Clearway Energy (NYSE:CWEN) Releases Quarterly Earnings Results, Misses Estimates By $0.90 EPS

Key Points

• Earnings miss: Clearway reported Q1 EPS of ($1.35) versus a consensus ($0.45), missing by $0.90, with adjusted EBITDA of $257M and CAFD of $70M.
• Guidance and capital plan: Management reaffirmed 2026 CAFD guidance, reiterated a 2027 CAFD per‑share target of $2.70+, raised 2026–2029 corporate capital deployment ~20% to $3 billion, and is targeting the top end of its 2030 CAFD range of $2.90–$3.10.
• Dividend and payout: The quarterly dividend was increased to $0.4602 (annualized $1.84) for a ~4.8% yield, although the payout ratio is high at about 129.6%.

Clearway Energy (NYSE:CWEN - Get Free Report) released its earnings results on Thursday. The company reported ($1.35) EPS for the quarter, missing the consensus estimate of ($0.45) by ($0.90), Zacks reports. Clearway Energy had a return on equity of 3.01% and a net margin of 11.83%.

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

• Clearway reaffirmed 2026 CAFD guidance, reiterated a 2027 CAFD per share target of $2.70+ and said it now expects to deploy ~20% more corporate capital through 2026–2029 (raising the 2026–2029 plan to $3 billion), and is targeting the top end or better of its 2030 CAFD per share range of $2.90–$3.10.
• Significant progress on co‑located digital infrastructure: equipment purchases, a design/delivery partnership with Quanta & Blattner, PPAs and interconnection activity — Clearway says first load could be served as soon as 2028 and a single complex could represent a >$1 billion capital opportunity, providing upside to targets.
• Fleet optimization is advancing: new Texas wind PPAs (with more expected), a repowering program (~$600M corporate capital at 11–12% CAFD yields), and the Cardinal acquisition closed with an expected CAFD yield in excess of 12%, all boosting cash‑flow visibility.
• Q1 results: adjusted EBITDA of $257M and CAFD of $70M with solar/battery and flexible generation in line, but wind was below budget due to weather and a Vestas turbine enhancement program at Alta; management nonetheless reaffirmed full‑year 2026 CAFD guidance of $470M–$510M.
• Capital allocation and funding moves: shareholders approved share‑class simplification to a single public security to increase float/liquidity, and the funding plan prioritizes retained CAFD, corporate debt (target leverage ~4–4.5x with ~45% debt on incremental funding) and accretive equity issuance while lowering payout ratio toward the 70s.

Clearway Energy Trading Down 0.9%

Shares of CWEN traded down $0.33 during midday trading on Thursday, hitting $38.16. The stock had a trading volume of 1,270,069 shares, compared to its average volume of 1,005,645. Clearway Energy has a 1 year low of $27.67 and a 1 year high of $41.60. The firm has a market cap of $7.83 billion, a PE ratio of 26.87, a price-to-earnings-growth ratio of 14.77 and a beta of 0.87. The company has a debt-to-equity ratio of 1.36, a current ratio of 1.13 and a quick ratio of 1.06. The stock's 50 day moving average is $39.09 and its 200 day moving average is $36.38.

Clearway Energy Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were paid a $0.4602 dividend. This is an increase from Clearway Energy's previous quarterly dividend of $0.45. This represents a $1.84 annualized dividend and a dividend yield of 4.8%. The ex-dividend date of this dividend was Monday, March 2nd. Clearway Energy's payout ratio is currently 129.58%.

Institutional Investors Weigh In On Clearway Energy

Several hedge funds and other institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Clearway Energy by 12.0% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,333 shares of the company's stock worth $1,070,000 after purchasing an additional 3,787 shares during the last quarter. Jump Financial LLC bought a new position in shares of Clearway Energy in the second quarter worth about $215,000. Cerity Partners LLC grew its holdings in shares of Clearway Energy by 1.8% in the second quarter. Cerity Partners LLC now owns 68,489 shares of the company's stock worth $2,192,000 after purchasing an additional 1,180 shares during the last quarter. Brevan Howard Capital Management LP grew its holdings in shares of Clearway Energy by 233.7% in the second quarter. Brevan Howard Capital Management LP now owns 45,896 shares of the company's stock worth $1,469,000 after purchasing an additional 32,144 shares during the last quarter. Finally, Hudson Bay Capital Management LP bought a new position in shares of Clearway Energy in the second quarter worth about $2,352,000. Hedge funds and other institutional investors own 84.53% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on CWEN. Morgan Stanley reissued an "overweight" rating on shares of Clearway Energy in a report on Tuesday, April 14th. UBS Group set a $45.00 price target on shares of Clearway Energy in a research note on Tuesday, February 24th. Zacks Research downgraded shares of Clearway Energy from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 3rd. Roth Mkm reaffirmed a "buy" rating and set a $45.00 price target (up from $40.00) on shares of Clearway Energy in a research note on Tuesday, February 24th. Finally, Royal Bank Of Canada upped their price target on shares of Clearway Energy from $38.00 to $42.00 and gave the company an "outperform" rating in a research note on Tuesday, February 24th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Clearway Energy currently has a consensus rating of "Moderate Buy" and a consensus price target of $40.57.

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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