0001628280-26-030169
SEC filingRevenue grew 13.8% YoY driven by Europe project growth, but net loss widened to $18.3M on higher interest and SG&A costs.
For the three months ended March 31, 2026, Ameresco reported total revenues of $401.5 million, a 13.8% increase from $352.8 million in the prior-year period. The growth was primarily driven by a $39.0 million (16%) increase in project revenues, led by strong execution in Europe and timing of cost-to-cost revenue recognition. Operations and maintenance revenue rose 22% to $5.4 million, and energy asset revenue increased 7% to $4.0 million, reflecting continued portfolio expansion.
Gross profit grew 8.8% to $56.5 million, but gross margin contracted 60 basis points to 14.1% from 14.7%, due to energy asset production delays caused by weather and higher depreciation from the growing operating asset base. Selling, general and administrative expenses increased 20.3% to $46.3 million, driven by higher payroll and benefits ($3.8 million), professional fees ($1.3 million), and the absence of a $1.4 million gain on sale recognized in the prior year. Net interest expense rose 26.5% to $25.2 million on higher debt outstanding. Other expenses swung to $2.6 million from income of $1.8 million, primarily due to foreign currency transaction losses versus gains in the prior year. The net loss attributable to common shareholders widened to $18.3 million ($0.35 per share) from $5.5 million ($0.10 per share).
Segment performance was mixed. North America Regions revenue declined 6.9% to $166.0 million on lower project revenue timing, partially offset by O&M and energy asset growth; operating income fell 10.2% to $7.3 million due to unrealized derivative losses and lower other income. U.S. Federal revenue surged 118.9% to $55.3 million, driven by favorable project timing and a prior-year revenue reversal on a solar project; however, operating income dropped 58.8% to $1.3 million as higher legal and project development costs weighed on margins. Renewable Fuels revenue edged up 2.9% to $39.3 million, but operating loss deepened to $5.2 million from $0.9 million, reflecting weather-related production delays, higher depreciation, and increased interest expense. Europe was the standout, with revenue up 31.7% to $127.3 million on strong project activity in Greece and Romania joint ventures; operating income rose 22.4% to $4.2 million, partially offset by higher SG&A. All Other revenue fell 6.2% to $13.6 million on lower integrated-PV sales due to seasonality.
Management expects supply chain disruptions, tariffs, and inflationary pressures to persist and potentially intensify, impacting project timelines and costs. The company plans to invest $200 million to $250 million in capital expenditures during the remainder of 2026, primarily for renewable energy plant construction or acquisition, funded largely by $150 million to $200 million in project financings. The Neogenyx Fuels joint venture, expected to close in Q2 2026, will provide $100 million in cash to Ameresco and $300 million to the JV for biogas growth, with $58 million used to reduce project-level debt. The SCE agreement is expected to finalize all three battery storage projects this year, though up to $89 million in liquidated damages remain disputed. Backlog remains robust at $5.27 billion, with awarded backlog up 20.2% year-over-year, signaling strong future demand. The company believes its liquidity, including $44.3 million available under its revolver, is sufficient through at least May 2027.
As of March 31, 2026, Ameresco held $252.5M in cash and restricted cash, up from $186.5M at December 31, 2025, driven by strong operating cash flow of $35.4M and net financing proceeds. Total debt and financing lease liabilities increased to $2,041.0M from $1,936.8M, reflecting ongoing investments in energy assets. Shareholders' equity was $1,110.0M, slightly down due to net loss of $14.4M.
The company has a contracted backlog of $4,040.9M, with 30% expected to be recognized in the next twelve months. A significant contingent liability involves the SCE contract, where liquidated damages up to $89M may be applied. Additionally, Ameresco has a $40M earn-out commitment from the BCE acquisition, though no liability is recorded. Deposits of $26.7M to bankrupt supplier Powin LLC represent a potential loss.
No share repurchases or dividends occurred during the quarter. Debt activity included $227.9M in proceeds (corporate and energy asset financings) and $123.2M in repayments, resulting in net debt increase of $104.7M. Capital expenditures totaled $96.9M, primarily for energy assets (24.1% of revenue).
Revenue for Q1 2026 was $401.5M, up 13.8% YoY led by Europe ($127.3M, +31.7%) and U.S. Federal ($55.3M, +119%). North America Regions declined to $166.0M (-6.9%). Segment income before taxes was positive for all except Renewable Fuels (-$5.2M). Geographically, U.S. contributed 59.9% of revenue, Canada 8.4%, and Europe 31.7%.
Net loss was $14.4M, yet operating cash flow was $35.4M, a strong positive swing from -$28.3M in the prior year. The primary driver was a large favorable change in working capital, notably accounts receivable ($8.0M), unbilled revenue ($13.2M), and deferred revenue ($5.7M), partially offset by a decline in accounts payable and accrued expenses (-$5.8M). Non-cash add-backs included depreciation of energy assets ($28.2M), stock-based compensation ($4.2M), and amortization of debt discount ($2.0M).
Capital investments in energy assets were $90.6M, with an additional $5.8M in major maintenance and $0.5M in property and equipment, totaling $96.9M in investing outflows. This represents a high capex intensity relative to operating cash flow, indicating reliance on external financing.
Free cash flow (CFO minus capex) was -$61.5M, reflecting the heavy investment phase. No share repurchases or dividends were reported. Financing activities provided $128.5M, primarily from long-term energy asset debt ($182.9M) and corporate debt ($45.0M), offset by debt repayments ($123.2M). The company also received $26.6M from Federal ESPC projects.