Ameresco Q1 Earnings Call Highlights

Key Points

• Neogenyx Fuels JV: Ameresco struck a $400 million strategic investment with HASI to form Neogenyx Fuels — $300M will be invested into the JV and $100M paid to Ameresco — with the JV 70% Ameresco/30% HASI and an implied post‑money enterprise value of about $1.8 billion, intended to accelerate biogas development toward roughly four plants per year (meaningful impact expected late 2028+).
• Q1 financials and backlog: Revenue was $401 million (up 14% YoY) with adjusted EBITDA $40.5 million but a GAAP net loss of $18.3 million, and margins were pressured by weather; awarded project backlog rose 20% to $2.8 billion (total project backlog $5.3 billion) while operating energy assets stood at 838 MW with 568 MW in development.
• Leadership and guidance update: Ameresco promoted Nicole Bulgarino and Lou Maltezos to Co‑Presidents and Peter Christakis to COO to align execution across energy infrastructure and building efficiency, will consolidate Neogenyx in results while attributing 30% of biofuels EBITDA/net income to HASI, and guided Q2 adjusted EBITDA of $58–62 million and non‑GAAP EPS of $0.18–0.23, with full‑year CapEx expected at $300–350 million and 100–120 MW to be placed into service.

Ameresco NYSE: AMRC executives highlighted first-quarter 2026 revenue growth, a jump in awarded backlog, and a major strategic investment tied to its biofuels platform during the company’s earnings call. Management also discussed leadership changes designed to sharpen operational focus as the company pursues large energy infrastructure opportunities, including data center-related work.

Neogenyx Fuels joint venture announced with HASI

Chairman and CEO George Sakellaris said Ameresco signed what he called a “transformational agreement” with HASI for a $400 million strategic investment that will form a joint venture named Neogenyx Fuels. Sakellaris said the transaction is intended to monetize part of the value created in Ameresco’s biogas business, which he said carries an implied post-money enterprise value of about $1.8 billion.

Under the agreement, Sakellaris said $300 million of HASI’s commitment will be invested into Neogenyx Fuels to drive growth, while $100 million will be paid directly to Ameresco as compensation for the existing business. Sakellaris said Ameresco intends to use the $100 million for “strategic opportunities, working capital, and deleveraging throughout the year.”

Mike Bakas, who will become CEO of Neogenyx Fuels, said the joint venture will be 70% owned by Ameresco and 30% by HASI. He said Ameresco will contribute its operating biogas assets and its development pipeline, and the entity will be staffed by Ameresco’s “seasoned team of biogas veterans.” Bakas said the partnership combines Ameresco’s biogas development experience with HASI’s “scalable capital platform,” positioning Neogenyx to expand in next-generation fuels.

In Q&A, Sakellaris said the $300 million is expected to accelerate development, moving from “a couple of plants a year” toward “about four plants a year” over a couple of years, while noting that permitting can take years and that investors should not expect meaningful impact “till late 2028 and beyond.” Bakas added that the added capital could support consolidation opportunities through M&A, noting Ameresco’s biogas portfolio has been “100% greenfield” to date, and said the market is transitioning into a “more of a global opportunity,” including potential exports.

Chief Investment Officer Josh Baribeau said the company believes the valuation is “in line, if not above market multiples,” describing the post-money valuation as “over 20 times” and saying the company is “very comfortable that we created a lot of value here and unlocked a lot of value.”

Leadership changes align execution with growth priorities

Sakellaris also outlined leadership changes, including the promotions of Nicole Bulgarino and Lou Maltezos to Co-Presidents of Ameresco and Peter Christakis to Chief Operating Officer. Sakellaris said the structure aligns oversight with two halves of the project business: energy infrastructure and building efficiency.

Bulgarino will be responsible for the energy infrastructure portion while continuing to guide the federal solutions business, while Maltezos will focus on building efficiency and core non-federal projects, Sakellaris said.

Bulgarino said Ameresco is seeing demand across traditional federal programs, including energy efficiency and infrastructure modernization through long-term ESPC and design-build work. She noted an “uptick in federal government proposal activity over the last year” and said customers are focused on upgrading buildings, improving reliability, lowering life-cycle costs, and hardening critical facilities.

Bulgarino also said the company’s energy infrastructure pipeline includes “large and complex projects,” including “transformational data center opportunities,” driven by demand for on-site reliable power where utility access is constrained or delayed. She said Ameresco is approaching the market with discipline, focusing on larger, experienced developers and projects where its behind-the-meter capabilities provide clear value.

Maltezos said rising electricity prices are increasing customer interest in energy efficiency, particularly for customers with older buildings and limited capital budgets. He said energy efficiency savings can be reinvested into broader facility improvements and that higher power prices can shorten payback periods, enabling “larger, more comprehensive projects.”

First-quarter financial results: revenue up, margins pressured by weather

Chief Financial Officer Mark Chiplock reported total revenue of $401 million, up 14% year-over-year. He said growth was broad-based and “led by continued strength in projects and O&M.”

• Project revenue: $291 million, up 16%, driven by execution across federal and key geographies and demand in building efficiency and energy infrastructure.
• Energy asset revenue: $61 million, up 7%, supported by growth in the operating portfolio, though impacted by weather at certain RNG sites.
• O&M revenue: up 22%, driven by additions of new long-term contracts; Chiplock said long-term O&M backlog now exceeds $1.5 billion.

Chiplock said gross margin was 14.1%, reflecting project mix and adverse weather impacts at certain RNG facilities. In Q&A, Sakellaris said three RNG plants experienced freeze-ups for “at least a couple of weeks,” and he also cited heavier snow cover affecting solar farms and construction logistics. Chiplock said there was “nothing unusual or one time from a close out perspective,” describing the quarter as “purely mix” that helped offset some winter impacts.

Operating expenses were $46 million, which Chiplock attributed to targeted investments in people, project development, and execution capabilities. Net interest and other expenses were higher than expected due to $1.8 million of non-cash mark-to-market impact and about $1 million in foreign exchange losses, Chiplock said.

Ameresco posted a net loss attributable to common shareholders of $18.3 million, with a GAAP loss of $0.35 per diluted share and a non-GAAP loss of $0.33 per share. Adjusted EBITDA was $40.5 million, which Chiplock said was in line with expectations.

Backlog growth and energy asset base expansion

Chiplock said business development remained strong, with awarded project backlog up 20% to $2.8 billion. He said the company booked “over half a billion dollars of new awards during the quarter,” bringing total project backlog to $5.3 billion, and cited strong proposal activity particularly in the federal market.

On the energy asset side, Chiplock said the operating base stands at 838 megawatts, with 568 megawatts in development and construction.

Asked about where new awards and opportunities are headed, Bulgarino pointed to infrastructure modernization activity with GSA and the Department of Defense, as well as power infrastructure opportunities including electrical distribution and generation-type projects. Maltezos added that rising electricity prices are prompting more customers to consider projects that previously may have been “borderline.”

Guidance framework updated to reflect planned Neogenyx closing

Chiplock said that, given the start to the year and visibility, the company “would have been reaffirming” its 2026 guidance, but updated full-year guidance presentation in anticipation of closing the Neogenyx Fuels transaction.

He said Ameresco expects to consolidate Neogenyx Fuels, leaving revenue guidance unchanged, but noted that 30% of adjusted EBITDA and net income from the biofuels business will be attributed to HASI as non-controlling interest. Chiplock said Ameresco also plans to consolidate 100% of Neogenyx’s assets and liabilities, including related project-level debt, with HASI’s ownership reflected in shareholders’ equity.

Chiplock said the company continues to anticipate placing 100 to 120 megawatts of total energy assets into service, including two RNG plants. Expected CapEx is $300 million to $350 million, which he said is expected to be funded by a mix that includes energy asset debt, HASI’s investment, tax equity, and tax credit sales. He also said results are expected to follow historical seasonality, with roughly 60% of 2026 revenue expected in the second half.

For the second quarter, with the expectation that the Neogenyx transaction will close during the quarter, Chiplock guided to adjusted EBITDA of $58 million to $62 million and non-GAAP EPS of $0.18 to $0.23.

Sakellaris closed by saying the company is “taking decisive steps to position the company to thrive long term and build shareholder value.”

About Ameresco NYSE: AMRC

Ameresco, Inc is a leading independent provider of comprehensive energy efficiency and renewable energy solutions for businesses and governments across North America, Europe and other select markets. Its integrated services portfolio includes energy efficiency retrofits, infrastructure upgrades, distributed generation systems and facility-scale renewable projects. Leveraging performance-based contracting models, Ameresco designs, finances, installs and maintains energy improvements intended to reduce operational costs, mitigate environmental impact and enhance resiliency for its clients.

Founded in 2000 and headquartered in Framingham, Massachusetts, Ameresco has completed thousands of projects spanning solar, wind, geothermal, biomass, landfill gas‐to‐energy, energy storage and microgrid installations.

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