Clearway Energy (CWEN) Up 1.5% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Clearway Energy (CWEN). Shares have added about 1.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Clearway Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Clearway Energy Lags on Q4 EPS Estimates, Revenues Increase Y/Y

Clearway Energy Inc. recorded a fourth-quarter 2025 loss of 89 cents per share, which missed the Zacks Consensus Estimate of a loss of 21 cents by 323.81%. In the year-ago quarter, the company reported earnings of 3 cents.

CWEN’s Revenues

Total revenues of $310 million surpassed the Zacks Consensus Estimate of $305 million by 1.64%. The top line increased 21.09% from the year-ago quarter’s figure of $256 million.

Full-year 2025 revenues totaled $1.43 billion compared with $1.37 billion last year.

Highlights of CWEN’s Earnings Release

Adjusted EBITDA for the quarter totaled $237 million compared with $228 million in the year-ago period.

Total operating costs and expenses for 2025 were $1.27 billion, up 8% from the year-ago figure of $1.18 billion. This was due to higher operational costs and higher transaction and integration costs.

The operating income for the year totaled $160 million, down 18.37% compared with last year’s $196 million.

CWEN incurred interest expenses of $387 million, up 26.06% compared with last year’s $307 million.

CWEN completed the addition of more than 1.3-gigawatt (GW) fleet in 2025 and plans to invest $1.0 billion in 2026. In December 2025, the company completed funding of the 500 MW Pine Forest complex.

On Nov. 24, 2025, the company, through an indirect subsidiary, agreed to acquire 291-MW battery-energy-storage projects from Clearway Group located in Colorado and California. This transaction is expected to close in the second half of 2026.

Developments After Fourth-Quarter Close

During the first quarter of 2026, Clearway Group invited the company to invest $200 million in the 520 MW Royal Slope solar plus storage project, targeted for 2027 operation, and $215 million in the 650 MW Swan Solar project, targeted for 2028 operation. These investments are subject to negotiation with Clearway Group and approval by the Company’s Independent Directors.

CWEN’s Financial Position

Clearway Energy had cash and cash equivalents of $231 million as of Dec. 31, 2025 compared with $332 million as of Dec. 31, 2024.

Total liquidity as of Dec. 31, 2025, was $1.06 billion compared with $1.33 billion recorded as of Dec. 31, 2024.

Long-term debt as of Dec. 31, 2025, amounted to $7.90 billion compared with $6.75 billion as of Dec. 31, 2024.

Net cash provided by operating activities in 2025 totaled $688 million compared with $770 million last year.

CWEN’s Guidance

Clearway Energy projects 2026 cash available for distribution (CAFD) to lie between $470 million and $510 million.

The company projects CAFD to lie in the range of $2.90-$3.10 per share for the period, reiterating 2030.

CWEN expects 2026 Adjusted EBITDA to lie in the range of $1.441-$1.481 billion.

Cash from operating activities for 2026 is expected to be in the range of $1.022-$1.062 billion.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

The consensus estimate has shifted 27.35% due to these changes.

VGM Scores

At this time, Clearway Energy has a poor Growth Score of F, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Clearway Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Clearway Energy is part of the Zacks Alternative Energy - Other industry. Over the past month, Expand Energy (EXE), a stock from the same industry, has gained 6.3%. The company reported its results for the quarter ended December 2025 more than a month ago.

Expand Energy reported revenues of $2.31 billion in the last reported quarter, representing a year-over-year change of +44.5%. EPS of $2.00 for the same period compares with $0.55 a year ago.

Expand Energy is expected to post earnings of $3.14 per share for the current quarter, representing a year-over-year change of +55.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +18%.

Expand Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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