HASI Announces First Quarter 2025 Results

ANNAPOLIS, Md.–(BUSINESS WIRE)–$HASI–HA Sustainable Infrastructure Capital, Inc. (“HASI,” “we,” “our” or the “Company”) (NYSE: HASI), a leading investor in sustainable infrastructure assets, today reported results for the first quarter of 2025.

Key Highlights

• Closed more than $700 million in transactions during the quarter, a Q1 record, while our pipeline remains strong at greater than $5.5 billion as of the end of Q1.
• Average yield on new portfolio investments in Q1 was over 10.5%.
• Managed assets increased 12% year-over-year to $14.5 billion, and our recurring income (Adjusted Net Investment Income and Securitization Asset Income) totaled $79 million in Q1, up 14% year-over-year.
• GAAP EPS of $0.44, compared with $0.98 a year ago, and Adjusted EPS of $0.64, compared to $0.68 a year ago.
• Further strengthened our funding platform by increasing the capacity of our revolver by $200 million to $1.55 billion.
• Guidance for Adjusted EPS growth of 8-10% through 2027 reaffirmed, and quarterly dividend declared of $0.42 per share.

“Our solid Q1 performance and the stability provided by our portfolio continue to demonstrate the resilience of our business regardless of the macroeconomic and policy backdrop,” said HASI President and Chief Executive Officer Jeffrey A. Lipson. “In addition, we reaffirm our guidance, as the visibility provided by our existing portfolio and pipeline, combined with strong tailwinds to U.S. electricity demand, continues to give us confidence in the outlook for our business.”

A summary of our financial results is detailed in the table below:

	For the Three Months Ended March 31,
		2025			2024
	(in thousands, except for per share data)
GAAP Net investment income	$	1,800		$	8,666
Adjusted Net investment income		71,986			64,299
Gain on sale of assets		18,668			28,611
GAAP Net Income		56,612			123,025
GAAP Diluted earnings per share		0.44			0.98
Adjusted earnings		78,067			78,906
Adjusted earnings per share		0.64			0.68

Sustainability and Impact Highlights

An estimated 124 thousand metric tons of carbon emissions will be avoided annually by our transactions closed this quarter, equating to a CarbonCount^® score of 0.17 metric tons per $1,000 invested. All in, including assets we have not retained in our portfolio, our managed assets are avoiding approximately 8.4 million metric tons of carbon emissions annually, based on our proprietary CarbonCount score.

Additionally, we recently published our 2024 Sustainability & Impact report. The report can be found at www.hasi.com/sustainability.

Investment Activity

We closed new investments totaling approximately $706 million in the first quarter, a record for Q1. Weighted average yields on new portfolio investments have been underwritten at more than 10.5% through the first quarter of the year, in line with weighted average yields on portfolio investments underwritten in 2024, and higher than weighted average yields of more than 9% on portfolio investments underwritten in 2023.

As of March 31, 2025, our managed assets totaled $14.5 billion, up 12% year-over-year, and our portfolio of assets on our balance sheet was approximately $7.1 billion, up 11% year-over-year. Our portfolio remains well-diversified across established clean energy end markets with approximately $3.4 billion of behind-the-meter assets and approximately $2.7 billion of grid-connected assets, with the remainder in fuels, transport, and nature assets.

The following is an analysis of the performance ratings of our portfolio as of March 31, 2025:

	Portfolio Performance
	Commercial				Government				Commercial				Commercial
	1 (1)				1 (1)				2 (2)				3 (3)				Total
	(dollars in millions)
Total receivables	$	2,982			$	33			$	—			$	—			$	3,015
Less: Allowance for loss on receivables		(54	)			—				—				—				(54	)
Net receivables		2,928				33				—				—				2,961
Receivables held-for-sale		54				38				—				—				92
Investments		5				2				—				—				7
Real estate		3				—				—				—				3
Equity method investments (4)		3,960				—				33				—				3,993
Total	$	6,950			$	73			$	33			$	—			$	7,056
Percent of Portfolio		99	%			1	%			—	%			—	%			100	%

(1)		This category includes our assets where based on our credit criteria and performance to date, we believe that our risk of not receiving our invested capital remains low.
(2)		This category includes our assets where based on our credit criteria and performance to date, we believe there is a moderate level of risk of not receiving some or all of our invested capital.
(3)		This category includes our assets where based on our credit criteria and performance to date, we believe there is substantial doubt regarding our ability to recover some or all of our invested capital. Receivables or investments in this category are placed on non-accrual status.
(4)		Some of the individual projects included in portfolios that make up our equity method investments have government off-takers. As they are part of large portfolios, they are not classified separately.

Financial Results

“Driven by growth in our Managed Assets, our recurring income (Adjusted Net Investment Income and Securitization Asset Income) grew by a combined 14% year-over-year to $79 million in Q1,” said HASI Chief Financial Officer Chuck Melko. “In addition, we continued to strengthen our funding platform. Following the establishment of our stand-alone commercial paper program last December, we increased the capacity of our revolver in March by $200 million to $1.55 billion, while CCH1 continues to be a reliable source of funding with its total assets growing to approximately $1 billion as of the end of Q1.”

GAAP Earnings and EPS

Total revenue of $97 million in the first quarter of 2025 decreased by 8% year-over-year from $106 million in the first quarter of 2024, driven primarily by a $10 million decrease in gain on sale income, due to our higher-than-normal gain on sale income in Q1 2024 arising from our targeted asset rotation strategy.

Interest expense of $65 million increased $3 million year-over-year, primarily due to a larger average outstanding debt balance. We recorded a $4 million provision for loss on receivables and securitization assets, due primarily to changes in macroeconomic assumptions used to predict future credit losses. Compensation and benefits and general and administrative expenses increased by a combined $5 million, primarily due to the acceleration of share-based compensation related to those employees who met the age and years of service criteria of our retirement policy in the current period.

Income from equity method investments decreased by approximately $71 million in the first quarter of 2025 compared to the same period in 2024 primarily due to (a) lower mark-to-market income compared to the prior period related to power purchase agreements held by certain of the projects in which we have invested, (b) increased income tax expense recognized by an equity method investee in the current period, offset by (c) higher allocations in the current period of income related to tax credits allocated to other investors in solar projects. Income tax expense decreased by approximately $22 million due to lower GAAP pre-tax income during the current period as compared to the same period in 2024.

GAAP net income to controlling stockholders in the first quarter of 2025 was $57 million, compared to $123 million in the same period in 2024.

Adjusted Earnings and EPS

In addition to our GAAP results, we also present non-GAAP measures to enhance the usefulness of financial information and allow for greater transparency with respect to key metrics used by management internally for planning, forecasting, and evaluating our operating performance.

GAAP net investment income in the first quarter of 2025 of $2 million includes all of our interest expense but only the portion of our investment returns that is reflected in GAAP interest income and rental income revenue. Because it does not include the portion of our investment returns recognized through our Equity Method investments, GAAP net investment income fails to capture all of the economic returns earned by our Portfolio.

Given that GAAP net investment income, and in turn GAAP net income, does not reflect such economic returns, our non-GAAP measures, Adjusted net investment income and Adjusted Earnings, are utilized by management to monitor and evaluate our business as we believe they are a helpful indicator of the underlying economics of our investments. We also believe they provide investors and analysts with useful supplemental information to understand the financial performance of our business and to analyze financial and business trends and enable a useful comparison of financial results between periods.

Adjusted net investment income is calculated using an Equity Method Investments Earnings Adjustment. The Equity Method Investments Earnings Adjustment is calculated using our underwritten project cash flows discounted back to the net present value, based on a target investment rate, with the cash flows to be received in the future reflecting both a return on the capital (based upon the underwritten investment rate) and a return of the capital we have committed to our equity method investments, as adjusted to reflect the performance of the project and the cash distributed.

Adjusted net investment income was $72 million in the first quarter of 2025, compared to $64 million in the first quarter of 2024.

Adjusted earnings is calculated using the same Equity Method Investments Earnings Adjustment that is used to calculate adjusted net investment income. Adjusted Earnings excludes the recognition of income using HLBV, which uses profit and loss allocations that may differ materially from the agreed upon allocations of a project’s cash flows, and in turn reflects income that can differ substantially from the economic returns achieved by a project in any given period.

Adjusted earnings also exclude non-cash equity compensation expense, provisions for loss on receivables, amortization of intangibles, non-cash provision (benefit) for taxes, and earnings attributable to non-controlling interests, and also makes an adjustment to eliminate our portion of fees we earn from related-party co-investment structures. Please refer to the Explanatory Notes in this press release for a more detailed explanation of Adjusted earnings.

Adjusted earnings in the first quarter of 2025 was approximately $78 million, a decrease of $1 million over the same period in 2024, primarily driven by lower gain on sale income, offset partially by growth in adjusted net investment income due to a larger portfolio. Adjusted EPS was $0.64, compared to $0.68 a year ago.

Leverage

As of March 31, 2025, cash and cash equivalents were $67 million and total debt outstanding was $4.7 billion. Our debt-to-equity ratio at March 31, 2025, was 1.9, within our target range of 1.5 to 2.0 and below our internal limit of 2.5.

Our weighted-average interest cost, as measured by GAAP interest expense divided by average debt outstanding, was 5.7% in the first quarter of both 2025 and 2024.

The calculation of our fixed-rate debt and leverage ratios as of March 31, 2025 and December 31, 2024 is shown in the table below:

	March 31, 2025			% of Total			December 31, 2024			% of Total
	($ in millions)						($ in millions)
Floating-rate borrowings (1)	$	218		5	%		$	—		—	%
Fixed-rate debt (2)		4,505		95	%			4,400		100	%
Total	$	4,723		100	%		$	4,400		100	%
Leverage (3)	1.9 to 1						1.8 to 1

(1)		Floating-rate borrowings include borrowings under our floating-rate credit facilities and commercial paper issuances with less than six months original maturity, to the extent such borrowings are not hedged using interest rate swaps.
(2)		Fixed-rate debt includes the impact of our interest rate swaps and collars on debt that is otherwise floating. Debt excludes securitizations that are not consolidated on our balance sheet.
(3)		Leverage, as measured by our debt-to-equity ratio.

Guidance

We reaffirm our guidance for both Adjusted Earnings per Share and dividend payout ratio. We continue to expect Adjusted Earnings per Share in 2027 to grow at a compound annual rate of 8% to 10%, relative to the 2023 baseline of $2.23 per share, which is equivalent to a midpoint of $3.15 per share in 2027. We also expect distributions of annual dividends per share of common stock to decline to between 55% and 60% of annual Adjusted Earnings per Share by 2027. This guidance reflects our judgments and estimates of (i) yield on our existing portfolio; (ii) yield on incremental portfolio investments, inclusive of our existing pipeline; (iii) the volume and profitability of transactions; (iv) amount, timing, and costs of debt and equity capital to fund new investments; (v) changes in costs and expenses reflective of our forecasted operations; and (vi) the general interest rate and market environment. In addition, distributions are subject to approval by our Board of Directors on a quarterly basis. We have not provided GAAP guidance as discussed in the Forward-Looking Statements section of this press release.

Dividend

The Company is also announcing today that our Board of Directors approved a quarterly cash dividend of $0.42 per share of common stock. This dividend will be paid on July 11, 2025, to stockholders of record as of July 2, 2025.

Conference Call and Webcast Information

HASI will host an investor conference call today, Wednesday, May 7, 2025, at 5:00 p.m. Eastern Time. The conference call can be accessed live over the phone by dialing 1-877-407-0890 (Toll-Free) or +1-201-389-0918 (toll). Participants should inform the operator that they want to join the “HASI First Quarter 2025 Results” call. The conference call will also be accessible as an audio webcast with slides on our website. A replay after the event will be accessible as on-demand webcast on our website.

About HASI

HASI (NYSE: HASI) is an investor in sustainable infrastructure assets advancing the energy transition. With more than $14 billion in managed assets, our investments are diversified across multiple asset classes, including utility-scale solar, onshore wind, and storage; distributed solar and storage; RNG; and energy efficiency. We combine deep expertise in energy markets and financial structuring with long-standing programmatic client partnerships to deliver superior risk-adjusted returns and measurable environmental benefits. HA Sustainable Infrastructure Capital, Inc. is listed on the New York Stock Exchange (Ticker: HASI). For more information, please visit hasi.com.

Forward-Looking Statements:

Some of the information contained in this press release is forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, we intend to identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements.

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption “Risk Factors” included in our most recent Annual Report on Form 10-K as well as in other periodic reports that we file with the U.S. Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement.

The Company has not provided GAAP guidance as forecasting a comparable GAAP financial measure, such as net income, would require that the Company apply the HLBV method to these investments. In order to forecast under the HLBV method, the Company would be required to make various assumptions related to expected changes in the net asset value of the various entities and how such changes would be allocated under HLBV. GAAP HLBV earnings over a period of time are very sensitive to these assumptions especially in regard to when a partnership transaction flips and thus the liquidation scenarios change materially. The Company believes that these assumptions would require unreasonable efforts to complete and if completed, the wide variation in projected GAAP earnings based upon a range of scenarios would not be meaningful to investors. Accordingly, the Company has not included a GAAP reconciliation table related to any adjusted earnings guidance.

Estimated carbon savings are calculated using the estimated kilowatt hours, gallons of fuel oil, million British thermal units of natural gas and gallons of water saved as appropriate, for each project. The energy savings are converted into an estimate of metric tons of CO2 equivalent emissions based upon the project’s location and the corresponding emissions factor data from the U.S. Government and International Energy Agency. Portfolios of projects are represented on an aggregate basis.

HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
	For the Three Months Ended March 31,
		2025				2024
Revenue
Interest income	$	66,394			$	68,692
Rental income		83				1,846
Gain on sale of assets		18,668				28,611
Securitization asset income		6,999				4,898
Other income		4,797				1,769
Total revenue		96,941				105,816
Expenses
Interest expense		64,677				61,872
Provision for loss on receivables and securitization assets		3,812				2,022
Compensation and benefits		24,980				20,676
General and administrative		9,378				9,053
Total expenses		102,847				93,623
Income before equity method investments		(5,906	)			12,193
Income (loss) from equity method investments		87,989				158,550
Income (loss) before income taxes		82,083				170,743
Income tax (expense) benefit		(23,898	)			(46,195	)
Net income (loss)	$	58,185			$	124,548
Net income (loss) attributable to non-controlling interest holders		1,573				1,523
Net income (loss) attributable to controlling stockholders	$	56,612			$	123,025
Basic earnings (loss) per common share	$	0.47			$	1.08
Diluted earnings (loss) per common share	$	0.44			$	0.98
Weighted average common shares outstanding—basic		119,381,781				112,617,809
Weighted average common shares outstanding—diluted		137,956,858				130,998,775

HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
	March 31, 2025				December 31, 2024
Assets
Cash and cash equivalents	$	67,390			$	129,758
Equity method investments		3,993,054				3,612,394
Receivables, net of allowance of $54 million and $50 million, respectively		2,961,388				2,895,837
Receivables held-for-sale		92,280				75,556
Real estate		2,981				2,984
Investments		7,006				6,818
Securitization assets, net of allowance of $3 million and $3 million, respectively		264,829				248,688
Other assets		87,033				108,210
Total Assets	$	7,475,961			$	7,080,245
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable, accrued expenses and other	$	282,591			$	275,639
Credit facilities		995				1,001
Commercial paper notes		430,417				100,057
Term loan facility		403,049				407,978
Non-recourse debt (secured by assets of $300 million and $307 million, respectively)		125,213				131,589
Senior unsecured notes		3,144,617				3,139,363
Convertible notes		618,335				619,543
Total Liabilities		5,005,217				4,675,170
Stockholders’ Equity:
Preferred stock, par value $0.01 per share, 50,000,000 shares authorized, no shares issued and outstanding		—				—
Common stock, par value $0.01 per share, 450,000,000 shares authorized, 120,708,587 and 118,960,353 shares issued and outstanding, respectively		1,207				1,190
Additional paid in capital		2,646,415				2,592,964
Accumulated deficit		(291,895	)			(297,499	)
Accumulated other comprehensive income (loss)		37,675				40,101
Non-controlling interest		77,342				68,319
Total Stockholders’ Equity		2,470,744				2,405,075
Total Liabilities and Stockholders’ Equity	$	7,475,961			$	7,080,245

HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS) (UNAUDITED)
	Three Months Ended March 31,
		2025				2024
Cash flows from operating activities
Net income (loss)	$	58,185			$	124,548
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for loss on receivables		3,812				2,022
Depreciation and amortization		167				340
Amortization of financing costs		4,147				4,012
Equity-based compensation		9,825				6,601
Equity method investments		(69,491	)			(145,900	)
Non-cash gain on securitization		(5,347	)			(32,342	)
(Gain) loss on sale of receivables and investments		—				9,869
Changes in receivables held-for-sale		(23,719	)			3
Changes in accounts payable and accrued expenses		8,534				59,123
Change in accrued interest on receivables and investments		(20,810	)			(17,709	)
Other		(2,424	)			10,364
Net cash provided by (used in) operating activities		(37,121	)			20,931
Cash flows from investing activities
Equity method investments		(247,714	)			(127,422	)
Equity method investment distributions received		7,642				3,762
Purchases of and investments in receivables		(137,596	)			(230,885	)
Principal collections from receivables		40,455				141,594
Proceeds from sales of receivables		8,344				24,769
Proceeds from sale of real estate		—				115,767
Collateral provided to hedge counterparties		(1,060	)			—
Collateral received from hedge counterparties		3,050				2,920
Other		3,214				(450	)
Net cash provided by (used in) investing activities		(323,665	)			(69,945	)
Cash flows from financing activities
Proceeds from credit facilities		25,000				250,000
Principal payments on credit facilities		(25,000	)			(450,000	)
Principal payments on term loan		(5,437	)			(35,339	)
Proceeds from issuance of non-recourse debt		—				94,000
Proceeds from issuance of commercial paper notes		331,000				35,000
Principal payments on non-recourse debt		(4,348	)			(68,910	)
Proceeds from issuance of senior unsecured notes		—				205,500
Net proceeds of common stock issuances		46,614				30,386
Payments of dividends and distributions		(50,397	)			(45,093	)
Withholdings on employee share vesting		(393	)			(157	)
Payment of financing costs		(634	)			(7,498	)
Collateral provided to hedge counterparties		(45,270	)			(24,900	)
Collateral received from hedge counterparties		27,000				69,000
Other		(3,860	)			(725	)
Net cash provided by (used in) financing activities		294,275				51,264
Increase (decrease) in cash, cash equivalents, and restricted cash		(66,511	)			2,250
Cash, cash equivalents, and restricted cash at beginning of period		150,156				75,082
Cash, cash equivalents, and restricted cash at end of period	$	83,645			$	77,332
Interest paid	$	61,963			$	33,207
Supplemental disclosure of non-cash activity
Residual assets retained from securitization transactions	$	7,313			$	6,715
Equity method investments retained from securitization and deconsolidation transactions		—				32,564
Deconsolidation of non-recourse debt		—				51,233
Deconsolidation of assets pledged for non-recourse debt		—				51,761

Contacts

Investor Contact:

Aaron Chew

investors@hasi.com
410-571-6189

Media Contact:

Kenny Gayles

media@hasi.com
443-321-5756

Read full story here