Q2 2026 Ameresco Inc Earnings Call

August 3, 2026

Operator: [Break]

Operator: Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2 2026 Ameresco, Inc. Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. To ask a question, press star one on your telephone keypad. To withdraw your question, press star one again. Please limit questions to one and one follow-up. We do ask that you limit questions to one and one follow-up and then rejoin the queue. It is now my pleasure to turn the call over to Leila Dillon, Chief Marketing Officer. Please go ahead.

Speaker #1: You are placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. To ask a question, press star 1 on your telephone keypad.

Speaker #1: To withdraw your question, press *1 again. Please limit questions to one and one follow-up. We do ask that you limit questions to one and one follow-up, and then rejoin the queue.

Speaker #1: It is now my pleasure to turn the call over to Leila Dillon, Chief Marketing Officer. Please go ahead.

Speaker #2: Thank you, Tina, and good afternoon, everyone. We appreciate you joining us for today's call. Our speakers on the call today will be George Sakellaris, Ameresco's Chairman and Chief Executive Officer.

Leila Dillon: Thank you, Tina, and good afternoon, everyone. We appreciate you joining us for today's call. Our speakers on the call today will be George Sakellaris, Ameresco's Chairman and Chief Executive Officer, Nicole Bulgarino, Co-President of Ameresco, and Mark Chiplock, Chief Financial Officer. In addition, Josh Baribeau, our Chief Investment Officer, will also be available during Q&A to help answer questions. Before I turn the call over to George, I would like to make a brief statement regarding forward-looking remarks. Today's earnings materials contain forward-looking statements, including statements regarding our expectations. All forward-looking statements are subject to risks and uncertainties. Please refer to today's earnings materials, the safe harbor language on slide two of our supplemental information, and our SEC filings for a discussion of the major risk factors that could cause our actual results to differ from those in our forward-looking statements.

Speaker #2: Nicole Bulgarino, Co-President of Ameresco, and Mark Chiplock, Chief Financial Officer. In addition, Josh Barrabow, our Chief Investment Officer, will also be available during Q&A to help answer questions.

Speaker #2: Before I turn the call over to George, I would like to make a brief statement regarding forward-looking remarks. Today's earnings materials contain forward-looking statements, including statements regarding our expectations.

Speaker #2: All forward-looking statements are subject to risks and uncertainties. Please refer to today's earnings materials, the safe harbor language on Slide 2 of our supplemental information, and our SEC filings for a discussion of the major risk factors that could cause our actual results to differ from those in our forward-looking statements.

Speaker #2: In addition, we use several non-GAAP measures when presenting our financial results. We have included the reconciliations of these measures and additional information in our supplemental slides that were posted to our website.

Leila Dillon: In addition, we use several non-GAAP measures when presenting our financial results. We have included the reconciliations of these measures and additional information in our supplemental slides that were posted to our website. Please note that all comparisons that we will be discussing today are on a year-over-year basis unless otherwise noted. I will now turn the call over to George. George?

Speaker #2: Please note that all comparisons that we will be discussing today are on a year-over-year basis unless otherwise noted. I will now turn the call over to George.

Speaker #2: George.

Speaker #3: Thank you, Leila, and good afternoon, everyone. Q2 was a transformational quarter for Ameresco, highlighted by exceptional execution and strong financial performance. First, we had a record of $1.8 billion of new awards.

George Sakellaris: Thank you, Leila, good afternoon, everyone. Q2 was a transformational quarter for Ameresco, highlighted by exceptional execution and strong financial performance. First, we had a record of $1.8 billion of new awards, driven by $1.2 billion for data centers and $600 million for our other key markets. Second, we closed our Neogenyx Fuels joint venture with HASI, providing us with significant external capital to accelerate growth in all of our business lines. We announced our first successful delivery of RNG into the European compliance markets. Third, we repositioned Ameresco into two core market pillars, we are releasing a new rebranded corporate identity to reflect the updated positioning. Finally, we successfully brought online the 250-megawatt Napanee Battery Energy Storage System, one of the largest energy storage projects in Canada. We energized the 560-megawatt solar project in Greece, one of the largest projects in Europe.

Speaker #3: Driven by $1.2 billion for data centers and $600 million for our other key markets. Second, we closed our NewGenics joint venture with Cassie.

Speaker #3: Providing us with significant external capital to accelerate growth in all of our business lines. We also announced our first successful delivery of R&D into the European compliance markets.

Speaker #3: Third, we repositioned Ameresco into two core market pillars, and we are releasing a new, rebranded corporate identity to reflect the updated positioning. Finally, we successfully brought online the 250-megawatt Napoleon battery energy storage system, one of the largest energy storage projects in Canada.

Speaker #3: And we energize the 560-megawatt solar project in Greece, one of the largest projects in Europe. Many of you have been anticipating updates on our involvement in the data center market.

George Sakellaris: Many of you have been anticipating updates on our involvement in the data center market. There is a growing demand for reliable power infrastructure and increasingly favorable policy for on-site power infrastructure, encouraging hyperscale customers to secure dedicated on-site power solutions. Combined with Ameresco's integrated capabilities, we are well-positioned to deliver solutions that provide speed, reliability, and the energy independence that these customers need. During the quarter, several opportunities advanced to the point where they met our criteria for inclusion in our awarded backlog. Importantly, the projects we added to our backlog represent only a portion of our broader pipeline. As we continue to advance additional data center opportunities, we will remain highly selective in our partnerships and disciplined in our approach. We expect the amount of backlog added from these opportunities to increase as development progresses, project scopes are finalized, and they convert to contracted backlog.

Speaker #3: There is a growing demand for reliable power infrastructure, and increasingly, favorable policy for on-site power infrastructure encouraging hyperscale customers to secure dedicated on-site power solutions.

Speaker #3: Combined with Ameresco's integrated capabilities, we are well positioned to deliver solutions that provide speed, reliability, and the energy independence that these customers need. During the quarter, several opportunities advanced to the point where they met our criteria for inclusion in our awarded backlog.

Speaker #3: Importantly, the projects we added to our backlog represent only a portion of our broader pipeline. As we continue to advance additional data center opportunities, we will remain highly selective in our partnerships and disciplined in our approach.

Speaker #3: We expect the amount of backlog added from these opportunities to increase as development progresses, project scopes are finalized, and they convert to contracted backlog.

Speaker #3: As you will see in our updated corporate presentation, the company is well-positioned to flourish in the current market environment. With our recent promotions of Nicole Bulgarino and Lou Maltedos to co-presidents, we have positioned the company to address two core market pillars: power infrastructure and building and public infrastructure.

George Sakellaris: As you will see in our updated corporate presentation, the company is well-positioned to flourish in the current market environment. With our recent promotions of Nicole Bulgarino and Lou Maltezos to co-presidents, we have positioned the company to address two core market pillars: power infrastructure and building and public infrastructure. This strategic positioning reinforces Ameresco's standing as one of the world's leading energy infrastructure companies, focused on delivering integrated solutions to provide reliable power and modernized infrastructure. With a powerful combination of market catalysts and a robust pipeline of opportunities, we are confident in our ability to drive exceptional long-term profitable growth. With that, I would like to turn the call over to Nicole to provide some additional details about the exciting data center activities as well as other notable project wins and business opportunities. Nicole?

Speaker #3: This strategic positioning reinforces Ameresco's standing as one of the world's leading energy infrastructure companies, focused on delivering integrated solutions to provide reliable power and modernized infrastructure.

Speaker #3: With a powerful combination of market catalysts and a robust pipeline of opportunities, we are confident in our ability to drive exceptional long-term, profitable growth.

Speaker #3: With that, I would like to turn the call over to Nicole to provide some additional details about the exciting data center activities, as well as other notable project wins and business opportunities.

Speaker #3: Nicole.

Speaker #4: Thank you, George, and good afternoon, everyone. As George highlighted, Ameresco made significant progress with our Power Infrastructure business during the quarter. The backlog additions we announced today are the result of months of working to secure, develop, and advance opportunities with leading partners across the data center ecosystem.

Nicole Bulgarino: Thank you, George, good afternoon, everyone. As George highlighted, Ameresco made significant progress with our power infrastructure business during the quarter. The backlog additions we announced today are the results of months of working to secure, develop, and advance opportunities with leading partners across the data center ecosystem. Our strategy remains highly focused and selective, partnering with experienced developers, operators, hyperscalers, and capital providers, while concentrating exclusively on on-site power data solutions. This landscape is dynamic and often requires persistence and flexibility with solutions due to permitting, gas supply, and specific tenant needs. This is where Ameresco's decades of experience developing, delivering, owning, and operating critical energy infrastructure provides us with a clear competitive advantage. During this quarter, we added three new data center projects to our awarded backlog, bringing our total to five data center projects, in addition to the Lemoore data center in our energy assets portfolio.

Speaker #4: Our strategy remains highly focused and selective, partnering with experienced developers, operators, hyperscalers, and capital providers while concentrating exclusively on on-site power data solutions. This landscape is dynamic and often requires persistence and flexibility with solutions due to permitting, gas supply, and specific tenant needs.

Speaker #4: This is where Ameresco's decades of experience—developing, delivering, owning, and operating critical energy infrastructure—provide us with a clear competitive advantage. During this quarter, we added three new data center projects to our awarded backlog, bringing our total to five data center projects, in addition to the Lahore data center in our energy assets portfolio.

Speaker #4: These projects further expand our presence in the nation's most active data center markets, adding both Texas and Arizona to our existing footprint of data center projects.

Nicole Bulgarino: These projects further expand our presence in the nation's most active data center markets, adding both Texas and Arizona to our existing footprint of data center projects. Collectively, they will represent more than one gigawatt of power generation and showcase the breadth of Ameresco's capabilities. The solutions we are providing include a combination of reciprocating engines, gas turbines, fuel cells, battery energy storage systems, and integrated microgrids designed to deliver the reliability required by today's most demanding data center customers. These awarded projects also only represent a portion of the opportunities we are actively developing. We continue to see exceptional demand for on-site power solutions and are encouraged by both the scale and the quality of our growing pipeline. We are engaged with many of the industry's leading data center partners. We believe our differentiated capabilities position us extremely well to capitalize on the significant opportunities ahead.

Speaker #4: Collectively, they will represent more than 1 gigawatt of power generation and showcase the breadth of Ameresco's capabilities. The solutions we are providing include a combination of reciprocating engines, gas turbines, fuel cells, battery energy storage systems, and integrated microgrids designed to deliver the reliability required by today's most demanding data center customers.

Speaker #4: These awarded projects also represent only a portion of the opportunities we are actively developing. We continue to see exceptional demand for on-site power solutions and are encouraged by both the scale and the quality of our growing pipeline.

Speaker #4: We are engaged with many of the industry's leading data center partners, and we believe our differentiated capabilities position us extremely well to capitalize on the significant opportunities ahead.

Speaker #4: We look forward to sharing additional developments as we continue to convert this momentum into backlog and long-term profitable growth. While the data center activity was certainly a highlight of the quarter, it is also important to note that our momentum extends well beyond this market.

Nicole Bulgarino: We look forward to sharing additional developments as we continue to convert this momentum into backlog and long-term profitable growth. While the data center activity was certainly a highlight of the quarter, it is also important to note that our momentum extends well beyond this market. We also secured a significant amount of new project awards across a broad range of geographies, customers, and end markets, underscoring the strength and diversity of our business. These wins reflect continued demand for Ameresco's comprehensive energy infrastructure solutions and demonstrate our ability to capitalize on the opportunities across multiple verticals while maintaining a balanced and resilient growth profile. I'll now turn the call over to Mark to cover our strong Q2 financial performance. Mark?

Speaker #4: We also secured a significant amount of new project awards across a broad range of geographies, customers, and end markets, underscoring the strength and diversity of our business.

Speaker #4: These wins reflect continued demand for Ameresco's comprehensive energy infrastructure solutions and demonstrate our ability to capitalize on opportunities across multiple verticals, while maintaining a balanced and resilient growth profile.

Speaker #4: I'll now turn the call over to Mark to cover our strong Q2 financial performance. Mark.

Speaker #2: Thank you, Nicole, and good afternoon, everyone. Q2 was a strong quarter across the board. We delivered revenue of $515 million and made meaningful progress on the priorities that matter most: executing well, expanding our growth visibility through record awards, and strengthening our capital position to support the opportunities ahead.

Mark Chiplock: Thank you, Nicole. Good afternoon, everyone. Q2 was a strong quarter across the board. We delivered revenue of $515 million and made meaningful progress on the priorities that matter most, executing well, expanding our growth visibility through record awards, and strengthening our capital position to support the opportunities ahead. Q2 demonstrated the strength of our current operating model and the increasing visibility we are building as we work to execute the next phase of our growth strategy. Our total revenues grew by 9%, while project revenue increased 6% to $381 million. This reflects solid execution across our core project business, with strength in federal and North America, and continued strong performance from our European JV. This was not just a strong quarter financially, it was also an outstanding business development quarter.

Speaker #2: Q2 demonstrated the strength of our current operating model and the increasing visibility we are building, as we work to execute the next phase of our growth strategy.

Speaker #2: Our total revenues grew by 9%, while project revenue increased 6% to $381 million. This reflects solid execution across our core project business, with strength in Federal and North America, and continued strong performance from our European JV.

Speaker #2: This was not just a strong quarter financially; it was also an outstanding business development quarter. As George highlighted, awarded project backlog increased 65% to a record level of $4.4 billion.

Mark Chiplock: As George highlighted, awarded project backlog increased 65% to a record level of $4.4 billion, increasing our total project backlog by 32% to $6.7 billion. As always, the timing and extent of conversion of our backlog will depend on commercial, permitting, procurement, financing, and execution milestones. This backlog provides tremendous long-term visibility as we expect to convert over the next three to four years. Q2 energy asset revenue was a clear highlight, increasing 21% to $76 million, as we continue to expand the operating portfolio. During the quarter, we placed an additional 32 megawatts into operation. Our operating energy asset base now stands at 822 megawatts, with another 513 megawatts in development for construction. These figures reflect Ameresco's 70% ownership interest in the Neogenyx JV. O&M also had a very strong quarter, with revenue up 29%.

Speaker #2: Increasing our total project backlog by 32% to $6.7 billion. As always, the timing and extent of conversion of our backlog will depend on commercial, permitting, procurement, financing, and execution milestones.

Speaker #2: This backlog provides tremendous long-term visibility, as we expect to convert over the next three to four years. Q2 energy asset revenue was a clear highlight, increasing 21% to $76 million.

Speaker #2: As we continue to expand the operating portfolio, during the quarter, we placed an additional 32 megawatts into operation. Our operating energy asset base now stands at 822 megawatts, with another 513 megawatts in development or construction.

Speaker #2: These figures reflect Ameresco's 70% ownership interest in the Neogenics JV. O&M also had a very strong quarter, with revenue up 29%. This remains an important part of the model for us because it builds naturally from successful project execution and creates long-term recurring revenue.

Mark Chiplock: This remains an important part of the model for us because it builds naturally from successful project execution and creates long-term recurring revenue. We continue to see solid growth in our third-party O&M business, which expands the opportunity set beyond just Ameresco-executed projects. We now provide service for over 2.5 gigawatts of third-party solar and battery storage. With long-term O&M backlog now exceeding $1.5 billion, this business continues to provide strong visibility, recurring revenue, and durability across cycles. Gross margin was 17.7%, a meaningful improvement both sequentially and year-over-year, reflecting a favorable business mix and strong execution. Net income attributable to common shareholders was $9.7 million, or $0.18 per diluted share, while non-GAAP EPS was $0.20. Adjusted EBITDA increased 12% to $62.8 million, outpacing revenue growth and reflecting strong operating execution, improved business mix, and the continued expansion of our higher-margin recurring businesses.

Speaker #2: We continue to see solid growth in our third-party O&M business, which expands the opportunity set beyond just Ameresco-executed projects. We now provide service for over 2.5 gigawatts of third-party solar and battery storage.

Speaker #2: With our long-term O&M backlog now exceeding $1.5 billion, this business continues to provide strong visibility, recurring revenue, and durability across cycles. Gross margin was 17.7%, a meaningful improvement both sequentially and year over year, reflecting a favorable business mix and strong execution.

Speaker #2: Net income attributable to common shareholders was $9.7 million, or $0.18 per diluted share, while non-GAAP EPS was $0.20. Adjusted EBITDA increased 12% to $62.8 million.

Speaker #2: Outpacing revenue growth and reflecting strong operating execution, improved business mix, and the continued expansion of our higher-margin, recurring businesses. EPS reflected higher depreciation and interest expense associated with the continued growth in our energy asset portfolio.

Mark Chiplock: EPS reflected higher depreciation and interest expense associated with the continued growth in our energy asset portfolio, along with a lower tax benefit and the non-controlling interest impact from the Neogenyx transaction. Turning to our balance sheet, unrestricted cash increased to $138 million with total corporate debt of $385 million. Our corporate leverage was 3.2 times, comfortably below our 3.5 times covenant. We also strengthened our capital position in Q2, securing $471 million of new financing commitments, including the $400 million related to the Neogenyx transaction. That capital gives us added flexibility to fund growth, support our working capital needs, and continue scaling the energy assets portfolio in a disciplined way. Adjusted cash from operations was impacted in Q2 by the timing of project execution, billings, and collections.

Speaker #2: Along with a lower tax benefit and the non-controlling interest impact from the Neogenics transaction. Turning to our balance sheet, unrestricted cash increased to $138 million.

Speaker #2: With total corporate debt of $385 million, our corporate leverage was 3.2 times, comfortably below our 3.5 times covenant. We also strengthened our capital position in Q2, securing $471 million of new financing commitments, including the $400 million related to the Neogenics transaction.

Speaker #2: That capital gives us added flexibility to fund growth, support our working capital needs, and continue scaling the energy assets portfolio in a disciplined way.

Speaker #2: Adjusted cash from operations was impacted in Q2 by the timing of project execution, billings, and collections. The strong revenue quarter included significant work performed ahead of contractual billing milestones, resulting in more cash being temporarily absorbed in working capital.

Mark Chiplock: The strong revenue quarter included significant work performed ahead of contractual billing milestones, resulting in more cash being temporarily absorbed in working capital. Cash conversion remains a key priority for H2. Given our strong H1 performance, the visibility provided by our backlog, and the financing progress achieved in Q2, we remain confident in our 2026 outlook. As a result, we are reaffirming our full year guidance across all metrics and increasing our non-GAAP EPS guidance. We are increasing our non-GAAP EPS guidance range to be $1.15 to $1.35, as we now expect a tax benefit rate in the range of 25% to 40%. The additional expected tax benefit is supported by our planned transition to a new accounting policy for transferable tax credits in H2 of the year.

Speaker #2: Cash conversion remains a key priority for the second half. Given our strong first half performance, the visibility provided by our backlog, and the financing progress achieved in Q2, we remain confident in our 2026 outlook.

Speaker #2: As a result, we are reaffirming our full-year guidance across all metrics and increasing our non-GAAP EPS guidance. We are increasing our non-GAAP EPS guidance range to $1.15 to $1.35, as we now expect a tax benefit rate in the range of 25% to 40%.

Speaker #2: The additional expected tax benefit is supported by our planned transition to a new accounting policy for transferable tax credits in the second half of the year.

Speaker #2: This methodology better aligns earnings recognition with the period in which the investment tax credits are generated, rather than allocating the benefit over the life of the related assets.

Mark Chiplock: This methodology better aligns earnings recognition with the period in which the investment tax credits are generated, rather than allocating the benefit over the life of the related assets. Prior period results will be recast to enhance comparability once we make this change. Looking ahead, we expect H2 to follow our normal seasonal cadence, with activity weighted somewhat more towards Q4, supported by continued project execution, backlog conversion, and disciplined cost management. Now I'd like to turn the call back to George for closing comments.

Speaker #2: Prior period results will be recast to enhance comparability once we make this change. Looking ahead, we expect the second half to follow our normal seasonal cadence, with activity weighted somewhat more toward Q4, supported by continued project execution, backlog conversion, and disciplined cost management.

Speaker #2: Now, I'd like to turn the call back to George for closing comments.

Speaker #3: Thank you, Mark. This is a transformative time for Ameresco, as we continue to execute our growth strategy, positioning ourselves in some of the fastest-growing and most attractive energy infrastructure markets.

George Sakellaris: Thank you, Mark. This is a transformative time for Ameresco as we continue to execute our growth strategy, positioning ourselves in some of the fastest-growing and most attractive energy infrastructure markets. Our twin market pillars of power infrastructure and building and public infrastructure not only continue to drive our growth, but also provide greater diversification of the company's customers and solutions. Our decades of experience delivering reliable on-site power solutions uniquely position us to capitalize on the significant opportunities ahead. We look forward to connecting with many of you at upcoming meetings and conferences. In closing, I want to once again thank our employees, customers, and stakeholders for their continued support and confidence in Ameresco. Operator, we would like to open the call to questions now.

Speaker #3: Our twin market pillars—power infrastructure and building and public infrastructure—not only continue to drive our growth but also provide greater diversification of the company's customers and solutions.

Speaker #3: And our decades of experience delivering reliable on-site power solutions uniquely position us to capitalize on the significant opportunities ahead. We look forward to connecting with many of you at upcoming meetings and conferences.

Speaker #3: In closing, I want to once again thank our employees, customers, and stakeholders for their continued support and confidence in Ameresco. Operator, we would like to open the call to questions now.

Speaker #1: Once again, to ask a question, simply press star 1 on your telephone keypad. As a reminder, we do ask that you limit questions to one and one follow-up, then return to the queue if you have further questions.

Operator: Once again, to ask a question, simply press star one on your telephone keypad. As a reminder, we do ask that you limit questions to one and one follow-up, then return to the queue if you have further questions. Our first question is from the line of George Gianarikas with Canaccord Genuity. Please go ahead.

Speaker #1: Our first question is from the line of George Generigas with Canaccord Genuity. Please go ahead.

Speaker #4: Hi, everyone. Thank you for taking my questions, and congratulations on the data center wins. Regarding those wins, how are project delivery commitments structured from a risk-sharing perspective? Specifically, what is the financial exposure or liquidated damages—excuse me—does Ameresco bear if a completion timeline slips due to equipment supply chain bottlenecks, interconnection queues, or local permitting delays?

George Gianarikas: Hi, everyone. Thank you for taking my questions, and congratulations on the data center wins.

George Sakellaris: Thank you.

George Gianarikas: Regarding those wins, how are project delivery commitments structured from a risk-sharing perspective? Like specifically, what's the financial exposure or liquidated damages, excuse me, does Ameresco bear of completion timeline slip due to equipment supply chain bottlenecks or designation queues or local permitting delays? Thank you.

Speaker #4: Thank you.

Speaker #5: Yeah, so that's a great question, George, and we won't get into any project specifics because all of that, as you can imagine, is very sensitive to our customers and to the agreements that we're in.

Nicole Bulgarino: Yeah. That's a great question, George. We won't get into any project specifics because all of that, as you can imagine, is very sensitive to our customers and to the agreements that we're in. Be assured, as Ameresco and all of our projects will be very mindful and diligent about what commitments we're being signed up to or that we're signing up to.

Speaker #5: But be assured, as Ameresco—and all of our projects—would be very mindful and diligent about what commitments we're being signed up to or that we're signing up to.

Speaker #4: Thank you. And maybe a question for Mike. Any update on what's happening with the Neogenics project updates, et cetera? Thank you.

George Gianarikas: Thank you. Maybe a question for Mike. Any update on what's happening with Neogenyx, project updates, et cetera? Thank you.

Speaker #2: Mike is not here, but.

George Sakellaris: Mike is not here, since we did the partially sale or the partnership with HASI, the relationship is going very good. The development opportunities are increasing, and we're actually seeing more opportunities now, not only organic, but maybe some project acquisitions that they are coming to us. The relationship is very good. It gives us lot of flexibility, great capital contribution into the company, and of course, we can use the capital to grow not only that unit, but as well as the other lines of our business.

Speaker #3: Since we did the partial sale, or the partnership with Hasi, the relationship is going very, very, very well. So the development opportunities are increasing, and we actually see more opportunities now—not only organic, but maybe some project acquisitions that are coming to us.

Speaker #3: So the relationship is very, very good, and it gives us a lot of flexibility. Great capital contribution into the company, and of course, we can use the capital to grow not only that unit but the other lines of our business as well.

Speaker #4: I appreciate it. Thank you.

George Gianarikas: I appreciate it. Thank you.

Speaker #5: Thanks, George.

Nicole Bulgarino: Thanks.

Speaker #1: You're next. You're next. Quit, and comes from the line of Steven Gingaro. With Stevo, please go ahead.

Operator: Your next question comes from the line of Stephen Gengaro with Stifel. Please go ahead.

Speaker #6: Thanks. Good afternoon, everybody.

Stephen Gengaro: Thanks. Good afternoon, everybody.

Speaker #3: Hi, Steve.

George Sakellaris: Hi, Steve.

Speaker #6: Hi, so I think maybe following up on George's question a little bit. When you think about the data center awards and what it means for backlog, does this sort of relate to the cadence of backlog conversion to revenue?

Stephen Gengaro: I think maybe following up on George's question a little bit. When you think about the data center awards and what it means for backlog, is there the cadence of backlog conversion to revenue? How should we think about that with awards of this size? Is it any different than kind of what we've become accustomed to?

Speaker #6: How should we think about that with awards of this size, and is it any different than what we've become accustomed to?

George Sakellaris: Yeah. No, it's a great question, Steve. It's not different than the other projects that we have in the backlog, especially the federal government projects. You will see that, A, by putting these projects into the award, we have done a great diligence to make sure they meet the criteria that we put a particular project into the award category, and they've been some kind of customer RFP. There's some kind of exclusivity agreement between us and that base, and they have achieved certain milestones in their development process. If you look at it, how we move from the award to the contracts. In the data centers, we're probably seeing between 6 to 24 months. These awards will move to contracted. Of course, once they move to contracted, you're talking 12 to 3 years will actually implement the implementation schedule.

Speaker #3: No, it's a great question. It's not different from the other projects that we have in the backlog, especially the federal government projects. You will see that by putting these projects into the award, we have done great, great diligence to make sure they meet the criteria that we require for a particular project to go into the award category, and they've been through some kind of customer RFP.

Speaker #3: So, there’s some kind of exclusivity agreement between us and that base, and they have achieved certain milestones in their development process. So that’s—and then, if you look at it, that’s how we move from the award to the contracts, and the data centers would probably seem between 6 to 24 months.

Speaker #3: These awards will move to contracted, and then, of course, once they move to contracted, you're talking 1 to 3 years. We'll actually implement the implementation schedule.

Speaker #3: But the awards are solid, and sooner or later, as the time schedule progresses, they will move into the contracted category, and then, of course, into implementation.

George Sakellaris: The awards are solid, and sooner or later, the time schedule, they will move into the contracted category, then, of course, the implementation.

Stephen Gengaro: Great. Thank you. Just as a quick follow-up to that is, if I assume the margin profile is similar to a legacy activity-

Speaker #6: Great, thank you. And just as a quick follow-up to that, if I assume the margin profile is similar to the legacy activity, is that a fair place to start?

George Sakellaris: It-

Stephen Gengaro: Is that a fair place to start?

George Sakellaris: Excellent questions. The margin of this particular project is basically what we get for the EPC project for the federal government, which is in the high teens.

Speaker #3: Excellent questions. The margin for this particular project is basically what we typically get for EPC projects for the federal government, which is in the high teens.

Speaker #6: Okay, great. Thank you.

Stephen Gengaro: Okay, great. Thank you.

Speaker #1: Your next question is from Eric Stein with Craig Hallum. Please go ahead.

Operator: Your next question is from Eric Stine with Craig-Hallum. Please go ahead.

Speaker #4: Everyone, thanks for taking the questions.

Eric Stine: Everyone, thanks for taking the questions.

George Sakellaris: Thanks.

Speaker #3: Thank you.

Eric Stine: Yeah.

Speaker #4: Hey, so obviously a big highlight is the awards, the $1.2 billion, but it sounds pretty optimistic in terms of the pipeline. So I was wondering if, maybe not specifics, but could you just talk in more detail about the size of that pipeline versus the awards that you have now pulled in, that $1.2 billion?

Nicole Bulgarino: Hi, Eric.

Eric Stine: Hey. Obviously, a big highlight on the awards, the $1.2 billion. It sounds like pretty optimistic in terms of the pipeline. Wondering if, maybe not specifics, just talk in more detail of the size of that pipeline versus the awards that you have now pulled in, that $1.2. If there's a way to think about where those are in their various life cycle in terms of getting to the point where you could think about pulling those into awarded backlog.

Speaker #4: And if there's a way to think about where those are in their various life cycles, in terms of getting to the point where you could think about pulling those into awarded backlog.

George Sakellaris: Look. Nicole basically said it, that what we put on the award category right now is part of what the ultimate size of this particular awards will be. We'll see that will probably increase. I wouldn't be surprised that we will get up to $2 billion associated with this particular awards that we have right now.

Speaker #3: And Nicole basically said it, that when we put on the award category right now, it's part of what the ultimate size of this particular award will be.

Speaker #3: So we'll see that we'll probably increase. Would it be a surprise if we get up to $2 billion associated with this particular award that we have right now?

Eric Stine: Okay.

George Sakellaris: If you want to add any more

Speaker #3: Do you want to add anything more?

Nicole Bulgarino: Sure. We're continuing. We're in this business hourly, daily, and continuing to vet opportunities every day, and being very strategic and diligent about how we are partnering with new opportunities. We looked at hopefully adding additional projects as we continue to develop in this market.

Speaker #1: Sure. And we're continuing—I mean, we're in this business hourly, daily, and continuing to vet opportunities, new day every day, and being very strategic and diligent about how we are partnering with new opportunities.

Speaker #1: So, we looked at hopefully adding additional projects as we continue to develop in this market.

Speaker #3: Yeah. And what I’m looking for a little bit more clarity on is that Nicole pointed out in her script there are five opportunities, excluding the Lemore, which is an asset base.

George Sakellaris: A little bit more clarity is, Nicole pointed out in her script, there are five opportunities, excluding the Lemoore, which is an asset base. We're looking at least that many more.

Speaker #3: And we're looking at at least that many more.

Speaker #4: Got it. And then maybe for my follow-up, just obviously, Neogenics is a very successful setup and structure there. And maybe not exact, but as you think about these data center opportunities and that they are very sizable, is there some structure, kind of more along those lines, that could help maybe speed up or just increase the amount that you can handle from a financing perspective?

Eric Stine: Got it. Then maybe for my follow-up, just obviously Neogenyx, a very successful setup and structure there. Maybe not exact, but as you think about these data center opportunities and that they are very sizable, is there some structure kind of more along those lines that could help maybe speed up or just increase the amount that you can handle from a financing perspective?

George Sakellaris: You're right on track. We're very successful with Neogenyx, and we learned a lot too in the process of doing them. The data center opportunity is very large, and it will require a substantial amount of capital. We will be looking into the opportunity, and if the multiples are right, the right partner comes along, and so on, we will do it. There is nothing specific to announce at this point in time, but it could be a great opportunity for us to bring another vehicle like Neogenyx.

Speaker #3: You're right on track. We're very successful with neogenics, and we've learned a lot too in the process of doing them. And the data center opportunity is very, very large.

Speaker #3: And it will require a substantial amount of capital. We will be looking into the opportunity, and if the multiples are right, the right partner comes along, and so on.

Speaker #3: We will do it. It is not specific to announce at this point in time, but it could be a great, great opportunity for us.

Speaker #3: Doing another vehicle like neogenics.

Speaker #4: Okay, thank you.

Eric Stine: Okay. Thank you.

George Sakellaris: Sure.

Speaker #5: Derek.

Speaker #1: Thank you. Your next question is from the line of Noah Kay with Oppenheimer & Company. Please go ahead.

Operator: Thank you. Your next question is from the line of Noah Kaye with Oppenheimer and Company. Please go ahead.

Speaker #7: Hi, folks. Good afternoon. George Knowles of Transformational. I just need to take a step back for a bit and recognize that I believe this quarterly award is almost double any of your previous quarters in your history.

Noah Kaye: Hi, folks. Good afternoon.

George Sakellaris: Hello.

Noah Kaye: George, Noah. This is transformational. I just need to take a step back for a bit and recognize that I believe this quarterly award is almost double any of your previous quarters in your history. It's remarkable. Congratulations.

Speaker #7: It's remarkable. So congratulations. And I want to kind of ask a high-level question, which is obviously behind the meter in time, the power becoming a key consideration for a lot of developers.

George Sakellaris: Thank you.

Noah Kaye: I want to kind of ask a high-level question, which is obviously behind the meter, in time, the power becoming a key consideration for a lot of developers. I can see that's really the solution that you're architecting here. Can you just take us through how you won these awards? Who the customers are? Obviously, we're not expecting you to name them, but are they hypers? Are they neos? Are they government? With the understanding that as you build these critical relationships, there's opportunity for a lot of future wins.

Speaker #7: I can see that's really the solution that you're architecting here. But can you just take us through how you won these awards? Who the customers are?

Speaker #7: Obviously, we're not expecting you to name them, but are they hypers? Are they neos? Are they government? And with the understanding that as you build these critical relationships, there's opportunity for a lot of future.

Speaker #3: Nicole worked very hard in order to get them, so I will let Nicole.

George Sakellaris: Nicole worked very hard in order to get them.

Nicole Bulgarino: No, thanks. As we shared in the previous earnings calls, our reputation with the federal government has served us well as a great entry point into this market because we've been basically serving as a utility in the federal government space for decades now. Now getting in there, we're working with not only data center operators but also hyperscalers, neoclouds, and also just getting in through commercial real estate developers that had played in this market before, just now having the added power side to this, which was different than what maybe they had done before. We like what our delivery model is and that we are bringing integrated energy solutions to it. We're integrating different types of assets together and being able to have the ability to microgrid these, and that's been a unique offering for us.

Speaker #1: No, I mean, thanks. And as we shared in the previous earnings calls, I mean, our reputation with the federal government has been served as well as a great entry point into this market because we've been basically serving as the utility and the federal government space for decades now.

Speaker #1: And now, getting in there, we're working with not only data center operators but also hyperscalers, NeoCloud, and also just getting in through commercial real estate developers that have played in this market before—just now having the added power side to this, which was different than what maybe they had done before.

Speaker #1: So, we like what our delivery model is, and that we are integrating different types of assets together and being able to have the ability to microgrid these. That's been a unique offering for us.

Speaker #1: So that's a little bit more into what we're doing. I just think that the opportunity, with our experience, our flexibility, and what we're offering, has served us well with the different players in this ecosystem.

Nicole Bulgarino: That's a little bit more into what we're doing. I just think that the opportunity with our experience and our flexibility in what we're offering has served us well with the different players in this ecosystem.

Noah Kaye: Thanks, Nicole. Just to confirm that I heard you correctly, the customers for these data center projects, they now include hypers and neoclouds. Is that correct?

Speaker #7: Thanks, Nicole. And so, just to confirm that I heard you correctly, the customers for these data center projects now include hypers and NeoClouds.

Speaker #7: Is that correct?

Speaker #1: They are part of the deals, yes.

Nicole Bulgarino: They are part of the deals. Yes.

Speaker #7: All right. And just one last follow-up. I guess, can you maybe help us understand where you are in the process of securing supply for some of those long-lead items?

Noah Kaye: All right. Just last follow-up. I guess maybe help us understand where you're at in the process of securing supply for some of those long lead items. Have you already placed orders for the recips and some of the key equipment?

Speaker #7: I mean, have you already placed orders for the recip's and some of the key equipment?

Speaker #1: We have not been placing orders yet for these projects because they're still in our awarded pipeline. And that's not been the model that we've chosen to use for this market.

Nicole Bulgarino: We have not been placing orders yet for these projects because they're still in our awarded pipeline, and that's not been the model that we've chosen to do for this market. We are working in finalizing the equipment selection with our partners, and that's just where we are. They're at different phases in that development, but far enough along that we move them into the awarded pipeline, and then we'll continue to develop these to convert them into the contracts and then placing equipment.

Speaker #1: We are in the process of finalizing equipment selection with our partners, and that's just where we are. So they're at different phases in their development, but far enough along that we moved them into the awarded pipeline.

Speaker #1: And then we'll continue to develop these, convert them into contracts, and then place equipment.

Speaker #7: Yeah, that timing makes a lot of sense. Thank you.

Noah Kaye: Yeah, that timing makes a lot of sense. Thank you.

Speaker #4: Thank you.

George Sakellaris: Thank you. Thanks, Noah.

Speaker #5: Thanks, Noah.

Speaker #1: Your next question is from Ryan Spingst with B. Riley Securities. Please go ahead.

Operator: Your next question is from Ryan Finke with B. Riley Securities. Please go ahead.

Operator: Your next question is from Ryan Pfingst with B. Riley Securities. Please go ahead.

Speaker #4: Hey, guys. Thanks for taking my questions, and congratulations on the progress here. Hey, George—you touched on it a little earlier, but could you talk more about the potential revenue cadence for Ameresco for a project that comes online?

Operator: Hey, guys. Thanks for taking my questions.

Ryan Pfingst: Hey, guys. Thanks for taking my questions.

George Sakellaris: Go ahead.

George Sakellaris: Congratulations on progress here. Hey, George. George, you touched on it a little earlier, but could you talk more about the potential revenue cadence for Ameresco for a project that comes online in 2028, 2029, or 2030?

Ryan Pfingst: Congratulations on progress here. Hey, George. George, you touched on it a little earlier, but could you talk more about the potential revenue cadence for Ameresco for a project that comes online in 2028, 2029, or 2030?

Speaker #4: And 2028, 29 or 2030?

Speaker #3: Yeah, the same. A difficult project. A federal government project. Once we get the award—some selection by the federal government—then we do the detailed engineering and audits, and so on.

George Sakellaris: Yeah. Let's say a difficult project, a federal government project. Once we get the award, some selection by the federal government, then we do the detail engineering and audits and so on, and negotiate the scope with the government. Usually it takes about 24 months. I mean, 12 to 24 months to get the award to contracts. Once it gets contracted, some of the projects, they have a one-year timeline, but if it's a turbine or a reciprocating engine power plant, very complex, it might take up to 2 years. It moves along. I don't know if you want to add anything to that.

Speaker #3: And negotiate the scope with the government. Usually, it takes about 12 to 24 months to get the award of the contracts.

Speaker #3: And once it gets contracted, some of the projects have a one-year timeline, but if it's a turbine or a super-capacity engine power plant—very complex—it might take up to two years.

Speaker #3: And that's so it moves along.

Speaker #4: Add anything to that?

Speaker #1: No, I think you've got it. I mean, it really just depends on which project it is and what we're doing.

Nicole Bulgarino: No, I think you've got it. It really just depends on which project it is and what we're doing.

Speaker #3: Yeah. And on the data centers, why I did say the indicated six months to 24 months to move the award is because we know what the development is on some of them and the milestones that they have achieved.

George Sakellaris: Yeah. On the data centers, why I did say the indicated 6 months to 24 months to move the award, because we know where the development is on some of them and the milestones that they have achieved. The hyperscalers and the developers, they move a little bit faster than the federal government, plus they need this stuff. There is a sense of urgency that they get this power up as soon as possible.

Speaker #3: And it's the hyperscalers and the developers—they move a little bit faster than the federal government. Plus, they need this stuff. There is a sense of urgency that they get this power up as soon as possible.

Speaker #4: Got it. Appreciate that. And then, somewhat related, can you just remind us where the CyrusOne project fits in with regards to awarded or contracted backlog for you guys?

George Sakellaris: Got it. Appreciate that. Somewhat related, can you just remind us where the CyrusOne project fits in with regards to awarded or contracted backlog for you guys? Is there anything to share on how that's progressing at the Naval Air Station?

Ryan Pfingst: Got it. Appreciate that. Somewhat related, can you just remind us where the CyrusOne project fits in with regards to awarded or contracted backlog for you guys? Is there anything to share on how that's progressing at the Naval Air Station?

Speaker #4: And is there anything to share on how that's progressing at the Naval Air Station?

Speaker #1: I'll share a little more. It's still in our awarded backlog, and it's like any of the projects we've been talking about. It has a development timeline of 12 to 24 months.

Nicole Bulgarino: For sure. Lemoore is still in our awarded backlog, and it's like any of the projects we've been talking about. It has the development timeline of 12 to 24 months. We're just moving along in that development right now.

Speaker #1: So we're just moving along in that development right now.

Speaker #4: Great, I appreciate it, guys. I'll turn it back.

Nicole Bulgarino: Great. I appreciate it, guys. I'll turn it back.

Ryan Pfingst: Great. I appreciate it, guys. I'll turn it back.

Speaker #1: Okay. And once again, as a reminder, Prestar 1 to ask a question. Again, that is Star 1. Your next question comes from Joseph Usha with Guggenheim Partners.

Operator: Okay. Once again, as a reminder, press star one to ask a question. Again, that is star one. Your next question comes from Joseph Osha with Guggenheim Partners. Please go ahead.

Speaker #1: Please go ahead.

Speaker #6: Thank you, and congratulations, everyone, on such a strong result. I have two related questions. First, this has come up once already, but how should we think about this six-project pipeline?

Joseph Osha: Thank you. Congratulations, everyone, on such a strong result. I have two related questions. First, this came up once already, how should we think about this six-project pipeline? Is most of this ultimately just going to show up as gain on sale, or could some of this end up being at least partially capitalized to your own balance sheet? The second question, Nicole, this is kind of a geeky one for you. Are you seeing on the storage side, are most of the deployments you're seeing kind of short-duration power quality types of deployments, or are you seeing longer kind of multi-hour deployments focused on more resilience? Thank you.

Speaker #6: And is most of this ultimately just going to show up as gain on sale, or could some of this end up being at least partially capitalized to your own balance sheet?

Speaker #6: And then the second question, Nicole, this is kind of a geeky one for you. Are you seeing on the storage side, are most of the deployments you're seeing kind of short duration power quality types of deployments, or are you seeing longer kind of multi-hour deployments focused on more resilience?

Speaker #6: Thank you.

George Sakellaris: Yeah.

Josh Baribeau: Joseph, this is Josh. I'll answer your first question. The data center opportunities are expected to be our normal EPC revenue recognition, percent complete in accordance with our spend. It's not an asset sale, or there's no different balance sheet treatment than any of our other project business. Nicole, on the duration and whatnot.

Speaker #4: Sure, this is Josh. I'll answer your first question. The data center opportunities are expected to be our normal EPC revenue recognition, percent complete in accordance with our spend.

Speaker #4: It's not an asset sale, and there's no different balance sheet treatment than any of our other project business. Nicole, on the duration and whatnot.

Joseph Osha: This will be straight EPC revenue?

Speaker #6: This will be straight EPC revenue.

Speaker #4: Correct.

Josh Baribeau: Correct. Yep.

Speaker #5: Yep.

Speaker #1: Yeah, and that's a great question. Not too geeky on the other one, because it's an important one. And the battery storage and the use case for these will probably—I mean, it really depends on the site—but for both, one is for resiliency for when you're doing maintenance or upsets.

Nicole Bulgarino: Yeah. That's a great question. Not too geeky on the other one because it's an important one. The battery storage in these pay for these will probably. It really depends on the site, but for both. One is for the resiliency for when you're doing maintenance or upsets. The other side of that is really just to stabilize the load shifts from the varying, especially with the AI load profile. So it'd be combination.

Speaker #1: The other side of that is really just to stabilize the load shift from the bearing, especially with the AI load profile. And so, combination.

Speaker #6: So can you just with that in mind as a follow-up, what's the typical duration that you're seeing on storage? Is it an hour, two hours, four hours?

Joseph Osha: Can you just, with that in mind as a follow-up, what's the typical duration that you're seeing on storage? Is it an hour, two hours, four hours?

Nicole Bulgarino: Two hours.

Speaker #1: Two hours. Two hours. Two hours.

Joseph Osha: -typically?

Nicole Bulgarino: Two hours.

George Sakellaris: Two hours.

Nicole Bulgarino: Two hours.

Speaker #6: All right. Got it. Got it. Thank you very much, Nicole.

Joseph Osha: All right. Got it. Thank you very much, Nicole.

Nicole Bulgarino: Yeah.

Speaker #1: And your next question comes from the line of Craig Shear with Tully Brothers. Please go ahead.

Operator: Your next question comes from the line of Craig Shere with Tuohy Brothers. Please go ahead.

Speaker #2: Good afternoon. Congratulations on the expanding awarded pipeline. In response to Eric's question, the comment was made, George, that you had maybe another five potential counterparty projects on top of the five that are already in the awarded backlog.

Craig Shere: Good afternoon. Congratulations on the expanding awarded pipeline. In response to Eric's question, the comment was made, George, that you had maybe another five potential counterparties projects on top of the five that are already in the awarded backlog.

Speaker #2: Are all of these about roughly are all of these roughly about the same size in terms of revenue and the size of the projects?

George Sakellaris: That is correct.

Craig Shere: Are all these roughly about the same size in terms of revenue and the size of the projects on average, or are you seeing them increase over time? How would you look at the pipeline outside of the awarded projects so far?

Speaker #2: On average, or are you seeing them increase over time? How would you look at the pipeline outside of the awarded projects so far?

Speaker #3: And let me call and answer them, but...

George Sakellaris: I'll let Nicole answer that.

Speaker #1: No, I think they're all—I mean, we're seeing similar. I mean, some are, depending on which ones we're looking at, but some are like smaller phases; others are phased-out campuses.

Nicole Bulgarino: We're seeing similar. Depending on which ones we're looking at, but some are smaller phases. Others are phased-out campuses, and we're maybe playing a part of one of those phases, or we may be playing all of the phases. It really depends on the project. I'd say that they're all these similar technologies that we mentioned before. A combination of reciprocating engines, fuel cells for some of the earlier deployment ones, just for speed to power, and then some of the longer out-there phases using combined cycle gas turbines and just simple cycle gas turbines.

Speaker #1: And we may be involved in just one of those phases, or we may be involved in all of the phases. So, it really depends on the project.

Speaker #1: But I'd say that there will all be similar technologies that we mentioned before—a combination of reciprocating engines and fuel cells for some of the earlier deployment ones, just for speed to power, and then some of the longer, out-there phases using combined cycle gas turbines and just simple gas cycle gas turbines.

Speaker #3: And one other thing that I want to add, to give you a little bit better perspective, guys, on the opportunity with this data center. These five ones that we are talking about do not include the federal government bases that they have going out, and we have the enhanced lease uses.

George Sakellaris: One other thing that I want to add, so it gives you a little bit better perspective, guys, the opportunity with these data centers. These five ones that we are talking about does not include the federal government bases that they are going out, and we have the enhanced use leases, and we have five of them, including one that's five, though. It's Lemoore, which announced before, and the other one is Pearl Harbor. There's considerable potential. The fact is because people are beginning to realize that in order for them to be successful and win the AI race, they have to develop their own power plants, on-site generation. That's why we came into the picture. Our track record with the federal government building these resiliency power plants with microgrids and so on, it's helping us a lot, and we're getting great traction in the marketplace.

Speaker #3: And we have five of them. Of those five, though, it's Limor, which we announced before, and the other one is Pearl Harbor. So there's considerable potential.

Speaker #3: And the fact is, because people are beginning to realize that in order for them to be successful and win the AI race, they have to develop their own power plants, on-site generation.

Speaker #3: And that's why we came into the picture. And our track record with the federal government, building these resiliency power plants with microgrids and so on, is helping us a lot.

Speaker #3: And we're getting great traction in the marketplace.

Craig Shere: Got you. Last clarification, I believe both Stephen and Ryan asked about the timeline of awards. I think, George, you mentioned that the time maybe to lock into, whether it's six to 24-plus months to firm contracts, and then you said it could take 3 years for multi projects to be completed thereafter. When you think-

Speaker #2: Gotcha. And last clarification. I believe both Steven and Ryan asked about the timeline of awards. I think George, you mentioned that the time maybe to lock into whether it's 6/24 plus months to firm contracts.

Speaker #2: And then you said it could take three years for bulky projects to be completed thereafter. So, when you think—.

Speaker #3: Absolutely. Three years. Let's say we have to build a 500-megawatt or 1-gigawatt power plant on a particular data center that might have three or four phases.

George Sakellaris: Up to 3 years. Let's say we have to build a 500 MW or 1 GW data addition power plant on a particular data center that might have 3 or 4 phases. That's what's happened in some of them. That's why we said we think that the ones that we have, they will become larger because they have several phases. Phase 1 might take 6 months to a year, phase 2, another year or so, and so on. That's why I gave the perspective up to 3 years. The other one, I think it's important to give you a little bit more color, guys. We said 6 months to 24 months. Most likely we will not see a big impact coming from the data centers till 2028 and beyond. Between 2028 to 2030.

Speaker #3: So that's what's happening. Some of them—and that's why we said we think that the ones that we have will become larger, because they have several phases.

Speaker #3: So, phase one might take six months to a year. Phase two, another year or so, and so on. That's why I gave the perspective of up to three years.

Speaker #3: And the other one, I think it's important to give you a little bit more color, guys. We said six months to 24 months, so most likely we will not see a big impact coming from the data center until '28 and beyond—between '28 to '30.

George Sakellaris: You might see a small impact next year, but the major impact will be 2028 to 2030. Why we're so excited, though, about it, because the awarded projects give you the early indication of where we're going to be 2 to 3 years down the road.

Speaker #3: You might see a small impact next year, but the major impact will be in '28 to '30. And why we feel so excited, though, about it is because the awarded projects give you the early indication of where we're going to be two to three years down the road.

Speaker #2: Yeah, gotcha. And when we're in 2028 and beyond, and you've got these mega projects that are lasting two to three years, several phases, is it reasonable to think that they're kind of evenly distributed in terms of revenue and margin across the years that they're live?

Craig Shere: Got you. When we're in the 2028 and beyond, you've got these mega projects that are lasting two to three years in several phases, is it reasonable to think that they're kind of evenly distributed in terms of revenue and margin across the years that they're live?

Mark Chiplock: Yeah. It's probably a little too soon, especially, the shape of any construction project tends to be a little bit front-end loaded as we're placing equipment, orders, and doing some of the heavy mobilization.

Speaker #5: Yeah, it's probably a little

Speaker #4: Too soon, especially—I mean, the shape of any construction project tends to be a little bit front-end loaded, as we're placing equipment orders and doing some of the heavy mobilization.

Craig Shere: Right.

Speaker #4: But since we now have six of these projects going on, you sort of get maybe a potential smoothing. But it's a little early for that, to give you an exact kind of rule of thumb of what the revenue would look like.

Mark Chiplock: Since we now have six of these projects going on, you sort of get maybe a potential smoothing. It's a little early for that to give you an exact rule of thumb of what the revenue would look like.

Speaker #2: All right. Fair enough.

Craig Shere: All right. Fair enough. Thank you very much.

Speaker #1: Thank you very much. Yeah, I’ll just add that we're also excited that after the construction, with all of these, there’s a significant operations and maintenance stream associated with it.

Nicole Bulgarino: Yeah. I was just going to add, too, we're also excited that after the construction, with all of these, there's a significant operation and maintenance stream associated with it. As Mark pointed out in our earnings script, that's one place that we've always been focused on building that recurring revenue, which these would certainly present that opportunity.

Speaker #1: So, as Mark pointed out in our earnings script, that's one place that we've always been focused on—building that recurring revenue—which these would certainly present that opportunity.

Craig Shere: Perfect. Thank you.

Speaker #2: Perfect. Thank you.

Speaker #1: Okay. And our next question comes from Switha Reggio with Cantor Fitzgerald. Please go ahead.

Operator: Our next question comes from Swetha Reddy with Cantor Fitzgerald. Please go ahead.

Operator: Our next question comes from Swetha Rakhecha with Cantor Fitzgerald. Please go ahead.

Swetha Reddy: Hi, Swetha here on behalf of Manish. Congrats to you, Nicole, and the entire team on the new order win. Couple of more follow-ups on DC wins. I guess you'll be getting a few of those. First, are the three new wins affiliated to the two that were already booked? Nicole, I know you also walked us through the process of winning these bids earlier, but to the extent possible, can you help us qualify if these underlying customers are hyperscalers, co-location operators, or non-hyperscale users? I think one more question on DC, which is kind of very topical, and it will also really help us understand, is how you're thinking about risk when it comes to project delays, especially when we think about local data center bans, zoning restrictions. What are you guys thinking about that? I think that'd be really helpful for us.

Swetha Rakhecha: Hi, Swetha here on behalf of Manish. Congrats to you, Nicole, and the entire team on the new order win. Couple of more follow-ups on DC wins. I guess you'll be getting a few of those. First, are the three new wins affiliated to the two that were already booked? Nicole, I know you also walked us through the process of winning these bids earlier, but to the extent possible, can you help us qualify if these underlying customers are hyperscalers, co-location operators, or non-hyperscale users? I think one more question on DC, which is kind of very topical, and it will also really help us understand, is how you're thinking about risk when it comes to project delays, especially when we think about local data center bans, zoning restrictions. What are you guys thinking about that? I think that'd be really helpful for us.

Speaker #5: Hi, Switha. Here, on behalf of my niece, we matched a few—Nicole and the entire team—on the new auto wing. A couple more follow-ups on BC wings.

Speaker #5: I guess you'll be getting a few of those first. Are there three new wings affiliated to the two that were already booked? Nicole, I know you also walked us through the process of winning these bids earlier, but to the extent possible, can you help us qualify if these underlying customers are hyperscalers, co-location operators, or I think one more question on DC, which is kind of a topical and it will also really help us understand is how you're thinking about risk when it comes to project delays, especially when you think about local data center bands, zoning restrictions, or any what do you guys thinking about that?

Speaker #5: I think that'd be really helpful for us.

Speaker #1: Sure. And those are good questions. As I mentioned before, with the customer type, something with all of these projects is that there are multiple customers in there.

Nicole Bulgarino: Sure. Those are good questions. As I mentioned before, the customer types, I mean, with all of these projects, there's multiple customers in there. There's the landowner, there's the data center operator, and certainly the end use tenants, the hyperscalers, Neocloud tenants as well. We're working with a large set of those that are all playing in this market. As far as the risk, I would say, we've been working for federal government and for utilities for quite so many years. Similar risk for anytime when you're taking on building and developing these large infrastructure projects, it's a similar risk type of profile. What we're trying to do to mitigate some of the risk in development is making sure that we've been strategic about who we're partnering with up front and the work that they've done already.

Speaker #1: I mean, there's the landowner, there's the data center operator, and certainly the Indies tenants, the hyperscalers, NeoCloud tenants as well. So we're working with a large set of those that are all playing in this market.

Speaker #1: As far as the risk, I would say, I mean, we've been working for the federal government and for utilities for quite so many years. So, similar risk—any time when you're taking on building and developing these large infrastructure projects, it's a similar risk type of profile.

Speaker #1: And what we're trying to do to mitigate some of the risk in development is making sure that we've been strategic about who we're partnering with upfront and the work that they've done already, picking partners that have strong local relations in that community, customers that have been in this market before, and certainly our strategy by working on federal government lands, where it has a lot less of that outside community risk as well.

Nicole Bulgarino: Picking partners that have had local, strong relations in that community, customers that have been in this market before, and certainly, our strategy by working on federal government lands where it has a lot less of that outside community risk as well. Those are all things that we've been doing, and why we've been working on this for the past months on this to make sure that we have qualified these.

Speaker #1: So those are all things that we've been doing, and why we've been working on this for the past months—to make sure that we're qualified for these.

Speaker #5: Thank you. That's certainly very helpful. And second, if I may, given the robust pipeline, how should we think about guidance? As in, what would it take for us to now raise the guidance from here?

Swetha Reddy: Thank you. That's certainly very helpful. Second, if I may, given the robust pipeline, how should we think about guidance? As in, what would it take for us to now raise the guidance from here?

Swetha Rakhecha: Thank you. That's certainly very helpful. Second, if I may, given the robust pipeline, how should we think about guidance? As in, what would it take for us to now raise the guidance from here?

Speaker #4: Yeah. So, for 2026, we have visibility too from the data centers. We've already baked that in, and obviously we've reaffirmed that. So we're feeling pretty good about that.

Mark Chiplock: Yeah. For 2026, what we have visibility to from the data centers, we've already baked in, obviously we've reaffirmed that. We're feeling pretty good about that. We don't expect it to have too significant an impact. What we do feel comfortable with, we've already baked into guidance for 2026.

Speaker #4: We don't expect it to have too significant of an impact. But what we do feel comfortable with, we've already baked into guidance for 2026.

Speaker #5: Thanks. Thank you, guys. That's helpful. Thanks.

Swetha Reddy: Thank you, guys. That's helpful. Thanks.

Swetha Rakhecha: Thank you, guys. That's helpful. Thanks.

Speaker #1: And with no further questions in queue, this does conclude today's conference call. Thank you very much for joining us today. You may now disconnect.

Operator: With no further questions in queue, this does conclude today's conference call. Thank you very much for joining us today. You may now disconnect.

Q2 2026 Ameresco Inc Earnings Call

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