Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 18 Mar, 26 | AMRC | Buy | USD 26.12 | USD 27.5 | USD 29.0 | 5 days | Closed |
6.13%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Ameresco, Inc. engages in the provision of energy solutions in the United States, Canada, and Europe. The company operates through North America Regions, U.S. Federal, Renewable Fuels, Europe, and All Other segments. It offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations. The company also designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance (O&M) costs of its customers' facilities; and projects primarily include various measures customized for the facility and designed to enhance the efficiency of building systems, such as heating, ventilation, cooling, and lighting systems. In addition, it offers renewable energy solutions and services, such as the development and construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat, or cooling from renewable sources of energy and O&M services; and sells electricity, processed renewable gas fuel, and heat or cooling produced from renewable sources of energy. Further, the company provides photovoltaic (PV) solar energy products and systems, as well as provides consulting, and enterprise energy management services. It serves the federal, state and local governments, utilities, data centers, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Ameresco, Inc. was incorporated in 2000 and is headquartered in Framingham, Massachusetts.
Expansion of Energy Asset Portfolio: FY25 operating energy assets reached 838 MWe compared to lower levels in FY24, with 121 MWe added during the year
Growth in Adjusted EBITDA Signaling Operating Leverage: FY25 adjusted EBITDA increased to USD 237.2 million compared to FY24 USD 225.3 million
Increase in Interest Expenses Impacting Profitability: FY25 interest expense increased to USD 87.9 million compared to FY24 USD 70.2 million
Decline in Net Income Due to Absence of One-Time Gains: FY25 net income attributable to common shareholders declined to USD 44.3 million compared to FY24 USD 56.8 million
The company’s performance remains exposed to execution risks in large-scale energy projects, rising leverage and interest costs, policy and regulatory dependencies in renewable energy markets, and working capital volatility linked to project timing and customer financing conditions
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 26.12 | 23.0 | 27.5 | 29.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Growth Driven by Diversified Business Model: Ameresco delivered strong top-line performance in FY25, with total revenues increasing to FY25 USD 1,932.1 million compared to FY24 USD 1,769.9 million, reflecting robust demand across its diversified business segments. Growth was primarily supported by sustained project execution, backlog conversion, and increasing contributions from recurring revenue streams including energy assets and O&M services. The company’s ability to maintain growth across multiple verticals underscores the resilience of its integrated energy solutions platform.
Expansion in Project and Energy Asset Segments: Operationally, the Projects segment remained a key growth driver, supported by strong European performance and continued backlog execution. Energy Asset revenues also expanded, benefiting from the scaling of the company’s operating asset base. During FY25, Ameresco successfully placed 121 MWe of energy assets into operation, exceeding guidance and reinforcing its execution capabilities in energy infrastructure deployment.
Strength in Recurring Revenue Streams: The company continued to enhance revenue visibility through its recurring O&M and Energy Asset businesses. O&M revenues demonstrated steady growth, supported by new long-term contracts and service attachments to completed projects. This recurring component strengthens earnings stability and provides long-term contractual cash flow visibility, which exceeded USD 10 billion at year-end.
Profitability and Margin Expansion Trends: Gross profit improved to FY25 USD 304.0 million compared to FY24 USD 256.1 million, reflecting improved project mix, operational efficiencies, and disciplined cost management. Adjusted EBITDA increased to FY25 USD 237.2 million from FY24 USD 225.3 million, indicating continued operating leverage. Gross margins improved to approximately 16.2%, highlighting enhanced execution quality and favorable business mix .
Earnings Performance and Non-GAAP Adjustments: Despite strong operating performance, net income attributable to common shareholders declined to FY25 USD 44.3 million from FY24 USD 56.8 million, primarily due to the absence of one-time gains such as the FY24 AEG divestiture. GAAP EPS moderated to FY25 USD 0.83 compared to FY24 USD 1.07, while Non-GAAP EPS stood at FY25 USD 0.90 versus FY24 USD 1.20, reflecting normalization of earnings post non-recurring items.
Balance Sheet Expansion and Capital Deployment: Total assets increased to FY25 USD 4,537.1 million compared to FY24 USD 4,158.5 million, driven by higher energy asset investments and working capital expansion. Energy asset book value rose to USD 2,081.2 million, supported by continued capital deployment into infrastructure projects. However, total corporate debt increased to USD 339.3 million, reflecting funding requirements for growth initiatives and project execution.
Backlog Growth and Long-Term Visibility: Ameresco ended FY25 with a total project backlog exceeding USD 5.0 billion, reflecting sustained customer demand and strong contract wins. Awarded backlog increased by 13% year-over-year, while total revenue visibility surpassed USD 10 billion. This robust backlog provides strong forward visibility and underpins management’s confidence in continued growth into FY26 and beyond.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Ameresco, Inc. (NYSE: AMRC) at the closing market price of USD 26.12, as on Mar 17, 2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Engineering & Construction
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| AMRC Ameresco Inc |
1.35 4.95% | 28.64 | 32.62 | 23.81 | 0.73 | 1.32 | 1.71 | 13.90 |
| VCISF VINCI SA |
- -% | 148.71 | 14.66 | 12.94 | 1.06 | 2.37 | 1.40 | 8.24 |
| VCISY Vinci SA ADR |
- -% | 37.28 | 14.51 | 12.97 | 1.07 | 2.38 | 1.40 | 8.26 |
| FIX Comfort Systems USA Inc |
35.64 1.84% | 1967.41 | 57.81 | 47.39 | 6.47 | 24.14 | 6.44 | 40.64 |
| LTOUF Larsen & Toubro Limited |
- -% | 41.95 | 40.39 | 28.41 | 0.03 | 6.23 | 0.03 | 0.25 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on March 18, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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