Energy and renewable energy projects company Ameresco (NYSE: AMRC) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 9.1% year on year to $515.5 million. The company expects the full year’s revenue to be around $2.1 billion, close to analysts’ estimates. Its non-GAAP profit of $0.20 per share was in line with analysts’ consensus estimates.

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Company Overview

Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE: AMRC) provides energy and renewable energy solutions for various sectors.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Ameresco grew its sales at an excellent 12.5% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Ameresco’s annualized revenue growth of 15.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, Ameresco reported year-on-year revenue growth of 9.1%, and its $515.5 million of revenue exceeded Wall Street’s estimates by 11.9%.

Looking ahead, sell-side analysts expect revenue to grow 7.9% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and implies the market is forecasting some success for its newer products and services.

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Operating Margin

Ameresco’s operating margin has more or less stayed the same over the last 12 months , averaging 6.5% over the last five years. This profitability was mediocre for an industrials business and caused by its suboptimal cost structureand low gross margin.

Analyzing the trend in its profitability, Ameresco’s operating margin might have fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

In Q2, Ameresco generated an operating margin profit margin of 8.6%, up 2.7 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for Ameresco, its EPS declined by 15.7% annually over the last five years while its revenue grew by 12.5%. However, its operating margin didn’t change during this time, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings.

We can take a deeper look into Ameresco’s earnings to better understand the drivers of its performance. A five-year view shows Ameresco has diluted its shareholders, growing its share count by 2.4%. This has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Ameresco, its two-year annual EPS declines of 25.1% show it’s continued to underperform. These results were bad no matter how you slice the data.

In Q2, Ameresco reported adjusted EPS of $0.20, down from $0.27 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Ameresco’s full-year EPS to grow 104% from $0.61 to $1.25.

Key Takeaways from Ameresco’s Q2 Results

We were impressed by how significantly Ameresco blew past analysts’ revenue expectations this quarter. We were also happy its EBITDA outperformed Wall Street’s estimates. On the other hand, its full-year EBITDA guidance missed. Overall, this print had some key positives. The stock traded up 20.9% to $27.46 immediately after reporting.

So should you invest in Ameresco right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).