FRAMINGHAM, Mass. & LEMOORE, Calif.--(BUSINESS WIRE)--In a significant move to advance America's leadership in artificial intelligence and energy dominance, Ameresco, Inc. (NYSE: AMRC), a leading energy solutions provider, today announced plans—alongside the U.S. Navy and CyrusOne—to develop a 100 MW AI-optimized data center and critical energy infrastructure at Naval Air Station (NAS) Lemoore. The state- of-the-art facility will be co-located with dedicated onsite energy generation infrastructu. ...

Group 1 - The industrials sector has been delivering attractive returns in 2025, but Ameresco (NYSE: AMRC) is down -3% year-to-date [1] - The article highlights the author's investment approach, which combines stable, high-conviction holdings with tactical allocation to dynamic assets based on economic cycles and sector momentum [1] - The author expresses a particular interest in the gaming sector, leveraging both professional experience and personal passion [1]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Ameresco's unaudited condensed consolidated financial statements for the periods ended June 30, 2025, along with detailed notes on accounting policies [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets increased to **$4.30 billion**, total liabilities to **$3.22 billion**, and total stockholders' equity grew to **$1.07 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,280,430 | $1,301,134 | | **Energy assets, net** | $2,041,247 | $1,915,311 | | **Total assets** | **$4,295,280** | **$4,158,508** | | **Total current liabilities** | $822,075 | $889,008 | | **Long-term debt and financing lease liabilities, net** | $1,661,839 | $1,483,900 | | **Total liabilities** | $3,224,409 | $3,113,359 | | **Total stockholders' equity** | $1,070,871 | $1,045,149 | [Condensed Consolidated Statements of Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) Ameresco reported significant increases in Q2 2025 net income to **$15.5 million** and six-month net income to **$9.9 million**, with diluted EPS at **$0.24** Financial Performance Summary (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $472,284 | $437,982 | $825,113 | $736,388 | | **Gross Profit** | $73,358 | $65,169 | $125,277 | $112,162 | | **Operating Income** | $27,774 | $20,953 | $41,466 | $28,946 | | **Net Income (Loss)** | $15,518 | $5,194 | $9,912 | $(984) | | **Diluted EPS** | $0.24 | $0.09 | $0.14 | $0.04 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash used in operating activities was **$55.2 million**, with a net decrease in cash, cash equivalents, and restricted cash of **$6.4 million** Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash from operating activities** | $(55,177) | $74,131 | | **Net cash from investing activities** | $(176,033) | $(233,212) | | **Net cash from financing activities** | $221,935 | $238,435 | | **Net (decrease) increase in cash** | $(6,361) | $79,424 | - Capital investments in energy assets were a primary use of cash in investing activities, totaling **$208.1 million** for the first six months of 2025[29](index=29&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, revenue recognition, acquisitions, debt, leases, contingencies, and segment information - Total contracted backlog stood at **$3.76 billion** as of June 30, 2025, with approximately **35%** expected to be recognized as revenue in the next twelve months[61](index=61&type=chunk) - On January 24, 2025, the company acquired ASA Controls, Inc., an energy services company, for **$3.97 million** in cash[66](index=66&type=chunk) - The company is exposed to a potential loss related to a **$26.7 million** deposit paid to Powin LLC, a battery supplier that filed for Chapter 11 bankruptcy[106](index=106&type=chunk)[44](index=44&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial results, highlighting revenue growth, key business trends, regulatory impacts, supply chain challenges, segment performance, backlog, and liquidity [Key Factors and Trends](index=36&type=section&id=Key%20Factors%20and%20Trends) Company performance is influenced by federal policies, ongoing supply chain disruptions, inflation, and the unresolved dispute with Southern California Edison (SCE) over potential liquidated damages - The newly enacted One Big Beautiful Bill Act (OBBB) on July 4, 2025, introduces new timing requirements for solar ITC eligibility and phases down ITCs for energy storage, potentially impacting project economics[150](index=150&type=chunk)[151](index=151&type=chunk) - The company continues to face supply chain disruptions, inflation, and component shortages, which negatively impacted results during the first six months of 2025[154](index=154&type=chunk)[155](index=155&type=chunk) - A dispute with SCE over potential liquidated damages up to a maximum of **$89 million** remains unresolved, although two of the three projects have reached substantial completion[102](index=102&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) [Backlog and Awarded Projects](index=38&type=section&id=Backlog%20and%20Awarded%20Projects) The company's total project backlog increased to **$5.1 billion** as of June 30, 2025, with the 12-month project backlog growing to **$1.2 billion** Backlog Summary (in thousands) | Backlog Category | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | **Total project backlog** | $5,103,906 | $4,413,043 | | *Fully-contracted backlog* | *$2,415,369* | *$1,650,562* | | *Awarded, not yet signed* | *$2,688,537* | *$2,762,481* | | **12-month project backlog** | $1,219,471 | $817,369 | | **O&M Backlog (fully-contracted)** | $1,346,352 | $1,185,890 | [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Q2 2025 revenues increased **7.8%** to **$472.3 million**, with operating income up **32.6%**, while H1 2025 revenues grew **12.0%** to **$825.1 million**, and operating income rose **43.3%** Q2 Year-Over-Year Financial Results (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $472,284 | $437,982 | 7.8% | | **Gross Profit** | $73,358 | $65,169 | 12.6% | | **Operating Income** | $27,774 | $20,953 | 32.6% | | **Net Income** | $15,518 | $5,194 | 198.8% | Six Months Year-Over-Year Financial Results (in thousands) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $825,113 | $736,388 | 12.0% | | **Gross Profit** | $125,277 | $112,162 | 11.7% | | **Operating Income** | $41,466 | $28,946 | 43.3% | | **Net Income (Loss)** | $9,912 | $(984) | 1,107.3% | [Business Segment Analysis](index=41&type=section&id=Business%20Segment%20Analysis) In H1 2025, Europe segment revenue more than doubled, North America Regions grew **12.4%**, while U.S. Federal revenue declined **42.5%**, and Renewable Fuels reported a loss before taxes Revenues by Segment - Six Months Ended June 30 (in thousands) | Segment | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **North America Regions** | $389,445 | $346,416 | 12.4% | | **U.S. Federal** | $84,891 | $147,627 | (42.5)% | | **Renewable Fuels** | $80,994 | $78,711 | 2.9% | | **Europe** | $238,541 | $117,181 | 103.6% | | **All Other** | $31,242 | $46,453 | (32.7)% | Income (Loss) Before Taxes by Segment - Six Months Ended June 30 (in thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | **North America Regions** | $29,245 | $14,436 | | **U.S. Federal** | $8,579 | $16,741 | | **Renewable Fuels** | $(2,837) | $6,022 | | **Europe** | $10,417 | $1,241 | | **All Other** | $3,537 | $5,351 | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash flow and debt facilities, refinancing its credit facility in January 2025, and plans significant capital expenditures for new renewable energy plants - On January 23, 2025, the company refinanced its corporate credit facility, resulting in a new **$225 million** revolver and a **$100 million** term loan, both maturing in December 2028[184](index=184&type=chunk)[188](index=188&type=chunk) - The company plans to invest an additional **$150 million to $200 million** in capital expenditures during the remainder of 2025, mainly for constructing new renewable energy plants[204](index=204&type=chunk) - Cash used in operations was **$55.2 million** for H1 2025, a significant shift from **$74.1 million** in cash provided by operations in H1 2024, primarily due to changes in working capital accounts like accounts payable and deferred revenue[201](index=201&type=chunk)[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As of June 30, 2025, the company reports no significant changes in market risk exposures compared to its 2024 Annual Report on Form 10-K - There were no significant changes in market risk exposures from those described in the 2024 Form 10-K[211](index=211&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the quarter[212](index=212&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[213](index=213&type=chunk) [PART II - OTHER INFORMATION](index=47&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings but does not expect any pending cases to have a material adverse effect on its business or financial condition - The company states that it does not expect any currently pending legal proceedings to have a material adverse effect on its business or financial condition[214](index=214&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the detailed risk factors in the 2024 Form 10-K, indicating no material changes or additions to those previously disclosed risks - The report directs investors to the risk factors previously disclosed in the 2024 Form 10-K for a comprehensive understanding of the risks the business faces[216](index=216&type=chunk)[217](index=217&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Ameresco did not repurchase common stock in Q2 2025, with approximately **$5.7 million** remaining available under its authorized stock repurchase program - No shares were repurchased in Q2 2025. Approximately **$5.7 million** remains authorized for purchase under the existing stock repurchase program[218](index=218&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) This section discloses that CFO Mark A. Chiplock adopted a Rule 10b5-1 trading plan on June 5, 2025, for the potential sale of up to **58,998** shares of Class A common stock - On June 5, 2025, CFO Mark A. Chiplock adopted a Rule 10b5-1 trading plan for the sale of up to **58,998** shares, effective until May 1, 2026, or earlier completion[220](index=220&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and financial statements formatted in Inline XBRL - The exhibits filed with the report include Sarbanes-Oxley certifications (302 and 906) and financial data in Inline XBRL format[221](index=221&type=chunk)

Core Insights - Ameresco reported revenue of $472.28 million for the quarter ended June 2025, reflecting a year-over-year increase of 7.8% and a surprise of +14.83% over the Zacks Consensus Estimate of $411.3 million [1] - The company's EPS for the quarter was $0.27, significantly higher than the $0.10 reported in the same quarter last year, resulting in an EPS surprise of +350% compared to the consensus estimate of $0.06 [1] Revenue Breakdown - Revenue from Projects was $358.1 million, exceeding the three-analyst average estimate of $294.85 million [4] - Revenue from Other Services was $23.3 million, slightly below the average estimate of $25.96 million [4] - Revenue from O&M was $28 million, surpassing the average estimate of $26.87 million [4] - Revenue from Energy Assets was $62.9 million, in line with the average estimate of $62.56 million [4] Adjusted EBITDA Performance - Adjusted EBITDA from Projects was $16.3 million, significantly higher than the average estimate of $11.18 million [4] - Adjusted EBITDA from Other Services was $2.62 million, above the average estimate of $2.02 million [4] - Adjusted EBITDA from O&M was $3.45 million, below the average estimate of $4.28 million [4] - Adjusted EBITDA from Energy Assets was $33.79 million, lower than the average estimate of $35.96 million [4] Stock Performance - Ameresco's shares have returned -5.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Ameresco (AMRC) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non- recurring items. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have c ...

Ameresco (AMRC) Q2 2025 Earnings Call August 04, 2025 04:30 PM ET Company ParticipantsLeila Dillon - SVP - Corporate Marketing & CommunicationsGeorge Sakellaris - Chairman, CEO & PresidentMark Chiplock - EVP, CFO & Chief Accounting OfficerJoshua Baribeau - SVP & Chief Investment OfficerNicole Bulgarino - President - Federal Solutions & Utility InfrastructureStephen Gengaro - Managing DirectorJoseph Osha - Senior MD - Equity ResearchCraig Shere - Director - ResearchConference Call ParticipantsNoah Kaye - Sen ...

Financial Data and Key Metrics Changes - Ameresco reported a strong financial performance with second quarter revenue growing 8% year-over-year and adjusted EBITDA increasing 24% [14][16] - Net income attributable to common shareholders was $12.9 million, or $0.24 per share, with non-GAAP EPS of $0.27, reflecting a 30% growth compared to last year [16] - Total project backlog increased 16% to a record $5.1 billion, marking the first time the company exceeded this milestone [17] Business Line Data and Key Metrics Changes - Projects revenue grew 8%, driven by strength across geographies and customer bases, particularly from the European joint venture with Synel [14][15] - Energy asset revenue increased 18%, supported by the growth of operating assets, which now total approximately 750 megawatts [15] - Recurring O&M revenue maintained steady growth, while revenue from other business lines declined due to the divestiture of the AEG business [15] Market Data and Key Metrics Changes - Europe now accounts for approximately 20% of the total project backlog, indicating a significant growth market for Ameresco [9] - The company is experiencing increased demand for energy infrastructure solutions due to rising electricity prices and grid instability [5][6] Company Strategy and Development Direction - Ameresco's diversification strategy is a key advantage, with a focus on energy infrastructure solutions across various sectors [10] - The company is investing in human capital and technology, including small modular reactors and battery storage, to prepare for future growth [11] - The management is optimistic about the improved business environment with the federal government and is exploring new opportunities leveraging federal land for energy infrastructure projects [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for a diverse portfolio of energy solutions, driven by rising utility rates and the need for reliable energy supply [5][6] - The company does not expect significant near-term impacts from recent legislative changes but remains vigilant about their potential long-term effects [21] Other Important Information - Ameresco raised approximately $170 million in new project financing during the quarter, including a $78 million note issuance for an energy storage asset [19] - The company has a claim of approximately $27 million against a battery supplier that recently filed for bankruptcy, but this is not expected to impact project execution [20] Q&A Session Summary Question: Cash generation and net leverage perspective for the back half of the year - Management indicated comfort with current leverage levels and expects EBITDA growth to potentially lower leverage further [28][29] Question: Factors driving the increase in contracted backlog - The increase is attributed to higher demand for infrastructure upgrades and a strong market environment [30][31] Question: Exposure in data center infrastructure - Ameresco is actively working with various players in the data center space to provide energy solutions [38] Question: Equipment supply issues impacting growth - Supply tightness exists for transformers and gas turbines, but the company is managing to avoid project delays [43][44] Question: Strategy for European operations and potential acquisitions - The company is focusing on organic growth in Europe while remaining open to acquisitions if opportunities arise [46][48] Question: Energy asset deployment guidance for the back half of the year - The company maintains guidance of 100 to 120 megawatts for energy asset deployments [51] Question: Federal business outlook and project rescoping - Management is optimistic about the federal business, noting improvements in project execution compared to earlier in the year [86][88]

Financial Performance & Revenue - Q2 2025 revenue breakdown: Projects contribute $358.1 million, Energy & incentive revenue from owned energy assets plus recurring O&M from projects is $90.9 million, and other sources including services, software and integrated PV account for $23.3 million[5] - Year-to-date 2025, total revenue is $825 million, with projects accounting for 74%, assets for 15%, O&M for 6%, and other sources for 5%[7] - Year-to-date 2025, adjusted EBITDA is $97 million, with assets contributing 66%, projects 26%, O&M 5%, and other sources 3%[7] - Ameresco's total debt is $1.82 billion, of which $1.50 billion is energy asset debt[14, 15] - Of the energy asset debt, $0.99 billion is associated with operating energy assets, and $0.51 billion is associated with energy assets in development & construction[16] Energy Assets & Backlog - Operating energy assets total 749 MWe, comprising 56% solar (421 MW), 22% battery (166 MW), 11% non-RNG biogas (83 MWe), 9% RNG biogas (70 MWe), and 1% other[10, 11] - Energy assets in development & construction total 615 MWe, with 40% battery, 23% firm generation, 22% solar, and 15% biogas[11] - The company has a diversified total project backlog of $5.1 billion as of June 30, 2025, with $2.4 billion in awarded project backlog and $2.7 billion in contracted project backlog[21, 23] - The operating energy assets have a $1.3 billion backlog with a 15.1 year weighted average PPA remaining, plus an additional estimated revenue from market price RNG of $1.45 billion[21] Sustainability Impact - Since 2010, Ameresco's renewable energy assets & customer projects delivered a carbon emission reduction equivalent to over 125 million metric tons of CO2[30]

Second Quarter 2025 Financial Highlights: FRAMINGHAM, MA – August 4, 2025 – Ameresco, Inc. (NYSE:AMRC), a leading energy solutions provider dedicated to helping customers navigate the energy transition, today announced financial results for the second quarter ended June 30, 2025. The Company also furnished supplemental information in conjunction with this press release in a Current Report on Form 8-K. The supplemental information, which includes Non-GAAP financial measures, has been posted to the "Investors ...

Core Viewpoint - The comparison between Ameresco (AMRC) and Talen Energy Corporation (TLN) indicates that Ameresco presents a better value opportunity for investors at this time due to its stronger earnings outlook and favorable valuation metrics [1][3]. Valuation Metrics - Ameresco has a forward P/E ratio of 19.04, significantly lower than Talen Energy's forward P/E of 51.78, suggesting that Ameresco is undervalued relative to Talen [5]. - The PEG ratio for Ameresco is 0.76, while Talen's PEG ratio is 9.94, indicating that Ameresco's expected earnings growth is more favorable compared to its price [5]. - Ameresco's P/B ratio stands at 0.81, in contrast to Talen's P/B ratio of 11, further supporting the notion that Ameresco is undervalued [6]. Investment Grades - Ameresco holds a Zacks Rank of 1 (Strong Buy), while Talen Energy has a Zacks Rank of 3 (Hold), reflecting a stronger improvement in earnings outlook for Ameresco [3]. - Based on the valuation figures and earnings outlook, Ameresco is rated with a Value grade of A, whereas Talen Energy has a Value grade of C, reinforcing Ameresco's position as the superior value option [6].