Ameresco, Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $500.9 million for the three months ended September 30, 2024, marking a 49.4% increase from $335.1 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $1.24 billion, up 32.6% from $933.3 million year-over-year. This growth was driven primarily by increased activity in the North America Regions, which saw revenues rise by 84.9% to $291.6 million in Q3 2024.

Despite the revenue growth, net income for the three months ended September 30, 2024, decreased to $17.0 million from $20.8 million in the prior year, reflecting a decline of 18.4%. For the nine-month period, net income fell to $16.0 million from $30.8 million, a decrease of 48.0%. The decline in profitability was attributed to higher interest expenses and increased costs associated with supply chain disruptions and inflation, which have impacted project completion timelines and operational costs.

Gross profit for the third quarter was $77.1 million, representing 15.4% of revenues, compared to 19.0% in the same quarter of 2023. Operating income also increased to $35.2 million, a 64.1% rise from the previous year, indicating improved operational efficiency despite the challenges faced.

Ameresco's total assets grew to $3.98 billion as of September 30, 2024, up from $3.71 billion at the end of 2023. This increase was driven by a rise in energy assets, which reached $1.88 billion, reflecting ongoing investments in renewable energy projects. The company’s cash and cash equivalents also improved significantly, rising to $113.5 million from $79.3 million at the end of 2023.

Strategically, Ameresco completed the acquisition of Enerqos Energy Solutions S.r.l. in March 2023, which contributed $6.9 million in revenue for Q3 2024 but reported a net loss of $0.9 million. The company also entered into a purchase and sale agreement to acquire Bright Canyon Energy Corporation, with significant financial commitments outlined for both phases of the acquisition.

The company continues to navigate a complex market environment influenced by global factors, including geopolitical tensions and regulatory changes, particularly related to the Inflation Reduction Act. These conditions have led to uncertainties in project financing and execution timelines, impacting overall operational performance.