Looking back on energy products and services stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Ameresco (NYSE: AMRC) and its peers.
Areas like the energy transition and emission reduction are thematic and front of mind today. This can be a double-edged sword for the energy products and services industry. Those who innovate and build new expertise can jolt demand while those who cling to legacy technologies or fall behind in the trending areas could see their market shares diminish. Bigger picture, energy products and services companies are still at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.
The 4 energy products and services stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.4%.
Luckily, energy products and services stocks have performed well with share prices up 19.8% on average since the latest earnings results.
Best Q1: Ameresco (NYSE: AMRC)
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE: AMRC) provides energy and renewable energy solutions for various sectors.
Ameresco reported revenues of $352.8 million, up 18.2% year on year. This print exceeded analysts’ expectations by 14.9%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
CEO George Sakellaris commented, “The first quarter represented an excellent start to the year with both our Projects and Energy Asset businesses delivering strong double-digit growth. We also increased future revenue visibility through robust contract conversion and asset deployments. During the quarter, we added over $367 million to awarded backlog while converting $334 million of awards into contracts. At quarter end our contracted backlog stood at $2.6 billion, almost 80% ahead of the previous year, driving our total project backlog to $4.9 billion up 22% compared to last year. Revenue visibility across our businesses now stands at almost $10 billion, adding to our long-term resilience.
Ameresco achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. The stock is up 27.6% since reporting and currently trades at $14.76.
Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it’s free.
Quanta (NYSE: PWR)
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Quanta reported revenues of $6.23 billion, up 23.9% year on year, outperforming analysts’ expectations by 6.2%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
Quanta achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 18.7% since reporting. It currently trades at $347.04.
Is now the time to buy Quanta? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: MDU Resources (NYSE: MDU)
Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE: MDU) provides products and services in the utilities and construction materials industries.
MDU Resources reported revenues of $674.8 million, up 14.7% year on year, exceeding analysts’ expectations by 3.3%. It was a satisfactory quarter as it also posted a narrow beat of analysts’ EBITDA estimates but full-year EPS guidance slightly missing analysts’ expectations.
MDU Resources delivered the slowest revenue growth in the group. As expected, the stock is down 5.2% since the results and currently trades at $16.69.
Read our full analysis of MDU Resources’s results here.
FTAI Infrastructure (NASDAQ: FIP)
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
FTAI Infrastructure reported revenues of $96.16 million, up 16.5% year on year. This number missed analysts’ expectations by 10.8%. Zooming out, it was actually a strong quarter as it put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
FTAI Infrastructure had the weakest performance against analyst estimates among its peers. The stock is up 38.2% since reporting and currently trades at $6.44.
Read our full, actionable report on FTAI Infrastructure here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
