New Orleans pilots smart LED streetlight project

FRAMINGHAM, Mass. & NEW ORLEANS - Ameresco, Inc. (NYSE:AMRC), an energy efficiency solutions provider, has announced a pilot project in partnership with the city of New Orleans to upgrade streetlight fixtures with advanced LED technology. This initiative, focused on enhancing energy efficiency and public safety, will see the installation of 56 LED streetlights equipped with smart city technology in the vicinity of the Superdome. While Ameresco maintains a solid gross profit margin of 15.7%, InvestingPro analysis reveals 13 key insights about the company’s financial health and growth prospects, available to subscribers.

The project involves the collaboration of Legacy Professional Services and AllStar Electric, integrating Ubicquia’s lighting management system and TerraGo’s Smart City operations software platform. The new system is expected to provide real-time analytics on vehicle and pedestrian traffic, contributing to the safety and accessibility of the city’s public spaces.

Ameresco’s President for Central & Western USA and Canada Regions, Louis Maltezos, emphasized the future-focused aspect of the pilot, stating it will demonstrate how smart solutions can improve city operations. Similarly, Glenn DuBois, Vice President of Customer Experience for Ubicquia, highlighted the cost-saving and situational awareness benefits of the intelligent streetlight platforms.

The project will also include smart video analytics capabilities for monitoring pedestrian, bicycle, and vehicle traffic, which is anticipated to support public safety initiatives. The technology is designed for easy deployment, providing instant analytics and control through Ubicquia’s intelligent asset management system.

Ameresco has a history of implementing smart city technology and has outfitted over 62% of their 600,000 LED streetlights with smart controls. The company has been involved in energy-saving projects across various sectors, including government, utilities, healthcare, and education.

This pilot project in New Orleans is not expected to immediately impact Ameresco’s revenue or indicate broader trends in the company’s project revenue, as it was not included in the awarded or contracted backlog as of September 30, 2024. Ten analysts have recently revised their earnings expectations upward for the upcoming period, with comprehensive analysis available in the Pro Research Report, one of 1,400+ detailed company reports available exclusively on InvestingPro.

The information for this article is based on a press release statement.

In other recent news, Ameresco has secured a 25-year contract for a solar energy project at the 5th Canadian Division Support Base in Oromocto, New Brunswick (NYSE:BC). The Gagetown Solar Project, valued at CAD $26.7 million, will feature a ground-mounted solar energy system expected to supply about 20% of the base’s electricity needs. This initiative aligns with the Department of National Defence’s goal to reduce greenhouse gas emissions and is anticipated to save the base approximately CAD $1.3 million in utility costs annually. The project is expected to be completed by June 2025, with Ameresco responsible for its design, construction, operation, and maintenance.

In other developments, Jefferies analyst Julian Dumoulin-Smith has reduced the price target for Ameresco from $28 to $23, maintaining a Hold rating. Concerns were expressed about Ameresco’s upcoming fourth-quarter results, which may align with the lower end of the company’s guidance. The analyst noted potential challenges due to lower D3 Renewable Identification Number (RIN) prices, which could impact Ameresco’s financial projections. Specifically, fiscal year 2025 EBITDA is expected to decrease by 2%, and EPS by 17%. Despite these hurdles, Ameresco remains committed to its long-term sustainability and growth strategy in the clean energy sector.

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