Clearway Energy A 2025 Q1 Earnings Mixed Results as Net Loss Widens 126%

Clearway Energy A (CWEN.A) reported its fiscal 2025 Q1 earnings on Apr 30th, 2025. The results revealed a mixed performance, with revenue growth of 13.3% surpassing market expectations. However, the company faced challenges as its net loss widened significantly compared to the previous year. Despite the increased net loss, Clearway Energy reaffirmed its financial guidance for 2025, maintaining its target for Cash Available for Distribution (CAFD) per share between $2.40 and $2.60 for 2027. The company remains optimistic about achieving its long-term financial objectives through strategic investments and acquisitions, reflecting confidence in its growth trajectory.

Revenue

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

Earnings/Net Income

Clearway Energy A returned to profitability with EPS of $0.03 in 2025 Q1, reversing from a loss of $0.02 per share in 2024 Q1. However, the company's net loss widened significantly to $-104 million, a 126.1% increase from the $-46 million loss recorded in 2024 Q1. The EPS indicates a positive turnaround from the previous year's loss.

Post-Earnings Price Action Review

The impact of earnings report metrics on Clearway Energy (CWEN) stock price has shown mixed results over different time frames. Revenue growth can positively influence stock prices if it exceeds market expectations, suggesting the company's ability to generate more sales and potentially increase profits. The 3-Day win rate for net income-related events is 57.14%, indicating that about half of the time, the stock price goes up within three days after the earnings release. This shows that net income figures are closely watched by the market, and positive surprises can lead to short-term price appreciation. Meanwhile, the 10-Day win rate for EPS-related events is 61.90%, which is higher than the 3-Day win rate for net income. This implies that the market places more emphasis on EPS figures, and positive EPS surprises can lead to longer-term price appreciation. In conclusion, both net income and EPS are significant factors influencing short- to medium-term price movements, and revenue figures exceeding expectations can also contribute to positive price momentum.

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. reaffirms its 2025 financial guidance, targeting Cash Available for Distribution (CAFD) per share between $2.40 and $2.60 for 2027. The company expects to continue delivering results aligned with these targets through ongoing investments and strategic acquisitions, positioning itself strongly for long-term growth. Additionally, the company announced an increase in its quarterly dividend by 1.7% to $0.4384 per share in Q2 2025, reflecting confidence in its financial trajectory.

Additional News

Clearway Energy, Inc. recently announced several strategic moves to bolster its clean energy portfolio and growth prospects. On April 29, 2025, Clearway Energy closed the acquisition of Tuolumne Wind, a 137 MW wind project in Klickitat County, Washington, from Turlock Irrigation District. This acquisition includes a 15-year PPA through 2040 and optionality for future repowering, demonstrating Clearway's focus on assets with long-term contracted revenues. Additionally, Clearway has entered a binding agreement to acquire a 100 MW California solar project, operational since 2013, with a revenue contract through 2038. The company is investing between $120 million and $125 million in this facility. These acquisitions reflect Clearway's commitment to expanding its renewable energy assets and enhancing its growth trajectory.