0001628280-26-013574
SEC filingRevenue grew 9.2% driven by 111% Europe surge; gross margin improved to 15.7% but net income attributable to common fell 22%.
Ameresco describes itself as 'a leading energy infrastructure solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition.' The company offers a comprehensive portfolio including smart energy efficiency solutions, aging infrastructure upgrades, and the development, construction, and operation of distributed energy resources. Ameresco works with customers on both sides of the meter, leveraging budget neutral solutions such as energy savings performance contracts (ESPCs) and power purchase agreements (PPAs) to reduce financial barriers. Since inception, the company has sourced and raised approximately $7.0 billion in project financing while delivering $18.1 billion in energy solutions.
Ameresco's reportable business segments for the year ended December 31, 2025, were: North America Regions (45.8% of revenues), U.S. Federal (15.1%), Renewable Fuels (8.2%), Europe (27.4%), and All Other (3.5%). North America Regions, U.S. Federal, and Europe segments offer energy efficiency products and services including design, engineering, installation, renewable energy solutions, and O&M services. The Renewable Fuels segment sells electricity and processed RNG derived from biomethane from small-scale plants that Ameresco owns and operates, and provides O&M services for customer-owned small-scale RNG plants. The All Other category offers software and consulting services and the sale of solar PV energy products and systems (integrated-PV).
Ameresco's portfolio includes demand and conservation services (energy efficiency, building envelope, HVAC, LED lighting, water management, building automation), generation and energy supply (biomass, biogas, RNG, CHP, geothermal, hydropower, solar, SMR, wind), integrated infrastructure (BESS, EV charging, microgrids, AMI, utility distribution), and software and services (AssetPlanner Asset Management Platform, energy supply management, O&M). As of December 31, 2025, Ameresco owned and operated 227 small-scale renewable energy plants including solar PV installations with a combined capacity of approximately 838 MWe, with an additional 853 MWe in development and construction.
Ameresco uses a direct sales force of 117 employees as of December 31, 2025, supplemented by referrals, RFPs, conferences, website, digital campaigns, and telemarketing. Approximately 61.0% of revenues were derived from federal, state, provincial, or local government entities. The largest 20 customers accounted for approximately 57.2% of total revenues. The U.S. federal government is considered a single customer and segment; no other customer represented 10% or more of revenues. Ameresco is party to IDIQ agreements with the DOE (expiring 2026 and 2028) and agreements with other federal agencies including the U.S. Army Corps of Engineers, NAVFAC Mid-Atlantic, and the U.S. General Services Administration.
In Smart Energy Solutions, principal competitors include McKinstry, CM3 Building Solutions, CMTA, Inc., SitelogIQ, ABM Industries, Inc., Southland Industries, Energy Systems Group, LLC, Honeywell, Johnson Controls, NORESCO, Schneider Electric, Siemens Building Technologies, and Trane Technologies. In Energy Assets (LFG and RNG), competitors include Montauk Renewables, Vanguard Renewables, Opal Fuels, and divisions of large multi-national oil and gas conglomerates; in Solar PV and Battery Storage, competitors include NextEra Energy, Inc., Engie SA, Invenergy, EDF Renewables, and Clearway Energy Group LLC. In O&M Services, competitors include EMCOR Energy Services, Comfort Systems USA, Honeywell, Johnson Controls, and Veolia.
Ameresco's growth strategy includes organic growth through innovation and new products/services, strategic acquisitions of complementary businesses and assets, and entering into joint venture arrangements to broaden service offerings and geographic reach. The company leverages budget neutral solutions (ESPCs and PPAs) to reduce financial barriers for customers.
As of December 31, 2025, Ameresco had 1,601 employees based in 45 U.S. states, eight Canadian provinces, four locations in the United Kingdom, one in Italy, and one in Greece. The company had 117 employees in direct sales. Ameresco emphasizes team-based employee philanthropy, wellness-focused benefits, and community involvement through education and training. The company offers a tuition reimbursement program, a manager development program, and Udemy for Business for digital learning.
In fiscal 2025, Ameresco reported revenue of $1.93 billion, a 9.2% increase from $1.77 billion in 2024, driven primarily by a 111% surge in Europe project revenue. Gross profit rose 18.7% to $304.0 million, with gross margin improving from 14.5% to 15.7% due to a more favorable mix of higher-margin projects. Operating income increased 13.3% to $123.2 million, reflecting operating margin expansion of 30 basis points to 6.4%, despite a $38.0 million gain on sale of business in the prior year that did not recur. Net income attributable to common shareholders, however, declined 22.0% to $44.3 million, as higher non-controlling interest absorbed a larger share of earnings, leading to basic EPS of $0.84 (down from $1.08).
Key cost drivers included a 2.7% increase in SG&A expenses, mainly from higher professional fees and salaries, and a 25.3% rise in net interest expense due to increased debt outstanding. Asset impairments fell to $3.7 million from $12.4 million, primarily related to equipment failures versus prior-year landfill gas assets. Other income improved to a net gain of $9.7 million, driven by foreign currency transaction gains.
Segment performance varied widely. North America Regions, the largest segment, grew revenue only 0.7% to $884.8 million, as a $19.1 million decline in project revenue was offset by growth in energy asset and O&M revenues. Operating income surged 77.8% to $72.7 million due to better project execution and derivative gains. U.S. Federal revenue fell 21.4% to $292.7 million, reflecting a $89.3 million drop in project revenue from timing and a revenue reversal; nevertheless, operating margin remained healthy at 11.7%. Renewable Fuels revenue declined 8.6% to $158.5 million on lower project activity, with a narrowed operating loss of $1.3 million thanks to reduced impairments. Europe was the standout, with revenue soaring 111.1% to $529.0 million, driving operating income from $0.8 million to $25.4 million. All Other revenue dropped 29.0% to $67.2 million due to the prior-year divestiture, and operating income fell accordingly.
Management highlighted a robust backlog: total project backlog reached $5.04 billion (up 4.6%), with awarded backlog up 13.0% to $2.57 billion, signaling sustained demand. O&M backlog rose to $1.47 billion. Assets in development also increased to $2.7 billion. The company plans $300-$350 million in capital investments in 2026 for renewable energy plants, funded by $250-$300 million in additional financings. However, risks from policy changes (e.g., OBBB phasing out ITC for solar/storage projects starting construction after July 2026) and potential liquidated damages of up to $89 million from the SCE contract dispute could pressure results. Management expects the SCE projects to finalize in 2026, but the outcome of liquidated damage discussions remains uncertain.
Ameresco derives 61% of 2025 revenues from federal, state, and local government entities. These contracts often include termination-for-convenience clauses and are subject to annual appropriation of funds. A significant reduction in fiscal health or a federal workforce reduction could delay or cancel projects. The company holds IDIQ agreements with DOE (expiring 2026/2028) and other agencies; failure to renew would impair access to that market.
The SCE agreement remains a key risk, with potential liquidated damages up to $89 million. Broader risks include supply chain delays (lithium-ion cells, inverters, solar panels), weather (wildfires, storms), and labor shortages. The company’s approach of investing in project development before securing financing adds to capital at risk.
The One Big Beautiful Bill Act (July 2025) phases out the Investment Tax Credit for solar and battery projects placed in service after 2027 and ends the Section 179D deduction for projects beginning after June 2026. These changes could materially reduce project economics. Additionally, tariffs and FEOC restrictions may increase costs for imported equipment.
The industry is highly competitive with both large established firms and smaller agile players. Competitors may offer below-cost pricing or recruit key personnel. The company also faces competition from customers choosing in-house solutions.
Founder/CEO George Sakellaris controls ~74.5% voting power via Class B shares (5 votes per share). This gives him effective control over board selection and major transactions, which may limit other investors' influence and could affect stock market valuation.
The provided document excerpt does not contain the actual cash flow statement figures. Only the audit report and revenue recognition discussion are included. Therefore, no analysis can be performed.