Ameresco and SUNEL secure €303.4M solar contracts in Romania

FRAMINGHAM, Mass. & ATHENS, Greece - Ameresco, Inc. (NYSE:AMRC), a leading energy solutions provider, in partnership with SUNEL Group, has announced the signing of €303.4 million EPC (Engineering, Procurement, and Construction) contracts for the development of three solar parks in southwestern Romania. The projects, totaling 466 MWp, mark a significant advancement in Romania’s efforts to enhance energy security and meet climate commitments by transitioning away from coal power.

The joint venture, Ameresco SUNEL Energy SA, will manage the design, procurement, construction, commissioning, operation, and maintenance of the solar parks. These facilities are expected to play a critical role in Romania’s goal to phase out coal by 2032 and are projected to reduce carbon emissions by approximately 734,789 tonnes annually once fully operational. The company has demonstrated strong revenue growth of 28.76% in the last twelve months, though InvestingPro analysis reveals several additional key performance indicators available to subscribers.

Pete Christakis, President of East USA & Managing Director of Ameresco SUNEL Energy SA, emphasized the project’s alignment with Europe’s growth and stability, stating, "These projects exemplify our commitment to advancing renewable energy solutions." Over 757,000 fixed-tilt solar modules will be installed to optimize energy efficiency and support the region’s shift from coal-fired power generation.

Konstantinos Zygouras, Vice President at Ameresco SUNEL Energy SA, highlighted the strategic importance of the investment, "Romania’s vast solar potential, combined with strategic investments in renewable energy, will position the country as a leader in Europe’s clean energy transition."

The construction of the solar parks is anticipated to be completed within 18 months, bringing Romania closer to its renewable energy targets and strengthening its position as a regional leader in clean energy.

Ameresco, Inc., founded in 2000 and headquartered in Framingham, MA, has a history of reducing energy use and delivering diversified generation solutions across North America and Europe. SUNEL Group, an international EPC contractor and developer established in 2006, has a portfolio of over 500 projects with a capacity of more than 1,500 MWp in eleven countries.

The announcement does not necessarily indicate immediate revenue for Ameresco from the contract but was included in the company’s contracted backlog as of December 31, 2024. With a debt-to-equity ratio of 2.24 and negative free cash flow, investors should note the company’s financial position when evaluating this expansion. This project underscores the ongoing global energy transition and the increasing importance of renewable energy sources in achieving net-zero emissions targets. For a comprehensive analysis of Ameresco’s financial health and growth prospects, including detailed metrics and expert insights, check out the full company report on InvestingPro. Information for this article is based on a press release statement.

In other recent news, Ameresco has faced a series of adjustments in its stock ratings and price targets from several analyst firms. Baird downgraded Ameresco from Outperform to Neutral and reduced the price target to $13, citing a shortfall in earnings per share guidance despite strong fourth-quarter results. Stifel also lowered its price target to $18 but maintained a Buy rating, pointing to weaker than expected margins and revised EBITDA guidance. UBS took a more drastic step, downgrading Ameresco to Sell with a new price target of $8, due to concerns over federal project challenges and revised EBITDA estimates.

Jefferies adjusted its price target for Ameresco to $10 while maintaining a Hold rating, noting potential challenges in the company’s Projects and Energy Assets segments. Craig-Hallum reduced its price target to $34 but retained a Buy rating, emphasizing Ameresco’s significant backlog and strong revenue visibility despite political uncertainties. Ameresco’s recent financial report showed it outperformed expectations in key metrics, although future guidance was more conservative, impacting analyst outlooks. These developments reflect the varied perspectives on Ameresco’s ability to navigate current challenges and capitalize on growth opportunities.

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