HA Sustainable Infrastructure Capital, Inc.

What they do

HASI invests in renewable energy and sustainable infrastructure assets, holding a portfolio of approximately $8.2 billion as of June 30, 2026 across approximately $4.1 billion of BTM assets, $2.6 billion of GC assets and $1.5 billion of FTN assets. About 56% of the portfolio is equity method investments in renewable energy related projects, 34% fixed-rate receivables and debt securities, 6% floating-rate receivables, and 4% real estate leased to renewable energy projects. The portfolio comprised over 600 transactions with an average size of $12 million and a weighted average remaining life of about 16 years. It earns interest and rental income, gains on asset sales, management fees and retained interest income, and origination and other fees.

Revenue drivers

• Interest and rental income — Largest revenue line: $84.5 million in Q2 2026 versus $67.4 million in Q2 2025, up 25%, earned on receivables, debt securities and real estate (average balance about $3.4 billion, average yield 9.7%).
• Equity method investments in projects — Roughly 56% of the $8.2 billion portfolio; Q2 2026 income from equity method investments was $179 million, though these earnings are not included in the portfolio yield table.
• Gain on sale of assets — $15.8 million in Q2 2026 versus $7.8 million in Q2 2025, a 102% increase, reflecting asset recycling activity.
• Management fees and retained interest income — $12.9 million in Q2 2026 versus $9.0 million in Q2 2025, up 43%, tied to co-investment vehicles and securitization retained interests; origination fee and other income was $7.6 million.

Recent performance

Q2 2026 GAAP net income was $128.6 million, or $0.92 diluted EPS, versus $98.4 million and $0.74 in Q2 2025; Adjusted Earnings were $98.7 million ($0.75 per share) versus $75.0 million ($0.60). Q2 revenue was $121 million with income from equity method investments of $179 million, partly offset by $111 million of total expenses and $57 million of income tax expense. Adjusted Recurring Net Investment Income was $107 million, up 26% year-over-year, and Adjusted ROE was 15.2% versus GAAP ROE of 20.3%. Managed Assets grew 20% year-over-year to $17.6 billion as of June 30, 2026, and the company closed more than $1.4 billion in balance sheet CCH1 transactions year-to-date at new asset yields of 11%.

Strategy

HASI is pursuing balance sheet CCH1 investments, expecting $2-3 billion of new volume in 2026, and has issued no shares through its ATM year-to-date with minimal issuances expected for the year. It funded growth with $1 billion of unsecured notes at an effective cost of 5.6% and in July increased its revolver capacity by $425 million to $2.25 billion. Management emphasizes programmatic partnerships and growing fee income from co-investment vehicles as levers to expand investment margins as debt spreads improve. The company frames its direction as driving Adjusted ROE from more than 15% in the first half of 2026 toward at least 17.0% in 2028. The 10-K/A was filed solely to add Rule 3-09 separate financial statements for equity method investees Palmetto HASI Holdings LLC and Daggett Renewable Holdco LLC, not to update other information.

Risks

• Credit concentration and allowance — The portfolio held $3.2 billion of receivables with a $56 million allowance for loss and $73 million of receivables held for sale as of June 30, 2026, so defaults or impairments in large exposures would hit earnings.
• Cost of debt versus asset yield — Average cost of debt rose to 6.2% in Q2 2026 from 5.8% a year earlier while average asset yield was 9.7%, so further funding cost increases could compress the spread.
• Interest rate and maturity profile — Fixed-rate receivables with coupons of 8.00% or higher total $948 million plus $785 million at 9.50% or greater, with maturities running to 2069, leaving long-dated exposure to rate and refinancing conditions.
• Equity method concentration — About 56% of the $8.2 billion portfolio sits in equity method investments, including investees significant enough that separate financial statements were required under Rule 3-09, concentrating risk in unconsolidated project performance.

Outlook

Management raised 2028 Adjusted EPS guidance to $3.55-$3.65 from $3.50-$3.60 while maintaining guidance for Adjusted ROE of at least 17.0% in 2028. For 2026 it expects $2-3 billion in new balance sheet CCH1 investments, supported by elevated demand for new electric generation and programmatic partnerships, and minimal ATM share issuances based on the current outlook. It points to expanding investment margins from improving debt spreads and growing fee income from co-investment vehicles.