Ameresco (AMRC) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 revenue of $581 million, up 9% year-over-year, capping a year of strong operational and financial performance, with annual revenue reaching $1.932 billion and adjusted EBITDA of $237.2 million.

• Recurring business lines contributed 64% of adjusted EBITDA, supporting stability and predictability in earnings.

• Project backlog grew to over $5 billion, with total awarded and contracted revenue visibility exceeding $10 billion.

• European operations delivered strong growth, supported by acquisitions and partnerships, providing diversification from U.S. policy risks.

• Placed 121 MWe of energy assets in service during 2025, exceeding guidance.

Financial highlights

• Q4 2025 revenue was $581 million, with project revenue up 11% to $465.9 million, energy asset revenue up 5% to $60.7 million, and recurring O&M revenue up 11%.

• Full year 2025 revenue reached $1.932 billion; adjusted EBITDA was $237.2 million (12.3% margin); non-GAAP net income was $48.6 million, with non-GAAP EPS of $0.90.

• Net income attributable to common shareholders was $44.3 million for 2025 and $18.4 million for Q4; GAAP EPS was $0.83 for the year and $0.34 for Q4.

• Gross margin improved to 16.2% in Q4, both sequentially and year-over-year.

• Adjusted cash from operations for 2025 was $151.7 million; Q4 adjusted cash from operations was $36.4 million.

Outlook and guidance

• FY 2026 revenue guidance is $2.0–$2.2 billion, with adjusted EBITDA of $270–$295 million, representing 9% and 19% growth at midpoints.

• Revenue expected to be seasonally weighted, with ~60% in the second half of 2026; Q1 expected to be lowest due to project timing and severe weather.

• First quarter 2026 EPS expected to be negative by approximately $0.30 due to linear cost structure and seasonality.

• Expect to place 100–120 MWe of energy assets in service in 2026, including 2 RNG plants.

• Capex for 2026 expected at $300–$350 million, primarily funded by energy asset debt, tax equity, or tax credit sales.