Ameresco (AMRC) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue grew 29% year-over-year to $1.8 billion, with adjusted EBITDA up 38% to $225.3 million, driven by robust project execution, recurring business, and energy asset expansion.

• Record project backlog reached $4.8 billion, with 241 MW of energy assets added in 2024 and 731 MW in operation at year-end.

• Federal government accounted for about 20% of 2024 revenue; most federal projects remain on schedule despite some delays and one cancellation.

• Recurring lines of business contributed 59% of adjusted EBITDA, highlighting business stability.

• Divestiture of the AEG business unit in Q4 provided a $38 million gain and sharpened focus on core businesses.

Financial highlights

• Q4 2024 revenue was $533 million, with adjusted EBITDA up 59% year-over-year to $87.2 million (16.4% margin).

• FY 2024 net income attributable to common shareholders was $56.8 million; diluted EPS was $1.07.

• Gross margin for Q4 was 12.5%, impacted by $20 million in cost overruns on two legacy projects.

• Adjusted cash from operations for FY 2024 was $282.4 million.

• Operating income for Q4 was $44.7 million, aided by the AEG sale gain.

Outlook and guidance

• FY 2025 revenue guidance is $1.85–$1.95 billion, with adjusted EBITDA of $225–$245 million at midpoints.

• Expect to place 100–120 MW of energy assets in service in 2025, including 1–2 R&G plants, with capex of $350–$400 million.

• Q1 2025 revenue and adjusted EBITDA expected to be similar to Q1 2024, with 60% of annual revenue in the second half.

• Guidance incorporates potential delays, cancellations, and disruptions from political and regulatory uncertainty.

• Earnings expected to expand at a faster rate than revenue.