A month has gone by since the last earnings report for Clearway Energy (CWEN Quick QuoteCWEN - Free Report) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500.

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

CWEN's Q2 Earnings & Revenues Outpace Estimates, 2026 Outlook Trimmed

Clearway Energy reported second-quarter 2026 earnings of $1 per share, which surpassed the Zacks Consensus Estimate of 24 cents by 316.7%. The bottom line also increased substantially from 25 cents reported in the year-ago quarter.

CWEN’s Revenues

Operating revenues totaled $481 million, which beat the consensus estimate of $475 million by 1.3%. The top line increased 22.7% from $392 million recorded in the prior-year quarter.

Highlights of CWEN’s Earnings Release

Adjusted EBITDA rose 19.2% to $409 million from $343 million.

Total operating costs and expenses increased 18.9% to $365 million from $307 million in the prior-year quarter.

The cost of operations jumped to $149 million from $131 million. Depreciation, amortization and accretion expenses increased to $196 million from $163 million, while general and administrative expenses advanced to $15 million from $11 million.

Interest expense increased 26.5% year over year to $105 million. 

Operating income rose 36.5% year over year to $116 million.

CWEN’s Segment Results

Flexible Generation generated net income of $22 million compared to a net loss of $11 million in the prior-year quarter. However, adjusted EBITDA declined to $49 million from $52 million.

Renewables & Storage reported net income of $55 million compared with $63 million a year earlier. Adjusted EBITDA increased 24% to $372 million from $300 million.

Corporate recorded a net loss of $47 million compared with a loss of $40 million. Its adjusted EBITDA loss widened to $12 million from $9 million.

Clearway Energy’s Renewable Generation Rises

Renewables & Storage generation increased 15.5% year over year to 6.87 million megawatt-hours.

Solar generation rose 28% to 3.59 million megawatt-hours, while wind generation improved 4.4% to 3.28 million megawatt-hours.

CWEN Advances Growth Investments

Clearway Energy’s sponsor offered the company the opportunity to invest in Honeycomb Phase II, a 210-megawatt (MW) energy-storage portfolio in Utah expected to begin commercial operations in 2027. The potential corporate capital commitment is estimated at $110 million.

The company also highlighted the 975 MW Chimney Canyon solar and battery-storage project in Arizona. Clearway Energy estimates that its potential investment could total roughly $350 million, subject to a future dropdown offer and approval.

The company completed power purchase agreement restructurings for the Elbow Creek and Langford wind facilities.

CWEN’s Financial Position

Clearway Energy had cash and cash equivalents of $251 million as of June 30, 2026 compared with $231 million as of Dec. 31, 2025.

Total liquidity as of June 30, 2026 was $0.99 billion compared with $1.06 billion recorded as of Dec. 31, 2025.

Long-term debt as of June 30, 2026 amounted to $8.49 billion compared with $7.9 billion as of Dec. 31, 2025.

Net cash provided by operating activities in the first six months of 2026 was $615 million compared with $286 million in the year-ago period.

Clearway Energy Lowers Its 2026 Guidance

Clearway Energy reduced its full-year 2026 cash available for distribution (CAFD) guidance to $430-$470 million from the prior range of $470-$510 million.

Adjusted EBITDA is now expected between $1.39 billion and $1.43 billion, down from the previous range of $1.44-$1.48 billion. Cash from operating activities is projected between $956 million and $996 million.
 

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Clearway Energy has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, 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, Crescent Energy (CRGY Quick QuoteCRGY - Free Report) , a stock from the same industry, has gained 23.2%. The company reported its results for the quarter ended June 2026 more than a month ago.

Crescent Energy reported revenues of $1.39 billion in the last reported quarter, representing a year-over-year change of +55.3%. EPS of $0.69 for the same period compares with $0.43 a year ago.

For the current quarter, Crescent Energy is expected to post earnings of $0.59 per share, indicating a change of +68.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +6.8% over the last 30 days.

Crescent 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.