Ameresco’s Data Center Backlog Projections and Revenue Recognition Timelines Clash in 2026 Earnings Call

Date of Call: Aug 3, 2026

Financials Results

• Revenue: $515M, up 9% YOY
• EPS: $0.08 per diluted share (GAAP); Adjusted EBITDA per diluted share $0.18
• Gross Margin: 17.7%, a meaningful improvement both sequentially and year-over-year

Guidance:

• Reaffirmed full year 2026 guidance across all metrics.
• Increased non-GAAP EPS guidance range to $1.15 to $1.35.
• Expects second half to follow normal seasonal cadence, weighted toward Q4.

Business Commentary:

Record Awards and Data Center Growth:

• Amoresco Incorporated secured record new awards totaling $1.8 billion in Q2 2026, with $1.2 billion specifically for data centers.
• The growth was driven by increasing demand for reliable power infrastructure and favorable policies encouraging on-site power solutions.

Backlog and Project Pipeline:

• The company's awarded project backlog increased 65% to reach a record level of $4.4 billion, with total project backlog rising 32% to $6.7 billion.
• This was supported by strong project execution and the visibility provided by a robust pipeline of opportunities, particularly in data centers and other key markets.

Financial Performance and Energy Assets:

• Amoresco reported revenue of $515 million, with total revenues growing by 9%, and project revenue increasing 6% to $381 million.
• The financial strength was attributed to solid execution in core project business, particularly in federal and North America, and the expansion of the energy asset portfolio.

Strategic Repositioning and Market Focus:

• The company repositioned its market focus into two core pillars: power infrastructure and building and public infrastructure.
• This strategic shift aimed to enhance Amoresco's standing as a leading energy infrastructure company, delivering integrated solutions for reliable power and modernized infrastructure.

Sentiment Analysis:

Overall Tone: Positive

• Statements include: 'Q2 was a transformational quarter', 'record $1.8B of new awards', 'strong financial performance', 'backlog increased 65% to a record level', 'confidence in our ability to drive exceptional long-term profitable growth'.

Q&A:

• Question from George Generegas (Canaccord Genuity): Regarding the data center wins, how are project delivery commitments structured from a risk-sharing perspective, specifically financial exposure or liquidated damages if completion timelines slip?
  Response: Management declined to disclose specifics but assured that projects are signed with appropriate commitments and diligence.

• Question from George Generegas (Canaccord Genuity): Any update on what's happening with Neogenics, project updates, etc.?
  Response: The relationship with HACI is going very well, leading to increased development and acquisition opportunities.

• Question from Stephen (Stifel): For the data center awards, how should we think about the cadence of backlog conversion compared to what we've become accustomed to?
  Response: Conversion cadence is not different; awards typically move to contract in 6-24 months and then to implementation over 12-36 months.

• Question from Stephen (Stifel): Is the margin profile for the data center awards similar to legacy activity?
  Response: Margins are in the high teens, similar to government projects.

• Question from Eric Stein (Craig-Hallum): Can you detail the size of the data center pipeline versus the awarded $1.2B and where projects are in the lifecycle?
  Response: The current awarded amount is part of a larger pipeline; management expects the total awarded backlog to potentially increase to around $2B.

• Question from Eric Stein (Craig-Hallum): Could a structure similar to Neogenics help with financing for these large data center opportunities?
  Response: Management would consider another vehicle like Neogenics if the right capital and multiples are available.

• Question from Anonymous: Are the customers for these data center projects hyperscalers and neoclouds?
  Response: Yes, they are part of the deals.

• Question from Anonymous: Where are you in the process of securing supply for long lead items, and have you placed orders?
  Response: No orders have been placed yet; equipment selection is still being finalized with partners as projects are in the awarded pipeline.

• Question from Anonymous: What is the revenue cadence for projects coming online in 2028-2030?
  Response: Award to contract takes 12-24 months; implementation can take 12-36 months, depending on project complexity.

• Question from Anonymous: What is the status of the contracted backlog, specifically the Naval Air Station?
  Response: The L'Amour project is in the awarded backlog with a 12-24 month development timeline to contract.

• Question from Usha (Guggenheim Partners): How should we think about revenue recognition for data center opportunities—is it a gain on sale or capitalized to the balance sheet?
  Response: It is normal EPC revenue recognition based on percent complete, not an asset sale.

• Question from Usha (Guggenheim Partners): Are data center storage deployments focused on short duration power quality or longer duration resilience?
  Response: Deploys a combination for both resiliency (during outages) and stabilization, typically around 2-hour duration.

• Question from Craig Shear (Tuohy Brothers): Are the new data center pipeline projects similar in size to those in the awarded backlog?
  Response: Similar sizes, with some being phases of larger campuses using various technologies like reciprocating engines and gas turbines.

• Question from Craig Shear (Tuohy Brothers): When will the major revenue impact from data centers be seen, given the 2028-2030 timelines?
  Response: Minor impact possible in 2027, with major impact expected from 2028 to 2030 as projects are implemented.

• Question from Swetha Richa: Are the three new data center wins affiliated with the two already booked? Can you qualify the customers?
  Response: Multiple customers involved (landowners, operators, tenants), including hyperscalers and neocloud tenants.

• Question from Swetha Richa: How are you thinking about risk for project delays due to local bans or zoning restrictions?
  Response: Risk is mitigated by partnering with experienced developers with local community relations, especially on federal government lands.

• Question from Swetha Richa: Given the robust pipeline, what would it take to raise guidance?
  Response: Visibility from data centers is already baked into the reaffirmed 2026 guidance; no significant expected impact.

Contradiction Point 1

Data Center Project Pipeline Size and Growth Outlook

It involves differing expectations for the scale and growth trajectory of the company's data center project pipeline, which is crucial for investor understanding of future business potential.

Eric Stein (Craig-Hallum) - Eric Stein (Craig-Hallum)

2026Q2: The total awarded backlog could grow to about $2 billion. - [George Sakolaris](CFO) & [Nicole Bulgarino](CFO)

How does the data center pipeline size compare to awards, and what's the lifecycle for transitioning these opportunities to awarded backlog? - Noah Kaye (Oppenheimer & Co.)

2026Q1: The current pipeline provides visibility through 2029, with new awards expected to be added for 2030 and beyond. - [Joshua Baribeau](CFO) & [Michael Bakas](CFO)

Contradiction Point 2

Revenue Recognition and Project Conversion Timeline

It involves differing explanations for the timing and method of revenue recognition from awarded projects, which impacts financial reporting and forecasting consistency.

Questioner (Unnamed) - Questioner (Unnamed)

2026Q2: Revenue recognition follows the percent complete method. - [George Sakolaris](CFO) & [Nicole Bulgarino](CFO)

How will the revenue cadence look for the project expected to launch in 2028, 2029, or 2030? - Craig Irwin (ROTH Capital Partners)

2026Q1: The quarter was a strong start to the year, with $20-30 million of next quarter's revenue pulled into Q1. - [George Sakellaris](CFO) & [Michael Bakas](CFO)

Contradiction Point 3

Data Center Project Pipeline and Backlog Conversion Timing

It involves differing timelines for moving projects from awarded to contracted status, affecting backlog management and financial visibility.

Stephen (Stifel) - Stephen (Stifel)

2026Q2: Awards move to 'contracted' status in 6 to 24 months, after which implementation (12 to 36 months) begins. - [George Sakolaris](CFO)

How are data center awards impacting the cadence of backlog conversion compared to previous trends? - Ben Kallo (Baird)

20260303-2025 Q4: Data center projects will move into backlog as gating items are derisked. The timeline depends on successfully managing these items. - [Mark Chiplock](CFO)

Contradiction Point 4

Revenue Recognition for Data Center Projects

It involves differing views on when revenue is recognized for data center projects, which is essential for accurate financial reporting and investor expectations.

Questioner (Unnamed) - Questioner (Unnamed)

2026Q2: Revenue recognition follows the percent complete method. - [George Sakolaris](CFO) & [Nicole Bulgarino](CEO)

Can you detail the revenue timeline for projects coming online in 2028, 2029, or 2030? - Noah Kaye (Open Harman)

20260303-2025 Q4: The majority of assets placed in service in 2026 will be in the middle to back half of the year... The real impact is felt in the following year (2027 for 2026 placements). - [George Sakellaris](CEO)

Contradiction Point 5

Pipeline Size and Growth Potential

It involves differing narratives on the scale and growth potential of the data center pipeline, affecting investor perception of business momentum.

Eric Stein (Craig-Hallum) - Eric Stein (Craig-Hallum)

2026Q2: The total awarded backlog could grow to about $2 billion. The company is being strategic and diligent in partnering with developers and continues to vet new opportunities daily, with potential for more projects to be added. - [George Sakolaris](CFO), [Nicole Bulgarino](CFO)

How does the data center pipeline size compare to awards, and what is the lifecycle of these opportunities in transitioning to awarded backlog? - Noah Kaye (Oppenheimer & Company)

20251104-2025 Q3: The first major project ... is finalizing details, with the total opportunity potentially as large as 350 megawatts. - [Nicole Bulgarino](CFO), [Joshua Baribeau](CFO)