Ameresco (AMRC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 18% year-over-year to $352.8M, with adjusted EBITDA up 32% to $40.6M and 78% of EBITDA from recurring business lines.

• Net loss attributable to common shareholders was $5.5M, or $(0.10) per share, with non-GAAP EPS at $(0.11).

• Project backlog increased 22% year-over-year to $4.9B, with contracted backlog up 78% to $2.6B, supporting nearly $10B in total revenue visibility.

• No new federal contract cancellations or delays; previously paused or canceled contracts have been rescoped, resumed, or modified.

• Diversified business model and strong performance in Europe and Canada contributed to growth, with 71% of Q1 revenue from projects and 23% from recurring sources.

Financial highlights

• Q1 revenue was $352.8M, up 18% year-over-year; adjusted EBITDA was $40.6M, up 32%, with an 11.5% margin.

• Projects revenue rose 23% to $251.5M; Energy Assets revenue up 31% to $56.7M; O&M revenue was $24.8M.

• Gross margin was 14.7%, slightly below expectations due to a higher mix of lower-margin European EPC contracts.

• Adjusted cash from operations for Q1 was $1.4M, down from $40.4M in Q1 2024.

• Net income attributable to common shareholders was a loss of $5.5M, or $0.10 per share.

Outlook and guidance

• Reaffirmed 2025 guidance: revenue of $1.85–$1.95B and adjusted EBITDA of $225–$245M at midpoints.

• Q2 2025 revenue expected between $400M and $425M; 60% of annual revenue anticipated in H2 2025.

• Full-year gross margin guidance remains at 15.5–16%.

• Guidance excludes potential impact from a change in accounting principle for sale-leaseback arrangements.

• Capital expenditures for the remainder of 2025 projected at $200M–$250M, mainly for new renewable energy plants.