Clearway Energy C 2025 Q1 Earnings Mixed Performance as Net Income Loss Widens 126.1%

Clearway Energy C (CWEN) reported its fiscal 2025 Q1 earnings on Apr 30th, 2025. Clearway Energy C's revenue increased by 13.3% to $298 million in Q1 2025, up from $263 million in Q1 2024. The company reaffirmed its 2025 full-year guidance, maintaining a Cash Available for Distribution (CAFD) range of $400 million to $440 million, aligning with its financial targets. Clearway Energy's management expressed confidence in reaching the top end of its CAFD per share target set for 2027, despite reporting a widened net loss.

Revenue

The total revenue of Clearway Energy C increased by 13.3% to $298 million in 2025 Q1, up from $263 million in 2024 Q1.

Earnings/Net Income

Clearway Energy C returned to profitability with EPS of $0.03 in Q1 2025, reversing from a loss of $0.02 per share in Q1 2024. However, net loss widened to $104 million, reflecting increased interest expenses. EPS signals a positive shift despite the overall loss.

Price Action

The stock price of Clearway Energy C has edged down 0.81% during the latest trading day, climbed 4.23% during the most recent full trading week, and edged down 2.75% month-to-date.

Post-Earnings Price Action Review

The impact of Clearway Energy's earnings report metrics on its stock price has shown mixed results across different time frames. Net income figures are closely monitored by the market, evidenced by a 57.14% 3-Day win rate, suggesting that positive surprises can lead to short-term price appreciation. Meanwhile, the 10-Day win rate for EPS-related events is higher at 61.90%, indicating that the market places significant emphasis on EPS figures, which can drive longer-term price gains. Revenue growth, if exceeding market expectations, can also favorably influence stock prices by demonstrating the company's capacity to generate more sales and potentially enhance profits. In conclusion, both net income and EPS are vital factors affecting short- to medium-term price movements, with revenue potentially contributing to positive price momentum if it surpasses expectations.

CEO Commentary

“Clearway reported another solid set of results in the first quarter of 2025 and remains on track to fulfill its financial guidance for the year. We continue to advance towards our long-term financial objectives through progress across each of our core growth pathways, including fleet enhancements and repowerings, sponsor-offered dropdowns, and asset-centered M&A. Further reinforced by the announced acquisition of the operational solar project, these redundant growth pathways put us on a solid path to deliver at the top end of the $2.40 to $2.60 in CAFD per share target we set for 2027, and for our long-term financial targets beyond 2027,” said Craig Cornelius, President and Chief Executive Officer of Clearway Energy, Inc.

Guidance

Clearway Energy, Inc. is reaffirming its 2025 full-year Cash Available for Distribution (CAFD) guidance range of $400 million to $440 million. The midpoint of this guidance reflects median renewable energy production estimates for the full year. The company expects to achieve results at the top end of its CAFD per share target of $2.40 to $2.60 set for 2027, supported by the completion of committed growth investments on currently forecasted schedules.

Additional News

Clearway Energy has been actively pursuing growth through acquisitions and strategic partnerships. Recently, the company signed a long-term power purchase agreement (PPA) with Microsoft for the 335 MW Mount Storm wind farm, supporting Microsoft's sustainability goals with carbon-free energy. Additionally, Clearway closed the acquisition of Tuolumne Wind, a 137 MW project in Washington, expected to contribute $9 million in annual CAFD starting in 2026. The company also announced the acquisition of a 100 MW operational solar project in California, with contracted revenue through 2038, showcasing its commitment to expanding renewable energy initiatives. Clearway's strategic moves solidify its position as a leader in clean energy generation, enhancing its long-term contracted revenue profile.