HA Sustainable Infrastructure Capital Inc Reports Strong Q2 Earnings with $6 Billion Pipeline, Diversified Investments, and Adjusted Recurring Net Investment Income Growth

HA Sustainable Infrastructure Capital Inc (HASI) reported a strong Q2 with a pipeline exceeding $6 billion and new business yielding over 10.5%. The company successfully issued $1 billion of term debt, paid off maturing convertible notes, and introduced a new metric, Adjusted Recurring Net Investment Income, which is 19% higher year-to-date compared to 2024. HASI received its third investment-grade rating, minimizing the cost of debt and validating its business model. Adjusted EPS for the quarter was $0.60, slightly down from the previous quarter due to the timing of gain on sale revenue.

HA Sustainable Infrastructure Capital Inc (HASI) reported a robust second quarter with a pipeline exceeding $6 billion and new business yielding over 10.5%. The company successfully issued $1 billion of term debt, using $900 million to pay off maturing convertible notes and near-term senior debt, demonstrating effective capital management. HASI introduced a new metric, Adjusted Recurring Net Investment Income, which is 19% higher year-to-date compared to 2024, indicating strong recurring revenue growth. Additionally, HASI received its third investment-grade rating, which assists in minimizing the cost of debt and validates its business model [1].

Adjusted EPS for the quarter was $0.60, slightly down from the previous quarter due to the timing of gain on sale revenue. The company's transaction activity in Q2 was lower than Q1, attributed to normal course changes in the closing timeline. There is a slight increase expected in the cost of debt next quarter due to recent debt issuance, impacting the total average cost by approximately 20 basis points. The company's cash generation from operations and other portfolio collections showed a downtrend compared to 2024, although it is expected to stabilize [1].

The earnings call also provided insights into the acquisition of the service company from Nova and its impact on future earnings. Jeff Lipson, President and CEO, stated that Sunstrong, a joint venture 50% owned by HASI, will service the Sonova portfolio. This transaction will scale the business, but its impact on earnings will be seen over time as the servicing platform gains scale [1].

Looking ahead, HASI expects its adjusted ROE to trend upward, influenced by capital efficiency, but any increase will likely be gradual rather than a significant jump. The CCH1 debt is placed at the joint venture level and does not appear on HASI's balance sheet, with rating agencies not factoring it in as long as the debt-to-equity ratio remains under 0.5 to 1, which HASI intends to maintain [1].

The company's "Next Frontier" investments, which are new asset classes identified for diversification, are in the pipeline and are expected to enhance business diversification. Susan Nicky, Chief Client Officer, noted that the fundamentals remain strong, with clients navigating policy changes through safe harboring. The pipeline reflects a 12-month outlook, and the company expects continued development and planning for the coming years [1].

References:
[1] https://finance.yahoo.com/news/sustainable-infrastructure-capital-inc-hasi-074418834.html
[2] https://moneycheck.com/airbnb-abnb-stock-q2-2025-earnings-beat-and-6-billion-buyback-announcement/
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX45E8BB:0-infra-assets-investor-hasi-s-q2-revenue-beats-estimates-adjusted-eps-misses/