0001628280-25-048545
SEC filingRevenue growth of 5% QoQ driven by project timing and energy asset expansion, with gross margin improvement to 16.0%.
For the three months ended September 30, 2025, Ameresco reported total revenues of $525.99 million, a 5.0% increase from $500.87 million in the same period of 2024. This growth was primarily driven by a $24.6 million (6%) increase in project revenues, attributed to the timing of revenue recognized based on costs incurred relative to total expected costs on active projects, and a $3.4 million (6%) increase in energy asset revenue from the continued growth of the operating portfolio. Gross profit rose 9.3% to $84.33 million, with gross margin improving to 16.0% from 15.4%, reflecting a more favorable mix of higher-margin projects. Operating income increased 20.5% to $42.35 million, while net income attributable to common shareholders grew 5.3% to $18.53 million. Basic earnings per share were $0.35, up from $0.34 in the prior year. The increase in other expenses, net, was primarily due to higher net interest expenses and foreign currency transaction losses, partially offset by lower losses from derivatives.
Segment performance showed significant divergence. The Europe segment was the standout, with revenues surging 174.1% to $144.23 million, driven by higher project revenues from increased activity under joint ventures in Greece and Romania. North America Regions, the largest segment, saw revenues decline 18.5% to $237.60 million due to lower project revenue timing, partially offset by higher energy asset, O&M, and consulting revenue. U.S. Federal revenues were essentially flat at $89.51 million, with higher energy asset revenue offsetting lower project revenue. Renewable Fuels revenues decreased 13.5% to $37.67 million, while All Other revenues fell 29.3% to $16.97 million due to the divestiture of an energy technology and advisory services company in Q4 2024. Operating income before taxes and unallocated corporate activity improved in North America Regions, U.S. Federal, and Europe, but declined in Renewable Fuels and All Other.
Management expects to invest approximately $50 million to $100 million in additional capital expenditures during the remainder of 2025, primarily for the construction or acquisition of new renewable energy plants, funded largely by project finance debt. The company also plans additional project financings of $50 million to $100 million. Backlog remains strong at $5.14 billion, up from $4.51 billion a year earlier, indicating robust future demand. However, the company faces headwinds from the One Big Beautiful Bill Act, which introduces new timing requirements for solar ITC eligibility and phases down energy storage ITCs, potentially impacting project economics. The ongoing U.S. government shutdown and supply chain disruptions, including tariffs and material shortages, pose risks to project timelines and costs. The SCE agreement dispute over liquidated damages, with a potential maximum of $89 million, remains unresolved. Despite these challenges, management believes liquidity is sufficient to fund operations through at least November 2026.