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1. Company Snapshot

1.a. Company Description

Hannon Armstrong Sustainable Infrastructure Capital, Inc.provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States.The company's projects include building or facility that reduce energy usage or cost through the use of solar generation and energy storage or energy efficiency improvements, including heating, ventilation, and air conditioning systems (HVAC), as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems.


It also focuses in the areas of grid connected projects that deploy cleaner energy sources, such as solar and wind to generate power; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and other projects.The company qualifies as a real estate investment trust for U.S. federal income tax purposes.It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.


The company was founded in 1981 and is headquartered in Annapolis, Maryland.

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1.b. Last Insights on HASI

HA Sustainable Infrastructure Capital's recent performance was positively driven by the company's expanding partnership with Sunrun, a leading provider of home battery storage and solar solutions. A $500 million joint venture was established to finance distributed energy assets, expected to ultimately finance over 300 megawatts of capacity across more than 40,000 homes. Additionally, several institutional investors, including SG Americas Securities LLC and Baird Financial Group Inc., increased their stakes in the company, demonstrating confidence in its growth prospects.

1.c. Company Highlights

2. HA Sustainable Infrastructure Capital Beats Expectations with Strong 2025 Performance

The company's financial performance in 2025 was outstanding, with revenues and EPS exceeding expectations. The actual EPS came out at $0.67, beating estimates of $0.66. The company's adjusted EPS growth rate was 10%, reaching $2.70 per share in 2025. The yield on new investments exceeded 10.5% for the second year in a row, and the company's bond spreads have narrowed, with senior unsecured term bonds trading with a yield below 6.25%. The adjusted recurring net investment income was $362,000,000, an increase of 25% from the prior year.

Publication Date: Feb -14

📋 Highlights
  • 2025 New Transactions: Closed $4.3B in new deals, 87% higher than 2024, with a $6.5B investment pipeline.
  • Investment Yield & Returns: Achieved over 10.5% yield on new investments, ROE above 13%, and incremental ROE above 19%.
  • Adjusted EPS Growth: Adjusted EPS reached $2.70, reflecting 10% annual growth and $362M in adjusted recurring net investment income (25% YOY).
  • Sustainability Impact: Avoided 1.7M metric tons of CO₂ emissions in 2025, totaling 10M tons since inception.
  • 2028 Guidance: Targeted adjusted EPS of $3.50–$3.60, with ROE exceeding 17% and payout ratios below 50% by 2028.

Strong Growth in New Transactions and Pipeline

The company closed $4,300,000,000 in new transactions in 2025, 87% more than in 2024, and its pipeline has grown to over $6,500,000,000. The significant growth in new transactions and pipeline is expected to drive future earnings growth. As Jeffrey A. Lipson stated, "We're confident in our three-year plan, which underscores our ability to achieve our profitability objectives."

Valuation Metrics and Future Outlook

Using the current valuation metrics, the company's P/E Ratio is 27.17, and the ROE is 7.32%. The Dividend Yield is 4.23%, indicating a relatively stable return for investors. The company has provided EPS guidance for 2028, expecting adjusted earnings per share to be in the range of $3.50 to $3.60. Analysts estimate next year's revenue growth at 12.9%, indicating a positive outlook for the company's future performance.

Operational Highlights and Sustainability

The company has made significant strides in enhancing its business model and capital efficiency. It has issued its inaugural junior subordinated hybrid notes, and its investment grade ratings have improved. The company has also highlighted its sustainability and impact, with a cumulative carbon count and water count numbers reflecting the significant impact of its investment strategy. In 2025, the company avoided an estimated 1,700,000 metric tons of CO2 emissions.

Future Growth and Investment Opportunities

The company's management is confident in its ability to achieve its profitability objectives and is making significant investments in its platform, particularly in talent and technology. The company is evaluating potential direct roles in new industries, such as the data center business, and is considering new investment opportunities, including the prepaid lease product in the residential solar market.

3. NewsRoom

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IFS or HASI: Which Is the Better Value Stock Right Now?

Mar -23

Source: zacks.com

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HA Sustainable Infrastructure Capital: Still Bullish, But Leverage And Valuation Taper My Optimism

Feb -20

Source: seekingalpha.com

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HA Sustainable Infrastructure Capital (NYSE:HASI) Director Jeffrey Eckel Sells 134,398 Shares of Stock

Feb -18

Source: defenseworld.net

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HA Sustainable Infrastructure Capital, Inc. (HASI) Q4 2025 Earnings Call Transcript

Feb -14

Source: seekingalpha.com

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2 Urgent Sells And 2 No Brainer Dividend Buys

Feb -11

Source: seekingalpha.com

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HA Sustainable Infrastructure Capital (HASI) Projected to Post Quarterly Earnings on Thursday

Feb -05

Source: defenseworld.net

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Move Over, Tesla Solar. These 2 Energy Stocks Are Powering The Future of AI

Jan -27

Source:

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SG Americas Securities LLC Buys 28,305 Shares of HA Sustainable Infrastructure Capital, Inc. $HASI

Jan -19

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.34%)

6. Segments

Interest

Expected Growth: 9.95%

Hannon Armstrong's 9.95% interest growth is driven by increasing demand for sustainable infrastructure investments, expansion into new markets, and a strong pipeline of renewable energy projects. Additionally, the company's diversified portfolio and strategic partnerships contribute to its growth, as well as the rising importance of ESG considerations in the financial industry.

Gain on Sale of Assets

Expected Growth: 10.86%

Hannon Armstrong's 10.86% gain on sale of assets is driven by increasing demand for sustainable infrastructure, strategic asset recycling, and a strong pipeline of high-return projects. Additionally, the company's expertise in energy efficiency and renewable energy solutions, coupled with favorable market conditions, have contributed to this growth.

Rental

Expected Growth: 12.12%

Rental growth of 12.12% driven by increasing demand for sustainable infrastructure, expansion of renewable energy projects, and rising interest in ESG investments. Hannon Armstrong's diversified portfolio of wind, solar, and energy efficiency projects, along with its strong relationships with leading developers, contribute to its robust growth.

Securitization Asset

Expected Growth: 10.55%

Hannon Armstrong's 10.55% growth in Securitization Assets is driven by increasing demand for sustainable infrastructure investments, expansion into new markets, and a strong pipeline of renewable energy projects. Additionally, the company's expertise in originating and managing energy efficiency and renewable energy assets, as well as its ability to access low-cost capital, contribute to its growth momentum.

Other

Expected Growth: 12.07%

Hannon Armstrong's 12.07% growth is driven by increasing demand for sustainable infrastructure, government incentives for renewable energy, and rising ESG investments. Additionally, the company's diversified portfolio of solar, wind, and energy efficiency projects, as well as its strong relationships with project developers and operators, contribute to its growth momentum.

7. Detailed Products

Grid Connections

Hannon Armstrong provides financing solutions for grid connections, enabling the integration of renewable energy sources into the power grid.

Wind Energy

The company offers financing solutions for wind energy projects, supporting the development of clean and sustainable energy sources.

Solar Energy

Hannon Armstrong provides financing solutions for solar energy projects, enabling the adoption of clean and renewable energy sources.

Energy Efficiency

The company offers financing solutions for energy efficiency projects, helping to reduce energy consumption and greenhouse gas emissions.

Energy Storage

Hannon Armstrong provides financing solutions for energy storage projects, enabling the efficient and reliable integration of renewable energy sources.

Sustainable Infrastructure

The company offers financing solutions for sustainable infrastructure projects, supporting the development of environmentally friendly infrastructure.

8. Hannon Armstrong Sustainable Infrastructure Capital, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Hannon Armstrong Sustainable Infrastructure Capital, Inc. operates in a niche market, providing financing for sustainable infrastructure projects. The threat of substitutes is low due to the specialized nature of their business.

Bargaining Power Of Customers

Hannon Armstrong Sustainable Infrastructure Capital, Inc. has a diverse customer base, including government agencies, corporations, and non-profit organizations. While customers have some bargaining power, the company's specialized services and expertise mitigate this risk.

Bargaining Power Of Suppliers

Hannon Armstrong Sustainable Infrastructure Capital, Inc. is not heavily reliant on a single supplier, and the company's diversified funding sources reduce its dependence on any one supplier.

Threat Of New Entrants

While there are barriers to entry in the sustainable infrastructure financing market, new entrants could potentially disrupt Hannon Armstrong Sustainable Infrastructure Capital, Inc.'s business. However, the company's established relationships and expertise provide a competitive advantage.

Intensity Of Rivalry

The sustainable infrastructure financing market is highly competitive, with several established players vying for market share. Hannon Armstrong Sustainable Infrastructure Capital, Inc. must continually innovate and differentiate itself to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.92%
Debt Cost 4.89%
Equity Weight 33.08%
Equity Cost 13.29%
WACC 7.67%
Leverage 202.29%

11. Quality Control: Hannon Armstrong Sustainable Infrastructure Capital, Inc. passed 4 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

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Hannon Armstrong

A-Score: 7.3/10

Value: 10.0

Growth: 4.8

Quality: 7.6

Yield: 9.0

Momentum: 7.0

Volatility: 5.7

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Rayonier

A-Score: 6.6/10

Value: 5.7

Growth: 5.4

Quality: 7.7

Yield: 10.0

Momentum: 2.0

Volatility: 8.7

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Lamar

A-Score: 6.2/10

Value: 2.6

Growth: 5.0

Quality: 7.0

Yield: 8.0

Momentum: 6.0

Volatility: 8.7

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SBA Communications

A-Score: 5.6/10

Value: 4.1

Growth: 6.9

Quality: 6.8

Yield: 3.0

Momentum: 4.0

Volatility: 9.0

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PotlatchDeltic

A-Score: 5.0/10

Value: 2.4

Growth: 2.1

Quality: 3.6

Yield: 9.0

Momentum: 4.5

Volatility: 8.3

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Weyerhaeuser

A-Score: 4.6/10

Value: 2.4

Growth: 3.0

Quality: 3.7

Yield: 8.0

Momentum: 2.0

Volatility: 8.3

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

36.82$

Current Price

36.82$

Potential

-0.00%

Expected Cash-Flows