Ameresco’s (AMRC) Data Center Boom Masks A Cash Flow Problem

On August 3, Ameresco (NYSE:AMRC) reported strong second-quarter 2026 financial results, with $1.8 billion in new project awards, including $1.2 billion in data center power projects. Total backlog increased by 32% year over year to $6.73 billion. However, cash flow and per-share profit decreased, revealing a cash flow problem. The data center story is driving Ameresco's stock attention.

Backlog in the Power Infrastructure business rose 65% to $4.4 billion. Three new behind-the-meter data center projects were added, bringing the total to five awarded backlog projects. Revenue grew 9% year over year at $515.5 million, with gross margin expanding to 17.7% and adjusted EBITDA increasing 12% to $62.8 million. The company raised its full-year Non-GAAP EPS guidance to a range of $1.15 to $1.35.

Cash rose to $138.3 million from $71.8 million, and corporate leverage sat at 3.2 times EBITDA, below the covenant limit. Despite the record awards, net income attributable to common shareholders was $9.7 million, or $0.18 per diluted share, down from $12.9 million a year earlier. For the first half of 2026, the company posted a net loss of $8.6 million, versus a $7.4 million profit last year.

Cash flow from operating activities was negative $107.2 million, and adjusted cash from operations fell to about $30 million on a rolling eight-quarter basis. Ameresco's stock showed reduced hedge fund ownership and a 18.39% short interest against the skepticism, trading at a forward P/E of 14.60. The company's backlog and data center award momentum indicate years of visibility, but cash burn and six-month net loss raise concerns about near-term performance.