Ameresco, Inc.

What they do

Ameresco provides energy efficiency upgrades, renewable energy development (solar, biomass, biogas, RNG), and distributed energy resources like battery storage and microgrids. It also operates and maintains customer energy systems under long-term contracts. The company works on both sides of the meter and uses financing structures like ESPCs and PPAs to reduce upfront costs for clients.

Revenue drivers

• Projects — Largest segment; revenue of $380.9M in Q2 2026, up 6% YoY. Includes design, engineering, and installation of energy efficiency and renewable projects.
• Energy Assets — Owned and operated renewable generation assets; Q2 2026 revenue of $75.9M, up 21% YoY, reflecting portfolio expansion.
• Operations & Maintenance (O&M) — Recurring service contracts; Q2 2026 revenue of $36.2M, up 29% YoY, driven by new long-term agreements.
• Other — Includes consulting and other services; Q2 2026 revenue of $22.5M, down slightly from $23.3M in prior year.

Recent performance

Q2 2026 revenue was $515.5M, up 9% YoY, with record new project awards of $1.8B. Net income attributable to common shareholders was $9.7M, or $0.18 diluted EPS, down from $12.9M in Q2 2025. Adjusted EBITDA rose 12% to $62.8M. Total backlog reached a record $6.73B, up 32% YoY, with awarded backlog at $4.42B and contracted backlog at $2.30B.

Strategy

Management emphasizes growth in the Power Infrastructure pillar, particularly data center power projects, which drove $1.2B of the record $1.8B in new awards during Q2 2026. The company aims to convert awarded backlog into contracted backlog as projects reach milestones. It continues to expand its portfolio of owned Energy Assets, and uses acquisitions and joint ventures to broaden service offerings and geographic reach.

Risks

• Long sales cycles — Sales cycles typically take 18-42 months, with federal and housing authority clients even longer, causing revenue timing unpredictability.
• Macroeconomic and geopolitical conditions — Supply chain disruptions, material shortages, tariffs, and global unrest can delay projects and increase costs.
• Regulatory and policy changes — Changes in regulations, including the Inflation Reduction Act, could affect demand and project economics.
• Project execution risks — Energy efficiency projects must meet performance standards; failures could lead to penalties or reduced revenue.

Outlook

Management expects 2026 to be another year of growth and increased profitability, supported by strong backlog and data center momentum. The company raised its 2026 EPS guidance following Q2 results. Awarded backlog of $4.4 billion provides visibility for at least the next three to four years.