Ameresco, Inc. Q1 FY2026 earnings call

• George noted 14% revenue growth despite adverse weather, 20% awarded backlog growth, and announced a $400 million strategic investment with HACI to form Neogenics Fuels. - Mike Backus discussed leading Amoresco's biogas business and the new Neogenics Fuels JV. - Nicole and Lou were promoted to co-presidents, with Nicole responsible for energy infrastructure and Lou for built-in efficiency. Nicole highlighted strong federal business and energy infrastructure demand. Lou spoke about building efficiency solutions and rising electricity prices driving interest in energy efficiency. - Mark covered financials, including revenue, backlog, energy asset performance, and balance sheet details.

Total revenue was $401 million, up 14% year-over-year. Project revenue increased 16% to $291 million, driven by solid execution across federal and key geographies, with awarded project backlog growing 20% to $2.8 billion. Energy asset revenue grew 7% to $61 million, supported by the continued expansion of the operating portfolio. O&M had revenue up 22%, with long-term O&M backlog exceeding $1.5 billion. Gross margin was 14.1% reflecting project mix and weather impacts. Adjusted EBITDA was $40.5 million. Cash from operations was approximately $62 million, with an eight-quarter rolling average of ~$57 million.

• Given solid start, updated guidance to reflect Neogenics Fuels transaction. Revenue guidance unchanged. 30% of adjusted EBITDA and net income from biofuels business attributed to HACI. - Anticipate placing 100 - 120 megawatts of total energy assets in service, including two RNG plants. CapEx expected $300 - $350 million. - Second half expected to contribute ~60% of 2026 revenue. Second quarter adjusted EBITDA expected $58 - $62 million, non-GAAP EPS 18 - 23 cents.

• Forward-looking statements subject to risks and uncertainties, including those related to expected closing of Neogenic Fuels transaction. - Net interest and other expenses higher than expected due to non-cash mark-to-market impact and foreign exchange losses. - Weather conditions affecting RNG facilities during the quarter.

Q: Congrats on neogenics, how is valuation compared to peers?

A: George and Josh discussed valuation being fair, at over 20 times post-money valuation on $1.8 billion, and believed it's in line or above market multiples.

Q: Regarding ESPC receivables financing, any plans to change accounting?

A: George and others mentioned it's non-recourse but complex in reporting, and they were constrained by accounting and GAAP.

Q: About accelerating growth of neogenics, plans and public listing?

A: Mike and George talked about accelerating growth by doubling plants over time, and looking at opportunities like M&A and global expansion, but no immediate plan to go public.

Q: Tax equity concerns?

A: Josh said compliance around FEOC was more of a concern than pullback in availability, and they had a diversified pool of tax investors.

Q: Data center projects timeline?

A: Nicole explained data center projects are complex with many factors, taking longer due to complexities in specs, permitting, etc.

Q: RVO and D3 pricing, data center project updates?

A: Michael discussed RVO and D3 pricing, and Nicole talked about continuing to develop the Cyrus One project and working on other opportunities