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1. Company Snapshot

1.a. Company Description

Clearway Energy, Inc.operates in the renewable energy business in the United States.It has approximately 5,000 net megawatts (MW) of installed wind and solar generation projects; and approximately 2,500 net MW of natural gas generation facilities.


The company was formerly known as NRG Yield, Inc.and changed its name to Clearway Energy, Inc.in August 2018.


Clearway Energy, Inc.was incorporated in 2012 and is based in Princeton, New Jersey.Clearway Energy, Inc.


is a subsidiary of Clearway Energy Group LLC.

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1.b. Last Insights on CWEN

Clearway Energy's recent performance was driven by strong Q3 2025 earnings, with Net Income of $60 million and Adjusted EBITDA of $385 million. The company narrowed its 2025 financial guidance range and reported a solid project pipeline, sponsor-enabled growth, and repowering opportunities. A binding M&A agreement for an operational solar portfolio and $50 million equity issuance also contributed positively. Additionally, the company's focus on renewable energy and attractive dividend yield make it an interesting play. (Source: Clearway Energy, Inc. Reports Third Quarter 2025 Financial Results)

1.c. Company Highlights

2. Clearway Energy's Strong Q3 Performance Propels Growth Ambitions

Clearway Energy delivered a robust third-quarter performance, with adjusted EBITDA reaching $385 million and cash available for distribution (CAFD) totaling $166 million. The company's year-to-date adjusted EBITDA stood at $980 million, while CAFD reached $395 million. Earnings per share (EPS) came in at $2, significantly surpassing analyst estimates of $0.32. Revenue growth is expected to continue, with analysts estimating a 15.0% increase for the next year. The company's financial performance has led to a narrowing of its 2025 CAFD guidance range to $420 million to $440 million, with a new 2026 CAFD guidance range established at $470 million to $510 million.

Publication Date: Nov -07

📋 Highlights
  • 2025 CAFD Guidance Narrowed: Adjusted to $420–$440 million (midpoint $430 million), with 2026 guidance at $470–$510 million, reflecting strong Q3 performance and strategic drop-downs.
  • 2030 CAFD Per Share Target: $2.90–$3.10, representing 7–8% CAGR from 2025 midpoint ($2.47), driven by acquisitions, repowerings, and sponsor-developed drop-downs.
  • Q3 Financial Performance: Adjusted EBITDA of $385 million and CAFD of $166 million, with YTD figures at $980 million EBITDA and $395 million CAFD.
  • Data Center PPA Growth: 1.8 gigawatts of PPAs executed in 2024 to support hyperscaler demand, leveraging Clearway’s position as a top supplier for mission-critical loads.
  • Capital Allocation Strategy: Focus on retained cash flow (projected payout ratio <70%) and prudent debt/equity use to fund growth, with 30-gigawatt pipeline and 11-gigawatt late-stage assets.

Growth Strategy and Outlook

Clearway aims to achieve a CAFD per share target of $2.90 to $3.10 by 2030, representing a 7% to 8% compound annual growth rate (CAGR) from its 2025 guidance midpoint. This growth is attributed to successful acquisitions, repowering investments, and sponsor-developed drop-downs. The company's enterprise is well-positioned for long-term growth, with Clearway Group's best-in-class development pipeline and the technological resilience of its embedded projects. As Craig Cornelius, President and CEO, highlighted during the call, the company is "well-positioned for growth well beyond 2030."

Valuation and Capital Allocation

Clearway's current valuation metrics indicate a relatively low P/E Ratio of 4.42 and a P/B Ratio of 0.21. The EV/EBITDA ratio stands at 15.83, suggesting a moderate valuation. The company's capital allocation framework is designed to support its long-term growth objectives, with a focus on retained cash flow, prudent debt management, and moderate equity issuances. Clearway's dividend yield is 4.99%, providing a relatively attractive return for investors.

Future Growth Drivers

Beyond 2027, Clearway expects CAFD per share growth to be driven by repowering investments, potential sponsor-enabled drop-down opportunities, and its late-stage pipeline. The company is also developing flexible generation resources to complement its renewable energy projects, driven by demand from hyperscalers and utilities. With a 30-gigawatt pipeline, including 11 gigawatts in late-stage assets, Clearway is poised to capitalize on growing demand for clean energy.

Drop-downs and Transactions

Clearway plans to invest in 100% equity in its development pipeline through 2027 and will evaluate its capital allocation framework for future development assets. The company's growth strategy is underpinned by its abundant pipeline and its ability to execute on its plans, positioning it for long-term success in the U.S. power sector.

3. NewsRoom

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The Predictability Premium: Why Clearway Energy Wins

Dec -03

Source: seekingalpha.com

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The Dark Side Of High-Yield CEFs And Covered Call ETFs

Nov -30

Source: seekingalpha.com

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5 Dividend Stocks Yielding 5% or More to Buy Without Hesitation Right Now

Nov -23

Source: fool.com

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3 Dividend Stocks to Hold for the Next 5 Years

Nov -22

Source: fool.com

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Head-To-Head Survey: Hoku (OTCMKTS:HOKUQ) and Clearway Energy (NYSE:CWEN)

Nov -18

Source: defenseworld.net

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One Of The Best High-Yield Setups I've Ever Seen

Nov -14

Source: seekingalpha.com

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AGF Management Ltd. Acquires 5,497 Shares of Clearway Energy, Inc. $CWEN

Nov -12

Source: defenseworld.net

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Sunrun Announces Appointment of Craig Cornelius to its Board of Directors

Nov -06

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.36%)

6. Segments

Renewables

Expected Growth: 6%

Clearway Energy's 6% growth in Renewables is driven by increasing demand for clean energy, declining solar and wind costs, and favorable government policies. Additionally, the company's strategic partnerships, project acquisitions, and expansion into new markets contribute to its growth momentum.

Conventional Generation

Expected Growth: 4%

Conventional Generation from Clearway Energy, Inc. growth driven by increasing demand for reliable power, favorable regulatory environment, and strategic acquisitions. Additionally, investments in grid modernization and transmission infrastructure expansion support growth. Furthermore, the company's focus on operational efficiency and cost reduction initiatives contribute to its growth momentum.

7. Detailed Products

Renewable Energy

Clearway Energy, Inc. develops, constructs, and operates renewable energy projects, including wind and solar farms, to generate clean energy for homes and businesses.

Community Solar

Clearway Energy, Inc. offers community solar programs, allowing multiple customers to share the benefits of a single solar array, making clean energy more accessible and affordable.

Energy Storage

Clearway Energy, Inc. provides energy storage solutions, integrating batteries with renewable energy sources to ensure a stable and reliable energy supply.

Sustainability Solutions

Clearway Energy, Inc. offers sustainability solutions, including energy efficiency upgrades and electrification of transportation, to help customers reduce their carbon footprint.

Grid Resiliency

Clearway Energy, Inc. provides grid resiliency solutions, including microgrids and backup power systems, to ensure reliable energy supply during outages and emergencies.

8. Clearway Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Clearway Energy, Inc. operates in the renewable energy industry, which has a moderate threat of substitutes. While there are alternative sources of energy, such as fossil fuels, the increasing demand for renewable energy and government incentives reduce the threat of substitutes.

Bargaining Power Of Customers

Clearway Energy, Inc. has a diversified customer base, including utilities, municipalities, and commercial and industrial customers. This diversification reduces the bargaining power of customers, as no single customer has a significant impact on the company's revenue.

Bargaining Power Of Suppliers

Clearway Energy, Inc. relies on a few large suppliers for its wind turbines and solar panels. While the company has some bargaining power due to its scale, the suppliers also have some bargaining power due to the specialized nature of their products.

Threat Of New Entrants

The renewable energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This reduces the threat of new entrants, as new companies would need to invest heavily in infrastructure and technology to compete with established players like Clearway Energy, Inc.

Intensity Of Rivalry

The renewable energy industry is highly competitive, with many established players competing for market share. Clearway Energy, Inc. faces intense competition from companies like NextEra Energy, Duke Energy, and Enel Green Power, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.49%
Debt Cost 4.45%
Equity Weight 19.51%
Equity Cost 8.72%
WACC 5.28%
Leverage 412.57%

11. Quality Control: Clearway Energy, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Otter Tail

A-Score: 6.6/10

Value: 5.3

Growth: 7.0

Quality: 6.5

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

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Entergy

A-Score: 6.5/10

Value: 4.8

Growth: 3.6

Quality: 4.7

Yield: 7.0

Momentum: 9.0

Volatility: 10.0

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ALLETE

A-Score: 6.4/10

Value: 5.9

Growth: 4.0

Quality: 4.3

Yield: 8.0

Momentum: 6.0

Volatility: 10.0

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Clearway Energy

A-Score: 5.9/10

Value: 3.4

Growth: 5.4

Quality: 3.6

Yield: 9.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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NextEra Energy Partners

A-Score: 5.0/10

Value: 9.4

Growth: 2.9

Quality: 4.4

Yield: 10.0

Momentum: 0.0

Volatility: 3.3

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Ormat Technologies

A-Score: 4.6/10

Value: 1.6

Growth: 4.7

Quality: 4.0

Yield: 0.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.01$

Current Price

34.01$

Potential

-0.00%

Expected Cash-Flows