Several governments globally are investing heavily in clean energy to fight climate change and reduce carbon emissions. So, gaining exposure to quality clean energy stocks is a good strategy for long-term investors given the secular tailwinds that should benefit this sector.
One top TSX stock part of the clean energy space is Anaergia (TSX: ANRG). Valued at a market cap of $235 million, Anaergia provides comprehensive waste-to-energy solutions globally, converting organic waste and wastewater into renewable resources.
It offers OREX waste processing, Omnivore anaerobic digestion systems, biogas upgrading technology, and liquid treatment solutions through capital sales, services, and build-own-operate models across municipal, agricultural, and industrial sectors.
While the TSX stock is down over 90% from all-time highs, ANRG stock has gained close to 170% in the last 12 months. In 2025, Anaergia represents an exceptional turnaround story in the rapidly growing waste-to-energy sector. Moreover, its financial momentum and strategic positioning make it an attractive investment opportunity for shareholders.
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Is this TSX stock a good buy today?
The “Anaergia 2.0” transformation strategy is delivering remarkable results. Second-quarter revenue surged 36.8% year-over-year to $32.3 million, while gross profit stood at $10.5 million, a 152.9% increase. Its gross margins expanded from 17.6% to 32.5%, which indicates improved operational efficiency and stronger project execution across all business segments.
The financial turnaround is accelerating, with adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) losses narrowing by 72.1% year-over-year to just $2.2 million, while net losses decreased 29% to $9.5 million. This trend reflects management’s disciplined cost control and laser focus on profitable growth rather than growth at any cost.
Anaergia’s backlog provides revenue visibility and growth potential. It ended Q2 with a total backlog of $243.9 million, a 137% increase over the last six months and up 22% in Q1 alone. Additionally, Anaergia announced another $43.8 million in new contracts since quarter-end, demonstrating sustained commercial momentum.
The company’s strategic positioning is compelling in a market experiencing massive tailwinds. Global demand for waste-to-energy solutions is accelerating as governments and corporations prioritize sustainability initiatives. Anaergia’s end-to-end solutions convert waste into valuable outputs, including renewable natural gas, clean water, and fertilizer, which address multiple environmental challenges simultaneously.
Key competitive advantages include proven technology deployed at commercial scale, established relationships with blue-chip customers like Amazon and Costco, and a global footprint spanning North America, Europe, and Asia-Pacific. Recent contract expansions with repeat customers like Techbau and new multi-project agreements with Capwatt validate the company’s technology and execution capabilities.
Anaergia’s asset-owned portfolio provides recurring revenue streams, with facilities like SoCal Biomethane operating profitably while serving major customers.
Is the TSX stock undervalued?
Analysts tracking the TSX stock forecast revenue to increase from $112 million in 2024 to $155 million in 2026. The company ended Q2 with $22 million in cash, and its free cash outflow totaled $24 million in the last 12 months. Anaergia may have to raise additional capital to support its cash burn rates in the near term, which will translate to shareholder dilution.
However, its strong financial momentum, substantial backlog growth, proven technology, and positioning in a rapidly expanding market indicate that Anaergia represents a compelling investment opportunity as the transformation strategy continues to deliver results.
