Core Viewpoint - Ameresco (AMRC) reported quarterly earnings of $0.27 per share, significantly exceeding the Zacks Consensus Estimate of $0.06 per share, marking an earnings surprise of +350.00% [1] - The company also posted revenues of $472.28 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 14.83% [2] Financial Performance - The earnings of $0.27 per share compare to $0.1 per share a year ago, indicating a positive year-over-year growth [1] - Over the last four quarters, Ameresco has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Market Performance - Ameresco shares have declined approximately 32.4% since the beginning of the year, contrasting with the S&P 500's gain of 6.1% [3] - The current Zacks Rank for Ameresco is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $526.89 million, and for the current fiscal year, it is $0.84 on revenues of $1.88 billion [7] - The outlook for the Alternative Energy - Other industry, to which Ameresco belongs, is currently in the bottom 39% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - Ameresco reported a strong financial performance with second quarter revenue growing 8% and adjusted EBITDA increasing 24% year-over-year [15][17] - 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 [17] - Total project backlog increased 16% to a record $5.1 billion, with contracted project backlog rising 46% to $2.4 billion [18] Business Line Data and Key Metrics Changes - Projects revenue grew 8%, driven by strong performance across geographies, particularly from a European joint venture [15][16] - Energy asset revenue grew 18%, supported by an increase in operating assets, which now total approximately 750 megawatts [16] - Recurring O&M revenue maintained steady growth, while revenue from other business lines declined due to the divestiture of the AEG business [16] Market Data and Key Metrics Changes - Europe now accounts for approximately 20% of the total project backlog, indicating significant growth potential in that region [10] - The company is well diversified across public and private customers, with independent power producers now representing over 20% of the total project backlog [9] Company Strategy and Development Direction - Ameresco's strategy focuses on diversification across customer base, technology portfolio, and geographic reach to capitalize on growth opportunities [10][11] - The company is investing in human capital and technology, including small modular reactors and battery storage, to stay ahead of market trends [12] - The management highlighted the importance of energy infrastructure solutions in response to increasing electricity demand and utility rates [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improved business environment with the federal government and ongoing federal contracts [13][88] - The company anticipates continued growth driven by rising electricity prices and the need for reliable energy supply [7][8] - Ameresco reaffirmed its guidance for 2025, indicating confidence in future performance despite potential regulatory changes [21] Other Important Information - The company raised approximately $170 million in new project financing during the quarter, including a $78 million note issuance [19] - Ameresco 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 - Management indicated comfort with current leverage levels and expects to potentially reduce leverage as EBITDA grows and project collections occur [28] Question: Contracted backlog conversion trends - The increase in contracted backlog is driven by expanded service offerings and higher market demand, with margins trending positively [31][34] Question: Data center infrastructure exposure - Ameresco is actively working on energy supply projects for data centers, addressing the power shortage driven by new AI loads [36] Question: Equipment supply impact on growth - Supply tightness exists for certain equipment, but the company has managed to avoid delays in project implementation [42] Question: European operations strategy - Ameresco is focusing on organic growth in Europe while remaining open to acquisitions, particularly in battery storage and solar [46][47] Question: Federal business outlook - Management expressed optimism about federal contracts and the value proposition of energy savings in infrastructure upgrades [88][90] Question: Energy asset deployment guidance - The company maintains guidance of deploying 100 to 120 megawatts of energy assets by year-end, with expectations for a stronger Q4 [51][94] Question: RNG business outlook - Ameresco remains positive about the RNG business, especially with the ability to monetize investment tax credits [65] Question: SMR partnership with Terrestrial Energy - The partnership aims to explore next-generation firm energy solutions, with projects expected to take several years to develop [68]

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]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Ameresco reported strong Q2 2025 results, with 8% revenue growth, 24% Adjusted EBITDA increase, and a record $5.1 billion project backlog Q2 2025 Key Financial Metrics | Metric | Q2 2025 Value | | :-------------------------------- | :------------ | | Revenues | $472.3 million | | Net income attributable to common shareholders | $12.9 million | | GAAP EPS | $0.24 | | Non-GAAP EPS | $0.27 | | Adjusted EBITDA | $56.1 million | - Total Revenue and Adjusted EBITDA grew by **8%** and **24%** respectively, exceeding expectations[2](index=2&type=chunk)[4](index=4&type=chunk) - Total Project Backlog reached a record **$5.1 billion**, with Energy Infrastructure and resiliency projects accounting for almost half[2](index=2&type=chunk)[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO George Sakellaris emphasized strong execution, revenue growth, operating leverage, and increasing demand for Energy Infrastructure solutions - Revenue growth of **8%** exceeded expectations, reflecting strength across business lines, particularly in Europe and the Energy Asset business[4](index=4&type=chunk) - Adjusted EBITDA increased **24%**, demonstrating significant operating leverage[4](index=4&type=chunk) - The company added over **$550.0 million** in new project awards during the quarter, strengthening its foundation for future profitable growth[4](index=4&type=chunk)[6](index=6&type=chunk) - Rapidly increasing demand for electricity, rising utility rates, and growing grid instability are driving demand for Ameresco's diverse Energy Infrastructure solutions, including a new Nuclear Partner Program[7](index=7&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Ameresco's Q2 2025 total revenue grew 8% to $472.3 million, with net income at $12.9 million and Adjusted EBITDA up 24% Consolidated Financial Performance Summary | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Total Revenue | $472.3M | $438.0M | +8% | | Net Income Attributable to Common Shareholders | $12.9M | $5.0M | +158% | | GAAP EPS | $0.24 | $0.10 | +140% | | Non-GAAP EPS | $0.27 | $0.10 | +170% | | Adjusted EBITDA | $56.1M | $45.1M | +24% | | Gross Margin | 15.5% | N/A | In line with expectations | - Q2 net income and EPS were positively impacted by **$4.3 million** in non-cash, mark-to-market gains on certain unhedged derivatives, and **$3.0 million** of fx translation gains[8](index=8&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Projects revenue grew 8%, Energy Asset revenue increased 18%, O&M revenue rose 7%, and Other revenue decreased due to AEG sale Segment Performance Summary | Segment | Q2 2025 Revenue | Q2 2024 Revenue | YoY Change (Revenue) | Q2 2025 Adj. EBITDA | Q2 2024 Adj. EBITDA | YoY Change (Adj. EBITDA) | | :-------- | :-------------- | :-------------- | :------------------- | :------------------ | :------------------ | :----------------------- | | Projects | $358.1M | $330.8M | +8% | $16.3M | $7.1M | +129.6% | | Energy Assets | $62.9M | $53.4M | +18% | $33.8M | $31.2M | +8.3% | | O&M | $28.0M | $26.2M | +7% | $3.4M | $3.9M | -12.8% | | Other | $23.3M | $27.6M | -15.6% | $2.6M | $2.9M | -10.3% | - Projects revenue growth was driven by continued growth in Europe and focus on project execution[8](index=8&type=chunk) - Energy Asset revenue benefited from the cumulative impact of long-term contracts associated with the growing portfolio of operating Energy Assets[8](index=8&type=chunk) - Other revenue was lower due to the sale of AEG at the end of 2024[8](index=8&type=chunk) [Project and Asset Highlights](index=3&type=section&id=Project%20and%20Asset%20Highlights) Ameresco achieved a record **$5.1 billion** total project backlog, with strong future revenue visibility and **7 MWe** of new energy assets in operation Project and Asset Backlog and Visibility | Metric | Value | | :-------------------------------- | :-------- | | Awarded Project Backlog | $2,689M | | Contracted Project Backlog | $2,415M | | Total Project Backlog | $5,104M | | 12-month Contracted Backlog | $1,219M | | O&M Revenue Backlog | $1,346M | | 12-month O&M Backlog | $101M | | Energy Asset Visibility | $3,317M | | Total Revenue Visibility | $9,767M | | Operating Energy Assets | 749 MWe | | Ameresco's Net Assets in Development | 615 MWe | - Ameresco brought **7 MWe** of Energy Assets into operation during the quarter[9](index=9&type=chunk) [Balance Sheet and Cash Flow Metrics](index=4&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Metrics) Q2 2025 ended with **$81.6 million** cash, corporate debt at **$294.1 million**, Energy Asset Debt at **$1.5 billion**, and Adjusted Cash from Operations at **$49.6 million** Balance Sheet and Cash Flow Summary | Metric | Value (June 30, 2025) | | :-------------------------------- | :-------------------- | | Total Corporate Debt | $294.1M | | Corporate Debt Leverage Ratio | 3.4X | | Total Energy Asset Debt | $1,502.6M | | Non-Core Debt, International JVs | $25.8M | | Energy Asset Book Value | $2,041.3M | | Energy Debt Advance Rate | 74% | | Cash Flows from Operating Activities (Q2) | $(26.9)M | | Adjusted Cash from Operations (Q2) | $49.6M | | 8-quarter rolling average Adjusted Cash from Operations | $46.9M | - Corporate debt increased to support working capital needs due to continued business growth[10](index=10&type=chunk) - During the quarter, the Company successfully executed approximately **$175.0 million** in project financing commitments and sold over **$70.0 million** in RNG-related tax credits[10](index=10&type=chunk) [Outlook and Guidance](index=4&type=section&id=Outlook%20and%20Guidance) [FY 2025 Guidance](index=4&type=section&id=FY%202025%20Guidance) Ameresco reiterated its FY 2025 guidance, projecting revenue of **$1.85-$1.95 billion** and Adjusted EBITDA of **$225-$245 million** FY 2025 Financial Guidance | Metric | FY 2025 Guidance Range | | :-------------------------------- | :--------------------- | | Revenue | $1.85 billion - $1.95 billion | | Gross Margin | 15.5% - 16.0% | | Adjusted EBITDA | $225 million - $245 million | | Depreciation & Amortization | $103 million - $105 million | | Interest Expense & Other | $85 million - $90 million | | Effective Tax Rate | (50)% - (35)% | | Income Attributable to Non-Controlling Interest | $(5) million - $(8) million | | Non-GAAP EPS | $0.70 - $0.90 | - The company's business with the Federal Government is returning to a more normalized cadence, with no material short-term impact expected from the OBBB Act[11](index=11&type=chunk) - The 2025 guidance excludes the potential impact of a change in accounting principle related to sale-leaseback arrangements, which is still being assessed[12](index=12&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) [Conference Call/Webcast Information](index=5&type=section&id=Conference%20Call%2FWebcast%20Information) Ameresco hosted a conference call on August 4, 2025, to discuss Q2 2025 results and outlook, with webcast access available - A live, listen-only webcast of the conference call was available through the 'Investors' section of the Company's website at www.ameresco.com, with an archived webcast available for one year[14](index=14&type=chunk) [About Ameresco, Inc.](index=5&type=section&id=About%20Ameresco%2C%20Inc.) Ameresco, Inc., founded in 2000, is a leading energy solutions provider focused on cost reduction, resilience, and net-zero decarbonization - Ameresco's mission is to help customers navigate the global energy transition by reducing costs, enhancing resilience, and decarbonizing to net zero[16](index=16&type=chunk) - The company's portfolio includes smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources[16](index=16&type=chunk) - Ameresco serves Federal, state and local governments, utilities, educational and healthcare institutions, housing authorities, and commercial and industrial customers[16](index=16&type=chunk) - Headquartered in Framingham, MA, Ameresco has over **1,500 employees** providing local expertise in North America and Europe[16](index=16&type=chunk)[17](index=17&type=chunk) [Contact Information](index=6&type=section&id=Contact%20Information) Contact details for Media Relations and Investor Relations were provided for inquiries - Media Relations contact: Leila Dillon, 508.661.2264, news@ameresco.com[18](index=18&type=chunk) - Investor Relations contacts: Eric Prouty and Lynn Morgen from AdvisIRy Partners, 212.750.5800[18](index=18&type=chunk) [Legal and Non-GAAP Disclosures](index=5&type=section&id=Legal%20and%20Non-GAAP%20Disclosures) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) The Safe Harbor Statement indicates forward-looking statements are subject to risks that could cause actual results to differ materially - Forward-looking statements are subject to risks such as demand for solutions, timing of contracts, ability to perform, government fiscal health, supply chain disruptions, and regulatory changes[19](index=19&type=chunk) - The company disclaims any obligation to update these forward-looking statements, which represent views as of the press release date[20](index=20&type=chunk) [Use of Non-GAAP Financial Measures](index=5&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Ameresco uses Non-GAAP measures like Adjusted EBITDA and Non-GAAP EPS to provide supplemental investor information, excluding discrete items - Non-GAAP measures are used to provide useful supplemental information and evaluate operating performance without regard to items that can vary substantially[15](index=15&type=chunk)[36](index=36&type=chunk)[38](index=38&type=chunk) - Adjusted EBITDA excludes items such as income tax, other expenses net, depreciation, amortization, stock-based compensation, and contingent consideration[38](index=38&type=chunk) - Non-GAAP net income and EPS exclude discrete items like asset impairment, contingent consideration, and restructuring charges, which are not part of core operations[40](index=40&type=chunk)[41](index=41&type=chunk) - Adjusted Cash from Operations includes proceeds from ITC sales and Federal ESPC projects, which are considered benefits generated by underlying assets and projects[42](index=42&type=chunk) [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets reached **$4.295 billion**, with increased energy assets and long-term debt reflecting investments and financing Condensed Consolidated Balance Sheets Summary | Asset/Liability | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | **ASSETS:** | | | | Cash and cash equivalents | $81,633 | $108,516 | | 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 | | **LIABILITIES & EQUITY:** | | | | Total current liabilities | $822,075 | $889,008 | | Long-term debt and financing lease liabilities, net | $1,661,839 | $1,483,900 | | Total stockholders' equity | $1,070,871 | $1,045,149 | | Total liabilities, redeemable non-controlling interests and stockholders' equity | $4,295,280 | $4,158,508 | - Energy assets, net, increased by over **$125 million** from December 31, 2024, reflecting continued investments[22](index=22&type=chunk) - Long-term debt and financing lease liabilities, net, increased by approximately **$178 million**, indicating increased financing activities[23](index=23&type=chunk) [Condensed Consolidated Statements of Income (Loss)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) Q2 2025 net income attributable to common shareholders rose to **$12.9 million**, driven by **8%** revenue growth and improved operating income Condensed Consolidated Statements of Income (Loss) Summary | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Revenues | $472,284 | $437,982 | | Cost of revenues | $398,926 | $372,813 | | Gross profit | $73,358 | $65,169 | | Operating income | $27,774 | $20,953 | | Income (loss) before income taxes | $12,618 | $5,194 | | Net income (loss) | $15,518 | $5,194 | | Net income attributable to common shareholders | $12,864 | $5,010 | | Basic EPS | $0.24 | $0.10 | | Diluted EPS | $0.24 | $0.09 | - Operating income increased by **32.5%** year-over-year for the quarter, from **$20.95 million** to **$27.77 million**[26](index=26&type=chunk) - For the six months ended June 30, 2025, net income attributable to common shareholders was **$7.38 million**, a substantial improvement from **$2.07 million** in the prior year period[26](index=26&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, operating cash flow was a **$(55.18) million** outflow, investing activities a **$(176.03) million** outflow, and financing activities a **$221.94 million** inflow Condensed Consolidated Statements of Cash Flows Summary | Cash Flow Category | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Cash flows from operating activities | $(55,177) | $74,131 | | Cash flows from investing activities | $(176,033) | $(233,212) | | Cash flows from financing activities | $221,935 | $238,435 | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(6,361) | $79,424 | | Cash, cash equivalents, and restricted cash, end of period | $192,017 | $233,100 | - Capital investments in energy assets remained substantial at **$(208.13) million** for the six-month period[28](index=28&type=chunk) - Proceeds from sales of ITC contributed **$70.79 million** to investing activities in 2025, compared to none in 2024[28](index=28&type=chunk) - Proceeds from long-term energy asset debt financings were **$290.16 million** for the six months ended June 30, 2025[28](index=28&type=chunk) [Non-GAAP Reconciliations and Other Financial Measures](index=13&type=section&id=Non-GAAP%20Reconciliations%20and%20Other%20Financial%20Measures) [Adjusted EBITDA Reconciliation](index=13&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q2 2025 Adjusted EBITDA increased to **$56.1 million**, primarily from Energy Assets, with YTD consolidated Adjusted EBITDA reaching **$96.78 million** Adjusted EBITDA by Segment (Quarterly) | Segment | Q2 2025 Adj. EBITDA (in thousands) | Q2 2024 Adj. EBITDA (in thousands) | YoY Change | | :-------- | :--------------------------------- | :--------------------------------- | :--------- | | Projects | $16,295 | $6,967 | +133.9% | | Energy Assets | $33,787 | $31,233 | +8.2% | | O&M | $3,447 | $3,968 | -13.2% | | Other | $2,618 | $2,963 | -11.6% | | Consolidated | $56,147 | $45,131 | +24.4% | Adjusted EBITDA by Segment (Year-to-Date) | Segment | YTD Q2 2025 Adj. EBITDA (in thousands) | YTD Q2 2024 Adj. EBITDA (in thousands) | YoY Change | | :-------- | :----------------------------------- | :----------------------------------- | :--------- | | Projects | $25,031 | $10,205 | +145.3% | | Energy Assets | $63,893 | $52,428 | +21.9% | | O&M | $5,109 | $8,757 | -41.6% | | Other | $2,749 | $4,572 | -39.9% | | Consolidated | $96,782 | $75,962 | +27.4% | - Adjusted EBITDA margin for Q2 2025 was **11.9%**, up from **10.3%** in Q2 2024[30](index=30&type=chunk) [Non-GAAP Net Income, EPS, and Adjusted Cash from Operations](index=15&type=section&id=Non-GAAP%20Net%20Income%2C%20EPS%2C%20and%20Adjusted%20Cash%20from%20Operations) Q2 2025 Non-GAAP net income was **$14.26 million**, Non-GAAP EPS **$0.27**, and Adjusted cash from operations **$49.60 million**, bolstered by ITC sales Non-GAAP Financial Measures Summary | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD Q2 2025 (in thousands) | YTD Q2 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :------------------------- | :------------------------- | | Non-GAAP net income (loss) | $14,258 | $5,212 | $8,783 | $(172) | | Non-GAAP EPS | $0.27 | $0.10 | $0.16 | $0.00 | | Adjusted cash from operations | $49,598 | $153,861 | $51,026 | $194,259 | - Adjusted cash from operations for Q2 2025 included **$70.79 million** from sales of ITC and **$5.68 million** from Federal ESPC projects[32](index=32&type=chunk) [New Contracts and Awards](index=15&type=section&id=New%20Contracts%20and%20Awards) Ameresco secured **$177.13 million** in new contracts and **$558.10 million** in new awards during Q2 2025, strengthening future revenue New Contracts and Awards Summary | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD Q2 2025 (in thousands) | YTD Q2 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :------------------------- | :------------------------- | | New contracts | $177,132 | $513,583 | $510,866 | $848,116 | | New awards | $558,102 | $715,601 | $925,390 | $1,055,399 | - New awards represent estimated future revenues from projects that have been awarded but contracts not yet signed[33](index=33&type=chunk) [Non-GAAP Financial Guidance Reconciliation](index=15&type=section&id=Non-GAAP%20Financial%20Guidance%20Reconciliation) The company provided a reconciliation for its FY 2025 Adjusted EBITDA guidance, starting from operating income and adjusting for non-cash and other charges FY 2025 Adjusted EBITDA Guidance Reconciliation | Metric | FY 2025 Guidance Range (in millions) | | :-------------------------------- | :----------------------------------- | | Operating income | $113 - $132 | | Depreciation and amortization | $103 - $105 | | Stock-based compensation | $14 - $16 | | Restructuring and other charges | $(5) - $(8) | | Adjusted EBITDA | $225 - $245 | - Operating income is used as the most directly comparable GAAP measure for Adjusted EBITDA reconciliation in guidance, as forward-looking net income cannot be calculated without unreasonable efforts[34](index=34&type=chunk)

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].

Core Insights - Ameresco has been awarded the 2025 Global Company of the Year Award in the energy services industry for its achievements in customer-driven innovation and strategic execution [1][6] - The company excels in visionary innovation and customer impact, aligning its growth strategy with dynamic customer needs while providing scalable energy solutions [2][6] - Ameresco's focus on energy solutions integration, including solar, battery, biogas, and microgrids, provides a competitive advantage in transitioning energy markets [2][5] Company Overview - Founded in 2000, Ameresco is a leading energy solutions provider focused on helping customers reduce costs, enhance resilience, and achieve net-zero decarbonization [10] - The company offers a comprehensive portfolio that includes energy efficiency solutions, infrastructure upgrades, and distributed energy resource development [10] - Ameresco operates in North America and Europe, employing over 1,500 staff to provide local expertise [10] Innovation and Services - Innovation is central to Ameresco's approach, offering an end-to-end suite of services that includes energy audits, technical design, project financing, implementation, and long-term maintenance [4] - The use of Energy Savings Performance Contracts (ESPCs) allows clients to implement large-scale energy upgrades with guaranteed performance outcomes, often structured to be budget-neutral or cost-saving over time [4][5] - The company's vendor-agnostic model enables tailored solutions to meet specific project goals and energy sources, enhancing customer satisfaction [5] Market Position and Recognition - Frost & Sullivan commends Ameresco for setting a new standard in the energy services industry, blending technical depth, financial innovation, and customer-centric service delivery [6] - The company's growth trajectory and expanding customer base reflect market confidence and the proven value delivered to clients [6][7] - The Company of the Year Award recognizes Ameresco's outstanding strategy development and implementation, resulting in measurable improvements in market share and customer satisfaction [7]

Core Insights - Terrestrial Energy has announced a collaboration with Ameresco to enhance the commercial deployment of its Integral Molten Salt Reactor (IMSR) plant, focusing on customized energy solutions for data centers and industrial applications [1][2][5] Group 1: Collaboration and Strategic Focus - The collaboration aims to deliver scalable, reliable, and cost-competitive clean energy by integrating Terrestrial Energy's IMSR technology with Ameresco's energy systems expertise [2][4] - The integration will include a natural gas-fired energy bridge to facilitate early electricity delivery before the IMSR systems are fully operational [2][3] Group 2: Unique Design and Market Adaptability - The IMSR plant's design allows for remote and isolated thermal, steam, and electric supply systems, enabling customization and hybridization with other energy sources [3][4] - This adaptability is crucial for meeting the growing demand for reliable, carbon-free energy in a congested grid environment [4][5] Group 3: Project Development and Market Position - Terrestrial Energy is developing IMSR projects across multiple U.S. sites, leveraging the plant's modular capabilities and zero-carbon energy supply [5][6] - The company has gained market recognition through its selection by Texas A&M University for a commercial IMSR plant and by completing Canada's CNSC Vendor Design Review, marking a significant milestone for Generation IV reactor designs [5][6] Group 4: Future Prospects and Business Combination - Terrestrial Energy is engaged in a business combination with HCM II Acquisition Corp., which will lead to its listing on the Nasdaq under the ticker symbol "IMSR" [8] - The combination is expected to enhance Terrestrial Energy's market presence and facilitate the development of its innovative nuclear technology [8]

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]