A North America- and Europe-based energy services company that helps governments, schools, and businesses cut energy use and go renewable. It upgrades buildings with efficient lighting, HVAC, and controls, and builds and runs solar, wind, biogas, and electric-vehicle-charging projects, often under contracts guaranteeing energy savings. Founded in 2000 by energy-industry veteran George Sakellaris, the idea was reportedly sketched on a napkin at a Joe's American Bar & Grill in Dedham, Massachusetts. Its name blends "America" and "ESCO," short for energy service company.
Ameresco's Q2 gross margin hit 17.7%, the highest in over three years, but net income to common fell 25% as non-controlling interests rose.
reached its highest level since early 2022. rose 9% to $515.5 million and rose 59% to $44.2 million, driven by a favorable project mix and growth in higher-margin services, but attributable to common shareholders fell 25% to $9.7 million as a $7.5 million increase in absorbed the gains. The Neogenyx Fuels joint venture closed, bringing in $234 million in cash, but remained deeply negative as unbilled piled up.
Key takeaways
expanded 2.2 points to 17.7%, which management attributed to a favorable mix of higher-margin projects, , and growth in O&M services.
attributable to common shareholders fell 24.5% to $9.7 million, as a $7.5 million increase in income allocated to outweighed a $26.6 million rise in .
rose 9.1% to $515.5 million, led by a 55% increase in the U.S. Federal and a 27% increase in Renewable Fuels, while the North America Regions segment declined 7%.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 9% to $515M driven by project timing and energy asset growth, but net income to common fell 25% on higher interest and non-controlling charges.
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Total increased 9% to $515M, led by a 55% surge in U.S. Federal and 27% growth in Renewable Fuels, while North America Regions declined 7%.
expanded to 17.7% from 15.5%, helped by a favorable mix of higher-margin projects, , and growth in O&M services.
The company closed the Neogenyx Fuels joint venture with HASI, receiving $234 million in cash and consolidating the biogas business, which contributed to a $210 million investing cash outflow on higher energy asset .
was an outflow of $107.2 million, driven by a $120 million increase in , as costs incurred on projects continued to outpace cash collections.
declined 1.6% sequentially to $1.79 billion, while rose 21.7% to $1.35 billion, reflecting the impact of the Neogenyx transaction.
What changed
recovery: flagged in prior quarters as a key watch item, gross margin reached 17.7%, approaching the 18% level last seen in FY2023, as the drag from SCE cost budget revisions diminished and the project mix improved.
Neogenyx Fuels joint venture: the transaction flagged in Q1 2026 closed in Q2, delivering $234 million in cash and consolidating the biogas business, though the $100 million in direct compensation and $58 million in debt reduction cited in Q1 were not explicitly confirmed in the final terms disclosed.
: the return to positive cash generation flagged in prior quarters did not materialize, as the Q2 outflow of $107.2 million was driven by a $120 million increase in , extending the pattern of pressure seen in FY2025.
SCE liquidated damages: the up to $89 million in potential liquidated damages on the SCE project, a risk flagged in every prior filing, was not mentioned in this quarter's risk factors or legal proceedings, suggesting it may no longer be a material outstanding risk.
What to watch
Whether the 17.7% is sustainable, or if it was temporarily boosted by the Q2 project mix and the consolidation of the Neogenyx biogas business, which may carry different margin characteristics.
The conversion of elevated unbilled into cash in the second half of 2026, which will determine whether can turn positive for the full year after the $71.8 million outflow in the first half.
The impact of the Neogenyx consolidation on future and , given that the joint venture adds project-level debt and minority partners that will continue to claim a share of .
The trajectory of the U.S. Federal , which rose 55% this quarter, and whether that growth is tied to specific project timing or represents a sustained shift in the segment's contribution.
SG&A rose 4% to $47.6M on higher professional fees and payroll, partially offset by lower restructuring costs.
attributable to common shareholders dropped 25% to $9.7M, as a $7.5M increase in outweighed gains.
Operating cash outflow widened to $71.8M due to a $120M increase in , while investing outflows rose to $210M on higher energy asset .
The company closed the Neogenyx Fuels joint venture with HASI, receiving $234M in cash and consolidating the biogas business, with plans for $120M-$170M in remaining 2026 .
Quantitative and Qualitative Disclosures About Market Risk
As of June 30, 2026, there have been no significant changes in market risk exposures that materially affected the quantitative and qualitative disclosures as described in Item 7A to our 2025 Form 10-K.
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As of June 30, 2026, there have been no significant changes in market risk exposures that materially affected the quantitative and qualitative disclosures as described in Item 7A to our 2025 Form 10-K.
In the ordinary conduct of our business, we are subject to periodic lawsuits, investigations, and claims. Although we cannot predict with certainty the ultimate resolution of such lawsuits, investigations and claims against us, we do not believe that any currently pending or thr…
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In the ordinary conduct of our business, we are subject to periodic lawsuits, investigations, and claims. Although we cannot predict with certainty the ultimate resolution of such lawsuits, investigations and claims against us, we do not believe that any currently pending or threatened legal proceedings to which we are a party will have a material adverse effect on our business, results of operations or financial condition.
For additional information about certain proceedings, please refer to Note 10, Commitments and Contingencies, to our condensed consolidated financial statements included under Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated into this item by reference.
Our business is subject to numerous risks, a number of which are described below and under “Risk Factors” in Part I, Item 1A of our 2025 Form 10-K. You should carefully consider these risks together with the other information set forth in this report, which could materially affe…
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Our business is subject to numerous risks, a number of which are described below and under “Risk Factors” in Part I, Item 1A of our 2025 Form 10-K.
You should carefully consider these risks together with the other information set forth in this report, which could materially affect our business, financial condition and future results. The risks described in Part I, Item 1A of our 2025 Form 10-K are not the only risks we face. Risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and operating results.