Latest news with #GeorgeSakellaris
Yahoo
20-05-2025
- Business
- Yahoo
Ameresco enters $78m facility to fund battery storage energy asset
Ameresco, a provider of comprehensive energy solutions, has finalised a financial package to support its battery storage asset and future energy infrastructure projects. The company's subsidiary executed a note purchase agreement and private shelf agreement, highlighting Ameresco's commitment to enhancing energy resilience and advancing sustainable energy solutions. The initial note purchase agreement allows for the issuance of Series A notes of $78m, earmarked for financing a battery energy storage asset currently under construction. The financial arrangement with CounterpointeSRE and Barings also includes an expected issuance of a second series of notes The Series A notes, maturing in 2045, feature a fixed interest rate. The financial structure then anticipates the potential issuance of Series B notes, subject to lender approval, to fund an additional solar plus battery energy storage project, extending over an additional 20-year term. Ameresco president and CEO George Sakellaris stated: 'This financial arrangement marks a significant milestone for Ameresco as we continue to lead the way in providing innovative energy solutions. 'We expect that the $300m private shelf facility will allow us to execute multiple transactions, enhancing our ability to deliver energy projects that drive cost savings, resilience and decarbonisation. We are excited about the flexibility this agreement provides, as we expect that it will enable us to accelerate the deployment of resilient energy infrastructure.' In a move to bolster its project financing capabilities, the Ameresco subsidiary has entered a $300m uncommitted private shelf facility intended for the financing of forthcoming solar and battery energy assets. Ameresco has also arranged for the transfer of investment tax credits linked to the battery asset, which will be realised once the asset commences commercial operations. The company anticipates similar agreements for tax credit transfers related to the Series B notes and other future transactions under the private shelf facility. CounterpointeSRE CEO Eric Alini stated: 'This shelf agreement aligns perfectly with CounterpointeSRE's commitment to support resilient, sustainable infrastructure in a variety of asset classes that drive both environmental and economic benefits.' Ameresco's Irish subsidiary, Cork Sustainable Energy, recently secured approval from An Bord Pleanála for a significant upgrade to the Kilvinane Wind Farm in Ireland. "Ameresco enters $78m facility to fund battery storage energy asset" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
19-05-2025
- Business
- Yahoo
Ameresco Announces a $78 Million Facility to Finance Battery Storage Energy Asset
The Financial Arrangement with CounterpointeSRE and Barings also Includes an Expected Issuance of a Second Series of Notes, an Additional Uncommitted $300 Million Shelf Facility and a Tax Credit Purchase Agreement for Future Ameresco Energy Assets FRAMINGHAM, Mass. & STAMFORD, Conn., May 19, 2025--(BUSINESS WIRE)--Ameresco, Inc., (NYSE: AMRC), a leading energy solutions provider dedicated to helping customers navigate the energy transition, today announced that one of its subsidiaries executed a note purchase agreement and private shelf agreement to finance its ongoing and future energy infrastructure projects. This strategic financial arrangement underscores Ameresco's commitment to advancing energy solutions and enhancing energy resilience. The first note purchase provides for the issuance of Series A notes of $78 million to finance a battery energy storage asset currently under construction. The Series A notes have a maturity date of 2045 and carry a fixed interest rate. The arrangement also contemplates the issuance (upon lender approval) of Series B notes for a separate solar plus battery energy storage asset and includes an additional 20-year term. The Ameresco subsidiary entered a $300 million uncommitted private Shelf Facility for future solar and battery energy assets. As part of this transaction, Ameresco signed an agreement for the transfer of investment tax credits associated with the battery asset upon the asset achieving commercial operation. Ameresco expects to sign agreements for the transfer of tax credits for the solar plus storage asset associated with the Series B notes, as well as for future deals under the private shelf facility. "This financial arrangement marks a significant milestone for Ameresco as we continue to lead the way in providing innovative energy solutions," said George Sakellaris, President & CEO of Ameresco. "We expect that the $300 million private shelf facility will allow us to execute multiple transactions, enhancing our ability to deliver energy projects that drive cost savings, resilience, and decarbonization. We are excited about the flexibility this agreement provides, as we expect that it will enable us to accelerate the deployment of resilient energy infrastructure." "We are thrilled to partner with Ameresco, a leading energy solutions and infrastructure provider, to finance impactful renewable energy and storage initiatives," said Eric Alini, CEO of CounterpointeSRE. "This shelf agreement aligns perfectly with CounterpointeSRE's commitment to support resilient, sustainable infrastructure in a variety of asset classes that drive both environmental and economic benefits." "Barings is delighted to work alongside Ameresco and our affiliate, CounterpointeSRE, on this innovative financing," said Stephen Coscia, Managing Director, Global Infrastructure Debt at Barings. "By combining Barings' debt expertise with CounterpointeSRE's origination and tax equity capabilities, we're able to provide Ameresco with a flexible, comprehensive capital solution. This collaboration underscores the unique advantages of our broad platform and our joint commitment to advancing the clean energy transition." For more information about Ameresco, visit About Ameresco, in 2000, Ameresco, Inc. (NYSE: AMRC) is a leading energy solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering diversified generation solutions to Federal, state and local governments, utilities, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit About CounterpointeSRECounterpointeSRE focuses on direct debt investments in energy transition. We finance high-quality sustainable energy and climate-related infrastructure assets including grid-connected and behind-the-meter solar, battery energy storage systems ("BESS") and other energy efficiency asset classes throughout the United States. In addition, we arrange tax credit purchases and tax equity partnerships alongside our debt to solve clients' project requirements. CounterpointeSRE, a portfolio company of MassMutual, provides C-PACE and sustainable mortgage financing to accelerate the transition to low-carbon infrastructure assets in addition to energy transition investments. About Barings LLCBarings is a $442+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions.*As of March 31, 2025 Forward looking statementsAny statements in this release about future expectations, plans and prospects for Ameresco, Inc., including statements about expected future borrowings under the financing arrangement, the completion of assets in development and future growth of our energy assets and other statements containing the words "projects," "believes," "anticipates," "plans," "expects," "will" and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward looking statements as a result of various important factors, including: demand for our energy efficiency and renewable energy solutions; the timing of, and ability to, enter into contracts for awarded projects on the terms proposed or at all; the timing of work we do on projects where we recognize revenue on a percentage of completion basis; the ability to perform under signed contracts without delay and in accordance with their terms and the potential for liquidated and other damages we may be subject to; the fiscal health of the government and the risk of government shutdowns and reductions in the federal workforce; our ability to complete and operate our projects on a profitable basis and as committed to our customers; our cash flows from operations and our ability to arrange financing to fund our operations and projects; our customers' ability to finance their projects and credit risk from our customers; our ability to comply with covenants in our existing debt agreements; the impact of macroeconomic challenges, weather related events and climate change; our reliance on third parties for our construction and installation work; availability and cost of labor and equipment particularly given global supply chain challenges, tariffs and global trade conflicts; global supply chain challenges, component shortages and inflationary pressures; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy; the ability of customers to cancel or defer contracts included in our backlog; the output and performance of our energy plants and energy projects; cybersecurity incidents and breaches; regulatory and other risks inherent to constructing and operating energy assets; the effects of our acquisitions and joint ventures; seasonality in construction and in demand for our products and services; a customer's decision to delay our work on, or other risks involved with, a particular project; the addition of new customers or the loss of existing customers; market price of our Class A Common stock prevailing from time to time; the nature of other investment opportunities presented to our Company from time to time; risks related to our international operation and international growth strategy; and other factors discussed in our most recent Annual Report on Form 10-K and our quarterly reports on Form 10-Q. The forward-looking statements included in this release represent our views as of the date of this release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this release. View source version on Contacts Media Contact: Ameresco: Leila Dillon, 508-661-2264, news@
Business Wire
19-05-2025
- Business
- Business Wire
Ameresco Announces a $78 Million Facility to Finance Battery Storage Energy Asset
FRAMINGHAM, Mass. & STAMFORD, Conn.--(BUSINESS WIRE)-- Ameresco, Inc., (NYSE: AMRC), a leading energy solutions provider dedicated to helping customers navigate the energy transition, today announced that one of its subsidiaries executed a note purchase agreement and private shelf agreement to finance its ongoing and future energy infrastructure projects. This strategic financial arrangement underscores Ameresco's commitment to advancing energy solutions and enhancing energy resilience. The first note purchase provides for the issuance of Series A notes of $78 million to finance a battery energy storage asset currently under construction. The Series A notes have a maturity date of 2045 and carry a fixed interest rate. The arrangement also contemplates the issuance (upon lender approval) of Series B notes for a separate solar plus battery energy storage asset and includes an additional 20-year term. The Ameresco subsidiary entered a $300 million uncommitted private Shelf Facility for future solar and battery energy assets. As part of this transaction, Ameresco signed an agreement for the transfer of investment tax credits associated with the battery asset upon the asset achieving commercial operation. Ameresco expects to sign agreements for the transfer of tax credits for the solar plus storage asset associated with the Series B notes, as well as for future deals under the private shelf facility. 'This financial arrangement marks a significant milestone for Ameresco as we continue to lead the way in providing innovative energy solutions,' said George Sakellaris, President & CEO of Ameresco. 'We expect that the $300 million private shelf facility will allow us to execute multiple transactions, enhancing our ability to deliver energy projects that drive cost savings, resilience, and decarbonization. We are excited about the flexibility this agreement provides, as we expect that it will enable us to accelerate the deployment of resilient energy infrastructure.' 'We are thrilled to partner with Ameresco, a leading energy solutions and infrastructure provider, to finance impactful renewable energy and storage initiatives,' said Eric Alini, CEO of CounterpointeSRE. 'This shelf agreement aligns perfectly with CounterpointeSRE's commitment to support resilient, sustainable infrastructure in a variety of asset classes that drive both environmental and economic benefits.' 'Barings is delighted to work alongside Ameresco and our affiliate, CounterpointeSRE, on this innovative financing,' said Stephen Coscia, Managing Director, Global Infrastructure Debt at Barings. 'By combining Barings' debt expertise with CounterpointeSRE's origination and tax equity capabilities, we're able to provide Ameresco with a flexible, comprehensive capital solution. This collaboration underscores the unique advantages of our broad platform and our joint commitment to advancing the clean energy transition.' For more information about Ameresco, visit About Ameresco, Inc. Founded in 2000, Ameresco, Inc. (NYSE: AMRC) is a leading energy solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering diversified generation solutions to Federal, state and local governments, utilities, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit About CounterpointeSRE CounterpointeSRE focuses on direct debt investments in energy transition. We finance high-quality sustainable energy and climate-related infrastructure assets including grid-connected and behind-the-meter solar, battery energy storage systems ('BESS') and other energy efficiency asset classes throughout the United States. In addition, we arrange tax credit purchases and tax equity partnerships alongside our debt to solve clients' project requirements. CounterpointeSRE, a portfolio company of MassMutual, provides C-PACE and sustainable mortgage financing to accelerate the transition to low-carbon infrastructure assets in addition to energy transition investments. About Barings LLC Barings is a $442+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions. *As of March 31, 2025 Forward looking statements Any statements in this release about future expectations, plans and prospects for Ameresco, Inc., including statements about expected future borrowings under the financing arrangement, the completion of assets in development and future growth of our energy assets and other statements containing the words 'projects,' 'believes,' 'anticipates,' 'plans,' 'expects,' 'will' and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward looking statements as a result of various important factors, including: demand for our energy efficiency and renewable energy solutions; the timing of, and ability to, enter into contracts for awarded projects on the terms proposed or at all; the timing of work we do on projects where we recognize revenue on a percentage of completion basis; the ability to perform under signed contracts without delay and in accordance with their terms and the potential for liquidated and other damages we may be subject to; the fiscal health of the government and the risk of government shutdowns and reductions in the federal workforce; our ability to complete and operate our projects on a profitable basis and as committed to our customers; our cash flows from operations and our ability to arrange financing to fund our operations and projects; our customers' ability to finance their projects and credit risk from our customers; our ability to comply with covenants in our existing debt agreements; the impact of macroeconomic challenges, weather related events and climate change; our reliance on third parties for our construction and installation work; availability and cost of labor and equipment particularly given global supply chain challenges, tariffs and global trade conflicts; global supply chain challenges, component shortages and inflationary pressures; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy; the ability of customers to cancel or defer contracts included in our backlog; the output and performance of our energy plants and energy projects; cybersecurity incidents and breaches; regulatory and other risks inherent to constructing and operating energy assets; the effects of our acquisitions and joint ventures; seasonality in construction and in demand for our products and services; a customer's decision to delay our work on, or other risks involved with, a particular project; the addition of new customers or the loss of existing customers; market price of our Class A Common stock prevailing from time to time; the nature of other investment opportunities presented to our Company from time to time; risks related to our international operation and international growth strategy; and other factors discussed in our most recent Annual Report on Form 10-K and our quarterly reports on Form 10-Q. The forward-looking statements included in this release represent our views as of the date of this release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this release.
Yahoo
05-05-2025
- Business
- Yahoo
Ameresco (NYSE:AMRC) Beats Expectations in Strong Q1, Stock Jumps 16%
Energy and renewable energy projects company Ameresco (NYSE:AMRC) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 18.2% year on year to $352.8 million. The company's full-year revenue guidance of $1.9 billion at the midpoint came in 0.9% above analysts' estimates. Its non-GAAP loss of $0.11 per share was 56.5% above analysts' consensus estimates. Is now the time to buy Ameresco? Find out in our full research report. Revenue: $352.8 million vs analyst estimates of $307.2 million (18.2% year-on-year growth, 14.9% beat) Adjusted EPS: -$0.11 vs analyst estimates of -$0.25 (56.5% beat) Adjusted EBITDA: $40.63 million vs analyst estimates of $35.32 million (11.5% margin, 15.1% beat) The company reconfirmed its revenue guidance for the full year of $1.9 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $0.80 at the midpoint EBITDA guidance for the full year is $235 million at the midpoint, above analyst estimates of $230 million Operating Margin: 3.9%, up from 2.7% in the same quarter last year Free Cash Flow was -$28.73 million compared to -$85.78 million in the same quarter last year Market Capitalization: $631.2 million CEO George Sakellaris commented, 'The first quarter represented an excellent start to the year with both our Projects and Energy Asset businesses delivering strong double-digit growth. We also increased future revenue visibility through robust contract conversion and asset deployments. During the quarter, we added over $367 million to awarded backlog while converting $334 million of awards into contracts. At quarter end our contracted backlog stood at $2.6 billion, almost 80% ahead of the previous year, driving our total project backlog to $4.9 billion up 22% compared to last year. Revenue visibility across our businesses now stands at almost $10 billion, adding to our long-term resilience. Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Ameresco's 14.4% annualized revenue growth over the last five years was exceptional. Its growth beat the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Ameresco's recent performance shows its demand has slowed significantly as its annualized revenue growth of 6.1% over the last two years was well below its five-year trend. This quarter, Ameresco reported year-on-year revenue growth of 18.2%, and its $352.8 million of revenue exceeded Wall Street's estimates by 14.9%. Looking ahead, sell-side analysts expect revenue to grow 5.5% over the next 12 months, similar to its two-year rate. This projection is underwhelming and suggests its newer products and services will not catalyze better top-line performance yet. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Ameresco was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.7% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Looking at the trend in its profitability, Ameresco's operating margin decreased by 1.2 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Ameresco's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. This quarter, Ameresco generated an operating profit margin of 3.9%, up 1.2 percentage points year on year. The increase was encouraging, and because its gross margin actually decreased, we can assume it was more efficient because its operating expenses like marketing, R&D, and administrative overhead grew slower than its revenue. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Ameresco's EPS grew at an unimpressive 4% compounded annual growth rate over the last five years, lower than its 14.4% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into Ameresco's earnings to better understand the drivers of its performance. As we mentioned earlier, Ameresco's operating margin improved this quarter but declined by 1.2 percentage points over the last five years. Its share count also grew by 8.3%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Ameresco, its two-year annual EPS declines of 12.3% show it's continued to underperform. These results were bad no matter how you slice the data. In Q1, Ameresco reported EPS at negative $0.11, in line with the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Ameresco's full-year EPS of $1.18 to shrink by 11.6%. We were impressed by how significantly Ameresco blew past analysts' EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 16% to $13.42 immediately following the results. Sure, Ameresco had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Business Wire
05-05-2025
- Business
- Business Wire
Ameresco Reports First Quarter 2025 Financial Results
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Ameresco, Inc. (NYSE:AMRC), a leading energy solutions provider dedicated to helping customers navigate the energy transition, today announced financial results for the fiscal quarter ended March 31, 2025. The Company also furnished supplemental information in conjunction with this press release in a Current Report on Form 8-K. The supplemental information, which includes Non-GAAP financial measures, has been posted to the 'Investors' section of the Company's website at Reconciliations of Non-GAAP measures to the appropriate GAAP measures are included herein. All financial result comparisons made are against the prior year period unless otherwise noted. CEO George Sakellaris commented, 'The first quarter represented an excellent start to the year with both our Projects and Energy Asset businesses delivering strong double-digit growth. We also increased future revenue visibility through robust contract conversion and asset deployments. During the quarter, we added over $367 million to awarded backlog while converting $334 million of awards into contracts. At quarter end our contracted backlog stood at $2.6 billion, almost 80% ahead of the previous year, driving our total project backlog to $4.9 billion up 22% compared to last year. Revenue visibility across our businesses now stands at almost $10 billion, adding to our long-term resilience. 'The Ameresco team continues to effectively and efficiently operate during these dynamic times. We are pleased to report that we have not encountered any additional cancellations or delays in our Federal contracts and those that we highlighted the previous quarter as being delayed or cancelled have now been 'unpaused' or modified and are progressing. Importantly, we are now seeing a significant number of recently issued Federal RFPs, focused on our core competencies of resiliency and increasing power supply. 'Like every company in our industry we have also been dealing with rapidly changing tariff dynamics. While there will be some impact on costs, timing of deliveries and potentially lengthening implementation schedules, we believe that we have limited near-term exposure. We note that much of the equipment for ongoing Projects and Energy Assets has already been purchased and is in the country or already on our sites, shielding us from tariff and price increases. Beyond 2025, we will try to mitigate the effect of price increases during contract negotiations and repricing where possible. The Ameresco team has significant experience operating in such dynamic environments having successfully navigated Covid era inflation along with tariff impacts during previous administrations. 'Our increasing clarity and mitigation effort around Federal and tariff related dynamics, as well as the excellent visibility provided by our contracted project backlog and recurring revenue streams give us excellent visibility to delivering on our guidance for the year.' First Quarter Financial Results (All financial result comparisons made are against the prior year period unless otherwise noted.) Total revenue increased 18% to $352.8 million, with strong growth in Projects and Energy Assets revenue partially offset by a decline in Other revenue due to the divestiture of AEG at the end of 2024. Projects revenue grew 23% to $251.5 million, driven by our continued focus on project execution and the conversion of our awarded backlog to contracts. The Company continues to benefit from the increased number of operating Energy Assets placed in service, fueling a 31% increase in energy asset revenue to $56.7 million. The year-end sale of AEG led to the decline in Other revenue to $19.8 million. Gross margin of 14.7% was in line with expectations, slightly impacted by a heavier mix of lower margin EPC revenue related to our European JV. Net loss attributable to common shareholders was $5.5 million. Adjusted EBITDA of $40.6 million, increased 32%. Project and Asset Highlights Ameresco brought 11 MWe of Energy Assets into operation Balance Sheet and Cash Flow Metrics The Company ended the quarter with $71.6 million in unrestricted cash with total corporate debt including our subordinated debt, term loans and drawn amounts on our revolving line of credit declining to $270.0 million. During the quarter the Company extended and increased our revolving credit facility and term loan with Bank of America, providing further financial flexibility and increased capacity to help fund our growth and successfully executed approximately $334.0 million in project financing commitments to help fund our Energy Asset business. Our Energy Asset Debt was $1.4 billion with an Energy Debt Advance rate of 74% on the Energy Asset Book Value. Our Adjusted Cash from Operations during the quarter was $1.4 million. Our 8-quarter rolling average Adjusted Cash from Operations was $33.4 million. Summary and Outlook Given our strong start to the year and excellent visibility we are reiterating our 2025 revenue and adjusted EBITDA guidance of $1.9 billion and $235 million at the midpoints of our ranges, respectively. Our team's outstanding execution drove faster implementation during the first quarter of approximately $30 million of project revenue. To assist with shaping for the remainder of the year, we are maintaining our expectation for the cadence of revenue in the second half of 2025 to represent approximately 60% of our total revenue. Accounting for our strong Q1 results, we anticipate Q2 revenue will be in the range of approximately $400 - $425 million. Our 2025 guidance does not include the potential impact of a change in accounting principle related to sale-leaseback arrangements that is currently being assessed. The Company's Adjusted EBITDA and Non-GAAP EPS guidance excludes the impact of redeemable non-controlling interest activity, one-time charges, asset impairment charges, changes in contingent consideration, restructuring activities, as well as any related tax impact. Conference Call/Webcast Information The Company will host a conference call today at 4:30 p.m. ET to discuss first quarter 2025 financial results, business and financial outlook, and other business highlights. To participate on the day of the call, dial 1-888-596-4144, or internationally 1-646-968-2525, and enter the conference ID: 5277775, approximately 10 minutes before the call. A live, listen-only webcast of the conference call will also be available over the Internet. Individuals wishing to listen can access the call through the 'Investors' section of the Company's website at If you are unable to listen to the live call, an archived webcast will be available on the Company's website for one year. Use of Non-GAAP Financial Measures This press release and the accompanying tables include references to adjusted EBITDA, Non- GAAP EPS, Non-GAAP net income and adjusted cash from operations, which are Non-GAAP financial measures. For a description of these Non-GAAP financial measures, including the reasons management uses these measures, please see the section following the accompanying tables titled 'Exhibit A: Non-GAAP Financial Measures'. For a reconciliation of these Non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see Non-GAAP Financial Measures and Non-GAAP Financial Guidance in the accompanying tables. About Ameresco, Inc. Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading energy solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering diversified generation solutions to Federal, state and local governments, utilities, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit Safe Harbor Statement Any statements in this press release about future expectations, plans and prospects for Ameresco, Inc., including statements about market conditions, pipeline, visibility, backlog, pending agreements, financial guidance including estimated future revenues, net income, adjusted EBITDA, Non-GAAP EPS, gross margin, effective tax rate, interest rate, depreciation, tax attributes and capital investments, as well as statements about our financing plans, the impact the IRA, the impact of policies and regulatory changes implemented by the new U.S. administration, supply chain disruptions, shortage and cost of materials and labor, and other macroeconomic and geopolitical challenges; the impact from a possible change in accounting principle; our expectations related to our agreement with SCE including the impact of delays and any requirement to pay liquidated damages, and other statements containing the words 'projects,' 'believes,' 'anticipates,' 'plans,' 'expects,' 'will' and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward looking statements as a result of various important factors, including: demand for our energy efficiency and renewable energy solutions; the timing of, and ability to, enter into contracts for awarded projects on the terms proposed or at all; the timing of work we do on projects where we recognize revenue on a percentage of completion basis; the ability to perform under signed contracts without delay and in accordance with their terms and the potential for liquidated and other damages we may be subject to; the fiscal health of the government and the risk of government shutdowns and reductions in the federal workforce; our ability to complete and operate our projects on a profitable basis and as committed to our customers; our cash flows from operations and our ability to arrange financing to fund our operations and projects; our customers' ability to finance their projects and credit risk from our customers; our ability to comply with covenants in our existing debt agreements; the impact of macroeconomic challenges, weather related events and climate change; our reliance on third parties for our construction and installation work; availability and cost of labor and equipment particularly given global supply chain challenges, tariffs and global trade conflicts; global supply chain challenges, component shortages and inflationary pressures; changes in federal, state and local government policies and programs related to energy efficiency and renewable energy; the ability of customers to cancel or defer contracts included in our backlog; the output and performance of our energy plants and energy projects; cybersecurity incidents and breaches; regulatory and other risks inherent to constructing and operating energy assets; the effects of our acquisitions and joint ventures; seasonality in construction and in demand for our products and services; a customer's decision to delay our work on, or other risks involved with, a particular project; the addition of new customers or the loss of existing customers; market price of our Class A Common stock prevailing from time to time; the nature of other investment opportunities presented to our Company from time to time; risks related to our international operation and international growth strategy; and other factors discussed in our most recent Annual Report on Form 10-K and our quarterly reports on Form 10-Q. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. March 31, 2025 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 71,593 $ 108,516 Restricted cash 74,634 69,706 Accounts receivable, net 226,656 256,961 Accounts receivable retainage, net 45,276 39,843 Unbilled revenue 559,049 644,105 Inventory, net 12,348 11,556 Prepaid expenses and other current assets 242,293 145,906 Income tax receivable 2,092 1,685 Project development costs, net 23,127 22,856 Total current assets 1,257,068 1,301,134 Federal ESPC receivable 615,343 609,128 Property and equipment, net 11,035 11,040 Energy assets, net 1,955,280 1,915,311 Deferred income tax assets, net 67,228 56,523 Goodwill, net 68,337 66,305 Intangible assets, net 9,169 8,814 Right-of-use assets, net 78,380 80,149 Restricted cash, non-current portion 20,546 20,156 Other assets 87,555 89,948 Total assets $ 4,169,941 $ 4,158,508 Current liabilities: Current portions of long-term debt and financing lease liabilities, net $ 149,298 $ 149,363 Accounts payable 435,634 529,338 Accrued expenses and other current liabilities 112,447 107,293 Current portions of operating lease liabilities 9,592 10,536 Deferred revenue 91,219 91,734 Income taxes payable 115 744 Total current liabilities 798,305 889,008 Long-term debt and financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 1,567,473 1,483,900 Federal ESPC liabilities 567,602 555,396 Deferred income tax liabilities, net 2,120 2,223 Deferred grant income 5,664 6,436 Long-term operating lease liabilities, net of current portion 57,752 59,479 Other liabilities 122,981 114,454 Redeemable non-controlling interests, net $ 1,966 $ 2,463 Stockholders' equity: Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024 — — Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 36,705,416 shares issued and 34,603,581 shares outstanding at March 31, 2025, 36,603,048 shares issued and 34,501,213 shares outstanding at December 31, 2024 3 3 Class B common stock, $0.0001 par value, 144,000,000 shares authorized, 18,000,000 shares issued and outstanding at March 31, 2025 and December 31, 2024 2 2 Additional paid-in capital 381,595 378,321 Retained earnings 647,051 652,561 Accumulated other comprehensive loss, net (4,935 ) (5,874 ) Treasury stock, at cost, 2,101,835 shares at March 31, 2025 and December 31, 2024 (11,788 ) (11,788 ) Stockholders' equity before non-controlling interest 1,011,928 1,013,225 Non-controlling interests 34,150 31,924 Total stockholders' equity 1,046,078 1,045,149 Total liabilities, redeemable non-controlling interests and stockholders' equity $ 4,169,941 $ 4,158,508 Expand AMERESCO, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2025 2024 Revenues $ 352,829 $ 298,406 Cost of revenues 300,910 251,413 Gross profit 51,919 46,993 Earnings from unconsolidated entities 261 555 Selling, general and administrative expenses 38,488 39,555 Operating income 13,692 7,993 Other expenses, net 18,110 14,171 Loss before income taxes (4,418 ) (6,178 ) Income tax expense 1,188 — Net loss (5,606 ) (6,178 ) Net loss attributable to non-controlling interests and redeemable non-controlling interests 123 3,241 Net loss attributable to common shareholders $ (5,483 ) $ (2,937 ) Net loss per share attributable to common shareholders: Basic $ (0.10 ) $ (0.06 ) Diluted $ (0.10 ) $ (0.06 ) Weighted average common shares outstanding: Basic 52,544 52,289 Diluted 52,544 52,289 Expand AMERESCO, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net loss $ (5,606 ) $ (6,178 ) Adjustments to reconcile net loss to net cash flows from operating activities: Depreciation of energy assets, net 22,842 17,124 Depreciation of property and equipment 573 1,175 Increase in contingent consideration 71 — Accretion of ARO liabilities 108 66 Amortization of debt discount and debt issuance costs 1,451 982 Amortization of intangible assets 525 539 Provision for credit losses 9 1 Gain on disposal of assets (1,370 ) — Non-cash project revenue related to in-kind leases (2,274 ) (775 ) Earnings from unconsolidated entities (261 ) (555 ) Net loss (gain) from derivatives 1,335 (2,359 ) Stock-based compensation expense 2,844 3,026 Deferred income taxes, net 1,188 687 Unrealized foreign exchange (gain) loss (1,209 ) 806 Changes in operating assets and liabilities: Accounts receivable 35,657 5,899 Accounts receivable retainage (2,866 ) 1,580 Federal ESPC receivable (17,933 ) (26,395 ) Inventory, net (792 ) 561 Unbilled revenue 41,922 (7,842 ) Prepaid expenses and other current assets (17,700 ) 104 Income taxes receivable, net (1,043 ) 180 Project development costs 858 (1,728 ) Other assets (1,629 ) (1,413 ) Accounts payable, accrued expenses and other current liabilities (87,992 ) 23,849 Deferred revenue 574 9,160 Other liabilities 2,414 2,323 Cash flows from operating activities (28,304 ) 20,817 Cash flows from investing activities: Purchases of property and equipment (422 ) (962 ) Capital investments in energy assets (107,866 ) (105,633 ) Capital investments in major maintenance of energy assets (5,952 ) (5,355 ) Net proceeds from equity method investments — 12,956 Contributions to equity method investments (158 ) (4,776 ) Acquisitions, net of cash received (3,972 ) — Cash flows from investing activities (118,370 ) (103,770 ) Cash flows from financing activities: Payments on long-term corporate debt financings (14,250 ) (32,500 ) Proceeds from long-term corporate debt financings 100,000 — (Payments on) proceeds from senior secured revolving credit facility, net (57,000 ) 20,100 Proceeds from long-term energy asset debt financings 112,588 89,321 Payments on long-term energy asset debt and financing leases (59,186 ) (22,696 ) Payment on seller's promissory note — (29,441 ) Payments of debt discount and debt issuance costs (3,224 ) (590 ) Proceeds from Federal ESPC projects 29,731 19,581 Net proceeds from energy asset receivable financing arrangements 3,599 4,748 Proceeds from exercises of options and ESPP 430 183 Contributions from non-controlling interests 2,863 28,864 Distributions to non-controlling interest (1,004 ) (63 ) Distributions to redeemable non-controlling interests, net — (133 ) Cash flows from financing activities 114,547 77,374 Effect of exchange rate changes on cash 522 (126 ) Net decrease in cash, cash equivalents, and restricted cash (31,605 ) (5,705 ) Cash, cash equivalents, and restricted cash, beginning of period 198,378 153,676 Cash, cash equivalents, and restricted cash, end of period $ 166,773 $ 147,971 Expand Non-GAAP Financial Measures (Unaudited, in thousands) Three Months Ended March 31, 2025 Adjusted EBITDA: Projects Energy Assets O&M Other Consolidated Net income (loss) attributable to common shareholders $ 393 $ (5,884 ) $ 733 $ (725 ) $ (5,483 ) Impact from redeemable non-controlling interests — (525 ) — — (525 ) Plus: Income tax provision 847 191 84 66 1,188 Plus: Other expenses, net 4,153 13,131 358 468 18,110 Plus: Depreciation and amortization 964 22,542 279 155 23,940 Plus: Stock-based compensation 2,027 457 200 160 2,844 Plus: Contingent consideration, restructuring and other charges 352 194 8 6 560 Adjusted EBITDA $ 8,736 $ 30,106 $ 1,662 $ 130 $ 40,634 Adjusted EBITDA margin 3.5 % 53.1 % 6.7 % 0.7 % 11.5 % Expand Three Months Ended March 31, 2024 Adjusted EBITDA: Projects Energy Assets O&M Other Consolidated Net (loss) income attributable to common shareholders $ (5,965 ) $ (496 ) $ 3,659 $ (135 ) $ (2,937 ) Impact from redeemable non-controlling interests — (2,855 ) — — (2,855 ) Plus: Other expenses, net 5,656 7,246 545 724 14,171 Plus: Depreciation and amortization 995 16,847 322 674 18,838 Plus: Stock-based compensation 2,072 438 257 259 3,026 Plus: Contingent consideration, restructuring and other charges 481 16 5 86 588 Adjusted EBITDA $ 3,239 $ 21,196 $ 4,788 $ 1,608 $ 30,831 Adjusted EBITDA margin 1.6 % 49.1 % 18.9 % 6.3 % 10.3 % Expand Three Months Ended March 31, 2025 2024 Non-GAAP net income and EPS: Net loss attributable to common shareholders $ (5,483 ) $ (2,937 ) Adjustment for accretion of tax equity financing fees (27 ) (27 ) Impact from redeemable non-controlling interests (525 ) (2,855 ) Plus: Contingent consideration, restructuring and other charges 560 588 Less: Income tax effect of Non-GAAP adjustments (146 ) (153 ) Non-GAAP net loss $ (5,621 ) $ (5,384 ) Diluted net income per common share $ (0.10 ) $ (0.06 ) Effect of adjustments to net loss (0.01 ) (0.04 ) Non-GAAP EPS $ (0.11 ) $ (0.10 ) Adjusted cash from operations: Cash flows from operating activities $ (28,304 ) $ 20,817 Plus: proceeds from Federal ESPC projects 29,731 19,581 Adjusted cash from operations $ 1,427 $ 40,398 Expand Other Financial Measures (Unaudited, in thousands) Non-GAAP Financial Guidance Exhibit A: Non-GAAP Financial Measures We use the Non-GAAP financial measures defined and discussed below to provide investors and others with useful supplemental information to our financial results prepared in accordance with GAAP. These Non-GAAP financial measures should not be considered as an alternative to any measure of financial performance calculated and presented in accordance with GAAP. For a reconciliation of these Non-GAAP measures to the most directly comparable financial measures prepared in accordance with GAAP, please see Non-GAAP Financial Measures and Non-GAAP Financial Guidance in the tables above. We understand that, although measures similar to these Non-GAAP financial measures are frequently used by investors and securities analysts in their evaluation of companies, they have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for the most directly comparable GAAP financial measures or an analysis of our results of operations as reported under GAAP. To properly and prudently evaluate our business, we encourage investors to review our GAAP financial statements included above, and not to rely on any single financial measure to evaluate our business. Adjusted EBITDA and Adjusted EBITDA Margin We define adjusted EBITDA as net income attributable to common shareholders, including impact from redeemable non-controlling interests, before income tax (benefit) provision, other expenses net, depreciation, amortization of intangible assets, accretion of asset retirement obligations, stock-based compensation expense, energy asset and goodwill impairment, contingent consideration, restructuring and other charges, gain or loss on sale of equity investment, and gain or loss upon deconsolidation of a variable interest entity. We believe adjusted EBITDA is useful to investors in evaluating our operating performance for the following reasons: adjusted EBITDA and similar Non-GAAP measures are widely used by investors to measure a company's operating performance without regard to items that can vary substantially from company to company depending upon financing and accounting methods, book values of assets, capital structures and the methods by which assets were acquired; securities analysts often use adjusted EBITDA and similar Non-GAAP measures as supplemental measures to evaluate the overall operating performance of companies; and by comparing our adjusted EBITDA in different historical periods, investors can evaluate our operating results without the additional variations of depreciation and amortization expense, accretion of asset retirement obligations, stock-based compensation expense, impact from redeemable non-controlling interests, contingent consideration, restructuring and asset impairment charges. We define adjusted EBITDA margin as adjusted EBITDA stated as a percentage of revenue. Our management uses adjusted EBITDA and adjusted EBITDA margin as measures of operating performance, because they do not include the impact of items that we do not consider indicative of our core operating performance; for planning purposes, including the preparation of our annual operating budget; to allocate resources to enhance the financial performance of the business; to evaluate the effectiveness of our business strategies; and in communications with the board of directors and investors concerning our financial performance. Non-GAAP Net Income and EPS We define Non-GAAP net income and earnings per share (EPS) to exclude certain discrete items that management does not consider representative of our ongoing operations, including energy asset and goodwill impairment, contingent consideration, restructuring and other charges, impact from redeemable non-controlling interest, gain or loss on sale of equity investment, and gain or loss upon deconsolidation of a variable interest entity. We consider Non-GAAP net income and Non-GAAP EPS to be important indicators of our operational strength and performance of our business because they eliminate the effects of events that are not part of the Company's core operations. Adjusted Cash from Operations We define adjusted cash from operations as cash flows from operating activities plus proceeds from Federal ESPC projects. Cash received in payment of Federal ESPC projects is treated as a financing cash flow under GAAP due to the unusual financing structure for these projects. These cash flows, however, correspond to the revenue generated by these projects. Thus, we believe that adjusting operating cash flow to include the cash generated by our Federal ESPC projects provides investors with a useful measure for evaluating the cash generating ability of our core operating business. Our management uses adjusted cash from operations as a measure of liquidity because it captures all sources of cash associated with our revenue generated by operations.
