HASI Announces Fourth Quarter and Full Year 2025 Results with New Investments up 87% Y/Y to a Record $4.3b, Adjusted ROE up 70 bps to 13.4% and Adjusted EPS up 10% to $2.70 ANNAPOLIS, Md., February 12, 2026 -- (BUSINESS WIRE) -- HA Sustainable Infrastructure Capital, Inc. ("HASI," "we," "our" or the "Company") (NYSE: HASI), a leading investor in sustainable infrastructure assets, today reported results for the fourth quarter and full year of 2025. Key Highlights "Our resilient business achieved extraordinar ...

Core Viewpoint - HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) is recognized as one of the top financial stocks for long-term investment, with a price target of $39 indicating a potential upside of 13% from current levels [1] Group 1: Joint Venture and Investment - On January 6, HA Sustainable Infrastructure Capital, Inc. and Sunrun announced a joint venture to accelerate the deployment of residential solar and battery systems, aiming to finance over 300 megawatts of capacity and support over 40,000 home power installations in the U.S. [2] - As part of the joint venture, HA Sustainable Infrastructure Capital, Inc. will invest up to $500 million over 18 months, which is designed to monetize a portion of the long-term cash flows from Sunrun's residential energy assets [3] - This investment structure is expected to provide predictable returns for HA Sustainable Infrastructure Capital, Inc. while allowing Sunrun to retain a long-term ownership stake, enhancing overall financial efficiency [3] Group 2: Company Overview and Strategy - HA Sustainable Infrastructure Capital, Inc. focuses on investing in sustainable infrastructure and energy-efficiency markets across the United States, with a diverse portfolio that includes commercial and government receivables, debt securities, equity investments, and real estate [4] - The company invests in various infrastructure assets, including grid-connected solutions, climate solutions, and fuels, transport, and nature [4] - The Chief Revenue and Strategy Officer emphasized the collaboration's role in improving grid reliability and addressing increasing power demand through home-based energy systems [4]

Company Overview - HA Sustainable Infrastructure Capital, Inc. (HASI) focuses on investments in energy efficiency, renewable energy, and sustainable infrastructure markets in the United States [2] - The company operates as a specialized infrastructure financier, earning predictable interest and rental income from long-dated, contracted projects with high-quality counterparties [2] Financial Performance - As of February 5th, HASI's share was trading at $35.15, with trailing and forward P/E ratios of 15.45 and 12.32 respectively [1] - Reported GAAP earnings appear volatile due to the use of Hypothetical Liquidation at Book Value (HLBV) accounting, but underlying cash flows are steady and consistently collected [3] Market Position - HASI occupies a niche between traditional bank lending and private equity, benefiting from reduced competition as banks retreat from complex, long-duration infrastructure financing [4] - Approximately half of HASI's portfolio is concentrated in behind-the-meter assets, such as on-site solar and energy efficiency projects, which are expected to benefit from increasing electricity demand [4] Strategic Initiatives - The transition to a C-Corporation has strengthened HASI's model by enabling retained earnings and reducing reliance on external capital [5] - Current valuation levels suggest that the market underappreciates the durability, growth potential, and improving quality of HASI's earnings, with a ~5% dividend yield [5]

Core Viewpoint - HA Sustainable Infrastructure Capital (NYSE:HASI) is recognized as a strong financial play under $100, particularly favored by hedge funds [1]. Group 1: Investment and Financial Commitments - On December 16, HA Sustainable Infrastructure Capital announced a $500 million additional capital commitment towards CarbonCount Holdings 1 (CCH1), in partnership with KKR & Co, which will also contribute $500 million, enhancing investment capacity for sustainable infrastructure projects in the U.S. [2] - The stock has a consensus 1-year average price target of $40.27, indicating a potential upside of 26% from current levels, with 11 out of 13 analysts recommending Buy ratings [3]. Group 2: Analyst Ratings and Market Position - Mizuho Securities reaffirmed a Buy rating for HA Sustainable Infrastructure Capital with a target price of $34, suggesting a nearly 6.5% upside [4]. - The company manages approximately $15 billion in assets, focusing on energy transition investments across various sectors, including onshore wind and solar [5].

Core Viewpoint - HA Sustainable Infrastructure Capital, Inc. and KKR have announced a joint capital commitment of $1 billion to CarbonCount Holdings 1 LLC, with each firm contributing $500 million [1] Group 1: Investment Details - The co-investment vehicle, CarbonCount Holdings 1 LLC, was established by HA Sustainable Infrastructure Capital and KKR to enhance investment capacity in sustainable infrastructure assets [1]

Core Viewpoint - HASI's valuation has become more attractive due to improved book value and a decrease in market price since the previous sell thesis in 2022 [1] Group 1: Financial Metrics and Performance - HASI's long-term financial metrics, including EBITDA and earnings per share, show a positive upward trend despite lumpiness [5][12] - The company has been issuing equity, which influences EBITDA growth but raises questions about per-share profitability [8] - The streak of dividend raises indicates a well-supported payout, with book value per share climbing nicely [16][20] Group 2: Complexity of Investment Structures - HASI operates through complex investment structures, including VIEs and off-balance sheet vehicles, making it challenging to assess true economic returns [2][4] - Financial engineering can obscure the actual performance of investments, necessitating a focus on long-term metrics rather than quarterly fluctuations [3][16] - The company’s investments yield high ROEs, with a reported 13.4% ROE on 2025 investments, raising questions about whether this is due to financial engineering or genuine advantages [24][26][37] Group 3: Management and Fee Structures - HASI's recent $1.2 billion investment in a utility-scale renewable project involves a joint venture with KKR, managed through its CCH1 vehicle, which generates a significant fee stream for the company [39][41] - The management fee structure allows HASI to achieve a higher true ROE than typical energy infrastructure projects, contributing positively to long-term returns [42][46] - The annual fee income of $22 million translates to $0.17 per share, providing additional returns beyond the normal economic return [45] Group 4: Investment Outlook - Despite the complexity of its investment structures, HASI's healthy long-term financial metrics and the advantages from its fee streams suggest a bullish outlook for the company [47]

Core Viewpoint - HA Sustainable Infrastructure Capital, Inc. has successfully priced a public offering of $500 million in green junior subordinated notes, reflecting its commitment to sustainable infrastructure investment [1] Company Summary - The company is a leading investor in sustainable infrastructure assets [1] - The offering consists of 8.000% green junior subordinated notes due in 2056 [1] - The notes will be guaranteed on a subordinated basis by Hannon Armstrong Sustainable Infrastructure [1]

Core Insights - The article discusses the top 9 undervalued asset management stocks to buy, highlighting the resilience of wealth management and brokerage stocks amid economic uncertainties [1] - The asset management sector has seen a rebound, with global assets under management reaching a record high of $147 trillion by the end of June [2] - Private credit is emerging as a significant trend in asset management, with non-bank institutions reshaping capital investment [3][4] Industry Overview - The asset management sector is characterized by a robust US economy and accommodative monetary policies, which have supported its resilience despite uncertainties [1] - Global private credit markets are projected to grow rapidly, potentially reaching $3 trillion by 2028, driven by lower interest rates and economic strength in the US and Europe [4] Investment Opportunities - Analysts at Goldman Sachs suggest that the current challenges faced by alternative asset manager stocks present opportunities for investment in undervalued names [5] - A methodology was employed to identify undervalued asset management stocks, focusing on companies with a price-to-earnings ratio of less than 20 and an upside potential of over 20% [7] Company Highlights - HA Sustainable Infrastructure Capital (NYSE:HASI) shows a stock upside potential of 42.42% with a forward price-to-earnings ratio of 10.74, supported by strong third-quarter results and a significant investment pipeline [9][10][12] - Burford Capital (NYSE:BUR) has a stock upside potential of 121.94% despite disappointing third-quarter results, with a focus on growing its platform and securing new firm commitments [13][14][15][17]

Core Insights - HA Sustainable Infrastructure Capital (HASI) reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales increasing by 51.5% year-on-year to $139.2 million and a non-GAAP profit of $0.80 per share, which was 16.1% above analysts' consensus estimates [1][6]. Financial Performance - Revenue reached $139.2 million, surpassing analyst estimates of $87.86 million, reflecting a 51.5% year-on-year growth and a 58.5% beat [6]. - Adjusted EPS was $0.80 compared to analyst estimates of $0.69, marking a 16.1% beat [6]. - Adjusted EBITDA stood at $105.1 million, exceeding analyst estimates of $76.86 million, with a margin of 75.5%, representing a 36.8% beat [6]. - The operating margin was -3.7%, consistent with the same quarter last year [6]. - Market capitalization was reported at $3.54 billion [6]. Investment Activity - Management closed over $650 million in new transactions during the quarter, projecting to close more than $3 billion for the full year 2025, indicating a more than 30% year-over-year increase [7]. - The refinancing of asset-backed securities within the SunStrong residential solar lease portfolio generated significant cash distribution, contributing to earnings for the quarter [7]. - A notable $1.2 billion structured equity investment was completed in the SunZia wind project, showcasing the company's ability to engage in larger transactions due to enhanced access to capital [7]. Future Outlook - Management anticipates investment volumes to exceed last year's by over 30%, supported by a pipeline exceeding $6 billion [4]. - The company aims for 8–10% annual EPS growth through 2027 while managing interest rate risks [4]. - New asset yields have remained above 10.5% for six consecutive quarters, with a diversified pipeline across various renewable sectors [8]. Risk and Capital Management - HASI maintained a low realized loss rate of under 10 basis points annually and stabilized its cost of debt despite refinancing activities [8]. - The company added $250 million in hedges to mitigate future interest rate exposure and reported $1.1 billion in liquidity at the end of the quarter [8].

Portfolio Overview - As of September 30, 2025, the company's Portfolio totaled approximately $7.5 billion, including $3.7 billion in Behind-the-Meter (BTM) assets, $2.8 billion in Grid-Connected (GC) assets, and $1.0 billion in Fuels, Transport, and Nature (FTN) assets[208]. - The company's pipeline of potential new opportunities as of September 30, 2025, consisted of more than $6.0 billion, with approximately 39% related to BTM assets, 38% to GC assets, and 18% to FTN assets[203]. - Approximately 53% of the Portfolio consisted of equity method investments in renewable energy-related projects, while 37% consisted of fixed-rate receivables and debt securities[208]. - The average size of transactions in the Portfolio was approximately $11 million, with a weighted average remaining life of about 16 years[208]. - The GAAP-based Portfolio increased to $7.542 billion as of September 30, 2025, compared to $6.594 billion as of December 31, 2024, reflecting a growth of 14.4%[235]. Financial Performance - The company completed approximately $649 million and $1.5 billion of transactions during the three and nine months ended September 30, 2025, respectively, compared to approximately $396 million and $1.2 billion during the same periods in 2024[200]. - Total revenue for Q3 2025 reached $103.064 million, a 26% increase from $81.965 million in Q3 2024[215]. - Net income for Q3 2025 was $84.906 million, a significant increase of $104.082 million compared to a net loss of $19.176 million in Q3 2024[216]. - For the nine months ended September 30, 2025, total revenue was $285.690 million, a slight increase of 1% from $282.298 million in the same period of 2024[217]. - Net income for the nine months ended September 30, 2025, was $242.886 million, an increase of $110.570 million or 84% compared to $132.316 million in 2024[217]. Income and Expenses - Interest and rental income for Q3 2025 increased to $68.976 million, up 8% from $64.151 million in Q3 2024[215]. - Interest expense rose to $71.481 million in Q3 2025, reflecting a 20% increase from $59.401 million in Q3 2024[215]. - The average cost of debt for Q3 2025 was 5.9%, compared to 5.6% in Q3 2024[215]. - Adjusted Earnings for Q3 2025 were $102.5 million, or $0.80 per share, up from $62.6 million, or $0.52 per share in Q3 2024[228]. - The company reported a return of capital of $25 million in Q3 2025, compared to $6 million in Q3 2024[226]. Cash Flow and Liquidity - Cash collected in Q3 2025 was $93 million, significantly higher than $32 million in Q3 2024[226]. - The total cash collected for the nine months ended September 30, 2025, was $187 million, compared to $67 million in the same period of 2024[226]. - Total liquidity available as of September 30, 2025, was $1.136 billion, consisting of $302 million in unrestricted cash and $804 million in unused capacity under the unsecured revolving credit facility[250]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $759 million, significantly higher than the $(89) million reported for the same period in 2024[271]. - Cash used in investing activities decreased by $565 million compared to the same period in 2024, with increased investments in equity method investments and receivables[270]. Debt and Financing - The company has a strategic partnership with KKR for joint investments in eligible projects, enhancing its investment capabilities[202]. - The company entered into a delayed-draw term loan facility of up to $250 million, available from March 16, 2026, to June 15, 2026, with a maturity date of June 15, 2028[252]. - As of September 30, 2025, the company's long-term recourse debt obligations totaled $5.189 billion, with a debt-to-equity ratio of approximately 1.9 to 1, below the board-approved limit of 2.5 to 1[260][261]. - The percentage of fixed-rate debt was approximately 88% as of September 30, 2025, within the targeted range of 75% to 100%[261]. - The company plans to continue issuing debt, which may be secured or unsecured, and may also issue additional equity to finance its business[258]. Risk Management - The company anticipates that its primary market risks will relate to credit quality, market interest rates, liquidity of assets, and commodity prices[278]. - The company actively manages credit risk through thorough due diligence, strong structural protections, and continuous portfolio monitoring[290]. - The company employs various interest rate management techniques to mitigate risks, including matching debt maturities with asset maturities and using interest rate swaps[282]. - Environmental risks are integral to the company's investment parameters, and ongoing asset management includes monitoring these risks[290]. - Changes in discount rates will impact the fair value of certain assets recorded at fair value in the financial statements[285].