Clearway Energy, Inc. Q2 FY2025 earnings call

• Clearway continues to execute with discipline and has multiple growth pathways: fleet optimization/enhancement, sponsor-enabled growth, and third-party M&A.
• Updated 2025 CAFD guidance range to $405M-$440M, targeting the higher end. Increased 2027 CAFD per share target range to $2.50-$2.70.
• Mount Storm repowering on track, Goat Mountain signed PPA with hyperscaler and set for 2027 COD with $200M corporate investment.
• Sponsor-enabled growth: all 2026 COD projects offered/committed, offer for 291MW battery storage portfolio, Clearway Group's late-stage pipeline includes substantial renewable projects with safe harbor qualifications.

In the second quarter of 2025, Clearway Energy achieved adjusted EBITDA of $343 million and CAFD of $152 million. For the full year, the company updated its 2025 CAFD guidance range to $405 million to $440 million, reflecting contributions from recently closed project acquisitions. The fleet optimization and enhancement pathway includes repowering of Mount Storm on track for construction in 2026 and 2027, and Goat Mountain commercialized for repowering and expansion in 2027. The sponsor-enabled growth pathway has committed growth investments on schedule for 2025 and an offer for a new battery storage portfolio in 2026. The third-party M&A pathway saw the closing of the Catalina solar project and efficient financing of the Tuolumne Wind project.

• Updated 2025 CAFD guidance range to $405M-$440M, targeting the higher end.
• Increased 2027 CAFD per share target to $2.50-$2.70 based on maturing progress of committed/potential investments.
• Expect retained CAFD from 2025-2027 to fund part of committed growth investments, with excess debt capacity of $600M or greater.
• Plan to issue equity opportunistically at accretive levels to fund growth and achieve lower payout ratio.

• Potential changes in tax credit regulations affecting project qualification and financial performance.
• Supply chain risks related to FIAC requirements and tariff changes.
• Interest rate volatility and its impact on refinancing costs.
• Regulatory changes affecting project permitting and operation.

Q: Hannah Marie Velásquez asked about wind repowering opportunity and CAFD raise from Catalina acquisition.

A: Craig Cornelius stated repowering program executing as planned, Catalina acquisition embedded in high end of 2025 CAFD guidance.

Q: Dimple Gosai inquired about megawatt perspective on safe harbor and repowering, and RA market.

A: Craig Cornelius explained projects under development have commenced construction under pre-existing tax credits, RA market at a stage of regulator/customer engagement on policy design.

Q: Noah Kaye asked about DOI memo, FOC requirements, and portfolio plans.

A: Craig Cornelius mentioned safe harbor strategy secure, projects planned comply with FIAC, and projects under development meet federal permitting requirements.

Q: Justin Clare questioned increase in retained CAFD and equity issuances.

A: Craig Cornelius and Sarah Rubenstein explained updated commitments and sources align with 2027 CAFD per share targets, and equity issuances planned opportunistically.

Q: Mark Jarvi asked about battery storage in pipeline and battery contract origination.

A: Craig Cornelius stated battery projects eligible for tax credits into next decade, and dialogues with data center customers ongoing.

Q: Corinne Blanchard asked about Goat Mountain PPA terms.

A: Craig Cornelius explained PPAs balance risk and reward, ensuring fair return for Clearway while satisfying customer value proposition.