Clearway Energy (CWEN) Q4 2024 earnings summary

Executive summary

• Exceeded 2024 financial and operational objectives, with CAFD reaching $425 million, surpassing guidance, and all key growth and dividend commitments met.

• Completed ~$450 million in growth investments, adding over 1 GW of renewable and storage capacity, including Tuolumne Wind and Honeycomb Phase 1.

• Increased quarterly dividend by 1.7% to $0.4312/share for Q1 2025, annualized at $1.7248/share.

• 96% of 2024 generation was emissions-free, with strong performance across all technologies and successful execution of dropdowns, acquisitions, and new contracts.

• Reaffirmed 2025 CAFD guidance of $400–$440 million and long-term CAFD per share growth targets.

Financial highlights

• Full-year 2024 Adjusted EBITDA was $1.146 billion and CAFD was $425 million, both exceeding guidance and prior year.

• Fourth quarter Adjusted EBITDA was $228 million and CAFD was $40 million.

• 2024 Net Loss was $63 million, compared to $14 million loss in 2023, due to higher depreciation/amortization and mark-to-market changes.

• Operating revenues for 2024 were $1.371 billion, up from $1.314 billion in 2023.

• Dividend per share for 2024 was $1.65, up from $1.54 in 2023.

Outlook and guidance

• Reaffirmed 2025 CAFD guidance range of $400–$440 million, targeting the higher end through timely growth investments and acquisitions.

• Confident in achieving the midpoint or better of the 2027 CAFD per share target range of $2.40–$2.60, with no external equity needed to achieve the midpoint.

• Long-term CAFD per share growth targeted at 5–8%+ beyond 2027, with payout ratio at low end of 70–80%.

• 2025 DPS growth commitment of 6.5% and bottom half of 5–8% for 2027.