We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CWEN reaffirmed its 2026 CAFD guidance of $430-$470 million and projected $520-$590 million for 2027.
Clearway Energy Inc. (CWEN - Free Report) reported third-quarter 2026 earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 46 cents by 8.7%. The bottom line declined 78.7% from $1.97 reported in the year-ago quarter.
CWEN’s Revenues
Operating revenues totaled $522 million, beating the consensus estimate of $496 million by 5.3%. The top line increased 21.7% from $429 million recorded in the prior-year quarter.
Clearway Energy, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA increased 13% to $435 million from $385 million in the prior-year quarter.
Total operating costs and expenses increased 22.1% to $387 million from $317 million in the year-ago quarter.
The cost of operations climbed 30.5% to $167 million from $128 million. Depreciation, amortization and accretion expenses increased 12.5% to $198 million, while general and administrative expenses rose to $13 million from $10 million. Transaction and integration costs increased to $9 million from $3 million.
Operating income improved 20.5% to $135 million from $112 million. Interest expense declined to $43 million from $98 million in the prior-year quarter.
CWEN's Segment Results Show Mixed Trends
Flexible Generation reported net income of $15 million compared with $39 million in the prior-year quarter. However, adjusted EBITDA increased 16.7% to $70 million from $60 million.
Renewables & Storage generated a net income of $167 million compared with $31 million a year earlier. Adjusted EBITDA increased 13.2% to $378 million from $334 million, supported by growth investments.
Corporate recorded a net loss of $59 million compared with a loss of $10 million in the prior-year quarter. Its adjusted EBITDA loss widened to $13 million from $9 million.
Clearway Energy's Renewable Generation Increases
Renewables & Storage generation increased 12% year over year to 5.84 million megawatt-hours (MWh) from 5.21 million MWh, primarily reflecting contributions from growth investments.
Solar generation increased 16.2% to 3.41 million MWh from 2.94 million MWh, while wind generation improved 6.5% to 2.42 million MWh from 2.28 million MWh.
The Flexible Generation segment's equivalent availability factor improved to 93.8% from 92.5%, primarily reflecting strong operational execution.
CWEN Expands Its Growth Investment Portfolio
Clearway Energy entered into an agreement to acquire equity interests in the 650-megawatt (MW) Swan Solar project in Missouri for approximately $230 million. The project is expected to begin commercial operations in 2028 and generate average annual asset CAFD of nearly $24 million beginning in 2029.
The company also committed approximately $119 million to acquire equity interests in the 210-MW Honeycomb Phase 2 storage portfolio in Utah. The project is expected to begin commercial operations in 2027 and contribute an average annual asset CAFD of nearly $12 million beginning in 2028.
Clearway Energy received an offer to invest approximately $130 million in the 439-MW Heartland Solar Plus Storage project in California, targeting commercial operations in the second half of 2028.
Clearway Energy's Financial Position Strengthens
Clearway Energy had cash and cash equivalents of $333 million as of Sept. 30, 2026, compared with $231 million as of Dec. 31, 2025.
Total liquidity increased to $1.10 billion from $1.06 billion.
Long-term debt amounted to $8.90 billion compared with $7.90 billion at 2025-end.
Net cash provided by operating activities during the first nine months of 2026 increased to $939 million from $511 million in the year-ago period.
CWEN Reaffirms 2026 Guidance, Initiates 2027 Outlook
Clearway Energy reiterated its full-year 2026 CAFD guidance of $430-$470 million. Adjusted EBITDA is projected between $1.39 billion and $1.43 billion, while cash from operating activities is expected between $956 million and $996 million.
For 2027, the company initiated CAFD guidance of $520-$590 million and adjusted EBITDA guidance of $1.61-$1.68 billion.
Clearway Energy also introduced a 2031 CAFD target of $3.20-$3.40 per share, representing a compound annual growth rate of 7-8% from its 2025 baseline. The company reiterated its pathway to achieving the upper end or better of its 2030 CAFD per-share target.
Ormat Technologies Inc. (ORA - Free Report) reported third-quarter 2026 adjusted earnings per share of 56 cents, which beat the Zacks Consensus Estimate of 36 cents by 55.6%. The bottom line increased 36.6% from 41 cents in the year-ago quarter.
ORA generated revenues of $275.1 million, which topped the Zacks Consensus Estimate of $246 million by 11.8%. The top line also increased 10.2% year over year.
National Fuel Gas Company (NFG - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.22 per share, which beat the Zacks Consensus Estimate of $1.15 by 6.1%. Earnings remained unchanged at $1.22 per share in the year-ago quarter.
NFG reported sales of $467.9 million, which missed the consensus estimate of $536 million by 12.7%. However, the top line increased 2.5% from the prior-year recorded figure of $456.4 million.
Sempra (SRE - Free Report) reported third-quarter 2026 adjusted earnings per share of $1.40, which beat the Zacks Consensus Estimate of $1.20 by 16.7%. The bottom line increased 26.1% from the year-ago quarter’s figure of $1.11.
Revenues of $3.19 billion missed the Zacks Consensus Estimate of $3.35 billion by 4.8%. However, the top line increased 1.3% from $3.15 billion in the year-ago quarter.
View the Zacks #1 Rank List
Image: Bigstock
Clearway Energy Q3 Earnings Lag Estimates, Revenues Increase Y/Y
Key Takeaways
Clearway Energy Inc. (CWEN - Free Report) reported third-quarter 2026 earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 46 cents by 8.7%. The bottom line declined 78.7% from $1.97 reported in the year-ago quarter.
CWEN’s Revenues
Operating revenues totaled $522 million, beating the consensus estimate of $496 million by 5.3%. The top line increased 21.7% from $429 million recorded in the prior-year quarter.
Clearway Energy, Inc. Price, Consensus and EPS Surprise
Clearway Energy, Inc. price-consensus-eps-surprise-chart | Clearway Energy, Inc. Quote
Highlights of CWEN’s Q3 Earnings Release
Adjusted EBITDA increased 13% to $435 million from $385 million in the prior-year quarter.
Total operating costs and expenses increased 22.1% to $387 million from $317 million in the year-ago quarter.
The cost of operations climbed 30.5% to $167 million from $128 million. Depreciation, amortization and accretion expenses increased 12.5% to $198 million, while general and administrative expenses rose to $13 million from $10 million. Transaction and integration costs increased to $9 million from $3 million.
Operating income improved 20.5% to $135 million from $112 million. Interest expense declined to $43 million from $98 million in the prior-year quarter.
CWEN's Segment Results Show Mixed Trends
Flexible Generation reported net income of $15 million compared with $39 million in the prior-year quarter. However, adjusted EBITDA increased 16.7% to $70 million from $60 million.
Renewables & Storage generated a net income of $167 million compared with $31 million a year earlier. Adjusted EBITDA increased 13.2% to $378 million from $334 million, supported by growth investments.
Corporate recorded a net loss of $59 million compared with a loss of $10 million in the prior-year quarter. Its adjusted EBITDA loss widened to $13 million from $9 million.
Clearway Energy's Renewable Generation Increases
Renewables & Storage generation increased 12% year over year to 5.84 million megawatt-hours (MWh) from 5.21 million MWh, primarily reflecting contributions from growth investments.
Solar generation increased 16.2% to 3.41 million MWh from 2.94 million MWh, while wind generation improved 6.5% to 2.42 million MWh from 2.28 million MWh.
The Flexible Generation segment's equivalent availability factor improved to 93.8% from 92.5%, primarily reflecting strong operational execution.
CWEN Expands Its Growth Investment Portfolio
Clearway Energy entered into an agreement to acquire equity interests in the 650-megawatt (MW) Swan Solar project in Missouri for approximately $230 million. The project is expected to begin commercial operations in 2028 and generate average annual asset CAFD of nearly $24 million beginning in 2029.
The company also committed approximately $119 million to acquire equity interests in the 210-MW Honeycomb Phase 2 storage portfolio in Utah. The project is expected to begin commercial operations in 2027 and contribute an average annual asset CAFD of nearly $12 million beginning in 2028.
Clearway Energy received an offer to invest approximately $130 million in the 439-MW Heartland Solar Plus Storage project in California, targeting commercial operations in the second half of 2028.
Clearway Energy's Financial Position Strengthens
Clearway Energy had cash and cash equivalents of $333 million as of Sept. 30, 2026, compared with $231 million as of Dec. 31, 2025.
Total liquidity increased to $1.10 billion from $1.06 billion.
Long-term debt amounted to $8.90 billion compared with $7.90 billion at 2025-end.
Net cash provided by operating activities during the first nine months of 2026 increased to $939 million from $511 million in the year-ago period.
CWEN Reaffirms 2026 Guidance, Initiates 2027 Outlook
Clearway Energy reiterated its full-year 2026 CAFD guidance of $430-$470 million. Adjusted EBITDA is projected between $1.39 billion and $1.43 billion, while cash from operating activities is expected between $956 million and $996 million.
For 2027, the company initiated CAFD guidance of $520-$590 million and adjusted EBITDA guidance of $1.61-$1.68 billion.
Clearway Energy also introduced a 2031 CAFD target of $3.20-$3.40 per share, representing a compound annual growth rate of 7-8% from its 2025 baseline. The company reiterated its pathway to achieving the upper end or better of its 2030 CAFD per-share target.
CWEN’s Zacks Rank
CWEN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Sector Releases
Ormat Technologies Inc. (ORA - Free Report) reported third-quarter 2026 adjusted earnings per share of 56 cents, which beat the Zacks Consensus Estimate of 36 cents by 55.6%. The bottom line increased 36.6% from 41 cents in the year-ago quarter.
ORA generated revenues of $275.1 million, which topped the Zacks Consensus Estimate of $246 million by 11.8%. The top line also increased 10.2% year over year.
National Fuel Gas Company (NFG - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $1.22 per share, which beat the Zacks Consensus Estimate of $1.15 by 6.1%. Earnings remained unchanged at $1.22 per share in the year-ago quarter.
NFG reported sales of $467.9 million, which missed the consensus estimate of $536 million by 12.7%. However, the top line increased 2.5% from the prior-year recorded figure of $456.4 million.
Sempra (SRE - Free Report) reported third-quarter 2026 adjusted earnings per share of $1.40, which beat the Zacks Consensus Estimate of $1.20 by 16.7%. The bottom line increased 26.1% from the year-ago quarter’s figure of $1.11.
Revenues of $3.19 billion missed the Zacks Consensus Estimate of $3.35 billion by 4.8%. However, the top line increased 1.3% from $3.15 billion in the year-ago quarter.