Hannon Armstrong Sustainable Infrastructure Capital(HASI) - 2025 Q3 - Quarterly Results

Financial Performance - GAAP EPS for Q3 2025 was $0.61, compared to $(0.17) in Q3 2024, while Adjusted EPS increased to $0.80 from $0.52 year-over-year[4] - Total revenue for Q3 2025 was $103.064 million, an increase from $81.965 million in Q3 2024, representing a year-over-year growth of approximately 26%[49] - Net income for Q3 2025 was $84.906 million, compared to a net loss of $19.176 million in Q3 2024, indicating a significant turnaround in profitability[49] - Adjusted earnings for Q3 2025 were $102,543,000, or $0.80 per share, compared to $62,624,000, or $0.52 per share in Q3 2024, reflecting a 63.8% increase in earnings year-over-year[66] - The company reported a net income attributable to controlling stockholders of $83,257,000 for Q3 2025, compared to a loss of $19,616,000 in Q3 2024[66] Investment and Asset Management - Adjusted Recurring Net Investment Income reached $105 million in Q3 2025, a 42% increase from $74 million in Q3 2024[13] - Managed Assets grew 15% year-over-year to $15.0 billion as of September 30, 2025[24] - The company closed approximately $1.5 billion in transactions through the first three quarters of 2025, with new asset yields on Portfolio investments exceeding 10.5%[4] - A new $1.2 billion investment in a 2.6 GW utility-scale renewable project was closed in October 2025[4] - Total assets increased to $8,203,966 thousand as of September 30, 2025, up from $7,080,245 thousand at December 31, 2024, representing a growth of approximately 15.8%[51] Debt and Liquidity - Total debt outstanding increased to $5.2 billion as of September 30, 2025, compared to $4.1 billion a year earlier[22] - Total debt outstanding was $5.2 billion as of September 30, 2025, with a debt-to-equity ratio of 1.9x, within the target range of 1.5x to 2.0x[35] - Cash and cash equivalents totaled $302 million, contributing to total liquidity of $1.1 billion, including $834 million of unused capacity under credit facilities[34] - Total liabilities rose to $5,518,095 thousand as of September 30, 2025, compared to $4,675,170 thousand at the end of 2024, indicating an increase of 18.0%[51] Income and Revenue Streams - Interest and Rental Income Revenue was $69 million in Q3 2025, up from $64 million in Q3 2024, driven by higher yields[19] - Adjusted Income from Equity Method Investments was $100 million in Q3 2025, a 68% increase from $59 million in Q3 2024[21] - Interest and rental income for Q3 2025 was $68,976 million, up from $64,151 million in Q3 2024, reflecting a growth of approximately 4%[49] - Gain on sale of assets for Q3 2025 was $24.898 million, significantly higher than $7.678 million in Q3 2024, indicating strong asset performance[49] Future Projections - Adjusted EPS growth for 2025 is expected to be around 10%, with a compound annual growth rate of 8-10% through 2027 relative to the 2023 baseline[4] - Adjusted earnings for the nine months ended September 30, 2025, were $370 thousand, up from $162 thousand in 2024, showing a growth of 128.4%[62] - The company expects annual dividends per share to decline to between 55% and 60% of annual Adjusted EPS by 2027[37] Environmental Impact - Approximately 54,000 metric tons of carbon emissions will be avoided annually due to transactions closed in the quarter, contributing to a total of 8.4 million metric tons avoided across managed assets[36] Shareholder Returns - The company announced a quarterly cash dividend of $0.42 per share, payable on January 9, 2026[38]