Ameresco shares plummet 10% despite Q4 earnings, revenue beat on cautious outlook

Published 27/02/2025, 22:48
Ameresco shares plummet 10% despite Q4 earnings, revenue beat on cautious outlook

FRAMINGHAM, Mass. - Ameresco, Inc. (NYSE:AMRC) reported better-than-expected fourth quarter earnings and revenue, but shares plunged 10.5% in after-hours trading as the company’s 2025 outlook fell short of analyst estimates.

The energy solutions provider posted adjusted earnings per share of $0.88, topping the consensus forecast of $0.78. Revenue rose 20.7% year-over-year to $532.7 million, exceeding expectations of $523.61 million.

However, Ameresco’s 2025 guidance disappointed investors. The company projects full-year revenue between $1.85 billion and $1.95 billion, with adjusted EBITDA of $225 million to $245 million. Both ranges came in below Wall Street’s estimates.

"Entering 2025, Ameresco is well-positioned for continued long term profitable growth even in an evolving industry and political landscape," said CEO George Sakellaris. However, he noted the company’s federal projects business will be impacted as the new administration determines funding priorities.

Fourth quarter gross margin fell to 12.5% from 16.8% a year ago, hurt by approximately $20 million in unanticipated cost overruns on two large-scale legacy projects.

On a positive note, Ameresco reported record Q4 contract conversions of over $1 billion, nearly doubling its contracted project backlog YoY to $2.5 billion. The company also placed a record 241 MWe of energy assets into service during 2024.

For 2025, Ameresco expects to place 100-120 MWe of new energy assets in service. The company anticipates capital expenditures of $350-$400 million, primarily funded through energy asset debt and tax equity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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