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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 Q3 2025 Earnings: Strong Growth in Energy Infrastructure

Ameresco, Inc. reported strong financial results for the third quarter of 2025, with revenue growing 5% year-over-year to an undisclosed figure, and adjusted EBITDA increasing 13%. Earnings per share (EPS) came in at $0.35, beating analyst estimates of $0.26. The company's energy asset revenue grew 6%, driven by the growth of its operating assets portfolio, and its recurring O&M revenue increased by 8%. The long-term O&M backlog now stands at approximately $1.5 billion.

Publication Date: Nov -23

📋 Highlights
  • Revenue & EBITDA Growth:: 5% YoY revenue increase and 13% adjusted EBITDA growth, driven by strong performance in energy infrastructure projects and recurring operations.
  • Project Backlog Expansion:: Total backlog reached $5.1B, with energy infrastructure projects comprising 50%, and contracted backlog rose 33% to $2.5B from new awards and conversions.
  • Data Center & Energy Solutions:: Secured a 350 MW CyrusOne project combining fuel cells, solar, and battery storage, leveraging a scalable off-take model for 24/7 power needs.
  • Energy Asset & O&M Growth:: Energy asset revenue grew 6%, adding 16 MW of operational assets, while recurring O&M revenue rose 8%, with a $1.5B long-term O&M backlog.
  • 2025 Guidance Reaffirmed:: Maintained 10% revenue and 20% adjusted EBITDA growth targets, supported by industrial battery storage demand (e.g., 50 MW for Nucor, 100 MW for United Power).

Project Backlog and New Awards Drive Growth

The company's project backlog reached $5.1 billion, with energy infrastructure-related projects making up almost half of the total. Ameresco secured $450 million in new project awards and converted $467 million of awards into signed contracts, driving the contracted project backlog up 33% to $2.5 billion. The company is seeing significant opportunities in the data center market, with a project for CyrusOne that will provide energy infrastructure through a long-term off-take agreement.

Data Center Market Presents Significant Opportunities

The CyrusOne project could be as large as 350 megawatts and will be developed on leased land, a model that Ameresco believes can be replicated with other data center customers. The company's work in data centers is similar to its federal government projects, with a focus on reliability and resiliency. Margins for data center projects are expected to be within the corporate average, with long-term operation and maintenance opportunities.

Valuation and Growth Prospects

With a P/E Ratio of 26.27 and an EV/EBITDA ratio of 20.26, the market is pricing in significant growth prospects for Ameresco. The company's guidance for 10% top-line growth and 20% EBITDA growth for next year supports this valuation. Analysts estimate next year's revenue growth at 9.8%, which is slightly below the company's guidance. The company's ROE of 6.07% and ROIC of 4.46% indicate a relatively efficient use of capital.

Battery Storage and Nuclear Partnerships

Ameresco is diversifying its supply chain to mitigate risks associated with battery procurement, such as tariffs and foreign entity concerns. The company has made efforts to safe harbor projects and is optimistic about the cost of batteries decreasing. The nuclear partnership with Terra Innovatum is also an exciting development, although it's likely a few years away from materializing.

3. NewsRoom

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Ameresco Develops On-site Solar for Orange Unified School District

Dec -02

Source: businesswire.com

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

Dec -01

Source: defenseworld.net

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Bandera Partners LLC Decreases Stock Holdings in Ameresco, Inc. $AMRC

Nov -25

Source: defenseworld.net

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First Eagle Small Cap Opportunity Fund Q3 2025 Portfolio Review

Nov -20

Source: seekingalpha.com

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Ameresco and City of Chandler Launch Energy Initiative to Cut Municipal Utility Costs by Over $1 Million Annually

Nov -14

Source: businesswire.com

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Ameresco Receives Gold Award in 2025 Globee Awards for American Business

Nov -12

Source: businesswire.com

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Klickitat Valley Health and Ameresco Break Ground on Clean Energy Projects

Nov -06

Source: businesswire.com

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Ameresco (AMRC) Tops Q3 Earnings and Revenue Estimates

Nov -04

Source: zacks.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

A-Score: 4.8/10

Value: 2.6

Growth: 7.0

Quality: 4.9

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

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Great Lakes Dredge & Dock

A-Score: 4.5/10

Value: 6.8

Growth: 4.1

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

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Southland Holdings

A-Score: 4.2/10

Value: 8.0

Growth: 2.8

Quality: 3.5

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

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Ameresco

A-Score: 3.9/10

Value: 5.0

Growth: 7.2

Quality: 3.9

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

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Blink Charging

A-Score: 3.6/10

Value: 7.6

Growth: 5.0

Quality: 3.7

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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INNOVATE

A-Score: 2.8/10

Value: 7.0

Growth: 2.3

Quality: 3.6

Yield: 0.0

Momentum: 3.5

Volatility: 0.3

1-Year Total Return ->

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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

33.25$

Current Price

33.25$

Potential

-0.00%

Expected Cash-Flows