Asset Management - The company managed assets totaling approximately $14.5 billion as of March 31, 2025, with a portfolio valued at approximately $7.1 billion[179]. - The portfolio consisted of approximately $3.4 billion in Behind-the-Meter (BTM) assets, $2.7 billion in Grid-Connected (GC) assets, and $1.0 billion in Fuels, Transport, and Nature (FTN) assets[188]. - The company's pipeline of potential new opportunities as of March 31, 2025, was valued at more than $5.5 billion, with approximately 49% related to BTM assets and 30% related to GC assets[183]. - Approximately 54% of the portfolio consisted of unconsolidated equity investments in renewable energy-related projects[188]. - Equity method investments increased to $3.993 billion as of March 31, 2025, from $3.612 billion at the end of 2024, reflecting a growth of 10.6%[210]. Financial Performance - Total revenue for the three months ended March 31, 2025, was $96.941 million, a decrease of $8.875 million or 8% compared to $105.816 million in the same period of 2024[194]. - Net income for the three months ended March 31, 2025, was $58.185 million, a decrease of $66.363 million or 53% compared to $124.548 million in 2024[194]. - Adjusted earnings for the three months ended March 31, 2025, were $78.067 million, slightly down from $78.906 million in 2024[204]. - Income from equity method investments decreased by $70.561 million or 45% to $87.989 million, primarily due to lower mark-to-market income[194]. - GAAP-based net investment income for Q1 2025 was $1.800 million, significantly lower than $8.666 million in Q1 2024, marking an 79.2% decrease[208]. Income and Expenses - Interest income from receivables for the three months ended March 31, 2025, was $66 million, with an average interest rate of 8.7%[191]. - Interest income decreased by $2.298 million or 3% to $66.394 million, while rental income dropped significantly by $1.763 million or 96% to $83 thousand[194]. - Total expenses increased by $9.224 million or 10% to $102.847 million, driven by a $4 million increase in compensation and benefits expenses[194]. - The company recorded a provision for loss on receivables and securitization assets of $3.812 million, an increase of $1.790 million or 89% compared to $2.022 million in 2024[194]. Cash Flow and Liquidity - Cash available for reinvestment was $106.122 million for the TTM ended March 31, 2025, a decrease from $717.806 million for the TTM ended March 31, 2024[214]. - Total cash collected from the portfolio for the year ended December 31, 2024, was $891.250 million, compared to $442.322 million for the year ended December 31, 2023[216]. - Principal collections from receivables for Q1 2025 were $40.455 million, a decrease from $141.594 million in Q1 2024[213]. - Adjusted cash from operations plus other portfolio collections for Q1 2025 was $265.908 million, down from $910.075 million in Q1 2024[216]. - Total liquidity as of March 31, 2025, is $1.302 billion, consisting of $67 million in unrestricted cash and $1.235 billion in unused credit capacity[224]. Debt and Financing - The company has $4.5 billion of debt with fixed rates or hedged floating rate debt, and $218 million of debt with variable interest rates as of March 31, 2025[259]. - The debt to equity ratio was approximately 1.9 to 1 as of March 31, 2025, below the board-approved leverage limit of 2.5 to 1[235]. - Cash provided by financing activities for the three months ended March 31, 2025, was $294 million, significantly higher than $51 million in the same period of 2024[246]. - The company plans to continue issuing debt and equity to finance its business, utilizing both on-balance sheet and off-balance sheet securitizations[232]. - The company increased the available capacity under its unsecured revolving credit facility to $1.55 billion during the three months ended March 31, 2025[225]. Risk Management - The company employs a risk rating system to evaluate projects, estimating the probability of default and recovery rates based on obligors' credit ratings[255]. - The company is exposed to credit risk from various projects, including those not backed by government guarantees, such as financing for universities and hospitals[254]. - Interest rate risk is influenced by factors such as governmental policies and economic conditions, impacting the company's ability to secure financing[256]. - The company actively manages interest rate risks through fixed rate financing structures and financial instruments like interest rate swaps[257]. - Environmental risks are integral to the company's investment parameters, with ongoing monitoring of these risks post-transaction[265].

Core Insights - HA Sustainable Infrastructure Capital (HASI) reported a revenue of $28.45 million for the quarter ended March 2025, reflecting a decline of 32.1% year-over-year and a surprise of -13.78% compared to the Zacks Consensus Estimate of $33 million [1] - The company's earnings per share (EPS) was $0.64, consistent with the consensus estimate but down from $0.68 in the same quarter last year [1] Revenue Breakdown - Gain on sale of assets was reported at $18.67 million, exceeding the average estimate of $13.56 million by four analysts, but showing a year-over-year decline of 34.8% [4] - Rental income was $0.08 million, surpassing the average estimate of -$0.09 million from three analysts, representing a significant year-over-year decrease of 95.5% [4] - Interest income was $66.39 million, slightly below the estimated $67.66 million by three analysts, with a year-over-year decline of 3.4% [4] - Other income was reported at $4.80 million, exceeding the average estimate of $4.24 million from two analysts [4] - Securitization asset income was $7 million, surpassing the average estimate of $5.19 million from two analysts, indicating a year-over-year increase of 42.9% [4] Stock Performance - Over the past month, shares of HA Sustainable Infrastructure Capital have returned +6.5%, compared to a +10.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - HA Sustainable Infrastructure Capital (HASI) reported quarterly earnings of $0.64 per share, matching the Zacks Consensus Estimate, but down from $0.68 per share a year ago [1] - The company posted revenues of $28.45 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 13.78%, compared to $41.92 million in the same quarter last year [2] - The stock has lost about 3.7% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $33.85 million, and for the current fiscal year, it is $2.66 on revenues of $128.45 million [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $0.64 for Q1 2025, reflecting an 11% increase in adjusted net investment income to $72 million compared to the same period last year [20][25] - The portfolio has grown to $7.1 billion, with a portfolio yield of 8.3% and a cost of debt at 5.7% [17][18] - The company closed over $700 million in new investments during the first quarter, achieving an average yield greater than 10.5% [5][15] Business Line Data and Key Metrics Changes - The residential solar assets continue to perform strongly, with expectations that they will remain an attractive consumer alternative as retail utility rates increase [15] - The company is seeing elevated demand for behind-the-meter solutions driven by consumer economics and government efficiency initiatives [12] - The renewable natural gas (RNG) sector is contributing significantly to growth, with ongoing evaluations of new frontier asset classes [13][15] Market Data and Key Metrics Changes - The company has a robust pipeline of projects, with most being operational or near operational, thus minimizing the impact of tariffs [8][10] - Despite a potential recession in 2025, the company expects only marginal impacts on investments in clean energy generation, as demand for energy is projected to drive development [10][11] Company Strategy and Development Direction - The company aims for 8% to 10% compound annual growth in adjusted EPS through 2027, supported by a strong liquidity platform and diverse funding strategies [7][21] - The focus remains on maintaining a well-diversified portfolio across different asset classes to enhance resilience [18][24] - The company is actively managing its capital structure with a leverage ratio of 1.9x, aiming to preserve and expand investment margins [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's resilience amid heightened policy and economic uncertainty, noting a historically high volume of incoming requests for capital [5][10] - The company anticipates limited impact from tariffs and a stable outlook for the IRA, with ongoing confidence in the long-term fundamentals of the business [10][60] - Management highlighted that the pipeline is well-balanced and expects continued strong volumes through the remainder of the year [55][56] Other Important Information - The company has over $1.3 billion in available liquidity, which is crucial for capitalizing on opportunities during market volatility [6][21] - The CCH1 co-investment vehicle with KKR has a funded balance of $1 billion, with plans to increase its investment capacity [16] Q&A Session Summary Question: Discussion on debt at the CCH1 level and leverage profile - Management indicated that leverage at CCH1 would be relatively low, with an investment-grade type cost of funds likely [28][29] Question: Impact of stock price on equity financing needs - Management noted a reduction in the number of shares needed to grow the business, which is viewed positively [30][31] Question: Record originations in Q1 and future implications - Management attributed the record originations to increased business activity and a stronger competitive position due to some competitors leaving the market [39][40] Question: Dynamics of residential solar investments - Management clarified that the strong performance in residential solar assets is consistent with historical investments and not impacted by the sponsor's financial position [47][48] Question: Outlook on the IRA and potential changes - Management expressed confidence that the core components of the IRA are unlikely to be repealed, with ongoing support from both the House and Senate [60][61]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $0.64 for Q1 2025, reflecting an 11% increase in adjusted net investment income to $72 million compared to the same period last year [20][21] - The portfolio yield is currently at 8.3%, with an average yield on new investments exceeding 10.5% [18][4] - The company has over $1.3 billion in available liquidity, which is crucial for capitalizing on investment opportunities [5][21] Business Line Data and Key Metrics Changes - The company closed over $700 million in new investments during Q1 2025, marking the most active first quarter of new originations in its history [4][14] - Significant investments in residential solar and public sector energy efficiency contributed to the high volume of closed transactions [14][17] - The managed assets increased by 12% year over year, indicating robust growth in the company's investment activities [13] Market Data and Key Metrics Changes - The company noted that the demand for clean energy generation remains strong, even amid economic uncertainty, with expectations of continued investment opportunities [10][9] - The company is experiencing a historically high volume of incoming requests for capital from sponsors and developers, driven by increasing load growth and government efficiency initiatives [11][12] Company Strategy and Development Direction - The company aims to achieve 8% to 10% compound annual growth in adjusted EPS through 2027, supported by a strong pipeline of investment opportunities and a resilient business model [5][25] - The company is focusing on diversifying its funding sources and enhancing its liquidity platform to navigate market volatility effectively [21][22] - The company is exploring new frontier asset classes for future investments, indicating a proactive approach to growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive despite potential economic downturns, citing the non-cyclical nature of its business model [10][9] - The company anticipates limited impact from tariffs and potential recession on its operations, as most projects in the pipeline are already constructed or near completion [6][9] - Management highlighted the importance of maintaining a strong liquidity position to capitalize on market opportunities [5][21] Other Important Information - The company has extended the investment period for its CCH1 co-investment vehicle with KKR until Q4 2026, reflecting a strategic decision to increase its capacity [14][37] - The company has a well-laddered maturity profile and is actively managing its capital structure to maintain a leverage ratio of 1.5 to 2x [22] Q&A Session Summary Question: Discussion on debt at the CCH1 level and leverage profile - Management indicated that leverage at CCH1 would be relatively low, with an expectation of investment-grade type costs of funds [28][29] Question: Impact of equity financing needs on investment pace - Management noted a significant reduction in the number of shares needed to grow the business, which is a positive development [30][31] Question: Clarification on record transactions in Q1 - Management attributed the record originations to increased business activity rather than a pull forward of pipeline [40] Question: Yield dispersion on new investments - Management confirmed that yields on new investments are consistent with previous quarters, with no significant jumps into mid-double digits [45] Question: Dynamics of residential solar investments - Management clarified that the strong performance in residential solar assets is not impacted by the financial position of sponsors [48] Question: Outlook on IRA and potential changes - Management expressed confidence that the core components of the IRA will not be repealed, despite ongoing discussions [56][60] Question: Exposure to storage projects - Management indicated minimal exposure to standalone storage, with most investments involving some component of storage [62] Question: Wind opportunities in the pipeline - Management confirmed that the wind opportunities are all onshore and consistent with past projects [78]

Financial Highlights - Adjusted Earnings per Share (EPS) was $0.64[7], while GAAP EPS was $0.44[7] - The company closed transactions exceeding $700 million[7] - New asset yields surpassed 10.5% in Q1 2025[7, 25] - Available liquidity stood at $1.3 billion as of March 31, 2025[7] - CCH funded assets reached $1 billion as of March 31, 2025[7] Portfolio and Pipeline - The company's 12-month pipeline is greater than $5.5 billion[18], diversified across Grid-Connected (GC) (30%)[19], Behind-the-Meter (BTM) (49%)[18], and Fuels, Transport, & Nature (FTN) (21%)[19] - Managed assets totaled $14.5 billion, with CCH assets at $1 billion[21] - The portfolio is diversified across Resi Solar (46%)[22], Public Sector (38%)[22], C&I (4%)[22], Community Solar (4%)[22], and Other (3%)[22] Guidance and Outlook - The company reaffirmed its guidance for a Compound Annual Growth Rate (CAGR) of 8-10% to Adjusted EPS in 2027, using a 2023 base year[8]

Financial Performance - GAAP net income for Q1 2025 was $56.6 million, down 54% from $123 million in Q1 2024[17] - Adjusted earnings for Q1 2025 were approximately $78 million, a slight decrease from $79 million in Q1 2024[25] - Total revenue for Q1 2025 was $97 million, an 8% decrease from $106 million in Q1 2024[13] - Net income for Q1 2025 was $58,185,000, down 53.3% from $124,548,000 in Q1 2024[42] - Basic earnings per share for Q1 2025 were $0.47, compared to $1.08 in Q1 2024, reflecting a decline of 56.0%[42] - GAAP net income for Q1 2025 was $88 million, down 44.7% from $159 million in Q1 2024[55] - Adjusted earnings for Q1 2025 were $78.067 million, slightly down from $78.906 million in Q1 2024, with adjusted earnings per share at $0.64 compared to $0.68[57] Investment and Asset Management - Adjusted net investment income increased by 12% year-over-year to $72 million in Q1 2025, compared to $64 million in Q1 2024[22] - Managed assets grew 12% year-over-year to $14.5 billion, with a portfolio of approximately $7.1 billion, up 11% year-over-year[8] - The company closed over $700 million in transactions during the quarter, setting a Q1 record, with a pipeline exceeding $5.5 billion[5] - Managed assets reached $14.496 billion as of March 31, 2025, compared to $13.703 billion at the end of 2024, indicating a growth of 5.8%[60] - Equity method investments increased to $3.993 billion as of March 31, 2025, up from $3.612 billion at the end of 2024[60] Cash Flow and Liquidity - Cash flows from operating activities were negative at $(37,121,000) in Q1 2025, compared to positive cash flows of $20,931,000 in Q1 2024[46] - Cash collected in Q1 2025 was $26 million, an increase of 62.5% from $16 million in Q1 2024[55] - Cash available for reinvestment as of March 31, 2025, was $717,806,000, a decrease from $(11,702,000) in the previous quarter[64] - Cash collected from the portfolio for the three months ended March 31, 2025, was $111,249,000, compared to $208,907,000 for the same period in 2024[66] - Cash collected from the sale of assets for the year ended December 31, 2024, was $325,051,000, with $21,665,000 collected in the three months ended March 31, 2025[66] Dividends and Shareholder Returns - A quarterly dividend of $0.42 per share was declared, payable on July 11, 2025[31] - Dividends paid for the three months ended March 31, 2025, were $(50,397,000), compared to $(45,093,000) for the same period in 2024[64] Debt and Financial Ratios - The debt-to-equity ratio as of March 31, 2025, was 1.9, within the target range of 1.5 to 2.0[26] - Total assets increased to $7,475,961,000 as of March 31, 2025, up from $7,080,245,000 at the end of 2024, representing a growth of 5.6%[44] - Total liabilities rose to $5,005,217,000 as of March 31, 2025, compared to $4,675,170,000 at the end of 2024, an increase of 7.0%[44] Risk and Provisions - The company reported a provision for loss on receivables of $3,812,000 in Q1 2025, up from $2,022,000 in Q1 2024, indicating increased risk in receivables[42] - The company made equity method investments totaling $(247,714,000) in Q1 2025, compared to $(127,422,000) in Q1 2024, indicating a significant increase in investment activity[46]

Core Viewpoint - HA Sustainable Infrastructure Capital (HASI) has experienced a significant decline of 20.3% over the past four weeks, but it is now in oversold territory, indicating a potential for a trend reversal as analysts expect better earnings than previously predicted [1]. Group 1: Stock Performance and Technical Indicators - The stock's Relative Strength Index (RSI) reading is at 21.81, suggesting that the heavy selling pressure may be exhausting, which could lead to a rebound towards the previous equilibrium of supply and demand [5]. - A stock is generally considered oversold when its RSI falls below 30, indicating a potential entry opportunity for investors [2]. Group 2: Earnings Estimates and Analyst Consensus - There has been a consensus among sell-side analysts to raise earnings estimates for HASI, with a 0.1% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - HASI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [8].

Core Viewpoint - HA Sustainable Infrastructure Capital (HASI) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the changing earnings picture, specifically tracking the Zacks Consensus Estimate for EPS from sell-side analysts for the current and following years [2]. - A company's future earnings potential, reflected in earnings estimate revisions, is strongly correlated with near-term stock price movements [5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that influence stock prices [5]. Business Improvement Indicators - The rising earnings estimates for HA Sustainable Infrastructure Capital indicate an improvement in the company's underlying business, which is expected to positively affect its stock price [6]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, making tracking these revisions beneficial for investment decisions [7]. Zacks Rank System Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [8]. - The upgrade of HA Sustainable Infrastructure Capital to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11]. Earnings Estimate for HA Sustainable Infrastructure Capital - For the fiscal year ending December 2025, HA Sustainable Infrastructure Capital is expected to earn $2.66 per share, reflecting a year-over-year change of 8.6%, with a 1.1% increase in the Zacks Consensus Estimate over the past three months [9].

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