Ameresco (AMRC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 34% year-over-year to $438 million, driven by strong project execution and growth across all segments.

• Record project backlog reached $4.4 billion, up 36% year-over-year, with contracted backlog up 50%.

• Placed a record 155 MW of energy assets into operation in Q2, progressing toward the 200 MW annual target.

• Adjusted 2024 guidance upward for revenue and Adjusted EBITDA based on strong first-half performance and backlog visibility.

• CFO transition announced, with Mark Chiplock to assume CFO role.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $45.1 million, up 21% year-over-year, with a margin of 10.3%.

• Net income attributable to common shareholders was $5.0 million, down from $6.4 million a year ago due to higher interest and project costs.

• Gross margin was 14.9%, impacted by SCE project cost revisions and a shift to lower-margin projects.

• Adjusted cash from operations for Q2 was $153.9 million, with a strong positive trend year-to-date.

• Ended Q2 with $150 million in cash and $273 million in corporate debt; energy asset debt at $1.3 billion.

Outlook and guidance

• FY 2024 revenue guidance raised to $1.70–$1.80 billion, with adjusted EBITDA guidance at $210–$230 million.

• Gross margin guidance revised to 16.0–16.5% due to $10 million in SCE project cost revisions.

• Capex for 2024 expected at $350–$400 million, mostly funded by project financing.

• Targeting 200 MW of energy assets in service for 2024, with 168 MW already operational.

• Management expects continued revenue growth, supported by robust backlog and awarded projects.