Clearway Energy, Inc. Q1 FY2026 earnings call

• Clearway remains on track to deliver best-in-class growth, reiterating 2026 CAFD guidance and 2027 CAFTI per share target of $2.70 or better. - Expect to deploy 20% more corporate capital between 2026 and 2029 relative to prior outlook. - Progress in power demand tied to co-located digital infrastructure, including new equipment purchases, partnership with Quanta and Blattner, and engagement with hyperscaler customers. - Strengthened capital allocation framework with share class simplification proposal approval. - Increased focus towards top end or better of 2030 CAFTI per share target range of $2.90 to $3.10. - Confidence in setting growth target in 2031 translating to top end of 5% to 8+% long-term growth range. - Made tangible progress in digital infrastructure assets, including equipment purchases, design and delivery partnerships, PPA signings, and engagement with hyperscalers. - For historical core business, 100% commercialized on sponsor-enabled growth projects for 2026 and 2027 vintages, substantial progress in 2028 COD vintage, and sizable 2029 COD vintage pipeline with over four gigawatts of advanced priority projects.

For the first quarter, Clearway delivered adjusted EBITDA of $257 million and CAFTI (free cash flow) of $70 million. In the wind fleet, resource was lower than budgeted expectations in certain regions due to lower wind resource and availability, with the most meaningful impact from ALTA. The solar and battery fleet had strong performance across the portfolio. Revenue contribution details not explicitly provided in absolute terms with percentage for each segment other than the general business update on different segments' performance in growth pathways.

• Reiterating 2026 CAFD guidance and 2027 CAFTI per share target of $2.70 or better. - Expect to deploy 20% more corporate capital between 2026 and 2029 relative to prior outlook. - Increasing focus towards top end or better of 2030 CAFTI per share target range of $2.90 to $3.10. - Confidence in setting growth target in 2031 translating to top end of 5% to 8+% long-term growth range. - Full-year 2026 CAFSI guidance range reaffirmed at $470 to $510 million.

Q: Justin Clare of Roth Capital Partners asked about potential timing of first investment in digital infrastructure and relative attractiveness of digital infrastructure assets vs traditional utility scale investments.

A: Possible that first investments in digital infrastructure generating technology could be available as soon as end of 2028, and aim to present opportunities with similar risk profile, tenor, CAFD yield, and long-term risk-adjusted return proposition as grid-tied projects.

Q: Mark Jarvie of CIBC asked about investment tempo and factors tempering expectations.

A: Thoughtful about pace of presenting new investment opportunities to digestible extent, considering public investors' appetite, leverage ratio, payout ratio, and track record of prudent planning and beating assumptions.

Q: Julianne Dumoulin-Smith of Jefferies asked about data center opportunity mix of resources and tax equity market health.

A: Design of data center complexes varies by location, not using overbuild ratio as mentioned, and tax equity markets are robust with Clearway having efficient financing and good footing due to safe harbor program and domestic first supply chain.

Q: Heidi Hodge of BNP Paribas asked about return premium on digital infrastructure complexes with natural gas projects.

A: Focused on novelty and scale of facilities for great risk-adjusted returns, considering who owns firming gas generation and focusing on creating projects for thoughtful engagement.

Q: Heidi Hodge also asked about corporate funding strategy for 2030 plus and beyond.

A: Follow algorithm of first retaining cash flow, then using bond markets and debt capital within prudent leverage ratio, with retained cash flow and debt capacity growing, and balance from equity issuance if needed, and being able to do so without significant price disruption.