - The company reported a net income attributable to common shareholders of $(5,483,000) in Q1 2025, compared to $(2,937,000) in Q1 2024[30] Other Financial Metrics - The gross margin for Q1 2025 was 14.7%, slightly impacted by a heavier mix of lower margin EPC revenue[7] - Cash flows from operating activities in Q1 2025 were $(28,304,000), a decrease from $20,817,000 in Q1 2024[30] - The impact from redeemable non-controlling interests was $(525,000) in Q1 2025, compared to $(2,855,000) in Q1 2024[30]

Company Overview - Ameresco (AMRC) is expected to report a year-over-year decline in earnings, with a projected loss of $0.24 per share, reflecting a -140% change, while revenues are anticipated to be $312.05 million, up 4.6% from the previous year [3][12]. Earnings Expectations - The consensus EPS estimate has been revised 6.98% higher in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Ameresco is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.94%, which suggests a bearish outlook [10][11]. Historical Performance - In the last reported quarter, Ameresco had an earnings surprise of +20.55%, with actual earnings of $0.88 per share compared to an expected $0.73 [12]. - Over the last four quarters, the company has beaten consensus EPS estimates two times [13]. Market Sentiment - The stock may experience upward movement if the upcoming earnings report exceeds expectations, while a miss could lead to a decline [2]. - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 5 makes it challenging to predict a positive outcome for Ameresco [11][16]. Industry Context - In the broader context of the Zacks Alternative Energy - Other industry, Gevo, Inc. is also expected to report a loss of $0.10 per share, indicating a -25% year-over-year change, with revenues projected at $26.35 million, up 560.4% from the previous year [17]. - Gevo's consensus EPS estimate has been revised 23.1% higher, but it also faces challenges with an Earnings ESP of 0.00% and a Zacks Rank of 3 [18].

Core Insights - Ameresco, Inc. and CPower Energy have been awarded the 'Judges' Choice' in the Software Implementation category for their Advanced Renewable Energy System project at U.S. Army Garrison Fort Detrick, which enhances energy resilience and supports the PJM grid [1][2]. Company Overview - Ameresco, Inc. is a leading energy solutions provider focused on helping customers navigate the energy transition, with a comprehensive portfolio that includes energy efficiency solutions, infrastructure upgrades, and distributed energy resources [13]. - CPower Energy is recognized as a premier Virtual Power Plant provider, monetizing customer-sited energy assets to strengthen the grid and has delivered over $1 billion from market programs [12]. Project Details - The project at Fort Detrick involved the addition of a 6 MW / 6 MWh battery energy storage system (BESS) to an existing 18.6 MW DC solar facility, optimizing energy consumption and securing affordable energy for the military base [4]. - CPower's VPP optimizes the BESS, allowing Ameresco to earn revenue through PJM's Ancillary Services and Economic programs while ensuring power quality for local communities [4][5]. Industry Impact - The project exemplifies the critical role of Virtual Power Plants in creating a resilient energy future by leveraging customer-sited energy assets, which enhances the overall energy ecosystem [5]. - The collaboration between Ameresco and CPower highlights the importance of energy innovation and sustainability in military operations, with potential future developments including integration into a microgrid system for backup power [7].

Revenue and Backlog - As of December 31, 2024, the company had a backlog of approximately $2.5 billion in expected future revenues under signed customer contracts, compared to $1.3 billion in 2023, indicating a significant increase[93]. - The company reported an O&M backlog of approximately $1.4 billion as of December 31, 2024, up from $1.2 billion in 2023, reflecting growth in multi-year customer contracts for O&M services[93]. - 67% of the company's revenues for the years ended December 31, 2024, and 72% for 2023 were derived from sales to governmental entities, highlighting the importance of this market sector[98]. - The company anticipates that revenues from the governmental market sector will continue to comprise a significant percentage of its overall revenues for the foreseeable future[98]. - The company had awarded projects with estimated total future revenues of an additional $2.3 billion as of December 31, 2024, despite not yet having signed customer contracts[93]. Financial Performance - Revenues for 2024 were reported at $1,769,928 thousand, up from $1,374,633 thousand in 2023, indicating a year-over-year increase of about 29%[315]. - Gross profit for 2024 was $256,091 thousand, compared to $246,429 thousand in 2023, reflecting a growth of approximately 4%[315]. - Net income attributable to common shareholders decreased to $56,757 thousand in 2024 from $62,470 thousand in 2023, a decline of about 9%[315]. - The company reported a total current liabilities of $889,008 thousand in 2024, down from $901,471 thousand in 2023, a decrease of approximately 1.5%[312]. - Cash and cash equivalents increased to $108,516 thousand in 2024 from $79,271 thousand in 2023, representing a growth of about 37%[312]. - The company’s retained earnings rose to $652,561 thousand in 2024, up from $595,911 thousand in 2023, an increase of approximately 9.5%[312]. - Selling, general and administrative expenses increased to $173,761 thousand in 2024 from $162,138 thousand in 2023, a rise of about 7%[315]. - The company reported a gain on sale of business of $38,007 thousand in 2024, compared to no gain in 2023[315]. Operational Challenges - The company faces a long and variable sales cycle for energy efficiency and renewable energy projects, typically ranging from 18 to 42 months, which can be further extended due to macroeconomic conditions[91]. - The company has experienced disruptions in project development due to supply chain challenges and severe weather, impacting construction timelines and project profitability[96]. - The company relies on third parties for timely and reliable products and services, and any delays or quality issues could adversely affect project completion and customer relationships[106]. - The company faces challenges from global supply chain delays and inflationary pressures, particularly for essential products like lithium-ion battery cells, which could limit growth and profitability[116][117]. - Extreme weather events and natural disasters, exacerbated by climate change, pose risks to project completion and asset development, potentially leading to lost revenue and increased expenses[118]. - The company is dependent on skilled personnel and specialty subcontractors, and any difficulty in attracting or retaining these resources could lead to project delays and increased costs[113]. Regulatory and Compliance Risks - The company may be subject to liquidated damages up to $89 million if it fails to meet certain project completion milestones, which could adversely affect its reputation and financial results[97]. - The company’s contracts with governmental entities often include provisions that allow for termination or modification, which could adversely impact its backlog and future revenues[99]. - The company may incur liabilities under Energy Savings Performance Contracts (ESPCs) if projects fail to meet energy use reduction commitments, which could materially impact financial results[108]. - The company is subject to examination of its income tax returns by tax authorities, which could result in adverse outcomes affecting net income[147]. - Changes in laws governing public procurement of energy savings performance contracts (ESPCs) could materially impact the company's revenue from government customers[149]. - Compliance with environmental laws may adversely affect cash flow and profitability due to potential significant costs associated with existing and future regulations[159]. Market and Competitive Landscape - The company operates in a highly competitive industry, facing challenges from competitors with greater resources and proprietary technologies, which could adversely affect its market share and revenues[124]. - The company relies on government support for renewable energy projects, and any decline in such support or the imposition of additional taxes could harm its business[139]. - Limited Battery Energy Storage System supply capacity outside of China and import restrictions may increase costs and operational challenges, affecting competitive pricing[140]. Asset Management and Financial Strategy - The company has a $200 million revolving senior secured credit facility and a $100 million term loan, with a balance of $148 million as of December 31, 2024[164]. - The company’s financial covenants include a maximum ratio of total funded debt to EBITDA, which may limit business activities and access to credit[164]. - The company has entered into interest rate swaps to hedge exposure to adverse changes in short-term market rates related to its renewable energy project term loans[283]. - The company may incur substantial costs to comply with privacy and consumer protection laws, with potential fines for non-compliance due to regulations like GDPR[162]. International Operations and Expansion - International expansion is a key growth strategy, with operations outside the U.S. expected to increase, but this exposes the company to various risks not faced domestically[135]. - The company has not repatriated earnings from foreign subsidiaries but has chosen to invest in new business opportunities in those regions[288]. Goodwill and Asset Valuation - The goodwill balance as of December 31, 2024, was $66.3 million, with annual impairment assessments conducted at the reporting unit level[301]. - Significant estimates and assumptions are used in the goodwill impairment assessments, particularly regarding revenue and expense growth rates[302]. - The company evaluates long-lived assets for impairment, recognizing losses when the carrying value exceeds the fair value based on future cash flow estimates[361]. Cash Flow and Investment - Cash flows from operating activities increased significantly to $117,598,000 in 2024, compared to a negative cash flow of $(69,991,000) in 2023[323]. - Total capital investment in energy assets was $416,992,000 in 2024, down from $538,418,000 in 2023, indicating a reduction in capital expenditures[325]. - Proceeds from long-term energy asset debt financings amounted to $643,529,000 in 2024, compared to $843,498,000 in 2023, reflecting a decrease in financing activities[325]. - Payments on long-term corporate debt financings were $127,000,000 in 2024, down from $155,000,000 in 2023, indicating a reduction in debt servicing[325]. Inventory and Receivables - The total inventory primarily consists of PV solar panels, batteries, and related accessories, with provisions made to reduce carrying value to net realizable value[344]. - Other receivables decreased significantly from $74,454 thousand in 2023 to $16,336 thousand in 2024, indicating a substantial reduction in outstanding amounts[345]. - The company sold receivables without recourse totaling $3,994 thousand in 2024, down from $39,923 thousand in 2023, indicating a decrease in financing through receivables sales[346]. Lease and Asset Management - The company applies the acquisition method of accounting for business combinations, recording assets and liabilities at fair value, with any excess consideration recognized as goodwill[368]. - Sale-leaseback arrangements for solar PV energy assets allow the company to recognize revenue through the sale of electricity and solar renewable energy credits generated by these assets[388]. - The company retains control of underlying assets in sale-leaseback transactions, which are accounted for as financing liabilities[390].

Financial Data and Key Metrics Changes - The company reported a 29% increase in annual revenue and a 38% increase in adjusted EBITDA for 2024 [7] - Fourth quarter results showed a 21% increase in revenue and a 59% increase in adjusted EBITDA [8] - Gross margin for the quarter was 12.5%, significantly lower than expected due to unanticipated cost overruns impacting gross profit by approximately $20 million [22] Business Line Data and Key Metrics Changes - Revenue from the projects business grew by 21%, reflecting a consistent focus on execution and backlog conversion [20] - Energy asset revenue increased by 31%, driven by a greater number of operating assets [21] - O&M revenue grew by 9%, with strong performances from off-grid PV and consulting businesses contributing to a 14% increase in other business lines [21] Market Data and Key Metrics Changes - The total project backlog increased by 24% year-over-year to a record $4.8 billion, with a contracted backlog growth of 92% [8][26] - The company generated over $250 million in revenue from its expanding European business in 2024 [19] Company Strategy and Development Direction - The company aims to continue leveraging its diversified and resilient business model to manage through challenging environments [17] - There is a focus on long-term demand from federal agency customers, particularly for secure and reliable power solutions [17] - The company is expanding geographically, with operations now in every U.S. state, Canada, the U.K., and growing in Continental Europe [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from two large legacy projects that impacted results but believes the financial impact is largely behind them [10] - The company is closely monitoring changes in federal policies and anticipates potential delays but remains confident in the demand for its services [12][17] - The guidance for 2025 reflects an unpredictable political and regulatory environment, with revenue expected to be $1.9 billion and adjusted EBITDA of $235 million [34] Other Important Information - The company ended the quarter with approximately $109 million in cash and reduced total corporate debt to $243 million [27] - The company anticipates placing approximately 100 to 120 megawatts of energy assets in service in 2025, including 1 to 2 RNG plants [34] Q&A Session Summary Question: Customer Conversations Since January - Management noted that activity remains strong, especially in the federal sector, with several active RFPs despite some slowness in civilian projects [50] Question: Deployment of Energy Assets in 2025 - Management indicated that supply chain issues could affect deployment but overall market conditions remain favorable [53] Question: Pause in ESPC Projects - The pause is specific to GSA projects due to asset evaluations, but management expects continued value from energy savings performance contracts [58] Question: Guidance and Federal Revenue Assumptions - Management clarified that federal revenue is included in the 2025 guidance, with a focus on 12-month contracted projects [98] Question: Impact of EPA Staffing Cuts on RNG - Management expressed confidence in the certification process for RNG plants, noting a supportive regulatory environment for biofuels [106]