Clearway Energy (NYSE:CWEN) Posts Quarterly Earnings Results

Clearway Energy (NYSE:CWEN) released its quarterly earnings results on Wednesday. The company reported $1.00 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.76, FiscalAI reports. Clearway Energy had a return on equity of 0.04% and a net margin of 0.13%.The company had revenue of $481.00 million for the quarter, compared to analysts’ expectations of $473.92 million.

Here are the key takeaways from Clearway Energy’s conference call:

• 2026 CAFD guidance was reduced to $430 million-$470 million from $470 million-$510 million, primarily due to weaker-than-expected wind and renewable resources in the first half. Management characterized the impact as weather-related and reiterated that the fleet’s underlying earnings power remains intact.
• Clearway reaffirmed its 2027 CAFD per-share target of $2.70 or better and said it remains confident in achieving the top end or better of its 2030 goals, supported by more than $2 billion of identified growth opportunities for 2027-2029.
• Fleet enhancements advanced with long-term PPAs completed for three ERCOT wind projects totaling more than 600 megawatts, extending contracted tenors beyond 2040 and increasing project cash flow visibility. The company also remains on track to invest approximately $600 million in repowering at targeted 11%-12% CAFD yields.
• Clearway highlighted substantial longer-term upside from its digital infrastructure strategy, including more than 17 gigawatts of co-located generation under development and potential initial generation phases targeted for 2029. These projects are not yet incorporated into the company’s core targets, providing potential incremental growth.
• The company expects to fund approximately $3 billion of corporate investment through 2029 using retained cash flow, more than $1.5 billion of corporate debt and $500 million-$1 billion of external equity, while maintaining a 4.0-4.5x leverage target and a BB credit rating. Management said equity issuance will be limited to situations where it is demonstrably accretive.

Clearway Energy Stock Down 1.9%

Shares of CWEN stock opened at $31.12 on Thursday. Clearway Energy has a 1 year low of $27.67 and a 1 year high of $41.74. The stock has a market cap of $6.39 billion, a PE ratio of 778.12 and a beta of 0.89. The business’s fifty day moving average is $35.40 and its 200-day moving average is $37.46. The company has a debt-to-equity ratio of 1.55, a quick ratio of 1.02 and a current ratio of 1.11.

Clearway Energy Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.475 per share. This represents a $1.90 dividend on an annualized basis and a yield of 6.1%. The ex-dividend date of this dividend is Tuesday, September 1st. This is an increase from Clearway Energy’s previous quarterly dividend of $0.47. Clearway Energy’s dividend payout ratio is 4,675.00%.

Institutional Trading of Clearway Energy

Institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd boosted its stake in Clearway Energy by 280.9% during the third quarter. Caitong International Asset Management Co. Ltd now owns 956 shares of the company’s stock valued at $27,000 after buying an additional 705 shares in the last quarter. National Bank of Canada FI raised its position in Clearway Energy by 201.9% in the third quarter. National Bank of Canada FI now owns 975 shares of the company’s stock worth $28,000 after acquiring an additional 652 shares in the last quarter. Headlands Technologies LLC acquired a new stake in Clearway Energy in the 2nd quarter valued at about $43,000. Scarborough Advisors LLC boosted its position in shares of Clearway Energy by 84.6% during the 4th quarter. Scarborough Advisors LLC now owns 1,661 shares of the company’s stock valued at $55,000 after purchasing an additional 761 shares in the last quarter. Finally, Johnson Financial Group Inc. bought a new position in shares of Clearway Energy during the 3rd quarter valued at about $52,000. Institutional investors and hedge funds own 84.53% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on CWEN shares. Truist Financial initiated coverage on Clearway Energy in a research note on Monday, July 13th. They set a “buy” rating and a $43.00 target price on the stock. UBS Group raised their price target on Clearway Energy from $44.00 to $45.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft set a $41.00 price objective on shares of Clearway Energy in a research note on Thursday, April 9th. Zacks Research downgraded shares of Clearway Energy from a “hold” rating to a “strong sell” rating in a report on Friday, July 10th. Finally, Weiss Ratings lowered shares of Clearway Energy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, May 11th. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Clearway Energy presently has a consensus rating of “Moderate Buy” and an average price target of $44.00.

Clearway Energy Company Profile

Clearway Energy Group (NYSE: CWEN) is a U.S.-based energy company specializing in the ownership, operation and development of clean and conventional power generation assets. The company’s portfolio spans utility-scale wind and solar farms, biogas and natural gas-fired thermal facilities, as well as distributed generation projects such as rooftop solar and energy storage. Clearway’s generation assets are largely underpinned by long-term power purchase agreements and service contracts with creditworthy counterparties, enabling stable, predictable cash flows.

Originally launched in 2013 as NRG Yield and rebranded to Clearway Energy in 2018 following a strategic sponsorship change, the business has grown into one of the largest independent renewable energy platforms in the United States.