0001488139-25-000136
SEC filingAmeresco's Q2 2025 notes reveal $3.76B backlog, $26.7M Powin exposure, and $1.87B total debt with new financings.
As of June 30, 2025, Ameresco reported cash and cash equivalents of $81.6 million and restricted cash of $110.4 million (current and non-current). Total assets stood at $4.30 billion, up from $4.16 billion at December 31, 2024. Total debt and financing lease liabilities increased to $1.87 billion from $1.67 billion, driven by new financings including a $100 million second lien term loan, a $78 million senior secured note (6.72%, due 2045), and a $12.2 million term loan (6.62%, due 2037). The company also drew $138.7 million on its August 2023 construction credit facility. Stockholders' equity was $1.07 billion, with retained earnings of $659.9 million.
Ameresco disclosed a remaining performance obligation (backlog) of $3.76 billion as of June 30, 2025, with approximately 35% expected to be recognized as revenue within the next twelve months. The company also disclosed a $26.7 million deposit paid to Powin LLC, a battery energy storage system supplier that filed for Chapter 11 bankruptcy on June 10, 2025. The range of possible loss is $0 to $26.7 million, and no loss has been accrued. Additionally, the company has a future lease commitment with the U.S. Navy with an estimated net present value of $40.3 million, expected to commence in late 2025 or early 2026.
No share buybacks or dividends were reported. Capital investments in energy assets totaled $208.1 million for the six months ended June 30, 2025, representing 25.2% of sales. The company issued $100 million in corporate debt and $290.2 million in energy asset debt, while repaying $15.5 million in corporate debt and $154.2 million in energy asset debt. Proceeds from the sale of investment tax credits were $70.8 million.
For the three months ended June 30, 2025, North America Regions generated $211.2 million in revenue (44.7% of total), Europe $141.9 million (30.0%), U.S. Federal $59.6 million (12.6%), Renewable Fuels $42.8 million (9.1%), and All Other $16.8 million (3.6%). Europe saw the largest year-over-year revenue growth at +94.2%, while U.S. Federal declined 31.2%. Segment income before income taxes was positive for all segments except Renewable Fuels, which reported a loss of $1.9 million. Geographically, U.S. revenue was $301.9 million, Canada $28.4 million, and Europe $141.9 million.
Operating cash flow (CFO) of -$55.2M for the six months ended June 30, 2025, contrasts sharply with net income of $9.9M, indicating significant working capital drag. The primary drivers were a $36.7M increase in Federal ESPC receivables, a $84.1M decrease in accounts payable/accrued liabilities, and a $17.2M increase in prepaid expenses. These outflows more than offset non-cash add-backs like depreciation ($48.0M) and stock-based compensation ($6.6M).
Capital expenditure intensity remains high, with $208.1M in energy asset investments and $10.1M in major maintenance, totaling $218.8M. Combined with negative CFO, this yields a free cash flow deficit of -$274.0M. The company relied heavily on financing activities ($221.9M), including $100M in corporate debt proceeds and $290.2M in energy asset debt, to fund the cash shortfall. No share repurchases or dividends were reported.
Anomalies include a $70.8M inflow from the sale of investment tax credits (investing) and a $40.9M non-cash Federal ESPC settlement. The large working capital swings and reliance on debt financing highlight elevated cash flow risk.