Ameresco Reports Record Q4 Revenue, Mixed FY25 Results, and Strong 2026 Growth Guidance

summarizeSummary

Ameresco announced Q4 and full-year 2025 financial results, showing revenue growth but lower EPS, while providing strong 2026 guidance for revenue and Adjusted EBITDA, supported by a robust project backlog.

check_boxKey Events

• Q4 and Full Year 2025 Financial Results

  Ameresco reported record Q4 2025 revenue of $581.0 million, up 9% year-over-year, contributing to full-year 2025 revenue of $1,932.1 million. However, GAAP EPS for Q4 was $0.34 (down from $0.70 in Q4 2024) and for the full year was $0.83 (down from $1.07 in FY 2024), primarily due to higher interest expenses and depreciation.

• Strong 2026 Financial Guidance

  The company issued optimistic guidance for fiscal year 2026, forecasting revenue between $2.0 billion and $2.2 billion (midpoint $2.1B, 9% growth) and Adjusted EBITDA between $270 million and $295 million (midpoint $283M, 19% growth). Q1 2026 EPS is expected to be negative by approximately $0.30 due to seasonal patterns and increased asset-related costs.

• Significant Project Backlog and Revenue Visibility

  Ameresco ended 2025 with a total project backlog exceeding $5 billion, representing a 5% increase year-over-year. The company also reported total revenue visibility exceeding $10 billion, indicating a strong pipeline for future growth.

• Operational Achievements in Energy Asset Deployment

  The company placed 121 MWe of energy assets into service during 2025, surpassing its guidance. This included 87 MWe in Q4, featuring a new RNG facility and a large military solar plus storage installation.

auto_awesomeAnalysis

Ameresco, Inc. reported a mixed financial performance for fiscal year 2025, with record fourth-quarter revenue and overall revenue growth for the year, but a decline in GAAP and Non-GAAP EPS. This dip in profitability is partly attributed to increased interest expenses and depreciation from growing energy assets. However, the company provided robust guidance for 2026, projecting 9% revenue growth and a significant 19% increase in Adjusted EBITDA, signaling an expected rebound in profitability. The substantial project backlog of $5 billion and over $10 billion in total revenue visibility underscore strong future growth prospects. Investors should monitor the company's ability to execute on its 2026 guidance and manage the impact of rising interest expenses on net income, especially given the anticipated negative EPS for Q1 2026 due to seasonality and asset growth.