Ameresco recently released its 10-Q report. Ameresco, Inc. provides energy solutions in the United States, Canada, and Europe through five segments: North America Regions, U.S. Federal, Renewable Fuels, Europe, and All Other. Its work includes energy efficiency upgrades, infrastructure improvements, energy security and resilience projects, renewable energy development, and operations and maintenance services for government, utility, data center, education, healthcare, housing, and commercial and industrial customers.
In Item 2, management said the quarter was shaped by regulatory changes, supply chain pressure, and two large project matters. The company pointed to the One Big Beautiful Bill Act, enacted July 4, 2025, which changed the timing rules for solar-only projects seeking Investment Tax Credits under Section 48: construction must begin by July 4, 2026, and projects must be placed in service by December 31, 2027. It also said energy storage ITCs begin phasing down in 2034 and phase out completely by 2036, while domestic content and foreign-entity compliance requirements tighten for projects beginning construction in 2026.
Ameresco said supply chain disruptions and inflation continued during the three months ended March 31, 2026, delaying material deliveries and project completion while increasing shipping, transportation, component, and labor costs. The company said those pressures negatively affected results in the quarter and expects them to persist, with particular strain from electrical equipment, steel, aluminum, and battery energy storage system components.
The company also disclosed a new biogas transaction. On May 4, 2026, Ameresco entered into a contribution and equity purchase agreement to combine its biogas business into Neogenyx Fuels LLC with an affiliate of Hannon Armstrong Sustainable Infrastructure Capital. Ameresco will contribute its biogas operations and related assets and liabilities for a 70% interest, while the investor will take 30% for a $400 million investment. Of that amount, $100 million will be paid to Ameresco at closing, about $58 million will be used to reduce project-level debt, and the remainder will fund the joint venture’s operations and growth.
Ameresco also updated investors on its Southern California Edison battery storage contract. The company said the engineering, procurement and construction price for the three grid-scale BESS projects is about $892 million, including two years of O&M revenue. It received about $110 million on September 5, 2024 after reaching agreement on substantial completion of two of the three projects, and said it expects all three projects to be finalized this year. The company said disputes remain over liquidated damages and force majeure relief.
Seasonality remains part of the business pattern. Ameresco said revenues and operating income are typically higher in the third and fourth quarters and lower in the first quarter, with weather, construction cycles, and government procurement timing all affecting results. Today the company's shares have moved -1.62% to a price of $30.97. Check out the company's full 10-Q submission here.
