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HASI Shares Gain After Q3 Earnings Beat, Revenues Rise Y/Y
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Key Takeaways
HASI's adjusted EPS surged 2.5% year over year to 82 cents, beating estimates of 74 cents.
Managed assets grew 27% to $19 billion, while its investment pipeline exceeded $6.5 billion.
Management reaffirmed 2028 adjusted EPS guidance of $3.55-$3.65 and adjusted ROE of at least 17%.
Shares of HA Sustainable Infrastructure Capital, Inc. (HASI - Free Report) gained 3.48% in after-market trading following the release of the company’s third-quarter 2026 results. Adjusted earnings per share (EPS) were 82 cents, surpassing the Zacks Consensus Estimates of 74 cents. The bottom line increased 2.5% year over year.
Results primarily benefited from higher recurring investment income and origination fees. The company's managed assets and investment portfolio also expanded during the quarter. However, higher total expenses partially offset the growth.
HASI reported GAAP net income attributable to controlling stockholders of $146.5 million or $1.04 per share, up from $83.3 million or 61 cents per share in the prior-year quarter.
HASI's Revenues Improve, Expenses Rise
Quarterly total revenues increased 11.1% year over year to $114.5 million.
Interest and rental income increased 19.7% year over year to $82.6 million, driven by higher yields on investments and investment fundings. Gain on sale of assets declined to $7.5 million from $24.9 million in the prior-year quarter.
Management fees and retained interest income jumped 68.9% year over year to $14.2 million, reflecting higher managed assets in the company's co-investment vehicles. Origination fees and other income increased to $10.1 million from $0.8 million in the prior-year quarter.
Total expenses increased 27.3% year over year to $137.8 million. The increase was primarily due to higher interest expenses and general and administrative costs.
HA Sustainable's Portfolio Activity Robust
As of Sept. 30, 2026, managed assets totaled $19 billion, up 27.0% from Sept. 30, 2025. The total portfolio value was $9.1 billion, up 21.3% from the prior-year quarter.
Portfolio yield was 9.2% for the first nine months of 2026, up from 8.5% in the prior-year period, reflecting a larger portfolio, higher yields and an unrealized gain related to an investment in a solar asset servicing platform.
In third-quarter 2026, the company closed new transactions totaling approximately $1.1 billion, to be held on its balance sheet or at its co-investment structures. Weighted average yields on new portfolio investments were underwritten at more than 11% through the first three quarters of 2026.
As of Sept. 30, 2026, HASI's investment pipeline exceeded $6.5 billion. Its equity method investments totaled $5.5 billion, while assets held by partners in its co-investment vehicles increased to $2 billion.
HASI's Balance Sheet Solid
As of Sept. 30, 2026, cash and cash equivalents were $102.3 million, while total liquidity was $2 billion, including approximately $1.9 billion of unused capacity under the company's revolving credit facility and commercial paper program.
Total debt outstanding was $6.5 billion as of Sept. 30, 2026. The company's debt-to-equity ratio was 1.8X, within its target range of 1.5X to 2.0X and below its internal limit of 2.5X. Additionally, 87% of its outstanding debt was either fixed-rate or hedged base-rate debt.
Total assets were $9.6 billion as of Sept. 30, 2026, compared with $8.2 billion as of Dec. 31, 2025.
HA Sustainable Management's Outlook
HASI reaffirmed its adjusted EPS guidance for 2028 in the range of $3.55-$3.65. Management also reiterated its expectation for adjusted ROE of at least 17% in 2028.
The company expects annual dividend distributions per share to decline to less than 50% of annual adjusted EPS by 2028 and below 40% by 2030. Management expects minimal share issuances through its at-the-market program for 2026.
Our View on HASI
HA Sustainable is expected to benefit from growing managed assets, higher investment yields and expanding recurring income streams. Strong investment activity, a solid pipeline and the expansion of its co-investment platform are expected to provide opportunities for continued portfolio growth.
However, rising funding costs and higher operating expenses remain concerns. These factors could weigh on profitability.
HA Sustainable Infrastructure Capital, Inc. Price, Consensus and EPS Surprise
Hercules Capital, Inc. (HTGC - Free Report) reported third-quarter 2026 net investment income of 47 cents per share, missing the Zacks Consensus Estimate of 49 cents. The bottom line declined 4.1% from the prior-year quarter.
HTGC's results were weighed down by lower early loan repayments and higher interest expenses, which pressured net investment income (NII). However, higher total investment income, supported by growth in its weighted-average debt investment portfolio, and lower non-interest and fee expenses provided some support.
Blackstone Inc. (BX - Free Report) reported third-quarter 2026 distributable earnings of $1.32 per share, surpassing the Zacks Consensus Estimate of $1.26. However, the bottom line declined 13% from the prior-year quarter.
BX's results benefited from record assets under management, strong quarterly inflows and higher fee-related earnings. However, lower segment revenues and weaker performance revenues weighed on results.
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HASI Shares Gain After Q3 Earnings Beat, Revenues Rise Y/Y
Key Takeaways
Shares of HA Sustainable Infrastructure Capital, Inc. (HASI - Free Report) gained 3.48% in after-market trading following the release of the company’s third-quarter 2026 results. Adjusted earnings per share (EPS) were 82 cents, surpassing the Zacks Consensus Estimates of 74 cents. The bottom line increased 2.5% year over year.
Results primarily benefited from higher recurring investment income and origination fees. The company's managed assets and investment portfolio also expanded during the quarter. However, higher total expenses partially offset the growth.
HASI reported GAAP net income attributable to controlling stockholders of $146.5 million or $1.04 per share, up from $83.3 million or 61 cents per share in the prior-year quarter.
HASI's Revenues Improve, Expenses Rise
Quarterly total revenues increased 11.1% year over year to $114.5 million.
Interest and rental income increased 19.7% year over year to $82.6 million, driven by higher yields on investments and investment fundings. Gain on sale of assets declined to $7.5 million from $24.9 million in the prior-year quarter.
Management fees and retained interest income jumped 68.9% year over year to $14.2 million, reflecting higher managed assets in the company's co-investment vehicles. Origination fees and other income increased to $10.1 million from $0.8 million in the prior-year quarter.
Total expenses increased 27.3% year over year to $137.8 million. The increase was primarily due to higher interest expenses and general and administrative costs.
HA Sustainable's Portfolio Activity Robust
As of Sept. 30, 2026, managed assets totaled $19 billion, up 27.0% from Sept. 30, 2025. The total portfolio value was $9.1 billion, up 21.3% from the prior-year quarter.
Portfolio yield was 9.2% for the first nine months of 2026, up from 8.5% in the prior-year period, reflecting a larger portfolio, higher yields and an unrealized gain related to an investment in a solar asset servicing platform.
In third-quarter 2026, the company closed new transactions totaling approximately $1.1 billion, to be held on its balance sheet or at its co-investment structures. Weighted average yields on new portfolio investments were underwritten at more than 11% through the first three quarters of 2026.
As of Sept. 30, 2026, HASI's investment pipeline exceeded $6.5 billion. Its equity method investments totaled $5.5 billion, while assets held by partners in its co-investment vehicles increased to $2 billion.
HASI's Balance Sheet Solid
As of Sept. 30, 2026, cash and cash equivalents were $102.3 million, while total liquidity was $2 billion, including approximately $1.9 billion of unused capacity under the company's revolving credit facility and commercial paper program.
Total debt outstanding was $6.5 billion as of Sept. 30, 2026. The company's debt-to-equity ratio was 1.8X, within its target range of 1.5X to 2.0X and below its internal limit of 2.5X. Additionally, 87% of its outstanding debt was either fixed-rate or hedged base-rate debt.
Total assets were $9.6 billion as of Sept. 30, 2026, compared with $8.2 billion as of Dec. 31, 2025.
HA Sustainable Management's Outlook
HASI reaffirmed its adjusted EPS guidance for 2028 in the range of $3.55-$3.65. Management also reiterated its expectation for adjusted ROE of at least 17% in 2028.
The company expects annual dividend distributions per share to decline to less than 50% of annual adjusted EPS by 2028 and below 40% by 2030. Management expects minimal share issuances through its at-the-market program for 2026.
Our View on HASI
HA Sustainable is expected to benefit from growing managed assets, higher investment yields and expanding recurring income streams. Strong investment activity, a solid pipeline and the expansion of its co-investment platform are expected to provide opportunities for continued portfolio growth.
However, rising funding costs and higher operating expenses remain concerns. These factors could weigh on profitability.
HA Sustainable Infrastructure Capital, Inc. Price, Consensus and EPS Surprise
HA Sustainable Infrastructure Capital, Inc. price-consensus-eps-surprise-chart | HA Sustainable Infrastructure Capital, Inc. Quote
Currently, HASI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of HA Sustainable’s Peers
Hercules Capital, Inc. (HTGC - Free Report) reported third-quarter 2026 net investment income of 47 cents per share, missing the Zacks Consensus Estimate of 49 cents. The bottom line declined 4.1% from the prior-year quarter.
HTGC's results were weighed down by lower early loan repayments and higher interest expenses, which pressured net investment income (NII). However, higher total investment income, supported by growth in its weighted-average debt investment portfolio, and lower non-interest and fee expenses provided some support.
Blackstone Inc. (BX - Free Report) reported third-quarter 2026 distributable earnings of $1.32 per share, surpassing the Zacks Consensus Estimate of $1.26. However, the bottom line declined 13% from the prior-year quarter.
BX's results benefited from record assets under management, strong quarterly inflows and higher fee-related earnings. However, lower segment revenues and weaker performance revenues weighed on results.