Is the margin profile for these large data center awards similar to the company's legacy activity, specifically federal government EPC projects?

George Sakellaris confirmed that the margin for these data center projects is similar to their EPC projects for the federal government, which is in the high teens. “And the margin of this particular project is basically what we get for the EPC project for the federal government, which is really in the high teens.”

Given the $1.2 billion in data center awards, what is the size of the broader data center pipeline, and how should investors think about its potential to convert into awarded backlog?

George Sakellaris indicated that the current awards are only part of the ultimate size, suggesting it could increase up to $2 billion. Nicole Bulgarino added that they are vetting opportunities daily and hope to add more projects as they continue to develop in this market. “I wouldn't be surprised that we will get up to $2 billion associated with this particular award that we have right now.”

Could a financing structure similar to the Neogenics joint venture be used for data center opportunities to speed up or increase the amount of projects Ameresco can handle?

George Sakellaris confirmed that a Neogenics-like vehicle is a great opportunity for them, acknowledging the substantial capital required for data centers. He stated they would pursue it if the multiples and partners are right, but it's not specific to announce yet. “It is not specific to announce at this point in time, but it could be a great, great opportunity for us. between another vehicle like Neogenics.”

AMRC

Ameresco (AMRC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 3, 2026

Source: earnings call transcript

Executive summary

Ameresco Q2 FY26 — Record New Awards and Data Center Expansion Drive Transformational Quarter

Ameresco reported a transformational quarter, driven by record new awards, particularly in the data center market, and strategic capital initiatives like the Janix joint venture. The company is strategically repositioning into power infrastructure and building/public infrastructure, leveraging its integrated solutions and experience to capitalize on significant growth opportunities, especially in on-site power for hyperscale data centers. Management expressed confidence in its ability to drive long-term profitable growth, reaffirming full-year guidance while raising non-GAAP EPS expectations.

Highlights

Record new awards of $1.8 billion, including $1.2 billion for data centers, marking a transformational quarter.
Closed new Janix joint venture with HACI, providing significant external capital ($400 million) to accelerate growth.
Operating energy asset base expanded to 822 megawatts, with an additional 32 megawatts placed into operation during the quarter.
Adjusted EBITDA increased 12% to $62.8 million, outpacing revenue growth.
Non-GAAP EPS guidance for FY26 increased to $1.15 to $1.35.

Concerns

Cash conversion was impacted in Q2 by the timing of project execution, billings, and collections, resulting in more cash temporarily absorbed in working capital.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Non-GAAP EPS	$1.15 to $1.35 high materiality	FY26	High
Full-year 2026 Tax Benefit Rate	25% to 40% medium materiality	FY26	High
Full-year 2026 Guidance (all metrics)	Reaffirmed high materiality	FY26	High
Data Center Project Conversion to Contracted	6 to 24 months medium materiality	Next 6-24 months	Medium
Data Center Project Implementation Schedule	Up to 3 years medium materiality	Next 3 years	Medium
Data Center Project Revenue Impact	Major impact 2028-2030 high materiality	CY28-CY30	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Project Revenue Reflects solid execution across the core project business with strength in Federal and North America and continued strong performance from the European JV.	$381 million	6%	—	—
Energy Asset Revenue Continued expansion of the operating portfolio, reflecting Ameresco's 70% ownership interest in the Neogenix JV. Operating energy asset base: 822 megawattsMegawatts placed into operation in Q2: 32 megawattsMegawatts in development or construction: 513 megawatts	$76 million	21%	—	—
O&M Revenue Strong growth from successful project execution and expanding third-party business, providing long-term recurring revenue and visibility. Long-term O&M backlog: >$1.5 billionThird-party O&M service: >2.5 gigawatts (solar and battery storage)	—	29%	—	—

Orderbook & backlog

New Awards $1.8 billion Q2 FY26

Record

Includes $1.2 billion for data centers and $600 million for other key markets. Provides tremendous long-term visibility, expected to convert over the next three to four years.

Data Center New Awards $1.2 billion Q2 FY26

Part of the total new awards, expected to increase as development progresses. Conversion to contracted backlog expected in 6 to 24 months, with major revenue impact from 2028 to 2030.

Long-term O&M Backlog >$1.5 billion Q2 FY26

Provides strong visibility, recurring revenue, and durability across cycles.

Product announcements

Product	Type	Timeline	Details
NAPONI Battery Energy Storage System	milestone	Q2 FY26
Greece Solar Project	milestone	Q2 FY26

Deals & partnerships

HACI Janix joint venture

Closed a new Janix joint venture with HACI, which contributed to $471 million of new financing commitments secured in Q2.

Risks & headwinds

Cash conversion timing Q2 FY26

More cash temporarily absorbed in working capital

Mitigation:Cash conversion remains a key priority for the second half of the year.

Project delivery commitments and financial exposure Ongoing for data center projects

Potential liquidated damages if completion timelines slip due to equipment supply chain bottlenecks, permitting, or local issues

Mitigation:Ameresco is very mindful and diligent about commitments, conducting great diligence to ensure projects meet criteria before award. Strategic partnerships and focus on federal lands help mitigate risks.

What to watch in Q3 FY26

Data Center Backlog Conversion

Next 6-24 months

Current $1.2 billion awarded backlog

Target Increase in contracted backlog

Why it matters

Conversion of awarded data center projects to contracted status is critical for revenue recognition and future growth visibility.

And on the data centers, I did say they indicated six months to 24 months to move the award because we We know what the development is on some of them and the milestones that they have achieved.

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Q&A highlights

How are project delivery commitments structured for data center wins, particularly regarding financial exposure or liquidated damages if completion timelines slip due to supply chain, permitting, or other bottlenecks?

Nicole Bulgarino stated that Ameresco is very mindful and diligent about the commitments they sign up to, similar to all their projects. She emphasized the complexity and sensitivity of these agreements to customers.

“But be assured, as Amoresco and all of our projects would be very mindful and diligent about what commitments we're being signed up to or that we're signing up to.”

asked by George Generegas · answered by Nicole Bulgarino

2 min read 6 chapters

Detailed narrative

Transformational Quarter Driven by Data Center Growth

Ameresco experienced a transformational Q2 FY26, marked by record new awards totaling $1.8 billion. A significant portion, $1.2 billion, came from new data center projects, with an additional $600 million from other key markets. This surge in data center opportunities is driven by increasing demand for reliable power infrastructure and favorable policies for on-site solutions, positioning Ameresco as a key provider for hyperscale customers seeking speed, reliability, and energy independence.

Strategic Repositioning and Leadership

The company is strategically repositioning into two core pillars: power infrastructure, and building and public infrastructure, supported by a new rebranded corporate identity. This strategic shift is reinforced by the promotion of Nicole Bulgarino and Lou Maltesos to Co-Presidents. This structure aims to leverage Ameresco's integrated solutions and decades of experience in critical energy infrastructure to capitalize on market catalysts and a robust pipeline of opportunities.

Data Center Project Details and Pipeline

Ameresco added three new data center projects to its awarded backlog in Q2, bringing the total to five (plus the Lelore data center in its energy assets portfolio). These projects expand the company's footprint into Texas and Arizona and collectively represent over 1 gigawatt of power generation.

Solutions include reciprocating engines, gas turbines, fuel cells, battery energy storage systems, and integrated microgrids. The awarded projects represent only a portion of a broader, growing pipeline, with management expecting the awarded backlog from these opportunities to increase as development progresses.

Strong Financial Performance and Capital Strengthening

Q2 revenue grew 9% to $515 million, with project revenue up 6% to $381 million and energy asset revenue increasing 21% to $76 million. O&M revenue also saw strong growth, up 29%. Gross margin improved to 17.7%, and adjusted EBITDA increased 12% to $62.8 million.

The company strengthened its capital position by securing $471 million in new financing commitments, including $400 million related to the Neogenix transaction, providing flexibility for growth and working capital needs.

Backlog Visibility and Conversion

The record new awards provide tremendous long-term visibility, with the total backlog expected to convert over the next three to four years. The company emphasized its diligence in vetting projects before inclusion in the awarded backlog, ensuring they meet specific criteria and have achieved certain development milestones.

While data center awards are expected to convert to contracted status within 6 to 24 months, major revenue impact is anticipated from 2028 to 2030 due to multi-phase project implementation schedules.

Energy Assets and O&M Business Growth

Ameresco's operating energy asset base now stands at 822 megawatts, with an additional 513 megawatts in development or construction. The O&M business continues to be a strong contributor, with long-term O&M backlog exceeding $1.5 billion and providing service for over 2.5 gigawatts of third-party solar and battery storage. This segment offers strong visibility, recurring revenue, and durability across cycles.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.