Ameresco(US:AMRC)2025-11-03 21:08Financial Performance - Total revenue for Q3 2025 was $526.0 million, representing a 5% increase year-over-year[6] - Net income attributable to common shareholders was $18.5 million, with both GAAP and Non-GAAP EPS at $0.35[4] - Adjusted EBITDA increased by 13% to $70.4 million, outpacing revenue growth[6] - Revenues for Q3 2025 reached $525.987 million, a 5% increase from $500.873 million in Q3 2024[26] - Gross profit for Q3 2025 was $84.329 million, up from $77.139 million in Q3 2024, reflecting a gross margin improvement[26] - Net income attributable to common shareholders for Q3 2025 was $18.532 million, compared to $17.599 million in Q3 2024, representing an increase of 5.3%[26] - The company reported an operating income of $42.350 million for Q3 2025, compared to $35.159 million in Q3 2024, an increase of 20.3%[26] - Non-GAAP net income for the three months ended September 30, 2025, was $18,780,000, compared to $16,843,000 in 2024, indicating an increase of 11.5%[32] - The diluted net income per common share for the three months ended September 30, 2025, was $0.35, up from $0.33 in 2024[32] - Net income for the nine months ended September 30, 2025, was $31,753,000, compared to $16,030,000 for the same period in 2024, representing a 98.5% increase[28] - Adjusted EBITDA for the nine months ended September 30, 2025, was $167,183,000, up from $138,156,000 in 2024, reflecting a 21.0% growth[31] Revenue and Backlog - Total project backlog reached $5.1 billion, with $2.5 billion contracted, enhancing long-term revenue visibility[5] - Energy Asset revenue grew 6% to $62.5 million, driven by the expansion of the operating asset portfolio[6] - O&M revenue increased by 8%, reflecting solid performance in that segment[6] - The outlook indicates a long-term target growth rate of 10% for revenue and 20% for adjusted EBITDA[10] - The company reaffirmed its 2025 guidance, targeting revenue of $1.9 billion and adjusted EBITDA of $235 million[9] Assets and Liabilities - Total current assets increased to $1.420 billion as of September 30, 2025, compared to $1.301 billion at December 31, 2024, marking a growth of 9.1%[22] - Total assets grew to $4.426 billion as of September 30, 2025, up from $4.158 billion at December 31, 2024, indicating a 6.4% increase[24] - Long-term debt and financing lease liabilities increased to $1.717 billion as of September 30, 2025, compared to $1.484 billion at December 31, 2024, reflecting a rise of 15.7%[23] - Cash and cash equivalents decreased to $94.551 million as of September 30, 2025, down from $108.516 million at December 31, 2024[22] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $(37,465,000), a significant decrease from $99,222,000 in 2024[28] - The company reported a net increase in cash, cash equivalents, and restricted cash of $17,218,000 for the nine months ended September 30, 2025, compared to $50,715,000 in 2024[29] - Adjusted cash from operations for the nine months ended September 30, 2025, was $115,357,000, compared to $228,621,000 in 2024, showing a decline of 49.5%[32] - Capital investments in energy assets for the nine months ended September 30, 2025, totaled $(283,370,000), down from $(341,794,000) in 2024[28] - The company recorded a cash flow from financing activities of $310,972,000 for the nine months ended September 30, 2025, compared to $305,058,000 in 2024[29] Future Projections - Adjusted EBITDA for the year ended December 31, 2025, is projected to be between $225 million and $245 million[33] - Operating income is expected to range from $113 million to $132 million for the same period[33] - Depreciation and amortization expenses are estimated to be between $103 million and $105 million[33] - Stock-based compensation is projected to be between $14 million and $16 million[33] - Restructuring and other charges are anticipated to be between $(5) million and $(8) million[33] Operational Insights - The company anticipates continued growth in revenues and profitability driven by demand for energy efficiency and renewable energy solutions[20] - Non-GAAP financial measures are provided as supplemental information and should not be considered as alternatives to GAAP measures[35] - Non-GAAP net income and EPS exclude certain items not representative of ongoing operations, indicating operational strength[39] - Adjusted cash from operations includes cash flows from ITC sales and Federal ESPC projects, providing a clearer measure of liquidity[41] - Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of revenue, used for evaluating operating performance[37] - Management uses adjusted EBITDA for planning, resource allocation, and evaluating business strategies[38]