Ameresco(US:AMRC)2025-11-04 13:28Project Backlog and Revenue - Fully-contracted project backlog increased to $2,473,089,000 as of September 30, 2025, compared to $1,852,774,000 in 2024, reflecting a growth of approximately 33.5%[176] - Total project backlog reached $5,141,191,000 as of September 30, 2025, up from $4,508,856,000 in 2024, indicating an increase of about 14.0%[176] - The 12-month project backlog grew to $1,248,697,000 in 2025 from $976,530,000 in 2024, representing a rise of approximately 27.8%[176] - Total revenues for the three months ended September 30, 2025, increased by $25,114, or 5.0%, to $525,987 compared to $500,873 in 2024[180] - Project revenues increased by $24.6 million, or 6%, attributed to the timing of revenue recognized based on costs incurred to date relative to total expected costs on active projects[181] - For the nine months ended September 30, 2025, total revenues increased by $113,839, or 9.2%, to $1,351,100 compared to $1,237,261 in 2024[182] - Revenue for the three months ended September 30, 2025, increased due to higher energy assets revenue, partially offset by lower project revenue, while revenue for the nine months decreased primarily due to lower project revenue and a reversal of previously recognized revenue[191] - Renewable Fuels segment revenues decreased during the three months ended September 30, 2025, primarily due to decreased project revenues, with a similar trend observed for the nine months[191] - European revenues increased due to higher project revenues from joint ventures in Greece and Romania compared to the prior period[191] Financial Performance - Gross profit for the three months ended September 30, 2025, was $84,329, representing a gross profit margin of 16.0%, up from 15.4% in 2024[180] - Net income for the three months ended September 30, 2025, was $21,840, an increase of $4,826, or 28.4%, compared to $17,014 in 2024[180] - Net income for the nine months ended September 30, 2025, was $31,753, an increase of $15,723, or 98.1%, compared to $16,030 in 2024[182] - Earnings from unconsolidated entities for the three months ended September 30, 2025, increased by $1,234, or 776.1%, to $1,393 compared to $159 in 2024[180] - Basic and diluted earnings per share for the three months ended September 30, 2025, were $0.35, an increase of $0.01 per share basic and $0.02 diluted compared to the same period of 2024[181] Operational Challenges - Supply chain disruptions and inflation have negatively impacted operations, causing delays and increased costs during the nine months ended September 30, 2025[166] - The company continues to monitor the impact of global economic conditions, including tariffs and geopolitical tensions, on its operations and financial results[164] - The U.S. government shutdown on October 1, 2025, has not yet notably affected government work, but prolonged shutdowns could delay project conversions into contracts[162] - The company expects challenges from climate change and seasonal fluctuations, which may affect revenue and operating income, particularly in the first quarter[169] Investments and Financing - Capital investments during the nine months ended September 30, 2025, totaled $283.4 million in new energy assets, compared to $341.8 million in 2024[215] - The company plans to invest approximately $50 million to $100 million in additional capital expenditures during the remainder of 2025, mainly for new renewable energy plants[216] - Proceeds from energy asset financings for the nine months ended September 30, 2025, amounted to $367.3 million, with total financing activities resulting in net cash inflows of $310.9 million[217] - The company plans to pursue additional project financings ranging from $50 million to $100 million during the remainder of 2025 for the construction or acquisition of new renewable energy plants[219] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, decreased by $136.7 million to $(37.5) million, primarily due to increases in cash outflows from unbilled revenue and deferred revenue[212][213] - Total net cash flows for the nine months ended September 30, 2025, were $17.2 million, a decrease of $33.5 million compared to the previous year[212] - As of September 30, 2025, the balance on senior secured term loans was $96.3 million, and the balance on the senior secured revolving credit facility was $110.0 million[200] - The company expects to have sufficient liquidity to fund operations through at least November 2026, supported by cash, working capital, and available credit[194] Accounting and Market Risk - There have been no material changes in the company's critical accounting estimates from those disclosed in the 2024 Form 10-K[221] - As of September 30, 2025, there have been no significant changes in market risk exposures that materially affected the disclosures in the 2024 Form 10-K[223]