Ameresco, Inc. (NYSE: AMRC) Q2 2025 Earnings | 08/05/2025

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Summary of Ameresco’s Q2 2025 Earnings Call

Date: August 5, 2025
Participants:

George Sakellaris (Chairman & CEO)
Mark Chiplar (CFO)
Nicole Bulgarino (President, Federal & Utility Infrastructure)
Josh Barbeau (Chief Investment Officer)
Leila Dillon (Investor Relations)

Key Highlights:

Strong Financial Performance:
- Revenue grew 8% YoY, while adjusted EBITDA surged 24%.
- Earnings per share (EPS) saw significant growth, supported by higher profit margins.
- Record backlog of $5.1B (up 16% YoY), with contracted backlog up 46% to $2.4B.
Business Diversification Driving Growth:
- Customer Base: Expanded across public/private sectors, with 20% of backlog from utilities & power producers and 10% from CNI (Commercial & Industrial).
- Technology Portfolio: Nearly half of backlog involves energy infrastructure (gas turbines, battery storage, microgrids, hydro, etc.).
- Geographic Expansion: Europe now 20% of backlog, with strong growth in Greece, Italy, Spain, and Romania.
Market Trends & Demand Drivers:
- Rising electricity prices and grid instability are accelerating demand for energy efficiency, storage, and on-site generation.
- Federal business improving, with new opportunities in data center energy solutions (following White House executive order).
- RNG (Renewable Natural Gas) remains strong, with 10 plants planned and ITC monetization benefits.
Operational & Strategic Updates:
- Investing in emerging tech, including Small Modular Reactors (SMRs) and European expansion.
- Supply chain challenges (transformers, gas turbines) managed without major delays.
- Battery storage growth continues, despite Powin bankruptcy ($27M claim; no project impact).
Financial & Cash Flow Highlights:
- $170M in new project financing secured, including a $78M note for battery storage.
- Adjusted operating cash flow at ~$50M, aided by $71M ITC sales.
- Leverage ratio at 3.4x, below covenant limit (3.5x).
2025 Guidance Reaffirmed:
- No material impact expected from the "One Big Beautiful Bill" (policy changes).
- Energy asset deployments on track (100-120 MW expected).

Q&A Highlights:

Data Centers: Ameresco sees strong opportunities in energy solutions for data centers (microgrids, backup power).
Europe Growth: Focus on organic expansion, with potential for battery storage & solar.
Margins: Improving in Europe, with disciplined project selection.
Battery Supply: Exploring domestic/non-lithium alternatives amid tariff/FEOC (Foreign Entity of Concern) rules.
Federal Business: Improving after early-year delays; re-scoped projects retain value.

Closing Remarks:

Ameresco remains well-positioned for long-term growth, leveraging diversification, technology leadership, and strong execution.
Thanked employees, customers, and investors for continued support.

Next Steps:

Q&A session followed, with analysts probing on cash flow, backlog conversion, margins, and policy impacts.

Tone: Confident, optimistic, with emphasis on execution, diversification, and strategic investments.

About this video

Ameresco, Inc. delivered a strong performance in Q2 2025, with total revenue rising 8% year-over-year to $472.3 million and adjusted EBITDA growing 24% to $56.1 million. Net income attributable to common shareholders reached $12.9 million, translating to GAAP EPS of $0.24 and non-GAAP EPS of $0.27—beating consensus forecasts by a wide margin. Gross margin remained stable at 15.5%, reflecting solid project execution and operational discipline. Revenue growth was driven by a robust 8% increase in Projects to $358.1 million and an 18% jump in Energy Assets to $62.9 million, supported by expanding long-term contracts and growth in Europe. Operations & Maintenance (O&M) revenue grew 7%, while the "Other" category fell to $23.3 million following the AEG business sale at the end of 2024. Q2 results also benefitted from $4.3 million in non-cash mark-to-market gains and $3.0 million in FX translation gains. Ameresco’s total project backlog hit a record $5.1 billion—a 16% increase from last year—while the contracted backlog surged 46% to $2.4 billion. The company ended the quarter with $82 million in cash and net leverage of 3.4x adjusted EBITDA. Operationally, recurring revenue now drives 71% of total EBITDA, underpinning the company’s growing visibility into future earnings. Management reaffirmed its full-year 2025 guidance for revenue in the $1.85–$1.95 billion range and adjusted EBITDA between $225–$245 million, citing continued demand for energy infrastructure, growth in Europe, strategic expansion into battery storage and renewable natural gas, and progress on large federal government and commercial projects. About Inside Ticker: For more expert analysis and real-time updates on Ameresco, Inc. (NYSE: AMRC) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Ameresco #AMRC #Q22025 #Earnings #FinancialResults #Revenue #NetIncome #EPS #AdjustedEBITDA #GrossMargin #Projects #EnergyAssets #OM #RecurringRevenue #Backlog #CleanEnergy #Infrastructure #EnergyTransition #Europe #NASDAQ #2025Outlook #InsideTicker #Sustainability #Utilities #FederalContracts #Renewables #BatteryStorage #RNG #Growth #InvestorUpdate

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