- 2025 CAFD Performance: Full-year cash available for distribution reached $430 million, exceeding the midpoint of original guidance, with reaffirmed 2026 guidance of $470–$510 million and a 2027 target of $2.70/share or better.
- Project Growth: Added 1.3 gigawatts of value-enhancing projects in 2025, alongside 2 gigawatts of new PPAs with hyperscalers and utilities, driving sponsor-enabled growth and 2030 CAFD/share target of $3.10.
- Funding Strategy: Maintains a 4x–4.5x leverage ratio, 5–15% equity, 20% retained cash flow, and aims for a <70% payout ratio post-2030 to fund accretive investments.
- Construction Pipeline: 100% of 2026–2027 repowering/new construction projects are commercialized, with 7 gigawatts in 2029 COD vintage exceeding 2030 targets and $3.10/share CAFD/share goal.
- Acquisition Progress: Deriva transaction on track to close before mid-2026, enhancing generating capacity and reinforcing long-term growth with diversified energy resources.
Operational Highlights
The company made significant progress in its fleet enhancement program, with 1.3 gigawatts of value-enhancing projects added to the fleet in 2025. Hyperscaler demand drove sponsor-enabled growth, with approximately 2 gigawatts of new PPAs signed in 2025. Clearway's commercialization pipeline is translating into a visible pathway towards long-term growth, with a sizable pipeline that is larger than required to meet its 2030 CAFD per share goal. As Craig Cornelius noted, "We're seeing a supportive pricing environment really across all geographies, with pricing on PPAs that we signed this year being about double compared to those signed three years ago."
Growth Prospects
Clearway is confident in its ability to secure additional revenue contracts for its late-stage pipeline, which will drive substantial CAFD towards its 2030 target. The company has a strong development pipeline, with over 7 gigawatts of development activity in the 2029 COD vintage, providing resiliency and flexibility. With a target payout ratio below 70% after 2030, Clearway is poised to retain cash flows and fund accretive investments, driving long-term growth.
Valuation and Returns
With a Dividend Yield of 4.57% and a ROE of 4.41%, Clearway Energy offers an attractive return profile. The company's P/B Ratio of 0.79 suggests that the stock may be undervalued relative to its book value. However, the high EV/EBITDA multiple of 32.79 indicates that the market is pricing in significant growth expectations. As the company continues to execute on its growth plans, investors will be watching to see if Clearway can deliver on its promises.