Ameresco’s first quarter results for 2025 were met with a strong positive reaction from the market, reflecting the company’s ability to deliver substantial revenue growth and improved profitability despite ongoing industry challenges. Management credited the quarter’s performance to robust execution in both its projects and energy asset businesses, with notable contributions from Europe and Canada. CEO George Sakellaris highlighted the company’s “material growth in both our projects and energy asset business,” emphasizing the strength of Ameresco’s diversified model and the successful conversion of backlog into contracts. The quarter also saw significant progress in federal contracts, with previously delayed projects now moving forward, further supporting revenue visibility and operational momentum.
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Ameresco (AMRC) Q1 CY2025 Highlights:
- Revenue: $352.8 million vs analyst estimates of $307.2 million (18.2% year-on-year growth, 14.9% beat)
- Adjusted EPS: -$0.11 vs analyst estimates of -$0.25 (56.5% beat)
- Adjusted EBITDA: $40.6 million vs analyst estimates of $35.32 million (11.5% margin, 15% beat)
- The company reconfirmed its revenue guidance for the full year of $1.9 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $0.80 at the midpoint
- EBITDA guidance for the full year is $235 million at the midpoint, above analyst estimates of $232.7 million
- Operating Margin: 3.9%, up from 2.7% in the same quarter last year
- Market Capitalization: $779.1 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Ameresco’s Q1 Earnings Call
- Noah Kaye (Oppenheimer): Asked about the turnaround in federal contract activity and how recent RFPs are shaping future visibility. CEO George Sakellaris described the resumed and rescoped contracts as a “good outcome” and noted increased focus on federal resiliency projects.
- Noah Kaye (Oppenheimer): Inquired about gross margin shaping for the remainder of the year. CFO Mark Chiplock explained that margins may fluctuate due to project mix but reaffirmed full-year margin guidance.
- George Gianarikas (Canaccord Genuity): Sought clarity on project exposure to the Inflation Reduction Act and Ameresco’s asset ownership strategy. Chiplock emphasized safe-harboring of incentives and a balanced approach to project versus asset ownership amid higher interest rates.
- Kashy Harrison (Piper Sandler): Questioned the impact of reduced federal workforce and tariffs on project timing and economics. Management said no immediate effects were observed but acknowledged potential future administrative delays.
- Joseph Osha (Guggenheim): Asked about geographic breakdown of energy asset backlog and procurement strategies for battery storage. Management clarified that nearly all energy asset backlog is U.S.-based and that contract structures now include tariff pass-through provisions.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will closely monitor (1) continued momentum in converting backlog to contracted revenue, (2) the pace and stability of federal and international project execution, and (3) Ameresco’s ability to mitigate margin pressures from tariffs and shifts in project mix. Additional attention will be paid to updates on supply chain diversification and the company’s responsiveness to policy or regulatory changes impacting the energy and infrastructure sectors.
Ameresco currently trades at $15.56, up from $11.57 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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