On November 6, 2023, Ameresco Inc (AMRC, Financial), a leading cleantech integrator specializing in energy efficiency and renewable energy, announced its financial results for the fiscal quarter ended September 30, 2023. Despite facing project delays and asset downtime, the company managed to secure over $500 million in financing commitments and increase its total project backlog by 14% sequentially.
Financial Performance Overview
Ameresco Inc (AMRC, Financial) reported Q3 2023 revenues of $335.1 million, which was below the company's guidance due to supply chain headwinds and delays in contract conversions. The net income attributable to common shareholders was $21.3 million, with both GAAP EPS and Non-GAAP EPS standing at $0.40. Adjusted EBITDA for the quarter was $43.3 million.
Segment Performance
The Projects business faced supply chain headwinds, resulting in a revenue of $242.7 million. Energy Asset revenue increased by 6.2%, driven by growth in operating assets and stronger RIN prices. O&M revenue saw a 4.2% increase, reflecting consistent growth in long-term contracts. However, Other revenue decreased by 3.0% due to a decline in the integrated PV business.
Backlog and Pipeline Metrics
Ameresco's backlog and pipeline metrics underscore the strength of its market positioning. The company experienced high levels of project activity with year-to-date new awards of $1.7 billion, more than double last year's $800 million. Additionally, Ameresco increased its net assets in development by over 50 MW in the third quarter.
Outlook
Despite industry headwinds, Ameresco adjusted its near-term targets and expects to capture revenues in future quarters. The company is adjusting its 2023 quarter guidance to reflect industry issues such as project conversion and asset construction pushouts. The company now expects to place between 120 and 130 MWe of energy assets in service for all of 2023.
Summary
Despite facing project delays and industry headwinds, Ameresco Inc (AMRC, Financial) managed to secure over $500 million in financing commitments and increase its total project backlog by 14% sequentially. The company's financial performance for Q3 2023 reflects its resilience and strategic positioning in the market.
Explore the complete 8-K earnings release (here) from Ameresco Inc for further details.
