Ameresco's Record Data Center Awards Highlight Underlying Cash Flow Concerns
On August 3, Ameresco (NYSE:AMRC) reported second-quarter 2026 results marked by a record $1.8 billion in new project awards, with $1.2 billion linked to data center power projects. Total backlog rose 32% year-over-year to $6.73 billion, and the Power Infrastructure segment saw its awarded backlog jump 65% to $4.4 billion. Despite revenue growth of 9% to $515.5 million and improved gross margin (17.7%) and adjusted EBITDA ($62.8 million), cash flow from operations was negative at -$107.2 million for the quarter, with even adjusted figures showing a deficit. Net income attributable to common shareholders fell year-over-year to $9.7 million or $0.18 per share in Q2 2026 compared to $12.9 million and $0.24 in the same period last year. For H1 2026, Ameresco posted a net loss of $8.6 million versus a profit of $7.4 million in H1 2025. Management attributed this decline to higher depreciation and interest expenses from its growing energy asset portfolio as well as tax-related factors. Despite the cash flow challenges, management raised full-year Non-GAAP EPS guidance due to an accounting change related to transferable tax credits rather than operational improvements. The stock trades at a forward P/E of 14.60 with high short interest (18.39% of float), indicating market uncertainty about whether its data center pipeline can offset cash flow and earnings pressures.
Topics: cash flow issues data centers energy infrastructure project awards