Ameresco, Inc. Q1 2025 Earnings: A Strong Start to the Year in Energy Transition

Ameresco, Inc. (AMRC) delivered a robust first-quarter performance in 2025, exceeding revenue and earnings expectations while expanding its project backlog and demonstrating operational resilience. The results underscore the company’s strategic focus on energy infrastructure and resiliency solutions, positioning it to capitalize on global demand for decarbonization and grid stability.

Financial Highlights: Growth Amid Challenges

Ameresco reported $352.8 million in Q1 revenue, a 18% year-over-year (YoY) increase, driven by strong performances in its Projects (+23% YoY) and Energy Assets (+31% YoY) segments. Adjusted EBITDA rose 32% YoY to $40.6 million, reflecting improved operational efficiency. While the company posted a net loss of $5.5 million, its non-GAAP EPS of -$0.11 outperformed estimates, signaling a focus on cash-generative activities.

The company’s cash position remained stable at $72 million, and total corporate debt decreased to $270 million, with a refinanced credit facility supporting growth. Gross margin held steady at 14.7%, though tempered by a higher proportion of lower-margin European engineering, procurement, and construction (EPC) contracts.

Backlog Growth: A Pipeline of Future Revenue

Ameresco’s total project backlog surged to $4.9 billion, up 22% YoY, with $2.6 billion in contracted backlog—a 78% YoY increase—highlighting strong execution and customer commitments. The backlog is diversified across 50% energy infrastructure projects, including solar, gas turbines, battery storage, and microgrids, as well as geographies like the U.S., Europe, and Canada.

The company added $367 million in new project awards during Q1 and converted $334 million of these into signed contracts, underscoring its ability to monetize its pipeline. Management emphasized that 60% of 2025 revenue is expected to come in the second half, aligning with typical project execution timelines.

Operational Strengths and Strategic Priorities

Federal Contracts: Despite earlier concerns about delays, Ameresco reported no new cancellations, with paused projects now progressing. Federal work, including military and GSA projects, accounts for 30% of the backlog, leveraging the company’s expertise in energy efficiency and grid resilience.

International Diversification: 70% of solar and battery projects are outside the U.S., shielding the company from domestic tariff risks. This geographic spread, combined with a $3.3 billion energy asset pipeline, provides a stable revenue stream.

Technology Leadership: Projects like the Kopono solar-battery system (44 MW) and a 99 MW firm power plant showcase Ameresco’s ability to deliver complex, resilient energy systems. CEO George Sakellaris noted, “We’re not just building projects—we’re solving energy challenges.”

Risks and Mitigation Strategies

While Ameresco faces risks such as supply chain disruptions and rising electricity costs, management highlighted mitigation efforts:
- Tariffs: Most equipment for current projects is already procured, limiting near-term exposure.
- Federal Policy: Over 75% of renewable natural gas (RNG) projects have “safe harbor” status under the Inflation Reduction Act, protecting tax credits from policy changes.
- Macroeconomic Pressures: Diversification across customers (utilities, data centers, governments) and geographies reduces reliance on any single market.

Executive Perspective: A Focus on Long-Term Value

Sakellaris emphasized the company’s 25-year track record and $10 billion+ revenue visibility, including energy assets and operations & maintenance (O&M) contracts. CFO Mark Chiplock affirmed 2025 guidance of $1.9 billion in revenue and $235 million in adjusted EBITDA, with Q2 revenue expected between $400 million and $425 million.

Stock Performance and Valuation

Ameresco’s stock surged 19.3% in after-hours trading following the earnings report, reaching $13.87—a 12% gain over the prior week. However, it remains 66% below its six-month high, suggesting undervaluation relative to its fundamentals. Analysts cite a $608 million market cap and a P/E ratio of 10.97, both below historical averages, as opportunities for upside.

Conclusion: A Strategic Position in Energy Transition

Ameresco’s Q1 results demonstrate its ability to navigate macroeconomic and regulatory headwinds while delivering growth. With a $4.9 billion backlog, 32% adjusted EBITDA expansion, and $2.6 billion in contracted revenue, the company is well-positioned to capitalize on the global shift to resilient, low-carbon energy systems.

While risks such as tariffs and supply chain volatility persist, the company’s geographic and customer diversification, federal project stability, and private market demand for its energy assets provide a solid foundation. With shares trading at a discount to peers and strong execution visibility, investors may find Ameresco a compelling play on the energy transition—a theme unlikely to fade in the coming decades.

As Sakellaris noted, “Our backlog is not just numbers—it’s the infrastructure the world needs.” For now, the numbers are on Ameresco’s side.