[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]

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]