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    AMRC
    Earnings call· Jun 2026(Q2 FY26)

    Ameresco Q2 FY26 earnings call AMRC

    Aug 3, 2026 Source

    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

    5

    • 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

    1

    • 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

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

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    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 million6%——
    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 million21%——
    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%——

    Operational metrics

    11
    Total Revenue
    $515 million9% growth
    Q2 FY26

    Total revenues grew by 9%.

    Gross Margin
    17.7%Meaningful improvement sequentially and year-over-year
    Q2 FY26

    Reflecting a favorable business mix and strong execution.

    Net Income Attributable to Common Shareholders
    $9.7 million
    Q2 FY26

    Impacted by higher depreciation and interest expense, lower tax benefit, and non-controlling interest from Neogenix.

    Adjusted EBITDA
    $62.8 million12% increase
    Q2 FY26

    Outpacing revenue growth and reflecting strong operating execution, improved business mix, and expansion of higher-margin recurring businesses.

    Unrestricted Cash
    $138 million
    Q2 FY26

    Balance at quarter end.

    Corporate Debt
    $385 million
    Q2 FY26

    Balance at quarter end.

    Corporate Leverage Ratio
    3.2xComfortably below 3.5x covenant
    Q2 FY26

    Leverage ratio at quarter end.

    New Financing Commitments
    $471 million
    Q2 FY26

    Secured in Q2 to fund growth, support working capital, and scale energy assets portfolio.

    Cash Conversion
    —
    Q2 FY26

    Impacted by timing of project execution, billings, and collections, with more cash temporarily absorbed in working capital. Remains a key priority for H2.

    Data Center Projects (awarded)
    53 new projects added
    Q2 FY26

    Total awarded data center projects, in addition to the Lelore data center in energy assets portfolio.

    Data Center Pipeline
    GrowingExceptional demand
    Q2 FY26

    Actively developing opportunities beyond current awards, with significant scale and quality.

    Industry KPIs

    3
    MetricValueDetails
    Total backlog$1.8 billionUSD
    Book to bill ratio—
    End market pipelineData center market

    Orderbook & backlog

    3
    New Awards$1.8 billionQ2 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 billionQ2 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 billionQ2 FY26

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

    Product announcements

    2
    ProductTypeDetails
    NAPONI Battery Energy Storage Systemmilestone
    Greece Solar Projectmilestone

    Deals & partnerships

    1
    HACIJanix joint venture

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

    Risks & headwinds

    2
    Cash conversion timingQ2 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 exposureOngoing 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

    5

    Data Center Backlog Conversion

    Next 6-24 months
    Current$1.2 billion awarded backlog
    TargetIncrease 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.