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Dec 31, 2024
Ameresco Q4 2024 Earnings Report
Ameresco reported strong fourth quarter and full year 2024 financial results, with significant growth in revenue and backlog, driven by project execution and energy asset placements.
Key Takeaways
Ameresco concluded 2024 with a strong fourth quarter, achieving a 20.7% increase in total revenue to $532.7 million. The company saw record contract conversions of over $1 billion, leading to a 92% year-over-year increase in contracted project backlog. Full year revenue grew by 29%, and a record 241 MWe of energy assets were placed in operation.
Total revenue for Q4 2024 increased by 20.7% to $532.7 million, with full year revenue growth of 29%.
Contracted project backlog reached over $2.5 billion at year-end, approximately twice 2023 levels, driven by record Q4 contract conversions of $1.1 billion.
A record 241 MWe of energy assets were placed in operation during 2024, contributing to a 31.2% increase in Energy Assets revenue for the quarter.
Adjusted EBITDA for Q4 2024 increased by 58.7% to $87.2 million, and full year Adjusted EBITDA was $225.3 million.
Ameresco
Ameresco
Ameresco Revenue by Segment
Revenue by Segment
Projects Revenue
CapyFin.comEnergy Assets Revenue
CapyFin.comO&M Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Ameresco anticipates continued long-term profitable growth in 2025, driven by recurring energy assets, O&M businesses, and federal projects, despite potential impacts from the new administration's funding priorities. The company expects to place 100-120 MWe of energy assets into service and projects FY25 revenue between $1.85 billion and $1.95 billion, with Adjusted EBITDA between $225 million and $245 million.
Positive Outlook
- Continued long-term profitable growth is expected, especially in recurring energy assets and O&M businesses.
- Strong demand for budget-neutral, cost-saving solutions is anticipated due to increasing energy demand and prices.
- Growing need for resilient, reliable power and infrastructure upgrades will drive continued growth in energy solutions.
- Increasing contributions are expected from the European business, driven by decarbonization and net-zero commitments.
- The company plans to place 100-120 MWe of energy assets into service in 2025, including 1-2 RNG plants.
Challenges Ahead
- The projects business, particularly federal projects, may be impacted by the new administration's funding priorities.
- Unpredictable political and regulatory environment poses risks to federal government exposure.
- Potential project cancellations, pauses, and re-scopes have been factored into guidance, but prolonged issues could impact earnings.
- The first quarter is seasonally the lowest revenue quarter, and negative EPS is expected due to linear depreciation and interest expenses.
- A potential change in accounting principle for sale-leaseback arrangements could result in lower annual interest and other expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income