Second Quarter 2026
Filed Aug 5, 2026Clearway Energy, Inc. Reports Second Quarter 2026 Financial Results
Second-quarter Adjusted EBITDA, CAFD, operating cash flow, operating revenue, and total net income increased from the prior-year quarter, supported by growth investments and stronger operating execution, but the Company lowered its 2026 CAFD guidance range to $430 million - $470 million from $470 million - $510 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, three months ended June 30, 2026GAAP | $481 million | – | – |
| Operating income, three months ended June 30, 2026GAAP | $116 million | – | – |
| Net Income, three months ended June 30, 2026GAAP | $30 million | – | – |
| Net Income Attributable to Clearway Energy, Inc., three months ended June 30, 2026GAAP | $122 million | – | – |
| Earnings Per Weighted Average Class A and Class C Common Share - Basic and Diluted, three months ended June 30, 2026GAAP | $1.00 | – | – |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $409 million | – | – |
| Cash from Operating Activities, three months ended June 30, 2026GAAP | $214 million | – | – |
| Cash Available for Distribution, three months ended June 30, 2026non-GAAP | $167 million | – | – |
| Flexible Generation Net Income, three months ended June 30, 2026GAAP | $22 million | – | – |
| Renewables & Storage Net Income, three months ended June 30, 2026GAAP | $55 million | – | – |
| Corporate Net Income/(Loss), three months ended June 30, 2026GAAP | ($47 million) | – | – |
| Flexible Generation Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $49 million | – | – |
| Renewables & Storage Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $372 million | – | – |
| Corporate Adjusted EBITDA, three months ended June 30, 2026non-GAAP | ($12 million) | – | – |
| Flexible Generation Equivalent Availability Factor, three months ended June 30, 2026other | 97.5 % | – | – |
| Solar MWh generated/sold, three months ended June 30, 2026other | 3,585 MWh in thousands | – | – |
| Wind MWh generated/sold, three months ended June 30, 2026other | 3,282 MWh in thousands | – | – |
| Renewables & Storage generated/sold, three months ended June 30, 2026other | 6,867 MWh in thousands | – | 16% |
| Total operating revenues, six months ended June 30, 2026GAAP | $835 million | – | – |
| Operating income, six months ended June 30, 2026GAAP | $136 million | – | – |
| Net Income/(Loss), six months ended June 30, 2026GAAP | ($38 million) | – | – |
| Net Income/(Loss) Attributable to Clearway Energy, Inc., six months ended June 30, 2026GAAP | ($41 million) | – | – |
| Earnings (Loss) Per Weighted Average Class A and Class C Common Share - Basic and Diluted, six months ended June 30, 2026GAAP | ($0.34) | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $666 million | – | – |
| Cash from Operating Activities, six months ended June 30, 2026GAAP | $615 million | – | – |
| Cash Available for Distribution, six months ended June 30, 2026non-GAAP | $237 million | – | – |
| Flexible Generation Equivalent Availability Factor, six months ended June 30, 2026other | 93.1 % | – | – |
| Solar MWh generated/sold, six months ended June 30, 2026other | 5,882 MWh in thousands | – | – |
| Wind MWh generated/sold, six months ended June 30, 2026other | 6,256 MWh in thousands | – | – |
| Renewables & Storage generated/sold, six months ended June 30, 2026other | 12,138 MWh in thousands | – | – |
2026 Full Year Guidance Range outlook
- NoteNet Loss: ($35 million) - $5 million
- NoteIncome Tax Expense: ($2 million)
- NoteInterest Expense, net: $388 million
- NoteDepreciation, Amortization, Contract Amortization and ARO Expense: $980 million
- NoteAdjustment to reflect CWEN share of Adjusted EBITDA in unconsolidated affiliates: $58 million
- NoteNon-Cash Equity Compensation: $4 million
- NoteAdjusted EBITDA: $1,393 million -$1,433 million
- NoteCash interest paid: ($388 million)
- NoteChanges in prepaid and accrued liabilities for tolling agreements: ($3 million)
- NoteAdjustments to reflect sale-type leases and payments for lease expenses: $6 million
- NotePro-rata Adjusted EBITDA from unconsolidated affiliates: ($95 million)
- NoteCash distributions from unconsolidated affiliates: $43 million
- NoteCash from Operating Activities: $956 million - $996 million
- NoteNet distributions to non-controlling interest: ($134 million)
- NoteCash receipts from notes receivable: $6 million
- NoteMaintenance capital expenditures: ($14 million)
- NotePrincipal amortization of indebtedness: ($384 million)
- NoteCash Available for Distribution: $430 million - $470 million
Capital returns
- On August 4, 2026, the Board of Directors declared a quarterly dividend on Class C common stock of $0.4750 per share, payable on September 15, 2026, to stockholders of record as of September 1, 2026.
- Dividends Per Class A Common Share were $— for the three months ended June 30, 2026, compared with $0.4384 for the three months ended June 30, 2025.
- Dividends Per Class C Common Share were $0.4676 for the three months ended June 30, 2026, compared with $0.4384 for the three months ended June 30, 2025.
- Payments of dividends and distributions were ($190 million) for the six months ended June 30, 2026, compared with ($176 million) for the six months ended June 30, 2025.
- Proceeds from the issuance of Class C common stock were $50 million for the six months ended June 30, 2026.
What drove it
- Adjusted EBITDA was higher than the second quarter of 2025 due to the contribution of growth investments.
- CAFD was higher than the second quarter of 2025 primarily due to higher EBITDA.
- Flexible Generation availability was higher primarily due to strong operational execution.
- Renewables & Storage generation was 16% higher primarily due to the contribution of growth investments.
- Net Income increased versus the second quarter of 2025 primarily due to changes in mark-to-market for economic hedges.
- The Company completed two additional accretive revenue contracts in its Texas operating fleet.
- Elbow Creek and Langford wind contract restructurings each added a 15-year PPA with more favorable pricing while replacing existing volumetric and price exposure.
Concerns
- The Company revised 2026 full-year CAFD guidance to $430 million - $470 million from prior guidance of $470 million - $510 million.
- The updated guidance midpoint is based on updated renewable energy production estimates for the remainder of the year, and the range reflects potential outcomes on resource and performance.
- Total liquidity was $985 million as of June 30, 2026, $76 million lower than as of December 31, 2025, primarily due to the execution of growth investments.
- Long-term debt was $8,491 million as of June 30, 2026, compared with $7,898 million as of December 31, 2025.
- The Honeycomb Phase II investment remains subject to negotiation with Clearway Group and review and approval by the Company's Independent Directors.
- The Chimney Canyon investment decision is subject to a potential future dropdown offer, negotiation, and review and approval by the Company's Independent Directors.
What to watch
- Completion of committed growth investments on currently forecasted schedules, which is reflected in the 2026 CAFD guidance range.
- Renewable energy production estimates, resource, and performance through the remainder of 2026.
- The proposed Honeycomb Phase II 210 MW storage portfolio in Utah, expected to reach commercial operations in 2027, with potential corporate capital commitment of approximately $110 million.
- The potential Chimney Canyon 975 MW solar plus BESS project in Arizona, expected to achieve commercial operations in 2029, with estimated total potential corporate capital investment of approximately $350 million.
- The sponsor-enabled late-stage pipeline of 13.5 GW and over 2 GW of new contracts recently signed for the 2027-2030 COD vintages.
- Seasonal factors, weather variability, maintenance capital expenditures, outages, debt-service timing, and distributions from unconsolidated affiliates.
Balance sheet and cash flow
- Total liquidity was $985 million as of June 30, 2026, compared with $1,061 million as of December 31, 2025.
- Total Cash, Cash Equivalents and Restricted Cash was $543 million as of June 30, 2026, compared with $818 million as of December 31, 2025.
- Cash and cash equivalents were $251 million as of June 30, 2026, compared with $231 million as of December 31, 2025.
- Restricted cash was $292 million as of June 30, 2026, compared with $587 million as of December 31, 2025.
- Revolving credit facility availability was $442 million as of June 30, 2026, compared with $243 million as of December 31, 2025.
- The Company had $60 million in outstanding borrowings under its revolving credit facility and $198 million in letters of credit outstanding as of June 30, 2026.
- As of July 31, 2026, the Company had $55 million in outstanding borrowings under the revolving credit facility.
- Current portion of long-term debt was $570 million as of June 30, 2026, compared with $708 million as of December 31, 2025.
- Long-term debt was $8,491 million as of June 30, 2026, compared with $7,898 million as of December 31, 2025.
- Net Cash Provided by Operating Activities was $615 million for the six months ended June 30, 2026, compared with $286 million for the six months ended June 30, 2025.
- Net Cash Used in Investing Activities was ($657 million) for the six months ended June 30, 2026, compared with ($398 million) for the six months ended June 30, 2025.
- Net Cash Used in Financing Activities was ($233 million) for the six months ended June 30, 2026, compared with $165 million for the six months ended June 30, 2025.
- Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash was ($275 million) for the six months ended June 30, 2026, compared with $53 million for the six months ended June 30, 2025.
- Acquisitions, net of cash acquired were ($226 million), Acquisition of Drop Down Assets, net of cash acquired were ($81 million), Capital expenditures were ($159 million), Payments for equipment deposits and asset purchases from affiliate were ($112 million), and Investments in unconsolidated affiliates were ($91 million) for the six months ended June 30, 2026.
- Proceeds from the issuance of long-term debt were $1,006 million and Payments for long-term debt were ($647 million) for the six months ended June 30, 2026.
Analysis
Clearway reported higher second-quarter operating results, with total operating revenues of $481 million, operating income of $116 million, Net Income of $30 million, Adjusted EBITDA of $409 million, Cash from Operating Activities of $214 million, and CAFD of $167 million. Each of these measures exceeded the corresponding second-quarter 2025 figure. The Company attributed the Adjusted EBITDA increase to growth investments, the CAFD increase primarily to higher EBITDA, and the Net Income improvement primarily to changes in mark-to-market for economic hedges.
Renewables & Storage was the principal source of Adjusted EBITDA growth. Its Adjusted EBITDA was $372 million versus $300 million in the prior-year quarter, while Renewables & Storage generated/sold was 6,867 MWh in thousands versus 5,945 MWh in thousands. The Company stated that generation was 16% higher due primarily to growth investments. Flexible Generation Equivalent Availability Factor was 97.5 % versus 95.0 %, which the Company attributed to strong operational execution, although Flexible Generation Adjusted EBITDA was $49 million versus $52 million.
Cash generation and liquidity show the cost of the growth program. For the six months ended June 30, 2026, Net Cash Provided by Operating Activities was $615 million, while Net Cash Used in Investing Activities was ($657 million), including acquisitions, capital expenditures, affiliate equipment deposits and asset purchases, investments in unconsolidated affiliates, and drop-down assets. Total liquidity was $985 million as of June 30, 2026, compared with $1,061 million at December 31, 2025, and long-term debt was $8,491 million compared with $7,898 million. The Company also declared a Class C quarterly dividend of $0.4750 per share.
The central change in the release is revised full-year CAFD guidance of $430 million - $470 million, down from $470 million - $510 million. The Company said the guidance midpoint reflects updated renewable energy production estimates for the remainder of the year, while the range incorporates resource and performance outcomes and completion of committed growth investments on currently forecasted schedules. New growth opportunities include the offered Honeycomb Phase II 210 MW Utah storage portfolio and potential participation in the 975 MW Chimney Canyon solar plus BESS project, but both remain subject to the stated approval and negotiation processes.
The period also included Texas operating-fleet contract enhancements and PPA restructurings at Elbow Creek and Langford. The latter transactions resulted in in-substance financings to settle existing derivative liabilities over time and added 15-year PPAs intended to replace prior volumetric and price exposure with more favorable pricing. Management highlighted a 13.5 GW late-stage pipeline and over 2 GW of new contracts signed for 2027-2030 COD vintages, positioning the reported quarter as one of operating improvement alongside a reduced near-term CAFD outlook.
Management, verbatim
While we are lowering our 2026 financial guidance due to factors outlined in our mid-July operational preview, our team is focused on maintaining our trademark operational excellence to uphold our historic track record of meeting our financial targets.
Craig Cornelius, President and Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue was not reported for Flexible Generation, Renewables & Storage, or Corporate.
- Gross profit and gross margin were not reported.
- Non-GAAP EPS was not reported.
- Free cash flow was not reported.
- Share repurchases and repurchase authorization were not reported.
- A GAAP or non-GAAP effective tax rate was not reported.
- Total debt was not reported as a single line item.
- Prior-quarter comparisons were not reported for the presented metrics.
- Previous-release outlook was not provided; therefore, no actual-versus-prior-guidance comparison is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.