<\/p>\n
Ameresco Reports Third Quarter 2026 Financial Results<\/b><\/p>\n
Third Quarter Results Reflected Strong Growth Across Major Business Lines, Margin Expansion and Robust Business Development<\/i><\/b><\/p>\n
39% Total Backlog Growth to Record $7.2 Billion<\/i><\/b><\/p>\n
$875 Million in New Project Awards Led by Strong Momentum in Europe and Federal<\/i><\/b><\/p>\n
$737 Million Converted to Contracted Backlog from Awarded<\/i><\/b><\/p>\n
Adjusting Guidance to Reflect Adoption of New JV Accounting Methodology<\/i><\/b><\/p>\n
Third Quarter 2026 Financial Highlights:<\/b><\/p>\n FRAMINGHAM, Mass.–(BUSINESS WIRE<\/a>)– \n\u201cOur third quarter results represented another quarter of strong growth and disciplined execution. We achieved revenue increases across each of our major business lines, expanded margins and continued to build both awarded and contracted backlogs. The $875 million in new projects we were awarded in the third quarter brought Ameresco\u2019s total project backlog to a record $7.2 billion. This also was an excellent quarter for project contract conversion with $737 million converting from awarded into contracted backlog, building visibility as we head into 2027,\u201d CEO George Sakellaris commented.<\/p>\n \n\u201cThe strength of our business model is reflected in the diversity of our solutions, markets and customers. We secured over $675 million in additional awards driven by strength in Federal infrastructure and Europe. We also added data center energy infrastructure awards of $200 million representing an expanded scope of work for Ameresco at an existing project. In addition, our recurring O&M and Energy Asset businesses continue to grow at an impressive pace, further enhancing long-term revenue visibility and reinforcing the resilience of our business model,\u201d Mr. Sakellaris concluded.<\/p>\n Third Quarter Financial Results (in thousands)<\/b><\/p>\n<\/td>\n Q3 2026<\/b><\/p>\n<\/td>\n Q3 2025<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Revenue<\/b><\/p>\n<\/td>\n Net Income (Loss)(2)<\/sup><\/b><\/p>\n<\/td>\n Adj. EBITDA(3)<\/sup><\/b><\/p>\n<\/td>\n Revenue<\/b><\/p>\n<\/td>\n Net Income As Adjusted(1) (2)<\/sup><\/b><\/p>\n<\/td>\n Adj. EBITDA As Adjusted (3)<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n \nProjects<\/p>\n<\/td>\n \n$446,025<\/p>\n<\/td>\n \n$29,760<\/p>\n<\/td>\n \n$41,517<\/p>\n<\/td>\n \n$409,952<\/p>\n<\/td>\n \n$8,919<\/p>\n<\/td>\n \n$28,070<\/p>\n<\/td>\n<\/tr>\n \nEnergy Assets<\/p>\n<\/td>\n \n$75,381<\/p>\n<\/td>\n \n$9,071<\/p>\n<\/td>\n \n$40,504<\/p>\n<\/td>\n \n$62,537<\/p>\n<\/td>\n \n$66,110<\/p>\n<\/td>\n \n$40,855<\/p>\n<\/td>\n<\/tr>\n \nO&M<\/p>\n<\/td>\n \n$36,989<\/p>\n<\/td>\n \n$8,121<\/p>\n<\/td>\n \n$9,066<\/p>\n<\/td>\n \n$30,770<\/p>\n<\/td>\n \n$1,257<\/p>\n<\/td>\n \n$2,628<\/p>\n<\/td>\n<\/tr>\n \nOther<\/p>\n<\/td>\n \n$21,920<\/p>\n<\/td>\n \n($150)<\/p>\n<\/td>\n \n$654<\/p>\n<\/td>\n \n$22,728<\/p>\n<\/td>\n \n$997<\/p>\n<\/td>\n \n$2,169<\/p>\n<\/td>\n<\/tr>\n Total (3)<\/sup><\/b><\/p>\n<\/td>\n $580,315<\/b><\/p>\n<\/td>\n $46,802<\/b><\/p>\n<\/td>\n $91,741<\/b><\/p>\n<\/td>\n $525,987<\/b><\/p>\n<\/td>\n $77,283<\/b><\/p>\n<\/td>\n $73,722<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n (1)<\/sup> During Q3 2026, we changed our method of accounting for nonrefundable, transferable investment tax credits associated with our energy assets effective January 1, 2026. Under the new method, we recognize ITCs in the income tax provision in the period the credits are generated rather than as a reduction in the cost basis of the related energy assets. The change was applied retrospectively, including to our 2025 results.<\/p>\n<\/td>\n<\/tr>\n (2) <\/sup>Net Income (loss) represents net income (loss) before non-controlling interests.<\/p>\n<\/td>\n<\/tr>\n (3)<\/sup> Adjusted EBITDA is based on consolidated net income and no longer includes an adjustment to remove the non-controlling interest portion.<\/p>\n<\/td>\n<\/tr>\n (4)<\/sup> Numbers in table may not sum due to rounding.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nTotal revenue increased 10% to $580.3 million, reflecting broad-based growth across Projects, Energy Assets and O&M and continued strong execution on project backlog conversion. Project revenue increased 9% to $446.0 million, while Energy Asset revenue grew 21% to $75.4 million, as we continued to expand our portfolio of owned operating assets. O&M revenue increased 20% to $37.0 million, driven by the continued addition of new long-term operations and maintenance contracts. Gross margin expanded to 18.7%, with meaningful improvement on both a sequential and year-over-year basis. Margin improvement was driven by a combination of a favorable business mix, strong execution and a decrease in depreciation related to an adjustment to our energy assets\u2019 useful lives.<\/p>\n \nNet income attributable to common shareholders was $31.9 million, or $0.59 per diluted share, while Non-GAAP EPS was $0.88. Adjusted EBITDA increased 24% to $91.7 million. In Q3 we adopted HLBV accounting related to the Neogenyx Fuels transaction. HLBV accounting allocates income or loss among partners based on the change in the amounts each partner would receive if the entity were hypothetically liquidated at book value at each reporting date. This method is commonly used in tax equity and complex partnership structures. Given the inherent variability within the HLBV calculation quarter-to-quarter, to facilitate comparability, our Non-GAAP EPS and adjusted EBITDA now reflect 100% of the operating results of our consolidated joint ventures, most notably Ameresco Sunel Energy (“AMRC Sunel JV”), a significant part of our Europe segment, and Neogenyx Fuels, which constitutes substantially all of the business reported in our Renewable Fuels segment. Results of these joint ventures are included in the Non-GAAP Financial Measures below.<\/p>\n \nEarnings for the quarter also included a large tax benefit related to our planned adoption of a tax-based accounting policy as discussed last quarter. This better aligns earnings recognition with the period in which investment tax credits are generated, rather than allocating the benefit over the life of the related assets.<\/p>\n Project and Asset Highlights<\/b><\/p>\n ($in millions)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n At September 30, 2026<\/b><\/p>\n<\/td>\n<\/tr>\n \nAwarded Project Backlog (1)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$4,561<\/p>\n<\/td>\n<\/tr>\n \nContracted Project Backlog<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$2,593<\/p>\n<\/td>\n<\/tr>\n Total Project Backlog<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$7,154<\/p>\n<\/td>\n<\/tr>\n \n12-month Contracted Backlog (2)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$1,226<\/p>\n<\/td>\n<\/tr>\n \nNew Contracts<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$737<\/p>\n<\/td>\n<\/tr>\n \nNew Awards (3)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$875<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal O&M Revenue Backlog<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$1,509<\/p>\n<\/td>\n<\/tr>\n \n12-month O&M Backlog<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$118<\/p>\n<\/td>\n<\/tr>\n \nTotal Energy Asset Visibility (4)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3,187<\/p>\n<\/td>\n<\/tr>\n \nTotal Revenue Visibility<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$11,850<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nEnergy Assets Placed into Operation<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3 MWe<\/p>\n<\/td>\n<\/tr>\n \nEnergy Assets New Awards \/ Scope Changes<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(6) MWe<\/p>\n<\/td>\n<\/tr>\n \nTotal Operating Energy Assets (5)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n827 MWe<\/p>\n<\/td>\n<\/tr>\n \nAmeresco’s Net Assets in Development (5)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n500 MWe<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n (1)<\/sup> Customer contracts that have not been signed yet<\/p>\n<\/td>\n<\/tr>\n (2)<\/sup> We define our 12-month backlog as the estimated amount of revenues that we expect to recognize in the next twelve months from our fully-contracted backlog<\/p>\n<\/td>\n<\/tr>\n (3)<\/sup> Represents estimated future revenues from projects that have been awarded, though the contracts have not yet been signed<\/p>\n<\/td>\n<\/tr>\n (4)<\/sup> Estimated contracted revenue and incentives during PPA period plus estimated additional revenue from operating RNG assets over a 20-year period, assuming RINs at $1.50\/gallon and brown gas at $3.50\/MMBtu with $3.00\/MMBtu for LCFS on certain projects<\/p>\n<\/td>\n<\/tr>\n (5)<\/sup> Net MWe capacity includes only our share of any jointly owned assets<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Balance Sheet and Cash Flow Metrics<\/b><\/p>\n ($in millions)<\/b><\/p>\n<\/td>\n September 30, 2026<\/b><\/p>\n<\/td>\n<\/tr>\n \nTotal Corporate Debt (1)<\/sup><\/p>\n<\/td>\n \n$380.4<\/p>\n<\/td>\n<\/tr>\n \nCorporate Debt Leverage Ratio (2)<\/sup><\/p>\n<\/td>\n \n2.9X<\/p>\n<\/td>\n<\/tr>\n \nEuropean Facilities<\/p>\n<\/td>\n \n$29.9<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal Energy Asset Debt (3)<\/sup><\/p>\n<\/td>\n \n$1,600.2<\/p>\n<\/td>\n<\/tr>\n \nEnergy Asset Book Value (4)<\/sup><\/p>\n<\/td>\n \n$2,567.7<\/p>\n<\/td>\n<\/tr>\n \nEnergy Debt Advance Rate (5)<\/sup><\/p>\n<\/td>\n \n62%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nQ3 Cash Flows from Operating Activities (6)<\/sup><\/p>\n<\/td>\n \n$(8.9)<\/p>\n<\/td>\n<\/tr>\n Plus: Q3 Proceeds from Federal ESPC Projects<\/span><\/p>\n<\/td>\n $12.6<\/span><\/p>\n<\/td>\n<\/tr>\n \nEquals: Q3 Non-GAAP Adjusted Cash from Operations<\/p>\n<\/td>\n \n$3.7<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n8-quarter rolling average Cash Flows from Operating Activities (6)<\/sup><\/p>\n<\/td>\n \n$1.3<\/p>\n<\/td>\n<\/tr>\n Plus: 8-quarter rolling average Proceeds from Federal ESPC Projects<\/span><\/p>\n<\/td>\n $24.5<\/span><\/p>\n<\/td>\n<\/tr>\n \nEquals: 8-quarter rolling average Non-GAAP Adjusted Cash from Operations<\/p>\n<\/td>\n \n$25.7<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n (1) <\/sup>Subordinated debt, term loans, and drawn amounts on the revolving line of credit, net of debt discount and issuance costs<\/p>\n<\/td>\n<\/tr>\n (2)<\/sup> Debt to EBITDA, as calculated under our Sr. Secured Credit Facility<\/p>\n<\/td>\n<\/tr>\n (3)<\/sup> Term loans, sale-leasebacks and construction loan project financings for our Energy Assets in operations and in-construction and development, net of debt discount and issuance costs.<\/p>\n<\/td>\n<\/tr>\n (4)<\/sup> Book Value of our Energy Assets in operations and in-construction and development<\/p>\n<\/td>\n<\/tr>\n (5) <\/sup>Total Energy Asset Debt divided by Energy Asset Book Value<\/p>\n<\/td>\n<\/tr>\n (6) <\/sup>Cash flows from operating activities includes proceeds from sales of investment tax credits. Prior to the change in our method of accounting for nonrefundable, transferable investment tax credits associated with our energy assets, these proceeds were not included in operating activities. Prior periods, including 2025, have been retrospectively adjusted.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nUnrestricted cash increased to $128.5 million with total corporate debt of $380.4 million. Our corporate leverage was 2.9x, comfortably below our 3.5x covenant. We also strengthened our capital position in Q3, securing $106 million of financing and financing commitments.<\/p>\n \nAdjusted Cash from Operations was positive in Q3. On a rolling eight-quarter basis, Adjusted Cash from Operations was approximately $26 million, compared with $30 million last quarter, primarily reflecting the timing and mix of activity in the period.<\/p>\n Summary and Outlook \nFourth quarter and full year updated guidance is shown in the table below and reflects the inclusion of 100% of the operating results of our consolidated joint ventures as well as the recast of our 2026 performance as a result of adopting a tax-based accounting policy for transferable tax credits, which is a retrospective application of this accounting policy. The guidance reflect only these changes and does not reflect a change in our operational outlook. Our full year adjusted EBITDA and Non-GAAP EPS would otherwise have been unchanged.<\/p>\n \nHistorical results for the last six quarters, presented on a comparable basis, are provided in the Non-GAAP Financial Measures below.<\/p>\n Q4 2026 Guidance Ranges<\/b><\/p>\n<\/td>\n<\/tr>\n \nRevenue<\/p>\n<\/td>\n \n$625 million<\/p>\n<\/td>\n \n$650 million<\/p>\n<\/td>\n<\/tr>\n \nGross Margin<\/p>\n<\/td>\n \n17.0%<\/p>\n<\/td>\n \n18.0%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA (1)<\/sup><\/p>\n<\/td>\n \n$80 million<\/p>\n<\/td>\n \n$90 million<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP EPS (1)<\/sup><\/p>\n<\/td>\n \n$0.95<\/p>\n<\/td>\n \n$1.05<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n FY 2026 Guidance Ranges<\/b><\/p>\n<\/td>\n<\/tr>\n \nRevenue<\/p>\n<\/td>\n \n$2.13 billion<\/p>\n<\/td>\n \n$2.15 billion<\/p>\n<\/td>\n<\/tr>\n \nGross Margin<\/p>\n<\/td>\n \n17%<\/p>\n<\/td>\n \n18%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA (1)<\/sup><\/p>\n<\/td>\n \n$295 million<\/p>\n<\/td>\n \n$305 million<\/p>\n<\/td>\n<\/tr>\n \nDepreciation & Amortization<\/p>\n<\/td>\n \n$115 million<\/p>\n<\/td>\n \n$116 million<\/p>\n<\/td>\n<\/tr>\n \nInterest Expense & Other<\/p>\n<\/td>\n \n$105 million<\/p>\n<\/td>\n \n$110 million<\/p>\n<\/td>\n<\/tr>\n \nEffective Tax Rate<\/p>\n<\/td>\n \nApproximately (50%)<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP EPS (1)<\/sup><\/p>\n<\/td>\n \n$1.85<\/p>\n<\/td>\n \n$1.95<\/p>\n<\/td>\n<\/tr>\n \n(1) The Company\u2019s Adjusted EBITDA and Non-GAAP EPS guidance excludes adjustments for one-time charges, energy asset and goodwill impairment charges, changes in contingent consideration, restructuring activities, as well as any related tax impact. The Company has not reconciled its Adjusted EBITDA guidance to the most directly comparable GAAP measure because certain reconciling items are not available without unreasonable effort. These items could have a material impact on the Company\u2019s GAAP results.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Conference Call\/Webcast Information Use of Non-GAAP Financial Measures Defined Terms\n
\nAmeresco, Inc. (NYSE:AMRC), a leading energy infrastructure company, today announced financial results for the third quarter ended September 30, 2026. The Company also furnished supplemental information in conjunction with this press release in a Current Report on Form 8-K. The supplemental information, which includes Non-GAAP financial measures, has been posted to the \u201cInvestors\u201d section of the Company\u2019s website at www.ameresco.com<\/a>. Reconciliations of Non-GAAP measures to the appropriate GAAP measures are included herein. All financial result comparisons made are against the prior year period unless otherwise noted.<\/p>\n
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<\/b>(All financial result comparisons made are against the prior year period unless otherwise noted.)<\/p>\n\n
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<\/b>\u201cOur rapidly growing project backlog together with the strength of our recurring revenue businesses position us for continued growth in 2027 and beyond. Ameresco remains well positioned to benefit from the emerging power infrastructure opportunities within the data center and C&I landscape, while we continue to see positive trends in our traditional markets serving the federal government, municipalities, universities, schools, and hospitals. We are also at the forefront of the technology curve as we integrate fuel cells, microgrids, small and micro nuclear reactors and other cutting-edge technologies into our comprehensive portfolio of solutions helping us to meet growing industry demand,\u201d concluded CEO George Sakellaris.<\/p>\n\n
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<\/b>The Company will host a conference call today at 4:30 p.m. ET to discuss third quarter 2026 financial results, business and financial outlook, and other business highlights. To participate on the day of the call, dial 1-888-596-4144, or internationally 1-646-968-2525, and enter the conference ID: 4849290, approximately 10 minutes before the call. A live, listen-only webcast of the conference call will also be available over the Internet. Individuals wishing to listen can access the call through the \u201cInvestors\u201d section of the Company\u2019s website at www.ameresco.com<\/a>. If you are unable to listen to the live call, an archived webcast will be available on the Company\u2019s website for one year.<\/p>\n
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<\/b>This press release and the accompanying tables include references to adjusted EBITDA, Non- GAAP EPS, Non-GAAP net income and adjusted cash from operations, which are Non-GAAP financial measures. For a description of these Non-GAAP financial measures, including the reasons management uses these measures, please see the section following the accompanying tables titled \u201cExhibit A: Non-GAAP Financial Measures\u201d. For a reconciliation of these Non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see Non-GAAP Financial Measures and Non-GAAP Financial Guidance in the accompanying tables.<\/p>\n
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<\/b>More details on additional definitions used herein, such as total project backlog, awarded backlog, contracted backlog, O&M backlog, 12-month backlog and assets in development are provided in our periodic reports filed with the SEC.<\/p>\n