Clearway Energy, Inc. Reports Strong FY2025 Results, Advances Growth Pipeline and Reaffirms 2026 Guidance
Clearway Energy, Inc. Reports Strong FY2025 Results, Advances Growth Pipeline and Reaffirms 2026 Guidance
Key Highlights for Investors
- FY2025 financial results delivered at top end of original guidance
- Significant progress on fleet enhancements and sponsor-enabled growth initiatives into 2027-2028
- Major new PPAs signed with Google for 1.1 GW of projects
- Clearway Group’s late-stage pipeline now at 4.2 GW, including 2 GW contracted for data centers
- Opportunistic capital raised: \$600M in corporate debt and \$50M in equity
- 2026 CAFD guidance reaffirmed at \$470-510M
- Quarterly dividend declared: \$0.4602 per share
FY2025 Financial Performance
- Net Loss: \$231 million (reflects higher income tax expense and mark-to-market changes)
- Adjusted EBITDA: \$1,217 million
- Cash from Operating Activities: \$688 million
- Cash Available for Distribution (CAFD): \$430 million
- Fourth Quarter 2025: Net Loss \$199 million, Adjusted EBITDA \$237 million, CAFD \$35 million
Operational and Strategic Updates
Growth and Pipeline Expansion
- Fleet Enhancement: Repowerings for 2026/2027 remain on schedule.
- Sponsor-Enabled Growth: Signed agreements to commit to all remaining planned 2026 COD projects, including a 291 MW storage portfolio in Colorado and California.
- Late-Stage Pipeline: Now totals 4.2 GW, with 2 GW under contract to provide power for data centers (a rapidly expanding market).
- Offers Received: Offers to invest in two major new projects:
- 520 MW Royal Slope Solar + Storage project (Washington, 20-year PPA/ESA, \$200M potential investment, COD 2027)
- 650 MW Swan Solar project (Missouri, 20-year PPA with Google, \$215M potential investment, COD 2028)
- Additional Projects: 199 MW Spindle BESS in Colorado and 92 MW Rosamond South II BESS in California—total \$90M investment, expected to close in H2 2026.
Major Commercial Agreements
Liquidity and Capital Structure
- Total Liquidity as of 12/31/2025: \$1,061 million (down \$269 million YoY, mainly due to growth investments)
- Cash and Cash Equivalents: \$37 million at parent level; \$194 million at subsidiaries
- Restricted Cash: \$587 million (operating, debt service, reserves, and distributions, including \$174 million from tax credit sales)
- Revolving Credit Facility: \$243 million available (\$361 million borrowings repaid with new \$600M 2034 senior notes in January 2026)
- Recent Capital Raises:
- \$600 million in 2034 senior unsecured notes (5.75% interest, repaid revolver, general purposes)
- \$50 million gross proceeds from Class C stock issued at average \$34.60/share
Dividends and Shareholder Returns
- Quarterly Dividend: \$0.4602/share (Class A and C), payable March 16, 2026
- FY2025 Dividends: \$1.77/share (Class A and C), up from \$1.65 in 2024 and \$1.54 in 2023
- CAFD per share target for 2030: \$2.90 to \$3.10
- Projected growth: CAFD per share expected to grow 5-8%+ annually beyond 2030, with potential for top-end growth in 2031
Financial Guidance and Outlook
- 2026 CAFD Guidance Reaffirmed: \$470 million to \$510 million (midpoint based on median production estimates and continued execution of growth investments)
- Visibility for Future Growth: Increasing foundation of signed contracts and pipeline advances Clearway’s outlook for sponsor-enabled growth into 2027 and 2028
- Seasonality: Company highlights that majority of revenues are earned May–September due to higher renewable resources and contracted prices; investors should expect quarterly variability
Additional Operational and Financial Details
- Portfolio Size: ~12.9 GW gross capacity across 27 states (10.1 GW wind/solar/storage and 2.8 GW conventional power)
- Segment Results (FY2025):
- Flexible Generation: \$40M net income, \$210M adjusted EBITDA
- Renewables & Storage: \$(60)M net loss, \$1,039M adjusted EBITDA
- Corporate: \$(211)M net loss, \$(32)M adjusted EBITDA
- Fourth Quarter Generation: Renewables & Storage MWh generated/sold up 10% YoY, driven by new investments
- Balance Sheet (12/31/25): \$16.7B total assets, \$10.7B liabilities, \$5.8B equity
Potential Price Sensitive Items and Shareholder Considerations
- Execution of large new PPAs with Google and expansion of data center contracts (2 GW signed in past 12 months) position Clearway as a key player in the rapidly growing power-for-data-center market.
- Reaffirmed 2026 CAFD guidance and capital raises demonstrate strong access to capital markets and disciplined financial management.
- Substantial late-stage pipeline (4.2 GW) and ongoing negotiations for additional multi-hundred million dollar projects support future dividend growth and long-term cash flow visibility.
- Recent capital raises and refinancing actions strengthen balance sheet and liquidity for future growth; repayment of revolver with new long-term notes reduces near-term refinancing risk.
- Dividend growth continues, with payout rising and management targeting further increases as CAFD grows.
- Investors should monitor timing and approval of major growth investments (Swan Solar, Royal Slope, Catamount, Spindle, Rosamond South II), which remain subject to negotiation, third-party approval, and market conditions.
Upcoming Events
About Clearway Energy, Inc.
Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) is one of the largest owners of clean energy generation assets in the U.S., with a highly contracted and diversified portfolio, and is sponsored by Clearway Energy Group LLC.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Investors should review the company’s filings with the SEC and consult with their financial advisors before making investment decisions.
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