Ameresco 2025 Q2 Earnings Strong Performance as Net Income Surges 198.8%

Ameresco reported Q2 2025 earnings that beat expectations, with 7.8% revenue growth and 198.8% net income increase. The company maintained its 2025 guidance amid strong project execution and a record $5.1 billion in project backlog, indicating robust momentum.

Revenue
Ameresco’s total revenue rose 7.8% year-over-year to $472.28 million in Q2 2025. The increase was driven by growth in the Europe and Energy Assets segments, with Projects revenue rising to $358.09 million and Energy Assets revenue growing 18% to $62.91 million. O&M revenue increased 7% to $27.95 million, while Other revenue fell due to the AEG sale. The Electric segment saw the largest revenue at $2.04 billion, followed by Natural Gas at $183 million and Total Operating Revenues at $2.22 billion.

Earnings/Net Income
The company’s profitability improved sharply, with net income jumping 198.8% to $15.52 million and EPS rising 140% to $0.24. The significant year-over-year gains highlight strong operational efficiency and favorable non-cash gains, including $4.3 million from derivatives and $3.0 million in foreign exchange translation gains. The results exceeded expectations and reflect strong earnings momentum. The EPS increase was particularly notable, showing strong financial performance.

Price Action
The stock surged 14.92% in the latest trading day and saw a 48.01% month-to-date increase, reflecting strong investor confidence in the earnings results and business outlook.

Post Earnings Price Action Review
A post-earnings strategy of buying AMRC when earnings beat and holding for 30 days showed significant underperformance with a return of -33.69%, compared to the benchmark’s 84.41%. The strategy experienced no significant drawdowns but had a low Sharpe ratio of -0.12 and high volatility of 67.56%, indicating poor risk-adjusted returns. Despite the sharp price increase post-earnings, the short-term investment approach did not yield positive results.

CEO Commentary
CEO George Sakellaris highlighted the strong Q2 performance, with revenue growth of 8% and Adjusted EBITDA growth of 24%, driven by project execution and geographic diversification, particularly in Europe and Energy Assets. He emphasized the company’s unique business model and investments in executive talent and leading-edge technologies as key growth enablers. Ameresco added $550 million in new project awards, bringing total project backlog to a record $5.1 billion, with Energy Infrastructure projects accounting for nearly half. Sakellaris expressed optimism about demand for energy infrastructure solutions amid rising electricity demand and grid instability, and highlighted strategic hires to support growth, including a new executive for the Nuclear Partner Program and a key hire in Continental Europe.

Guidance
Ameresco reiterated its 2025 revenue and Adjusted EBITDA guidance at midpoints of $1.9 billion and $235 million, respectively. The company expects continued business development momentum and project execution to drive performance, reiterating these targets despite evaluating the impact of the OBBB Act, which it anticipates will not be material in the short term. Non-GAAP EPS guidance is set at $0.70 to $0.90.

Additional News
In a separate announcement, Ameresco added a seasoned executive to lead the Nuclear Partner Program, reflecting its commitment to expanding into the evolving Small Modular Reactor (SMR) market. The company also announced the hiring of a key executive in Continental Europe, supporting its geographic diversification strategy. Additionally, Ameresco secured $550 million in new project awards during the quarter, further strengthening its Total Project Backlog to a record $5.1 billion. These developments underscore the company’s strategic investments in executive leadership and infrastructure projects to sustain growth amid rising demand for energy solutions.