Ameresco 2025 Q3 Earnings Beats Expectations with 28.4% Net Income Growth

Ameresco (AMRC) reported fiscal 2025 Q3 earnings on Nov 4, 2025, with revenue and EPS exceeding estimates. The company reaffirmed full-year guidance, signaling confidence in its growth trajectory despite mixed post-earnings stock performance.

Revenue

Ameresco’s total revenue rose 5.0% year-over-year to $525.99 million, driven by robust demand across its energy infrastructure segments. Project revenue led the charge at $409.95 million, followed by energy assets contributing $62.54 million, while O&M and other segments added $30.77 million and $22.73 million respectively. This broad-based growth underscores the company’s ability to capitalize on its diversified portfolio.

Earnings/Net Income

Earnings per share (EPS) increased 2.9% to $0.35 in Q3 2025, reflecting improved operational efficiency. Net income surged 28.4% to $21.84 million, a significant outperformance compared to $17.01 million in the prior-year period. The 2.9% EPS increase and 28.4% net income growth highlight strong profitability.

Price Action

Post-earnings, AMRC’s stock price declined 0.87% in the latest trading day, 11.08% for the week, and 2.81% month-to-date. This contrasts with its Q3 revenue and EPS beats, suggesting market skepticism about the sustainability of its performance.

Post-Earnings Price Action Review

Historically, AMRC’s stock has underperformed following revenue beats, with an average 30-day return of -5.78%. Despite Q3 2025’s $526M revenue (vs. $521.75M estimate) and a $5.1B backlog, the stock rose only 1.21% post-earnings. This disconnect may stem from a $25.5M one-off gain in Q3 2025, which raised concerns about profit quality, and $300.2M in corporate debt. While the company’s 5% revenue growth and 13% EBITDA expansion signal operational strength, investors should consider risks like competitive sector dynamics, regulatory delays in government contracts, and a P/E ratio of 30.4x. Pairing revenue beats with filters such as backlog conversion and debt management could refine the investment strategy.

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CEO Commentary

CEO George Sakellaris emphasized Q3’s operational leverage, with adjusted EBITDA rising 13% to $70.4 million and a 16.0% gross margin. He highlighted the $5.1B project backlog and $2.5B in contracted revenue as long-term visibility drivers, while expressing optimism about demand for energy infrastructure solutions.

Guidance

Ameresco reaffirmed 2025 guidance: revenue of $1.85–1.95 billion and adjusted EBITDA of $225–245 million. The CEO noted confidence in 10% revenue and 20% adjusted EBITDA growth long-term, though risks like government shutdowns were acknowledged.

Additional News

Ameresco secured a $350,000-annual-savings EV charging infrastructure contract with Anne Arundel County, Maryland, expanding its public sector footprint. The Q3 results included a $25.5M non-recurring gain, sparking scrutiny over profit sustainability. Meanwhile, supply chain disruptions remain a near-term risk, potentially delaying project conversions.