Ameresco reports $21.3M in Q3 earnings

PHOTO | Courtesy of Ameresco An Ameresco solar field in Bristol, Indiana

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Ameresco, a Framingham-based clean energy company, reported $21.3 million in net income for the third quarter of 2023, falling below company expectations.

The company’s total revenue was $335.1 million, according to an earnings report released by the company on Tuesday, which was below the company’s guidance for the quarter. Ameresco placed the blame on supply chain headwinds and delays in contract conversions.

“The third quarter was impacted by a variety of factors, including supply chain delays and administrative bottlenecks, [which] caused the push-out of project revenue, resulting in results that were below our expectations,” said George Sakellaris, CEO of Ameresco in the press release. “While disappointing, we expect to capture these revenues in future quarters. Also impacting our results was greater than expected downtime at some of our Energy Asset plants.”

The company reported an adjusted earnings before interest, taxes, depreciation and amortization of $43.3 million. Energy asset revenue increased 6.2% during the quarter, but other revenue decreased 3%, according to the release.

Sakellaris said that the company expects current headwinds to continue into next year.

“While our long-term fundamentals remain as strong as ever, we feel it prudent to adjust our near-term targets reflecting the expectation that recent industry headwinds, including project conversion delays and push-outs in asset permitting along with labor and material shortages, will continue into 2024,” he said.

The earnings report highlighted a few bright spots for the company, including its recent purchase of the Los Alamitos solar and battery microgrid project.

Founded in 2000, Ameresco has more than 1,200 employees in the United States, Canada and Europe.