Ameresco Q3 revenue rises 10% as backlog nears $7.2 billion

By Tom Whitfield

Ameresco generated $580 million in third-quarter 2026 revenue, up 10%, and $31.9 million in net income attributable to common shareholders, or $0.59 per diluted share. Project, energy asset and operations and maintenance growth offset a changing accounting presentation.

Adjusted EBITDA reached $92 million and non-GAAP earnings were $0.88 per share. Chief Investment Officer Josh Baribeau said earnings included a large tax benefit tied to a change in the accounting for transferable investment tax credits.

Ameresco also changed its non-GAAP methodology to include 100% of the operating results of consolidated joint ventures. The tax benefit affects reported earnings, while the methodology change alters adjusted EBITDA and non-GAAP earnings.

Takeaway: Accounting changes complicate the earnings comparison.

What is driving the backlog?

Ameresco recorded $875 million in new project awards, one of its strongest quarters on record, Co-President Nicole Bulgarino said. Awarded backlog exceeded $4.5 billion, up more than 70% from a year earlier.

The company converted $737 million of awards into contracted backlog during the quarter. Total awarded and contracted backlog reached nearly $7.2 billion, up almost 40% from a year earlier.

Federal, commercial and industrial, and European projects accounted for approximately $675 million, or more than 75%, of new awards. Bulgarino said federal conversions included infrastructure projects for the Department of Veterans Affairs, the Coast Guard and an Army site.

Chairman and CEO George Sakellaris said some projects now move from award to contract faster than before, particularly in Europe and among commercial and industrial customers. He attributed part of that acceleration to customers’ need for reliable power.

Takeaway: The pipeline expanded sharply; conversion remains the test.

Can the data-center pipeline convert on schedule?

Ameresco added approximately $200 million to awarded backlog from an expansion of a data center project. Bulgarino said the increase reflected a more developed design and additional generation capacity to match the customer’s anticipated load. The company has five data center projects in awarded backlog.

Bulgarino said 12 to 18 months was “on target” for converting the five projects, while each follows a different development path. The main milestones are permitting, finalizing customer contracts and securing equipment.

Bulgarino said permitting was close on a few projects, especially a federal site. Ameresco plans the projects as behind-the-meter, islanded energy plants, although they could connect to the grid later.

Baribeau said the opportunity set leaned more heavily toward Arizona than Texas and included roughly 10 projects, five of which were in awarded backlog.

Takeaway: The 12-to-18-month target depends on permits, contracts and equipment.

What is the status of nuclear work?

Ameresco is developing on-site nuclear generation projects with the Army and has signed its first engineering, procurement and construction contract for balance-of-plant work on a separate microreactor project. Bulgarino said the microreactor technology partner would assume the nuclear-related risk on that separate project.

The Army projects remain early in development and still require permitting, design work and lease negotiations. Bulgarino described a phased approach that could include battery storage and fuel cells before later nuclear phases.

Takeaway: One contract is signed, but Army work faces permits, design and leases.

Which businesses drove revenue and margin?

Project revenue rose 9% to $446 million, while energy asset revenue increased 21% to $75 million. Operations and maintenance revenue grew 20% to $37 million, and its backlog exceeded $1.5 billion. Gross margin expanded to 18.7%, which Baribeau attributed to favorable business mix and execution.

Bulgarino said completed projects also delivered margin gains. Baribeau cautioned against assuming that the operations and maintenance business’s recent EBITDA margin in the mid-20% range will persist.

Takeaway: Broad growth did not remove margin normalization risk.

How much did accounting change the headline?

Ameresco changed the assumed useful life of its energy assets to 30 years from 20 years, reducing depreciation expense beginning in the third quarter. Baribeau said higher depreciation from the adoption of tax-based accounting for transferable investment tax credits largely offset that reduction during the quarter.

Ameresco adopted hypothetical liquidation at book value accounting for its Neogenyx joint venture. Baribeau said the change did not affect the venture’s underlying economics, cash flows or operations. Ameresco continues to own 70% of Neogenyx and 51% of its Sunel joint venture.

Without the revised non-GAAP presentation of joint-venture results, third-quarter non-GAAP earnings would have been $0.60 per share and adjusted EBITDA would have been $78 million, Baribeau said.

Takeaway: Revised presentation changes the adjusted earnings baseline.

What does Ameresco do, and what changed in guidance?

As a renewable energy and energy-solutions company, Ameresco develops, designs, constructs and operates energy-efficiency and infrastructure projects for public- and private-sector clients. Its services target lower energy use, better facility performance and lower-carbon energy. Offerings include energy-as-a-service, energy audits, efficiency upgrades, solar, battery storage, microgrids, distributed energy resources, LED lighting, heating and cooling, and renewable natural gas.

Ameresco updated its full-year guidance and provided fourth-quarter guidance. Baribeau said the updates reflected the accounting and non-GAAP presentation changes, not a change in operational outlook. Full-year adjusted EBITDA and non-GAAP earnings guidance otherwise would have been unchanged.

Takeaway: Guidance changes the lens, not the operating outlook.