Ameresco (AMRC) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 increased 49% year-over-year to $500.9 million, driven by strong project execution and timing of revenue recognition.

• Adjusted EBITDA reached a record $62.2 million, up 44% year-over-year, with 72% of year-to-date EBITDA from recurring business lines.

• Net income attributable to common shareholders was $17.6 million, with GAAP EPS of $0.33 and Non-GAAP EPS of $0.32.

• Project backlog grew 22% to $4.5 billion, with contracted backlog up 56% to $1.9 billion.

• 42 MWe of new energy assets brought online in Q3, including the Keller Canyon RNG facility, exceeding annual guidance.

Financial highlights

• Total revenue for Q3 2024 was $500.9 million (+49% YoY); year-to-date revenue reached $1.24 billion.

• Gross margin was 15.4%, reflecting a higher mix of lower-margin projects and additional SCE project costs.

• Adjusted EBITDA margin for Q3 was 12.4%; net income for Q3 was $17.6 million, down from $21.3 million in Q3 2023.

• Adjusted cash from operations for Q3 was $34.4 million; cash at quarter-end was $113.5 million.

• Corporate debt at quarter-end was $272.5 million; energy asset debt totaled $1.4 billion.

Outlook and guidance

• Full-year 2024 guidance reaffirmed: revenue $1.70–$1.80 billion, adjusted EBITDA $210–$230 million, and Non-GAAP EPS $1.15–$1.35.

• Management expects improved gross and EBITDA margins in Q4 due to revenue mix and project execution.

• Asset growth target of 100–120 megawatts for 2025, after exceeding 2024 guidance.

• Five-year CAGR targets: 15–16% for revenue and 18–20% for adjusted EBITDA.

• The third SCE battery storage project is expected to reach substantial completion in Q4 2024.