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1. Company Snapshot

1.a. Company Description

Ameresco, Inc., a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, and internationally.It offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations.The company operates through U.S. Regions, U.S. Federal, Canada, and Non-Solar Distributed Generation segments.


It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance (O&M) costs of its customers' facilities.The company's projects primarily include various measures customized for the facility and designed to enhance the efficiency of building systems, such as heating, ventilation, cooling, and lighting systems.It also offers renewable energy solutions and services, such as the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat, or cooling from renewable sources of energy and O&M services; and electricity, processed renewable gas fuel, and heat or cooling produced from renewable sources of energy.


In addition, the company sells photovoltaic (PV) solar energy products and systems, as well as provides consulting and enterprise energy management services; and owns and operates a wind power project located in Ireland.It serves the federal, state, and local governments, as well as healthcare and educational institutions, airports, public housing authorities and public universities, and commercial and industrial customers.As of December 31, 2021, the company owned and operated 147 small-scale renewable energy plants and solar PV installations.


Ameresco, Inc.was founded in 2000 and is headquartered in Framingham, Massachusetts.

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1.b. Last Insights on AMRC

Ameresco's recent performance was negatively impacted by the upcoming earnings release on May 5, 2025, which may lead to increased volatility. The company's announcement of a $11 million design-build contract with Reed College, while a positive development, may not be enough to offset potential concerns about its financial performance. Additionally, Ameresco's recognition in the Environment+Energy Leader Product & Project Awards may not have a direct impact on its short-term performance. The company's recent solar project completions, such as the one at Killeen Regional Airport, may also not be enough to alleviate concerns about its financials.

1.c. Company Highlights

2. Ameresco's Q4 2025 Earnings: A Strong Finish to a Year of Exceptional Performance

Ameresco Inc. reported record quarterly revenue of $581 million in Q4 2025, representing a 9% year-over-year increase, driven by growth across all four business lines. The company also exceeded its guidance, placing 121 megawatts of energy assets into operations and adding 30 megawatts to its energy assets in development. Earnings per share (EPS) came in at $0.39, beating estimates of $0.32. The company's recurring O&M revenue increased 11%, and its long-term O&M revenue backlog stands at approximately $1.5 billion.

Publication Date: Mar -05

📋 Highlights
  • Q4 2025 Revenue Growth:: Achieved $581 million in revenue, up 9% YoY, with all four business lines growing and exceeding guidance by placing 121 MW of energy assets into operations.
  • Recurring Revenue Strength:: Long-term O&M revenue backlog reached $1.5 billion, up 11% in recurring revenue, highlighting stable cash flow from energy asset operations and maintenance.
  • 2026 Guidance:: Targeting $2.1 billion revenue and $283 million adjusted EBITDA (midpoint of ranges), reflecting 9% and 19% growth, with 100–120 MW of energy assets planned, including 2 RNG plants.
  • European Expansion:: Growth driven by acquisitions and partnerships (e.g., SUNEL Group joint venture) in solar and battery storage, with strong project pipelines and strategic focus on solar/wind installations.
  • Margin Improvements:: Discipline in project selection, pricing, and cost control drove margin gains, particularly in larger infrastructure projects, while supply chain challenges improved post-pandemic.

Business Drivers and Growth Prospects

The key drivers of Ameresco's success include excellent execution by the team, recurring revenue contributions from its energy asset and O&M businesses, and growth across all three core business lines. The company's European growth strategy has been driven by opportunistic acquisitions and partnerships, including a joint venture with the Greek-based SUNEL Group. As George Sakellaris noted, the company is well-positioned to benefit from long-term trends driving demand for its energy solutions, including a rapidly growing demand for electricity and increasing energy costs.

Guidance and Outlook

For 2026, Ameresco is guiding to approximately $2.1 billion of revenue and $283 million of adjusted EBITDA at the midpoint of its ranges, representing growth of 9% and 19%, respectively. Analysts estimate next year's revenue growth at 9.8%, indicating a slight beat. The company expects to place approximately 100 to 120 megawatts of energy assets into service, including 2 RNG plants.

Valuation and Metrics

With a P/E Ratio of 33.55 and an EV/EBITDA of 15.72, Ameresco's valuation multiples indicate a premium relative to its earnings and cash flow generation. However, its ROE of 4.19% and ROIC of 3.44% suggest a relatively stable return profile. The company's Net Debt / EBITDA ratio of 8.77 may raise concerns about its leverage, but its diversified business model and strong backlog provide visibility into future revenue.

Operational Highlights and Risks

The company's risk management approach, as emphasized by Mark Chiplock, is crucial in bringing new projects into the backlog. Ameresco's discipline in managing projects and derisking gating items will be essential in maintaining its growth prospects. The company's exposure to tariffs and lithium prices may impact its supply chain, but it is managing this risk through contract protections and price adjustment mechanisms.

3. NewsRoom

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Ameresco and Cook County Celebrate Completion of Solar Installation at Skokie Courthouse

Apr -15

Source: businesswire.com

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Ameresco SUNEL Energy SA Awarded 83 MW Solar Project in Kozani, Greece to Drive Energy Decarbonization

Apr -14

Source: businesswire.com

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Ameresco Collaborates with Miami-Dade County on Energy Savings Project to Deliver Solar and Efficiency Upgrades

Apr -13

Source: businesswire.com

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Ameresco to Announce First Quarter 2026 Financial Results on May 4, 2026

Apr -06

Source: businesswire.com

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Ameresco Delivers $7.8M Infrastructure Upgrade for Tacoma Public Schools to Enhance Energy Efficiency

Apr -06

Source: businesswire.com

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Ameresco CEO on AI race: We have to build INSIDE DEFENSE

Apr -06

Source: youtube.com

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Ameresco, Inc. (NYSE:AMRC) Receives Average Recommendation of “Moderate Buy” from Analysts

Apr -05

Source: defenseworld.net

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Ameresco Announces Executive Appointments to Drive Growth and Strengthen Operations

Mar -31

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.44%)

6. Segments

United States Regions

Expected Growth: 10%

Ameresco's 10% growth in the United States Regions is driven by increasing demand for energy-efficient solutions, federal and state government incentives for renewable energy, and rising energy costs. Additionally, the company's strong project pipeline, expanding customer base, and strategic partnerships contribute to its growth momentum.

United States Federal

Expected Growth: 9%

Ameresco, Inc.'s 9% growth in the United States Federal segment is driven by increasing demand for energy-efficient solutions, federal government's focus on reducing energy consumption, and Ameresco's strong relationships with government agencies. Additionally, the company's ability to provide comprehensive energy management services and its expertise in renewable energy solutions also contribute to its growth in this segment.

Europe

Expected Growth: 8%

Ameresco's 8% growth in Europe is driven by increasing demand for energy efficiency and renewable energy solutions, supported by government incentives and policies promoting sustainability. Additionally, the region's aging infrastructure and rising energy costs create opportunities for Ameresco's energy-saving solutions, further fueling growth.

Alternative Fuels

Expected Growth: 12%

Ameresco's Alternative Fuels segment growth is driven by increasing adoption of renewable energy sources, government incentives for clean energy, rising energy costs, and growing demand for energy independence. Additionally, declining technology costs, expanding infrastructure, and partnerships with municipalities and private companies contribute to the 12% growth rate.

All Other

Expected Growth: 7%

Ameresco's 7% growth in 'All Other' segment is driven by increasing demand for energy efficiency and renewable energy solutions, expansion into new markets, and strategic acquisitions. Additionally, government incentives and regulations supporting sustainable infrastructure development, and growing adoption of energy storage and smart grid technologies also contribute to this growth.

Canada

Expected Growth: 9%

Ameresco, Inc.'s 9% growth in Canada is driven by increasing demand for energy-efficient solutions, government incentives for renewable energy, and rising electricity costs. Additionally, the company's strong presence in the Canadian market, coupled with its expertise in energy storage and grid resiliency, has enabled it to capitalize on the country's growing clean energy sector.

7. Detailed Products

Energy Efficiency Solutions

Ameresco provides energy-efficient solutions to reduce energy consumption and greenhouse gas emissions in various sectors such as government, education, healthcare, and commercial buildings.

Renewable Energy Systems

Ameresco designs, builds, and operates renewable energy systems such as solar, wind, and biomass energy systems to generate clean energy.

Energy Storage Systems

Ameresco provides energy storage solutions to optimize energy usage, reduce peak demand, and provide backup power during outages.

Smart Buildings and Cities

Ameresco offers smart building and city solutions to optimize energy efficiency, water conservation, and waste reduction.

Water Conservation Solutions

Ameresco provides water conservation solutions to reduce water consumption and wastewater generation in various sectors.

Waste Reduction and Recycling

Ameresco offers waste reduction and recycling solutions to minimize waste generation and promote sustainable waste management practices.

Energy Management Services

Ameresco provides energy management services to optimize energy usage, reduce energy costs, and improve energy efficiency.

Sustainability Consulting

Ameresco offers sustainability consulting services to help organizations develop and implement sustainable practices and reduce their environmental footprint.

8. Ameresco, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ameresco, Inc. operates in the renewable energy industry, which has a moderate threat of substitutes. While there are alternative energy sources, Ameresco's focus on energy efficiency and renewable energy solutions provides a competitive advantage.

Bargaining Power Of Customers

Ameresco, Inc. has a diversified customer base, including government, commercial, and industrial clients. This diversification reduces the bargaining power of individual customers, giving Ameresco more control over pricing and contract terms.

Bargaining Power Of Suppliers

Ameresco, Inc. relies on a network of suppliers for equipment and materials. While the company has some negotiating power due to its scale, suppliers still have some bargaining power, particularly for specialized or high-demand components.

Threat Of New Entrants

The renewable energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and provides Ameresco, Inc. with a competitive advantage.

Intensity Of Rivalry

The renewable energy industry is highly competitive, with many established players and new entrants vying for market share. Ameresco, Inc. must continually innovate and differentiate its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.34%
Debt Cost 3.95%
Equity Weight 37.66%
Equity Cost 11.95%
WACC 6.96%
Leverage 165.51%

11. Quality Control: Ameresco, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Bowman Consulting Group

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Growth: 6.9

Quality: 5.4

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Ameresco

A-Score: 4.2/10

Value: 6.0

Growth: 7.2

Quality: 4.0

Yield: 0.0

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Volatility: 1.0

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A-Score: 3.9/10

Value: 8.9

Growth: 5.0

Quality: 3.7

Yield: 0.0

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Volatility: 1.0

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Value: 6.0

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INNOVATE

A-Score: 3.0/10

Value: 7.0

Growth: 2.3

Quality: 3.6

Yield: 0.0

Momentum: 4.5

Volatility: 0.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.62$

Current Price

25.62$

Potential

-0.00%

Expected Cash-Flows