Ameresco — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 10% year-over-year to $580.3 million, driven by growth across Projects ($446.0 million, +9%), Energy Assets ($75.4 million, +21%), and O&M ($37.0 million, +20%).
• Net income attributable to common shareholders was $31.9 million, or $0.59 per diluted share (GAAP).
• Non-GAAP EPS was $0.88.
• Adjusted EBITDA increased 24% year-over-year to $91.7 million.
• Gross margin expanded to 18.7%, up from prior year levels, driven by favorable business mix, strong execution, and a decrease in depreciation related to an adjustment of energy assets' useful lives.
• Total corporate debt was $380.4 million with a leverage ratio of 2.9x.
• Total energy asset debt was $1,600.2 million against an energy asset book value of $2,567.7 million, resulting in an advance rate of 62%.
• Unrestricted cash increased to $128.5 million.
• Q3 cash flows from operating activities were $(8.9) million; Non-GAAP adjusted cash from operations was $3.7 million.
• 8-quarter rolling average Non-GAAP adjusted cash from operations was $25.7 million.

Guidance and Future Outlook:

• Q4 2026 revenue guidance is $625 million to $650 million; Gross margin is 17.0% to 18.0%; Adjusted EBITDA is $80 million to $90 million; Non-GAAP EPS is $0.95 to $1.05.
• Full Year 2026 revenue guidance is $2.13 billion to $2.15 billion; Gross margin is 17% to 18%; Adjusted EBITDA is $295 million to $305 million; Non-GAAP EPS is $1.85 to $1.95.
• Full Year 2026 Depreciation & Amortization guidance is $115 million to $116 million; Interest Expense & Other is $105 million to $110 million; Effective Tax Rate is approximately (50%).
• Guidance reflects the inclusion of 100% of operating results of consolidated joint ventures (Ameresco Sunel JV and Neogenyx Fuels) and the retrospective adoption of a tax-based accounting policy for transferable tax credits.
• Management expects continued growth in 2027 and beyond, driven by a rapidly growing project backlog and recurring revenue businesses.
• Company anticipates benefiting from emerging power infrastructure opportunities in the data center and commercial/industrial landscapes, alongside positive trends in federal, municipal, university, school, and hospital markets.

Business Segments and Product Lines:

• Total backlog reached a record $7.2 billion, representing 39% growth.
• Awarded project backlog was $4,561 million; Contracted project backlog was $2,593 million.
• 12-month contracted backlog was $1,226 million.
• New project awards totaled $875 million in Q3, including over $675 million from Federal infrastructure and Europe, and $200 million from data center energy infrastructure.
• $737 million converted from awarded to contracted backlog during the quarter.
• Total O&M revenue backlog was $1,509 million, with 12-month O&M backlog at $118 million.
• Total Energy Asset visibility was $3,187 million.
• Total revenue visibility was $11,850 million.
• Energy assets placed into operation totaled 3 MWe; new awards/scope changes added 6 MWe.
• Total operating energy assets reached 827 MWe, with 500 MWe in net assets in development.
• O&M and Energy Asset businesses continue to grow at an impressive pace, enhancing long-term revenue visibility.

Market and Competitive Landscape:

• Strong momentum in Europe and Federal infrastructure markets contributed to over $675 million in additional awards.
• Data center energy infrastructure awards expanded scope of work for an existing project.
• Company is integrating fuel cells, microgrids, small and micro nuclear reactors, and other cutting-edge technologies into its portfolio.
• Ameresco serves public and private sector customers across North America and Europe.

Risks and Challenges:

• Forward-looking statements involve risks including demand fluctuations, ability to execute strategic growth plans, and timing of contract entries.
• Risks include potential delays in project performance, liquidated damages, government fiscal health, and customer credit risk.
• Challenges include ability to arrange financing, compliance with debt covenants, macroeconomic challenges, weather events, and climate change.
• Supply chain challenges, labor and equipment availability, and inflationary pressures are noted risks.
• Regulatory changes, customer cancellation/deferral risks, and cybersecurity incidents are potential threats.
• International operations and the ability to close acquisitions and joint ventures present additional risks.

Management Commentary and Tone:

• CEO George Sakellaris described the quarter as one of "strong growth and disciplined execution" with "broad-based growth across each of our major business lines."
• Management highlighted the strength of the business model, citing diversity in solutions, markets, and customers.
• The adoption of HLBV accounting for joint ventures (Ameresco Sunel JV and Neogenyx Fuels) was implemented to facilitate comparability, resulting in the inclusion of 100% of their operating results in Non-GAAP measures.
• A large tax benefit related to the planned adoption of a tax-based accounting policy aligned earnings recognition with the period investment tax credits are generated.
• Management expressed confidence in the company's position to benefit from emerging power infrastructure opportunities.

Other Key Points:

• The company adopted a new accounting method for nonrefundable, transferable investment tax credits effective January 1, 2026, recognizing them in the income tax provision rather than as a reduction in asset cost basis. This change was applied retrospectively to 2025 results.
• Adjusted EBITDA and Non-GAAP EPS guidance and historical results were recast to reflect the new accounting methodology and the consolidation of joint ventures.
• The company secured $106 million of financing and financing commitments in Q3, strengthening its capital position.
• Ameresco Sunel JV (Europe segment) and Neogenyx Fuels (Renewable Fuels segment) are now fully consolidated in Non-GAAP financial measures.
• Ameresco has delivered over $15 billion in solutions and contracted over 5 GW of energy resources since its founding in 2000.