Ameresco's second quarter delivered financial and operational results that exceeded Wall Street’s expectations, driving a significant positive reaction in the market. Management attributed this outperformance to broad-based strength across geographies and customer segments, with a notable contribution from European operations and an expanding energy asset portfolio. CEO George Sakellaris emphasized the company’s ability to capitalize on rising electricity demand and grid reliability concerns, stating, “Higher power prices drive customer demand for both our core energy efficiency solutions and our integrated on-site generation offerings.” The quarter also benefited from margin expansion, as Ameresco focused on higher-value project execution and disciplined cost management.
Is now the time to buy AMRC? Find out in our full research report (it’s free).
Ameresco (AMRC) Q2 CY2025 Highlights:
- Revenue: $472.3 million vs analyst estimates of $417.8 million (7.8% year-on-year growth, 13% beat)
- Adjusted EPS: $0.27 vs analyst estimates of $0.07 (significant beat)
- Adjusted EBITDA: $56.15 million vs analyst estimates of $51.49 million (11.9% margin, 9% 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, in line with analyst expectations
- Operating Margin: 5.9%, up from 4.8% in the same quarter last year
- Market Capitalization: $1.04 billion
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 From Ameresco’s Q2 Earnings Call
- Noah Kaye (Oppenheimer) asked about Ameresco’s year-end net leverage and cash generation, to which Chief Investment Officer Joshua Baribeau emphasized comfort with current leverage and the company’s flexibility to finance projects as opportunities arise.
- George Gianarikas (Canaccord Genuity) questioned equipment supply constraints and their effect on growth. CEO George Sakellaris and President Nicole Bulgarino explained tightness in transformers but noted minimal delays, with procurement strategies adjusted for project timelines.
- Ryan Pfingst (B. Riley) inquired about the impact of new tariffs and battery supply chain risks. Bulgarino detailed Ameresco’s proactive contract adjustments and use of multiple suppliers to protect against potential disruptions in U.S. battery projects.
- Eric Stine (Craig-Hallum) explored the status of federal sector projects and whether recent rescoping meant less content. Bulgarino clarified that project value remains intact, with scope adjustments driven by customer needs rather than reduction in project size.
- Joseph Osha (Guggenheim) asked if Ameresco would pass battery supply cost increases to customers or source domestically. Baribeau explained that the company is pursuing a mix of domestic sourcing and cost sharing, with customer negotiations tailored to project needs.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be paying close attention to (1) the pace of backlog conversion and margin trends in both U.S. and European markets, (2) the impact of supply chain adaptation on battery storage and renewable natural gas projects, and (3) execution of new project awards in emerging sectors such as data centers and small modular reactors. Progress in workforce realignment and regulatory adaptation will also be key indicators of ongoing performance.
Ameresco currently trades at $19.29, up from $16.73 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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