Ameresco (AMRC, Financial) has initiated an innovative project with the U.S. Army's Detroit Arsenal based in Warren, Michigan. This venture represents one of the pioneering efforts within the Department of Defense to utilize 3D printing for extensive energy efficiency improvements, potentially setting a precedent for future military and government building renovations.
Under the Department of Defense's Environmental Security Technology Certification Program, the project aims to enhance building insulation and energy efficiency using advanced 3D fabrication methods. This initiative supports the Department's broader objectives of sustainability and resilience. Ameresco is partnering with Branch Technology and the National Renewable Energy Laboratory to design and implement an envelope over cladding system employing Branch Technology's Cellular Fabrication process.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Ameresco Inc (AMRC, Financial) is $20.67 with a high estimate of $32.00 and a low estimate of $11.00. The average target implies an upside of 28.76% from the current price of $16.05. More detailed estimate data can be found on the Ameresco Inc (AMRC) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Ameresco Inc's (AMRC, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ameresco Inc (AMRC, Financial) in one year is $47.71, suggesting a upside of 197.26% from the current price of $16.05. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ameresco Inc (AMRC) Summary page.
AMRC Key Business Developments
Release Date: May 05, 2025
- Revenue Growth: 18% increase in total revenue for Q1.
- Adjusted EBITDA Growth: 32% increase in adjusted EBITDA.
- Project Business Revenue: 23% growth in project business revenue.
- Energy Asset Revenue: 31% growth in energy asset revenue.
- Gross Margin: 14.7%, reflecting a mix of large European EPC contracts.
- Net Income: Loss of $5.5 million, or $0.10 per share.
- Total Project Backlog: Grew 22% to $4.9 billion.
- Contracted Project Backlog: Increased 80% to $2.6 billion.
- Cash Position: Approximately $72 million in cash.
- Total Corporate Debt: $270 million.
- Financing Commitments: Executed approximately $334 million in financing commitments.
- 2025 Revenue Guidance: Reaffirmed at $1.9 billion at the midpoint.
- 2025 Adjusted EBITDA Guidance: Reaffirmed at $235 million at the midpoint.
- Q2 Revenue Expectation: Anticipated to be in the range of $400 million to $425 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ameresco Inc (AMRC, Financial) reported a strong start to the year with first-quarter revenue and adjusted EBITDA growing by 18% and 32%, respectively.
- The company increased its total project backlog to almost $5 billion, with a contracted project backlog of $2.6 billion, representing a growth rate of almost 80% year over year.
- Ameresco Inc (AMRC) successfully executed approximately $334 million in financing commitments, including extending and upsizing its senior secured credit facility to support growth.
- The company's diversified business model showed material growth in both projects and energy asset business, with strong performance in Europe and Canada.
- Ameresco Inc (AMRC) reaffirmed its guidance ranges for 2025 revenue and adjusted EBITDA of $1.9 billion and $235 million at the midpoints, indicating confidence in future performance.
Negative Points
- Net income attributable to common shareholders was a loss of $5.5 million, or $0.10 per share, indicating financial challenges despite revenue growth.
- The gross margin of 14.7% was lower than expected due to a greater mix of revenue from large European EPC contracts, which have a lower margin profile.
- The company faced a cancellation and pauses on federal contracts earlier in the year, although these have now been addressed.
- There is potential risk of administrative delays in federal contract awards due to reduced federal workforce, which could impact project timelines.
- Tariffs and inflation pose ongoing challenges, although Ameresco Inc (AMRC) has strategies in place to mitigate these impacts.
