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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, Inc.'s recent performance was driven by strong Q3 2025 earnings, with GAAP EPS of $0.61 and Adjusted EPS of $0.80, exceeding expectations. A new $1.2 billion investment and $105 million in Adjusted Recurring Net Investment Income also contributed positively. The company's focus on sustainable infrastructure assets and its diversified $6 billion investment pipeline underpin its stability and growth potential. Its 6% dividend yield and robust long-term growth prospects make it attractive to investors.

1.c. Company Highlights

2. HASI Delivers Robust Q3 Earnings, Exceeding Expectations

HASI reported an adjusted EPS of $0.80 in Q3, surpassing estimates of $0.69. The company's adjusted recurring net investment income grew 27% year-to-date, driven by a 15% year-over-year increase in managed assets to $15 billion. The significant growth in earnings was largely attributed to the company's primary source of revenue, with adjusted recurring net investment income rising 42% year-over-year in the quarter. The company's ROE also experienced significant year-over-year growth, rising to 13.4%.

Publication Date: Nov -14

📋 Highlights
  • Record Q3 Adjusted EPS: Achieved $0.80 per share, the highest quarterly EPS in company history.
  • Reaffirmed Growth Guidance: Maintains 8-10% compound annual EPS growth through 2027, with 10% adjusted EPS growth expected in 2025.
  • Managed Assets Growth: Rose 15% year-over-year to $15 billion, driven by portfolio expansion and CCH1 partnerships.
  • Adjusted Recurring Net Investment Income: Surged 27% year-to-date and 42% in Q3, contributing to 13.4% adjusted ROE.
  • Major Clean Energy Investment: Secured $1.2 billion structured equity stake in North America’s largest clean energy infrastructure project, with a $6 billion+ diversified pipeline retaining momentum.

Financial Performance Highlights

The company's financial performance was characterized by a strong growth in managed assets, which increased by 15% year-over-year to $15 billion. The growth in managed assets is expected to drive recurring income, enabling the company to maintain its margins despite rising interest rates. As Jeff Lipson noted, "Our managed assets have grown 15% and 20% from a year ago, the base of assets from which we generate our recurring income."

Investment Growth and Pipeline

HASI's investment portfolio continues to grow, with a notable $1.2 billion structured equity investment in a major component of the largest clean energy infrastructure project in North America. The company's pipeline remains robust, with a pro forma adjustment to remove the $1.2 billion project, standing at over $6 billion. The pipeline is highly diversified, with strong undercurrents of demand in each of the company's key end markets.

Valuation and Growth Prospects

With a P/E Ratio of 20.5x (1/0.05 = 20), the company's valuation appears reasonable, considering its expected EPS growth rate of 10% in 2025 and 8-10% compound annual EPS growth through 2027. The Dividend Yield stands at 5.08%, providing a relatively attractive return for investors. Analysts estimate next year's revenue growth at 15.5%, indicating a positive outlook for the company's future performance.

Business Model and Risk Management

HASI's business model is designed to be resilient, with a focus on asset-level investing and long-term programmatic partners. The company's disciplined underwriting and diversified approach to accessing capital have enabled it to maintain attractive margins in various interest rate environments. The company's hedging strategies and investment-grade ratings have also helped mitigate potential risks associated with interest rate changes.

3. NewsRoom

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Groupe la Francaise Acquires 21,622 Shares of HA Sustainable Infrastructure Capital, Inc. $HASI

Dec -04

Source: defenseworld.net

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HA Sustainable Infrastructure: Structural Advantage In Their Investments

Nov -19

Source: seekingalpha.com

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Campbell & CO Investment Adviser LLC Takes Position in HA Sustainable Infrastructure Capital, Inc. $HASI

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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180,024 Shares in HA Sustainable Infrastructure Capital, Inc. $HASI Purchased by ABN Amro Investment Solutions

Nov -14

Source: defenseworld.net

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HA Sustainable Infrastructure Capital, Inc. (HASI) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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HA Sustainable Infrastructure Capital (HASI) Q3 Earnings and Revenues Top Estimates

Nov -07

Source: zacks.com

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HASI Announces Third Quarter 2025 Results with Record Adjusted EPS of $0.80 and a New $1.2b Investment

Nov -06

Source: businesswire.com

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: 6.5/10

Value: 9.1

Growth: 4.4

Quality: 6.4

Yield: 10.0

Momentum: 3.5

Volatility: 5.7

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Rayonier

A-Score: 6.5/10

Value: 5.1

Growth: 5.4

Quality: 7.7

Yield: 9.0

Momentum: 3.0

Volatility: 8.7

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Lamar

A-Score: 5.7/10

Value: 2.6

Growth: 5.1

Quality: 6.5

Yield: 8.0

Momentum: 3.5

Volatility: 8.7

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SBA Communications

A-Score: 5.2/10

Value: 3.9

Growth: 6.9

Quality: 6.6

Yield: 3.0

Momentum: 2.0

Volatility: 8.7

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PotlatchDeltic

A-Score: 4.9/10

Value: 2.3

Growth: 2.1

Quality: 3.6

Yield: 9.0

Momentum: 4.0

Volatility: 8.3

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Weyerhaeuser

A-Score: 4.8/10

Value: 2.3

Growth: 3.0

Quality: 5.1

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

33.42$

Current Price

33.42$

Potential

-0.00%

Expected Cash-Flows