Ameresco’s third quarter results were met with a negative market reaction despite surpassing revenue expectations. Management attributed the performance to robust execution across its energy infrastructure and asset business lines, highlighting new opportunities stemming from surging electricity demand, particularly from data centers and industrial clients. CEO George Sakellaris emphasized Ameresco’s ability to tailor solutions for diverse customer segments, while President Nicole Bulgarino noted strong project backlog growth and recent wins with large-scale power and battery storage solutions. The company also pointed to its expanding international presence as a contributor to the quarter’s results.
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Ameresco (AMRC) Q3 CY2025 Highlights:
- Revenue: $526 million vs analyst estimates of $520.5 million (5% year-on-year growth, 1% beat)
- Adjusted EPS: $0.35 vs analyst estimates of $0.30 (16% beat)
- Adjusted EBITDA: $70.4 million vs analyst estimates of $65.72 million (13.4% margin, 7.1% 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, below analyst estimates of $236.7 million
- Operating Margin: 8.1%, up from 7% in the same quarter last year
- Market Capitalization: $1.86 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Ameresco’s Q3 Earnings Call
- Noah Kaye (Oppenheimer & Company) asked about the scope and timing of data center opportunities. President Nicole Bulgarino and Chief Investment Officer Joshua Baribeau explained Ameresco’s focus on providing energy infrastructure for both federal and commercial data centers, noting a growing pipeline and the likelihood of bringing in equity partners for large projects.
- Eric Stine (Craig-Hallum) questioned whether the Lemoore data center project was modeled after federal initiatives and its impact on pipeline development. Bulgarino confirmed the approach leverages federal land and experience, with CEO Sakellaris adding that similar models are being replicated for other large industrial customers seeking resilient power.
- Ben Kallo (Baird) inquired about engineering differences in data center projects and the rising share of battery storage in the backlog. Bulgarino noted the main difference is scale and accelerated timelines, while CFO Mark Chiplock discussed efforts to diversify battery supply and hedge against tariffs and cost swings.
- Julien Dumoulin-Smith (Jefferies) asked about Ameresco’s ability to sustain long-term EBITDA growth with lumpier project profiles. Baribeau said the expanding data center and battery project pipeline gives management confidence in hitting multi-year growth goals.
- Ryan Pfingst (B. Riley) questioned operational readiness for multiple large projects and the potential for nuclear partnerships turning into real orders. Sakellaris and Bulgarino detailed investments in staffing and technical partnerships, while noting nuclear projects remain a longer-term opportunity.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be tracking (1) the conversion rate of Ameresco’s expanding data center and industrial project pipeline into signed contracts, (2) execution on delivering complex, large-scale projects within targeted timelines and budgets, and (3) the impact of regulatory developments—such as tariffs and federal funding—on supply chain reliability and project economics. Progress in international markets and battery storage deployments will also be important indicators.
Ameresco currently trades at $35.27, down from $40.02 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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