Ameresco Q3 profit beats estimates; backlog hits record

Overview

• U.S. energy infrastructure firm's Q3 revenue grew 10% yr/yr, adjusted EBITDA beat analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company reported record $7.2 bln project backlog, driven by Europe and federal markets

Outlook

• Ameresco sees Q4 2026 revenue between $625 mln and $650 mln

• Company expects Q4 2026 non-GAAP EPS of $0.95 to $1.05

• Ameresco forecasts FY 2026 revenue of $2.13 bln to $2.15 bln

Result Drivers

• BROAD-BASED REVENUE GROWTH - Co said revenue rose across Projects, Energy Assets and O&M segments, citing strong execution on project backlog conversion

• MARGIN EXPANSION - Gross margin improved due to favorable business mix, strong execution and lower depreciation from asset life adjustments

• NEW PROJECT AWARDS - $875 mln in new project awards, led by momentum in Europe and federal markets, contributed to record backlog

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the renewable energy equipment & services peer group is "buy"

• Wall Street's median 12-month price target for Ameresco Inc is $40.00, about 85.1% above its November 6 closing price of $21.61

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)