Ameresco Q1 2026 earnings in focus

Ameresco (AMRC) has come into Q1 2026 with recent quarterly figures that show Q4 2025 revenue at US$581.0 million and basic EPS of US$0.35, alongside trailing twelve month revenue of about US$1.9 billion and basic EPS of US$0.84. The company has seen quarterly revenue move from US$500.9 million in Q3 2024 to US$581.0 million in Q4 2025, while basic EPS over those reported quarters ranged from US$0.24 to US$0.71. This sets up the latest update against a backdrop of shifting profitability. With net profit margins having slipped from 3.2% to 2.3% over the last year, the current results land in a context where investors are weighing growth expectations against tighter margins.

See our full analysis for Ameresco.

With the numbers on the table, the next step is to see how this earnings profile lines up with the prevailing narratives around Ameresco's growth potential, risks, and margin trajectory over the longer term.

Margins under pressure at 2.3%

• Ameresco's trailing twelve month net profit margin sits at 2.3%, down from 3.2% a year ago, even as trailing revenue reached about US$1.9b and net income was US$44.2 million.
• Bulls argue margins can rise toward around 4% over the next few years. However, the recent move from a 3.2% to 2.3% net margin directly tests that view, as:
  • Trailing earnings of US$44.2 million compare with a 5 year annualized earnings decline of 8.2%, so the bullish case for stronger earnings quality leans heavily on future improvement rather than the recent margin trend.
  • Forecast earnings growth of about 29.8% a year would need to occur alongside a reversal of this margin compression for the more optimistic targets to line up with the current profitability profile.

Investors who think margins can meaningfully improve from 2.3% may want to understand how the bullish story reconciles with the recent earnings track record. 🐂 Ameresco Bull Case

P/E of 36.9x versus peers

• The stock trades on a trailing P/E of 36.9x compared with 45.8x for the wider US construction industry and 80.1x for close peers, while the current share price of US$30.77 is almost identical to the DCF fair value of about US$30.68.
• Consensus narrative sees this as a case where valuation leaves room for earnings growth to matter. However, the numbers highlight a trade off:
  • The lower P/E than industry and peers lines up with analysts expecting revenue growth of about 9.4% a year and earnings reaching US$103.5 million by 2029, yet the current net margin of 2.3% shows that profitability needs to do some work to justify that path.
  • With the DCF fair value at US$30.68 and an analyst price target of US$42.50, the market price is aligned with modeled cash flows while also sitting below the target. This puts more focus on whether those earnings and margin expectations are actually met.

Interest coverage flagged as key risk

• Over the last 12 months, interest payments have not been well covered by earnings according to the risk summary, even though trailing net income reached US$44.2 million on US$1.9b of revenue.
• Bears point to this weak interest coverage as a serious pressure point, and the recent figures give that concern some grounding:
  • The move from a 3.2% to 2.3% net margin leaves less earnings room to handle financing costs, which is important for a business that relies on project and asset level funding.
  • With revenue growth over the last year running slower than the broader US market, at about 8.9% versus 11.2%, any further squeeze on profitability would make it harder to improve coverage and could weigh on how comfortably the company services its debt.

Skeptical investors who focus on balance sheet resilience may want to see how this interest coverage issue evolves before putting too much weight on the longer term growth story. 🐻 Ameresco Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Ameresco on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Mixed on the story so far, or leaning one way already? Take a closer look at the full picture now so you can judge the balance of cautious signals and potential upsides for yourself with the 3 key rewards and 1 important warning sign

See What Else Is Out There

Ameresco is wrestling with thinner 2.3% net margins, weaker interest coverage, and a relatively high 36.9x P/E that leans heavily on optimistic forecasts.

If those pressure points make you want steadier footing, compare this setup with stocks in the solid balance sheet and fundamentals stocks screener (45 results) so you can focus on companies where financial resilience is already front and center.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.