Ameresco, Inc. (AMRC) Q1 2026 10-Q Summary
Business Context and Reporting Period
This filing covers the quarterly period ended March 31, 2026. Ameresco, Inc. is a leading energy infrastructure solutions provider offering energy efficiency, renewable energy, and operations and maintenance (O&M) services. The company operates across North America, Europe, and the U.S. Federal sectors. As of May 1, 2026, the company had 34,951,417 Class A shares and 18,000,000 Class B shares outstanding.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenues | $401.5 million | $352.8 million |
| Gross Profit | $56.5 million (14.1% margin) | $51.9 million (14.7% margin) |
| Operating Income | $10.2 million | $13.7 million |
| Net Loss | $(14.4) million | $(5.6) million |
| Net Loss Attributable to Common Shareholders | $(18.3) million | $(5.5) million |
| Diluted EPS | $(0.35) | $(0.10) |
| Cash Flow from Operations | $35.4 million | $(28.3) million |
| Total Debt (Gross) | $2.04 billion | $1.94 billion |
| Cash & Restricted Cash | $252.5 million | $166.8 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 13.8% year-over-year, driven by a 31.7% increase in Europe segment revenue and a 118.9% increase in U.S. Federal revenue. North America Regions revenue declined 6.9% due to project timing.
- Profitability Decline: Operating income decreased 25.2% to $10.2 million. Gross margin compressed slightly to 14.1% from 14.7%, attributed to energy asset production delays caused by weather.
- Expense Increases: Selling, General, and Administrative (SG&A) expenses rose 20.3% to $46.3 million due to higher payroll, professional fees, and the absence of a $1.4 million gain recognized in the prior year from a divestiture. Interest expense increased 26.5% to $25.2 million due to higher debt balances.
- Cash Flow Improvement: Operating cash flow swung from a $28.3 million outflow in Q1 2025 to a $35.4 million inflow in Q1 2026, primarily due to timing differences in accounts payable and prepaid expenses.
Outlook, Risks, and Unusual Items
- Neogenyx Fuels Joint Venture: On May 4, 2026, Ameresco entered an agreement to form a joint venture with HA Sustainable Infrastructure Capital. Ameresco will contribute its biogas business for a 70% stake, while the investor contributes $400 million for a 30% stake. The transaction is expected to close in Q2 2026, with $100 million paid to Ameresco at closing.
- Regulatory Changes: The "One Big Beautiful Bill Act" (OBBB), enacted July 4, 2025, introduced new timing requirements for solar Investment Tax Credits (ITC) and phasedown schedules for energy storage credits, potentially impacting future project economics.
- Legal Contingencies:
- SCE Agreement: Disputes remain regarding liquidated damages (up to $89 million) for delayed battery energy storage projects. Ameresco believes damages should not apply, but the matter is unresolved.
- Powin LLC Bankruptcy: Supplier Powin filed for Chapter 11 in June 2025. Ameresco has $26.7 million in deposits at risk; no loss has been accrued as the outcome is uncertain.
- Supply Chain: Ongoing global supply chain disruptions, tariffs, and geopolitical tensions continue to increase costs and delay project completions.
Investor Verification Checklist
- Debt Covenants: Verify compliance with the Senior Secured Credit Facility covenants, specifically the debt service coverage ratio (1.5x) and total funded debt to EBITDA (3.5x), given the recent increase in term loan principal.
- Joint Venture Accounting: Confirm the accounting treatment and consolidation status of the Neogenyx Fuels transaction upon closing in Q2 2026.
- SCE Resolution: Monitor the status of the Southern California Edison (SCE) dispute regarding the $89 million potential liquidated damages exposure.
- Powin Recovery: Track the bankruptcy proceedings of Powin LLC to assess the recoverability of the $26.7 million in deposits.
- ITC Eligibility: Assess the impact of the OBBB legislation on the pipeline of solar and storage projects scheduled for construction in 2026.