[PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section provides the unaudited consolidated financial statements and management's discussion and analysis for the first half of 2025 [Financial Statements and Notes](index=6&type=section&id=ITEM%201%20%E2%80%94%20FINANCIAL%20STATEMENTS%20AND%20NOTES) This section presents Clearway Energy, Inc.'s unaudited consolidated financial statements and detailed notes for Q2 2025 [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The company reported **$690 million** in revenues, a **$92 million** net loss, and **$16.03 billion** in assets for H1 2025 Consolidated Statements of Operations Highlights (Six Months Ended June 30) | Metric (USD millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Total operating revenues** | $690 | $629 | | **Operating Income** | $85 | $55 | | **Net Loss** | $(92) | $(42) | | **Net Income Attributable to Clearway Energy, Inc.** | $37 | $49 | | **Earnings Per Share (Class A & C)** | $0.31 | $0.41 | Consolidated Balance Sheet Highlights | Metric (USD millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $16,033 | $14,329 | | Property, plant and equipment, net | $11,385 | $9,944 | | **Total Liabilities** | $10,453 | $8,765 | | Long-term debt | $8,251 | $6,750 | | **Total Stockholders' Equity** | $5,542 | $5,564 | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric (USD millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $286 | $277 | | **Net Cash Used in Investing Activities** | $(398) | $(647) | | **Net Cash Provided by (Used in) Financing Activities** | $165 | $(111) | [Note 1 — Nature of Business](index=13&type=section&id=Note%201%20%E2%80%94%20Nature%20of%20Business) Clearway Energy, Inc. is a leading clean energy investor with a **12 GW** portfolio, holding a **58.30%** interest in Clearway Energy LLC - The company's portfolio consists of approximately **12 GW** of gross capacity, including **9.2 GW** of wind, solar, and BESS, and **2.8 GW** of flexible generation assets[36](index=36&type=chunk) - As of June 30, 2025, the Company held a **58.30%** economic interest in Clearway Energy LLC, with its sponsor CEG owning the remaining **41.70%**[38](index=38&type=chunk) [Note 3 — Acquisitions](index=18&type=section&id=Note%203%20%E2%80%94%20Acquisitions) The company actively acquired new assets in H1 2025, including the Tuolumne wind facility and several solar and BESS projects - On July 16, 2025, acquired the **109 MW** Catalina Solar facility from a third-party for approximately **$127 million**[56](index=56&type=chunk) - On April 29, 2025, acquired the **137 MW** Tuolumne wind facility for approximately **$210 million**, with a net capital investment of **$59 million** after new financing[60](index=60&type=chunk) - Completed several drop-down acquisitions of assets under construction from sponsor CEG, including Pine Forest, Luna Valley, Daggett 1, and Rosamond South I, with substantial completion expected in the second half of 2025[57](index=57&type=chunk)[62](index=62&type=chunk)[65](index=65&type=chunk) [Note 7 — Long-term Debt](index=31&type=section&id=Note%207%20%E2%80%94%20Long-term%20Debt) Total debt increased to **$8.78 billion** by June 30, 2025, driven by new acquisition-related facility-level debt and term loans Total Debt Summary | Metric (USD millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Senior Notes | $2,125 | $2,125 | | Revolving Credit Facility | $112 | $0 | | Non-recourse facility-level debt | $6,543 | $5,110 | | **Total debt** | **$8,780** | **$7,235** | - Assumed significant facility-level financing agreements in connection with the acquisitions of Pine Forest, Luna Valley, Daggett 1, and Rosamond South I[96](index=96&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[102](index=102&type=chunk) - Entered into a new **$163 million** term loan to partially fund the Tuolumne wind facility acquisition[100](index=100&type=chunk) [Note 9 — Segment Reporting](index=34&type=section&id=Note%209%20%E2%80%94%20Segment%20Reporting) The Renewables & Storage segment generated **$572 million** in revenue and holds **$14.1 billion** in assets for H1 2025 Segment Performance (Six Months Ended June 30, 2025) | Segment (USD millions) | Operating Revenues | Net (Loss) Income | | :--- | :--- | :--- | | Flexible Generation | $118 | $(9) | | Renewables & Storage | $572 | $(7) | | Corporate | $0 | $(76) | | **Total** | **$690** | **$(92)** | Total Assets by Segment (as of June 30, 2025) | Segment (USD millions) | Total Assets | | :--- | :--- | | Flexible Generation | $1,879 | | Renewables & Storage | $14,083 | | Corporate | $71 | | **Total** | **$16,033** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=ITEM%202%20%E2%80%94%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses H1 2025 financial performance, highlighting revenue growth from new assets, increased costs, and a strong liquidity position [Executive Summary](index=39&type=section&id=Executive%20Summary) Clearway's executive summary highlights key 2025 acquisitions, including Tuolumne and Catalina, and the sale of Mt. Storm for repowering - Acquired the Tuolumne wind facility (April 2025) and Catalina solar facility (July 2025) from third parties[125](index=125&type=chunk)[127](index=127&type=chunk) - Executed several drop-down transactions with sponsor CEG for solar and BESS assets under construction, including Pine Forest, Luna Valley, Daggett 1, and Rosamond South I, with total capital investment commitments across these projects[126](index=126&type=chunk) - Entered an agreement to sell the Mt. Storm wind facility to CEG for **$121 million** to facilitate a repowering project, with an exclusive option for the Company to re-acquire the asset post-repowering[128](index=128&type=chunk) [Consolidated Results of Operations](index=45&type=section&id=Consolidated%20Results%20of%20Operations) Operating revenues increased by **$61 million** to **$690 million** in H1 2025, driven by new assets, while net loss widened to **$92 million** Change in Operating Revenues (Six Months Ended June 30, 2025 vs 2024) | Driver | Change (USD millions) | | :--- | :--- | | New Renewables & Storage Assets | $32 | | New Wind Acquisitions | $15 | | Favorable Mark-to-market on Hedges | $40 | | Lower Flexible Generation Revenue | $(20) | | Lower Wind Resource | $(11) | | **Total Change** | **$61** | - Operations and maintenance expense increased by **$25 million** for the six-month period, driven by new assets from acquisitions and increased maintenance activities at various wind facilities[146](index=146&type=chunk) - Interest expense increased by **$54 million** for the six-month period, primarily due to changes in the fair value of interest rate swaps[147](index=147&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position of approximately **$1.3 billion** as of June 30, 2025, with stable credit ratings Total Liquidity Position | Component (USD millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total cash, cash equivalents and restricted cash | $786 | $733 | | Revolving credit facility availability | $512 | $597 | | **Total liquidity** | **$1,298** | **$1,330** | - Capital expenditures for the six months ended June 30, 2025, were approximately **$132 million**, with **$123 million** dedicated to growth projects, primarily funded through construction-related financing[160](index=160&type=chunk) Corporate Credit Ratings (as of June 30, 2025) | Agency | Rating | | :--- | :--- | | S&P | BB | | Moody's | Ba2 | [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=ITEM%203%20%E2%80%94%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages market risks, including commodity price and interest rate fluctuations, with sensitivity analyses showing potential impacts on derivatives and interest expense - A hypothetical **$0.50 per MWh** change in power prices would result in an approximate **$4 million** change to the net value of the company's long-term power commodity derivative contracts[195](index=195&type=chunk) - A **100 basis point (1%)** change in interest rates would lead to an approximately **$5 million** change in market interest expense on a rolling twelve-month basis[199](index=199&type=chunk) [Controls and Procedures](index=58&type=section&id=ITEM%204%20%E2%80%94%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[203](index=203&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[204](index=204&type=chunk) [PART II — OTHER INFORMATION](index=58&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section provides additional information, including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=58&type=section&id=ITEM%201%20%E2%80%94%20LEGAL%20PROCEEDINGS) The company reported no legal proceedings during the period - The company reports no legal proceedings[207](index=207&type=chunk) [Risk Factors](index=58&type=section&id=ITEM%201A%20%E2%80%94%20RISK%20FACTORS) No material changes occurred in the company's risk factors since the 2024 Form 10-K filing - No material changes have occurred in the Company's risk factors since the filing of its 2024 Form 10-K[208](index=208&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=ITEM%202%20%E2%80%94%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company reported no unregistered sales of equity securities or use of proceeds during the period - The company reports no unregistered sales of equity securities[209](index=209&type=chunk) [Other Information](index=58&type=section&id=ITEM%205%20%E2%80%94%20OTHER%20INFORMATION) No director or officer adopted, modified, or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter[212](index=212&type=chunk) [Exhibits](index=59&type=section&id=ITEM%206%20%E2%80%94%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including officer certifications and Inline XBRL data - Exhibits filed include certifications from the CEO and CFO, Section 1350 certification, and various Inline XBRL documents[213](index=213&type=chunk)

Financial Performance & Guidance - Second quarter 2025 CAFD reached $152 million, impacted by lower renewable resource[13] - The company is updating its 2025 CAFD guidance range to $405-440 million, raising the bottom end due to closed 3rd party M&A[13,40] - The company is targeting CAFD per share to $2.50-2.70 in 2027, increased from $2.40-2.60 previously[13] - The company expects to generate over $270 million of retained CAFD cumulatively between 2025-2027 and to have over $600 million of debt capacity to fund growth[44] Growth Initiatives - The company announced a dividend increase of 1.6% to $0.4456/share in 3Q25, or $1.7824/share annualized[13] - Mt Storm repowering is set to begin in 2H25, completed in two phases in 2026 and 2027, with estimated corporate capital of ~$220-230 million and a target 5-year average incremental annual asset CAFD yield of ~11-13%[13,19] - The company signed a 15-year PPA for Goat Mountain repowering with a hyperscaler customer, targeting a 2027 COD, with estimated corporate capital of ~$200 million and a target 5-year average incremental annual asset CAFD yield of +10%[13,19] - The company received an offer to invest in a 291 MW battery storage portfolio, requiring ~$65 million of estimated corporate capital[13] - The company closed a 3rd party M&A agreement for the operational Catalina Solar project, requiring ~$122 million of estimated corporate capital[13] Pipeline & Future Growth - The late-stage pipeline through 2029 vintages has over $1.5 billion of potential corporate capital investments beyond already offered/committed projects/advanced repowerings[32] - Clearway Group has 9.4 GW of late-stage projects through the end of the decade[13,60]

Financial Performance - Clearway Energy, Inc. reported a net income of $12 million for Q2 2025, an increase from $4 million in Q2 2024, primarily due to lower tax expenses [8][30] - Adjusted EBITDA for Q2 2025 was $343 million, down from $353 million in Q2 2024, attributed to lower renewable production and energy margins [8][5] - Cash from operating activities was $191 million for Q2 2025, slightly lower than $196 million in Q2 2024 [6][8] Growth and Strategic Initiatives - The company has increased its 2025 guidance range to reflect contributions from recently closed acquisitions and aims to enhance its 2027 CAFD per share target range to $2.50 to $2.70 [2][20] - Clearway Energy is advancing its repowering program with Goat Mountain and has a new investment offer for a 291 MW storage portfolio [7][14] - The company completed the acquisition of Catalina Solar for approximately $127 million, which is expected to contribute positively to future earnings [16] Dividend and Shareholder Returns - The Board of Directors declared a quarterly dividend of $0.4456 per share, reflecting a 1.6% increase, payable on September 16, 2025 [17] - The annualized dividend per share is projected to be $1.7824 [17] Liquidity and Capital Resources - As of June 30, 2025, total liquidity was $1,298 million, a decrease of $32 million from December 31, 2024, primarily due to growth investments [10][11] - The company had $526 million in restricted cash, mainly for debt service and operational expenses [11][10] Operational Performance - The Flexible Generation segment's availability factor was 95.0% in Q2 2025, down from 97.1% in Q2 2024, due to outages [9] - Solar generation increased to 2,650 MWh in Q2 2025 from 2,613 MWh in Q2 2024, while wind generation remained stable [9]

One stock to keep an eye on is Clearway Energy (CWENA). CWENA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 17.65. This compares to its industry's average Forward P/E of 22.22. Over the last 12 months, CWENA's Forward P/E has been as high as 38.45 and as low as 16.04, with a median of 17.87. Value investors will likely look at more than just these metrics, but the above data helps show that Clearway Energy is likely undervalued currently. And when co ...

Core Viewpoint - Clearway Energy's stock performance has shown a slight increase, but it has underperformed compared to the broader market and its sector [1][2]. Company Performance - Clearway Energy closed at $32.63, reflecting a +1.71% change from the previous day, outperforming the S&P 500's decline of 0.37% [1]. - Over the past month, the stock has increased by 0.34%, which is below the Oils-Energy sector's gain of 3.65% and the S&P 500's gain of 2.68% [1]. Upcoming Earnings - The company is set to release its earnings report on August 5, 2025, with an expected EPS of $0.67, indicating a 55.81% increase year-over-year [2]. - Revenue is anticipated to reach $426.66 million, representing a 16.57% increase compared to the same quarter last year [2]. Annual Estimates - For the annual period, earnings are projected at $1.03 per share and revenue at $1.45 billion, reflecting increases of +37.33% and +5.77% respectively from the previous year [3]. Analyst Estimates - Recent changes in analyst estimates for Clearway Energy suggest a positive outlook on the company's business operations and profit generation capabilities [4]. - The Zacks Rank system indicates a current rank of 3 (Hold) for Clearway Energy, with a recent 5.83% decline in the Zacks Consensus EPS estimate [6]. Valuation Metrics - Clearway Energy has a Forward P/E ratio of 31.03, which is higher than the industry average Forward P/E of 20 [7]. - The company has a PEG ratio of 0.8, significantly lower than the Alternative Energy - Other industry's average PEG ratio of 2.68 [8]. Industry Context - The Alternative Energy - Other industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 163, placing it in the bottom 35% of over 250 industries [9].

Core Viewpoint - Clearway Energy Inc. (CWEN) is expected to report its second-quarter 2025 results on August 5, with an earnings surprise of 112% in the previous quarter [1] Factors Impacting Q2 Performance - The second-quarter earnings are likely to benefit from contributions from the acquired 137 MW Tuolumne Wind project [2] - Seasonal factors are crucial, as most revenues are generated from May to September when contracted pricing and renewable resources peak [2] - Ongoing repowering of wind assets is expected to enhance earnings by extending project life through new technology [3] Q2 Expectations - The Zacks Consensus Estimate for earnings is 67 cents per share, reflecting a year-over-year increase of 55.8% [4] - The consensus estimate for revenues is $426.7 million, indicating a 16.57% increase from the previous year [4] Earnings Prediction Model - The current Earnings ESP for Clearway Energy is -35.07%, which diminishes the likelihood of an earnings beat this quarter [5] - Clearway Energy holds a Zacks Rank of 3, indicating a hold position [6] Comparable Stocks - HighPeak Energy (HPK) is anticipated to report an earnings beat with an Earnings ESP of +56.33% and a Zacks Rank of 2 [7] - Viper Energy Inc. (VNOM) is also expected to report an earnings beat with an Earnings ESP of +8.56% and a Zacks Rank of 2 [9]

Core Insights - The energy sector is highlighted as a strong source of dividend income, with several companies providing lucrative dividends supported by robust financial profiles Group 1: Clearway Energy - Clearway Energy is a significant U.S. clean power producer with a diverse portfolio including wind, solar, storage, and natural gas assets, generating steady cash flow through long-term power purchase agreements [3][4] - The company is projected to grow its cash available for dividends from $2.08 per share this year to over $2.50 per share by 2027, supporting annual dividend growth of 5% to 8% [4][5] - Clearway's focus on renewable energy positions it well for continued cash flow and dividend growth beyond 2027 [5] Group 2: Energy Transfer - Energy Transfer is a leading energy infrastructure company, with 90% of its earnings derived from stable, fee-based sources, ensuring predictable cash flow [6] - The company plans to invest approximately $5 billion this year in new gas processing plants, export capacity, and a major gas pipeline, which will enhance cash flow over the next two years [7][8] - Energy Transfer aims to increase its distribution by around 3% to 5% annually, supported by ongoing expansion projects and financial capacity for acquisitions [8] Group 3: ConocoPhillips - ConocoPhillips is one of the largest and lowest-cost oil and gas producers in the U.S., with a cost of supply below $40 per barrel, generating significant free cash flow with current crude oil prices in the upper $60s [9] - The company is entering a multiyear free cash flow growth cycle, expecting to deliver $6 billion of incremental free cash flow through 2029, positioning it for top-tier dividend growth within the S&P 500 [10] Group 4: Overall Investment Appeal - Clearway Energy, Energy Transfer, and ConocoPhillips are identified as strong income-producing stocks, leveraging significant cash flow to pay dividends and fund operational expansions [11] - The combination of high yield and growth potential makes these energy stocks attractive for investors seeking substantial passive income [11]

Company Performance - Clearway Energy (CWEN) closed at $31.46, reflecting a -1.01% change from the previous day, underperforming compared to the S&P 500's gain of 0.4% [1] - Over the past month, CWEN's stock has decreased by 1.03%, while the Oils-Energy sector gained 1.98% and the S&P 500 increased by 4.61% [1] Upcoming Earnings - Clearway Energy is set to release its earnings report on August 5, 2025, with an expected EPS of $0.66, indicating a 53.49% increase from the same quarter last year [2] - The consensus estimate for quarterly revenue is $428.6 million, which represents a 17.1% increase from the previous year [2] Full-Year Estimates - The Zacks Consensus Estimates for Clearway Energy forecast earnings of $1.02 per share and revenue of $1.45 billion for the full year, reflecting year-over-year changes of +36% and +5.77%, respectively [3] Analyst Estimates and Stock Performance - Recent modifications to analyst estimates for Clearway Energy indicate a dynamic business outlook, with positive revisions suggesting optimism [3] - The Zacks Rank system, which assesses estimate changes, currently ranks Clearway Energy at 4 (Sell), following a 7.47% decrease in the EPS estimate over the last 30 days [5] Valuation Metrics - Clearway Energy has a Forward P/E ratio of 31.28, which is a premium compared to its industry's Forward P/E of 20.9 [6] - The company has a PEG ratio of 0.82, significantly lower than the average PEG ratio of 2.51 for the Alternative Energy - Other industry [6] Industry Context - The Alternative Energy - Other industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 165, placing it in the bottom 34% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Performance - Clearway Energy (CWEN) closed at $32.98, marking a +1.95% move from the prior day, outperforming the S&P 500 which registered a daily loss of 0.01% [1] - The company has gained 0.81% in the past month, while the Oils-Energy sector lost 1.27% and the S&P 500 gained 5.37% [2] Earnings Forecast - Clearway Energy is expected to release its earnings on August 5, 2025, with a predicted EPS of $0.81, indicating an 88.37% growth compared to the same quarter last year [3] - The consensus estimate for quarterly revenue is $434.4 million, up 18.69% from the year-ago period [3] Annual Estimates - For the annual period, Zacks Consensus Estimates anticipate earnings of $1.21 per share and revenue of $1.46 billion, signifying shifts of +61.33% and +6.14% respectively from the last year [4] Analyst Estimates - Recent changes to analyst estimates for Clearway Energy should be noted, as positive revisions are interpreted as a good sign for the business outlook [4] - The Zacks Rank system indicates that Clearway Energy currently holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - Clearway Energy is currently traded at a Forward P/E ratio of 26.68, which is a premium compared to the industry average Forward P/E of 19.79 [7] - The company has a PEG ratio of 0.7, while the Alternative Energy - Other industry had an average PEG ratio of 2.4 [7] Industry Context - The Alternative Energy - Other industry, part of the Oils-Energy sector, ranks in the bottom 39% of all industries according to the Zacks Industry Rank [8] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - The S&P 500's dividend yield is nearing record lows at approximately 1.2%, yet there are several high-quality companies offering dividends with yields of 5% or more, providing opportunities for passive income seekers [1]. Group 1: High-Yield Dividend Stocks - Realty Income has a dividend yield above 5.5%, supported by a diversified real estate portfolio and a strong financial profile, with a record of 661 consecutive monthly dividends and 131 increases since its IPO in 1994 [4][6]. - Clearway Energy's dividend yield is just below 5.5%, with stable cash flow generated from long-term power purchase agreements, and plans to grow cash available for dividends from $2.08 per share this year to over $2.50 by 2027 [7][8]. - Healthpeak Properties offers a yield over 6.5%, with a high-quality portfolio of healthcare properties and a strong financial profile, including $500 million to $1 billion in capacity for additional investments [9][10]. - Oneok's dividend yield exceeds 5%, with 90% of earnings from fee-based sources, aiming for a 3% to 4% annual increase in dividends supported by acquisition synergies and expansion projects [11][12]. - Verizon has a dividend yield approaching 6.5%, generating $19.8 billion in free cash flow last year, which comfortably covered its $11.2 billion in dividend payments, allowing for continued dividend increases [13][14]. Group 2: Investment Rationale - Realty Income, Clearway Energy, Healthpeak Properties, Oneok, and Verizon all provide dividends above 5%, backed by recurring cash flow and strong balance sheets, making them solid choices for passive income investments [15].