Ameresco’s $6.73 billion backlog and $1.2 billion of data-center awards create substantial upside, but working-capital demands and covenant headroom make cash conversion the investment’s critical test.
Overview
Ameresco is a vendor-neutral clean-energy infrastructure integrator that designs, builds, owns, operates, and maintains efficiency upgrades, microgrids, renewable assets, and behind-the-meter power systems across North America and Europe. Projects provide 75%–80% of revenue, while owned Energy Assets and long-duration O&M contracts add recurring power and service income. Federal procurement credentials, budget-neutral ESPCs, and a record $6.73 billion backlog support its competitive position; $1.2 billion of Q2 2026 awards were for data-center power amid grid constraints and growing AI-related electricity demand. Q2 revenue rose 9.1% to $515.5 million, beating consensus by 10.8%, while adjusted EBITDA increased 11.9% to $62.8 million and gross margin reached 17.7%. Net income nevertheless fell to $9.7 million as depreciation and interest costs rose, and operating cash flow was negative $107.2 million due to project working capital. Management reaffirmed 2026 revenue guidance of $2.0–$2.2 billion and adjusted EBITDA guidance of $250–$270 million, while raising non-GAAP EPS guidance to $1.15–$1.35. At approximately $21.57, the stock trades at about 11.8x guided-midpoint EV/adjusted EBITDA and 17.3x forward P/E. Near-term catalysts are backlog conversion, data-center execution, and tax-credit monetization; CFO transition and cash conversion remain key tests.