Ameresco, Inc. SEC 10-Q Report

Ameresco, Inc., a leading provider of energy efficiency and renewable energy solutions, has released its Form 10-Q report for the third quarter. The report highlights the company's robust financial performance and operational achievements amidst ongoing industry challenges. The company has demonstrated significant growth in revenues and operating income, while also navigating supply chain disruptions and inflationary pressures.

Financial Highlights

• Total Revenues: $352.8 million, increased by 18.2% from the prior year primarily due to a 23% increase in project revenues.
• Gross Profit: $51.9 million, representing 14.7% of total revenues, decreased as a percentage of revenues due to a higher mix of lower-margin projects.
• Operating Income: $13.7 million, increased by 71.3% from the prior year, reflecting improved project execution and cost management.
• Net Loss: $5.6 million, decreased from a net loss of $6.2 million in the prior year, driven by higher revenues and improved operating income.
• Net Loss Per Share: $(0.10), compared to $(0.06) in the prior year, reflecting the impact of increased interest expenses and losses from derivatives.

Business Highlights

• Revenue Segments: The company reported revenue from various segments, including North America Regions ($178.3 million), U.S. Federal ($25.2 million), Renewable Fuels ($38.2 million), Europe ($96.7 million), and All Other ($14.5 million).
• Geographical Performance: Significant growth in Europe, with revenues increasing to $96.7 million from $44.1 million in the previous year, attributed to the timing of revenue recognition based on costs incurred relative to total expected costs on active projects.
• Operational Challenges: The company faced supply chain disruptions and inflationary pressures, leading to delays in project completion and increased costs for logistics, transportation, and components. These challenges are expected to persist and may intensify.
• Future Outlook: The company anticipates continued demand for its energy efficiency and renewable energy solutions, driven by global emphasis on climate change and sustainability. However, it remains cautious about potential impacts from geopolitical tensions, regulatory changes, and supply chain issues.
• SCE Agreement: Ongoing discussions with Southern California Edison (SCE) regarding the applicability of force majeure relief and liquidated damages related to delays in completing battery energy storage system projects. The resolution of these discussions could significantly impact future operations.
• Backlog and Awarded Projects: Reported a total project backlog of $4.9 billion, with $1.1 billion expected to be recognized in the next twelve months. This backlog includes fully-contracted projects and awarded projects not yet signed, indicating strong future demand.
• Assets in Development: Assets in development valued at approximately $2.3 billion, representing potential design/build project value for renewable energy plants, highlighting the company's capacity for future growth in energy production and delivery.

SEC Filing: Ameresco, Inc. [ AMRC ] - 10-Q - May. 06, 2025