Clearway Energy (NYSE:CWEN) Releases Quarterly Earnings Results

Key Points

• Clearway Energy beat quarterly expectations, reporting $1.00 in EPS versus the $0.36 consensus estimate, while revenue of $481 million also exceeded forecasts.
• Management cut 2026 CAFD guidance to $430 million–$470 million from $470 million–$510 million because of weaker wind and renewable resources, but reaffirmed its 2027 CAFD-per-share target of at least $2.70.
• The company highlighted growth opportunities including more than $2 billion of identified investments, 600-plus megawatts of newly contracted ERCOT wind projects, planned repowering investments, and potential digital-infrastructure projects totaling over 17 gigawatts.

Clearway Energy (NYSE:CWEN - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $1.00 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.36 by $0.64, FiscalAI reports. The firm had revenue of $481.00 million during the quarter, compared to the consensus estimate of $473.92 million. Clearway Energy had a return on equity of 0.04% and a net margin of 0.13%.

Here are the key takeaways from Clearway Energy's conference call:

• 2026 CAFD guidance was reduced to $430 million-$470 million from $470 million-$510 million, primarily due to weaker-than-expected wind and renewable resources in the first half. Management characterized the impact as weather-related and reiterated that the fleet’s underlying earnings power remains intact.
• Clearway reaffirmed its 2027 CAFD per-share target of $2.70 or better and said it remains confident in achieving the top end or better of its 2030 goals, supported by more than $2 billion of identified growth opportunities for 2027-2029.
• Fleet enhancements advanced with long-term PPAs completed for three ERCOT wind projects totaling more than 600 megawatts, extending contracted tenors beyond 2040 and increasing project cash flow visibility. The company also remains on track to invest approximately $600 million in repowering at targeted 11%-12% CAFD yields.
• Clearway highlighted substantial longer-term upside from its digital infrastructure strategy, including more than 17 gigawatts of co-located generation under development and potential initial generation phases targeted for 2029. These projects are not yet incorporated into the company’s core targets, providing potential incremental growth.
• The company expects to fund approximately $3 billion of corporate investment through 2029 using retained cash flow, more than $1.5 billion of corporate debt and $500 million-$1 billion of external equity, while maintaining a 4.0-4.5x leverage target and a BB credit rating. Management said equity issuance will be limited to situations where it is demonstrably accretive.

Clearway Energy Price Performance

CWEN traded down $0.61 during midday trading on Wednesday, hitting $31.12. The stock had a trading volume of 1,351,679 shares, compared to its average volume of 1,133,513. Clearway Energy has a 1 year low of $27.67 and a 1 year high of $41.74. The company has a debt-to-equity ratio of 1.55, a quick ratio of 1.02 and a current ratio of 1.11. The business has a fifty day moving average of $35.58 and a 200 day moving average of $37.49. The company has a market cap of $6.39 billion, a P/E ratio of 778.12 and a beta of 0.89.

Institutional Investors Weigh In On Clearway Energy

A number of hedge funds have recently made changes to their positions in CWEN. National Bank of Canada FI grew its holdings in shares of Clearway Energy by 201.9% during the 3rd quarter. National Bank of Canada FI now owns 975 shares of the company's stock valued at $28,000 after purchasing an additional 652 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its stake in shares of Clearway Energy by 280.9% during the third quarter. Caitong International Asset Management Co. Ltd now owns 956 shares of the company's stock valued at $27,000 after buying an additional 705 shares during the last quarter. Van ECK Associates Corp increased its holdings in shares of Clearway Energy by 1.6% in the fourth quarter. Van ECK Associates Corp now owns 44,928 shares of the company's stock worth $1,494,000 after buying an additional 720 shares during the period. Scarborough Advisors LLC boosted its holdings in Clearway Energy by 84.6% during the 4th quarter. Scarborough Advisors LLC now owns 1,661 shares of the company's stock valued at $55,000 after acquiring an additional 761 shares during the period. Finally, Advisory Services Network LLC increased its stake in Clearway Energy by 2.7% in the 2nd quarter. Advisory Services Network LLC now owns 30,452 shares of the company's stock worth $994,000 after purchasing an additional 803 shares during the period. 84.53% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts have issued reports on CWEN shares. Wall Street Zen lowered shares of Clearway Energy from a "sell" rating to a "strong sell" rating in a research report on Saturday. Zacks Research lowered shares of Clearway Energy from a "hold" rating to a "strong sell" rating in a report on Friday, July 10th. Morgan Stanley lifted their price objective on shares of Clearway Energy from $56.00 to $60.00 and gave the stock an "overweight" rating in a report on Wednesday, May 27th. Canadian Imperial Bank of Commerce set a $42.00 target price on shares of Clearway Energy in a research report on Friday, July 17th. Finally, Truist Financial began coverage on Clearway Energy in a research note on Monday, July 13th. They issued a "buy" rating and a $43.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $44.00.

Clearway Energy Company Profile

Clearway Energy Group NYSE: CWEN is a U.S.-based energy company specializing in the ownership, operation and development of clean and conventional power generation assets. The company's portfolio spans utility-scale wind and solar farms, biogas and natural gas-fired thermal facilities, as well as distributed generation projects such as rooftop solar and energy storage. Clearway's generation assets are largely underpinned by long-term power purchase agreements and service contracts with creditworthy counterparties, enabling stable, predictable cash flows.

Originally launched in 2013 as NRG Yield and rebranded to Clearway Energy in 2018 following a strategic sponsorship change, the business has grown into one of the largest independent renewable energy platforms in the United States.

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