Clearway Energy (CWEN) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with Adjusted EBITDA of $354 million, CAFD of $146 million, and year-to-date CAFD of $385 million, tracking to meet or exceed full-year guidance of $395 million.

• Increased quarterly dividend by 1.7% to $0.4240 per share for Q4 2024, with an annualized target of $1.76 per share for 2025 and reaffirmed 2026 DPS growth at 6.5%.

• Advanced growth with new investments in Pine Forest Solar and Storage (up to 500 MW) and evaluating Honeycomb storage projects, with multiple drop-down transactions and acquisitions positioning for continued expansion.

• Set 2025 CAFD guidance at a $420 million midpoint, with long-term targets of $2.40–$2.60 CAFD per share in 2027, representing 7.5%–12% CAGR from 2025 midpoint.

• Outlined a capital allocation framework targeting a 70%–80% payout ratio in 2027 and long-term cash per share growth of 5%–8%+.

Financial highlights

• Q3 2024 operating revenues rose to $486 million from $371 million in Q3 2023; nine-month revenues reached $1,115 million.

• Q3 2024 Adjusted EBITDA was $354 million; year-to-date Adjusted EBITDA reached $918 million.

• Q3 2024 CAFD was $146 million; year-to-date CAFD totaled $385 million.

• Net income attributable to the company was $36 million in Q3 2024, up from $4 million in Q3 2023; Q3 2024 EPS was $0.31.

• Reaffirmed full-year 2024 CAFD guidance of $395 million and set 2025 CAFD guidance at $400–$440 million.

Outlook and guidance

• 2025 CAFD guidance midpoint is $420 million; dividend per share target is $1.76, with 2026 DPS growth reaffirmed at 6.5%.

• 2027 CAFD per share targeted at $2.40–$2.60, representing 7.5%–12% CAGR from 2025 midpoint.

• Long-term payout ratio targeted at 70%–80%, with cash per share growth goal of 5%–8%+ post-2027.

• Management expects comparable cash dividends to continue, supported by stable contracted cash flows and liquidity.

• Multiple acquisitions under contract are expected to close in late 2024 and 2025, expanding the renewables portfolio.