Clearway Energy, Inc.

What they do

Clearway owns and operates contracted power assets split between a Renewables & Storage segment (about 11.1 GW of wind, solar and battery storage) and a Flexible Generation segment (about 2.8 GW of dispatchable combustion-based plants). Most revenue comes from long-term contracts for output or capacity with utilities and corporate offtakers, and the weighted-average remaining contract duration of the Renewables & Storage offtake agreements was about 12 years as of June 30, 2026. Results consolidate both wholly owned and partially owned facilities, with unconsolidated affiliates reported through equity in earnings.

Revenue drivers

• Renewables & Storage — Largest segment, generating revenue from contracted sales of solar and wind MWh plus storage, including a BESS fleet. Segment Adjusted EBITDA was $590 million for the six months ended June 30, 2026, versus $519 million a year earlier.
• Flexible Generation — Dispatchable gas-fired fleet (Carlsbad, El Segundo, Marsh Landing, Walnut Creek and 50%-owned GenConn) selling energy and capacity under contracts expiring between 2026 and 2041. Segment Adjusted EBITDA was $98 million for the six months ended June 30, 2026, versus $96 million a year earlier.
• Energy and capacity revenues — The main revenue line, reported at $1,565 million in 2025 versus $1,500 million in 2024, offset by contract amortization of $(189) million in 2025 and mark-to-market losses on economic hedges of $(23) million.
• Other revenues and equity method earnings — Other revenues were $76 million in 2025, and the company also records its share of earnings from unconsolidated affiliates, which contributed $31 million in 2025 and $35 million in 2024.

Recent performance

For the second quarter of 2026, Clearway reported Net Income of $30 million, Adjusted EBITDA of $409 million, cash from operating activities of $214 million, and CAFD of $167 million. Second-quarter Adjusted EBITDA rose from $343 million in 2025, driven by growth investments, while CAFD increased from $152 million. Segment net income for Q2 2026 was $55 million in Renewables & Storage, $22 million in Flexible Generation and $(47) million at Corporate. For the first six months of 2026, the company reported a net loss of $(38) million, Adjusted EBITDA of $666 million and CAFD of $237 million. Full-year 2025 net income attributable to Clearway was $169 million on total operating revenues of $1,429 million.

Strategy

Management is executing a Fleet Enhancement repowering program, with all 2026-2027 repowerings stated to be on schedule, and has completed accretive Texas fleet contract enhancements. The sponsor-enabled growth pipeline is described as late-stage at 13.5 GW, with over 2 GW of new contracts signed for 2027-2030 commercial operation dates and Honeycomb Phase II offered as a dropdown. The company aims for the top end or better of its $2.90-$3.10 CAFD per share target for 2030, and management cites line of sight to 5-8%+ growth beyond that 2030 baseline. It also points to potential upside from a co-located digital infrastructure business.

Risks

• Weather and resource variability — 2025 Renewables & Storage revenue included a $16 million decrease from lower wind resource at certain facilities, and solar and wind capacity factors fluctuate with seasonality and weather.
• Leverage and interest cost — Long-term debt was $8.49 billion at June 30, 2026 against total equity of $5.47 billion, and other interest expense was $356 million in 2025, up from $336 million in 2024.
• Concentration in long-term offtake contracts — The portfolio depends on utilities and corporate counterparties such as PG&E, SCE, SDG&E, PacifiCorp and Hawaiian Electric, with several Flexible Generation contracts expiring as early as 2026-2027.
• Noncontrolling interests absorb operating results — 2025 net loss was $(231) million, but $(400) million of that was attributable to noncontrolling and redeemable noncontrolling interests, so consolidated results can diverge sharply from income attributable to Clearway shareholders.

Outlook

Clearway lowered its 2026 financial guidance, citing factors outlined in a mid-July operational preview. Management still targets the top end or better of its 2030 CAFD per share range of $2.90 to $3.10 and sees potential for 5-8%+ growth beyond that baseline. The stated growth levers are the repowering program, sponsor dropdowns such as Honeycomb Phase II, recently signed 2027-2030 contracts, and a developing co-located digital infrastructure business.