Ameresco 2025 Q1 Earnings Strong Revenue Growth but Wider Net Income Loss

Ameresco (AMRC) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company saw a notable increase in revenue compared to the previous year, surpassing expectations, with a total revenue of $352.83 million. Despite the positive revenue performance, Ameresco experienced a wider net loss this quarter. The company maintained its guidance for 2025, indicating confidence in meeting its projected targets.

Revenue
Ameresco's total revenue climbed significantly by 18.2% to $352.83 million in Q1 2025, compared to $298.41 million in Q1 2024. The electric segment was particularly prominent, generating a substantial $1.62 billion. Project revenue also saw robust growth, contributing $251.46 million, while natural gas revenue reached $475 million. Operations and maintenance revenue added $24.85 million, and energy assets brought in $56.69 million. Total operating revenues amounted to $2.10 billion, and additional revenue came from other segments, adding $19.83 million, rounding off the total revenue to $352.83 million.

Earnings/Net Income
Ameresco reported a loss of $0.10 per share in Q1 2025, widening from $0.06 per share in Q1 2024, representing a 66.7% increase in losses. However, the net loss was reduced to $-5.61 million from $-6.18 million, marking a 9.3% decrease. Overall, the EPS indicates ongoing challenges in achieving profitability.

Price Action
The stock price of Ameresco fell by 7.14% during the latest trading day, but surged 19.71% over the most recent full trading week, and rose 15.76% month-to-date.

Post-Earnings Price Action Review
Over the past five years, Ameresco's strategy of purchasing shares post-quarterly revenue growth and holding them for 30 days has yielded moderate returns, albeit with considerable volatility and risk. The compound annual growth rate (CAGR) of this strategy stood at 2.89%, accompanied by a maximum drawdown of -15.54%. Despite these fluctuations, the Sharpe ratio was 0.29, suggesting limited risk-adjusted returns compared to the benchmark. These figures indicate that while some growth was achieved, it was overshadowed by significant market instability.

CEO Commentary
George Sakellaris, CEO of Ameresco, commented, “The first quarter represented an excellent start to the year with both our Projects and Energy Asset businesses delivering strong double-digit growth. We also increased future revenue visibility through robust contract conversion and asset deployments. During the quarter, we added over $367 million to awarded backlog while converting $334 million of awards into contracts. Our contracted backlog stood at $2.6 billion, almost 80% ahead of the previous year, driving our total project backlog to $4.9 billion, up 22% compared to last year. The Ameresco team continues to effectively operate during these dynamic times and we have not encountered any additional cancellations or delays in our Federal contracts.”

Guidance
Ameresco reiterates its guidance for 2025, stating, “Our increasing clarity and mitigation effort around Federal and tariff-related dynamics, as well as the excellent visibility provided by our contracted project backlog and recurring revenue streams give us excellent visibility to delivering on our guidance for the year.” The company emphasizes its strong revenue visibility, noting it now stands at almost $10 billion, supporting its optimistic outlook for continued growth and resilience.

Additional News
Ameresco has recently expanded its energy asset portfolio through strategic acquisitions, which are expected to enhance its operational capabilities and growth potential. In a notable executive change, Ameresco appointed a new Chief Financial Officer, bringing fresh expertise to steer financial strategies. The company also announced a new share buyback program, reflecting confidence in its financial health and commitment to returning value to shareholders. These developments underscore Ameresco's proactive approach to strengthen its market position and shareholder value.