Ameresco (AMRC) Q3 2024 earnings summary

Executive summary

• Achieved 49% year-over-year revenue growth to $500.9 million in Q3 2024, led by a 59% increase in Project revenue and strong execution across business lines.

• Net income attributable to common shareholders was $17.6 million, with GAAP EPS of $0.33 and Non-GAAP EPS of $0.32, down from Q3 2023 due to higher interest and depreciation.

• Adjusted EBITDA reached a record $62.2 million, up 44% year-over-year, with 72% of year-to-date EBITDA from recurring business lines.

• Project backlog grew 22% to $4.5 billion, with contracted backlog up 56% to $1.9 billion.

• Brought 42 MWe of energy assets into operation in Q3, totaling 209 MWe year-to-date, exceeding full-year guidance.

Financial highlights

• Q3 2024 revenue was $500.9 million (+49% YoY); nine months revenue was $1.24 billion (+33% YoY).

• Gross margin was 15.4%, reflecting a higher mix of lower-margin projects and additional SCE project costs.

• Adjusted EBITDA for Q3 2024 was $62.2 million (12.4% margin), up from $43.3 million in Q3 2023.

• Net income for Q3 2024 was $17.6 million; diluted EPS was $0.33, and Non-GAAP EPS was $0.32.

• Cash at quarter-end was $113.5 million; adjusted cash from operations for Q3 was $34.4 million.

Outlook and guidance

• Reaffirmed full-year 2024 guidance: revenue $1.70–$1.80 billion, adjusted EBITDA $210–$230 million, and Non-GAAP EPS $1.15–$1.35.

• Project backlog at September 30, 2024 was $4.51 billion, with a 12-month project backlog of $976.5 million.

• Expecting higher interest and other expenses ($70–$75 million), but maintaining non-GAAP EPS guidance due to estimated tax benefits.

• Anticipate Q4 to have a stronger EBITDA margin due to improved project mix; project margin for 2025 expected to remain steady.

• Asset additions for next year estimated at 100–120 megawatts, following a record year.