On November 7, 2024, Ameresco Inc (AMRC, Financial) released its 8-K filing detailing its third-quarter financial results for 2024. The company, a leader in energy efficiency solutions across North America and Europe, reported significant revenue growth and a robust project backlog, underscoring its strong market position.
Company Overview
Ameresco Inc provides comprehensive energy efficiency solutions, focusing on reducing energy and operational costs for various sectors, including governmental, educational, and healthcare facilities. The company also distributes solar energy products and systems, deriving most of its revenue from the U.S. Regions segment.
Financial Performance and Challenges
Ameresco Inc reported a total revenue of $500.9 million for Q3 2024, marking a 49% increase compared to the same period last year. This growth was primarily driven by a 59% increase in project revenue. Despite this impressive performance, the company faced challenges with higher interest-related and depreciation expenses, which impacted net income, resulting in $17.6 million attributable to common shareholders, down from $21.3 million in Q3 2023.
Key Financial Achievements
The company's achievements include a record 209 MWe of energy assets placed into operation year-to-date, exceeding its full-year guidance. The total project backlog increased by 22% year-over-year to $4.5 billion, with a 56% rise in contracted backlog to $1.9 billion. These milestones are crucial for sustaining growth in the construction industry, where project pipelines and asset development are key performance indicators.
Income Statement and Balance Sheet Highlights
Ameresco's income statement revealed a GAAP EPS of $0.33 and a Non-GAAP EPS of $0.32, with an adjusted EBITDA of $62.2 million, reflecting a 43.6% increase. The company's gross margin stood at 15.4%, influenced by a higher contribution from lower-margin projects. On the balance sheet, Ameresco reported $113.5 million in cash and a corporate debt leverage ratio of 2.8X, indicating a stable financial position.
| Segment | Q3 2024 Revenue ($M) | Q3 2024 Net Income ($M) | Q3 2024 Adj. EBITDA ($M) |
|---|---|---|---|
| Projects | 385.4 | 9.9 | 20.6 |
| Energy Assets | 59.1 | 2.7 | 33.3 |
| O&M | 28.4 | 3.8 | 5.1 |
| Other | 27.9 | 1.2 | 3.1 |
| Total | 500.9 | 17.6 | 62.2 |
Analysis and Outlook
Ameresco's strong financial performance is indicative of its strategic focus on expanding its project backlog and energy asset operations. The company's reaffirmation of its 2024 guidance, with expected revenue between $1.70 billion and $1.80 billion, highlights its confidence in continued growth. The management's commentary emphasized the robust demand for Ameresco's services, positioning the company well for future expansion.
CEO George Sakellaris stated, "Our team continued to deliver excellent results with year-on-year quarterly revenue growth of 49% and record Adjusted EBITDA of over $62 million, reflecting strong demand for Ameresco’s unique blend of services across our customer base."
Ameresco's strategic initiatives and financial health suggest a positive trajectory, making it an attractive consideration for value investors seeking opportunities in the cleantech and renewable energy sectors.
Explore the complete 8-K earnings release (here) from Ameresco Inc for further details.
