second quarter of 2026
Filed Aug 6, 2026HASI Announces Second Quarter 2026 Results and Raises Guidance on 24% Y/Y Adjusted EPS Growth YTD and Adjusted ROE Above 15%
Q2 GAAP EPS increased to $0.92 from $0.74 and Adjusted EPS increased to $0.75 from $0.60, while Adjusted Recurring Net Investment Income rose 26% to $107 million. Managed Assets grew 20% to $17.6 billion, Portfolio Yield increased to 9.2%, and the Company raised Adjusted EPS guidance to $3.55 to $3.65.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP Net Income (Loss), three months ended June 30GAAP | $128,625 (in thousands) | – | – |
| GAAP Diluted earnings (loss) per share, three months ended June 30GAAP | $0.92 | – | – |
| Adjusted Earnings, three months ended June 30non-GAAP | $98,716 (in thousands) | – | – |
| Adjusted Earnings per share, three months ended June 30non-GAAP | $0.75 | – | – |
| GAAP-based net investment income (loss), three months ended June 30GAAP | $9,851 (in thousands) | – | – |
| Adjusted Recurring Net Investment Income, three months ended June 30non-GAAP | $107,024 (in thousands) | – | 26% |
| GAAP Net Income (Loss), six months ended June 30GAAP | $56,659 (in thousands) | – | – |
| GAAP Diluted earnings (loss) per share, six months ended June 30GAAP | $0.43 | – | – |
| Adjusted Earnings, six months ended June 30non-GAAP | $200,463 (in thousands) | – | – |
| Adjusted Earnings per share, six months ended June 30non-GAAP | $1.52 | – | 24% Y/Y |
| GAAP-based net investment income (loss), six months ended June 30GAAP | $2,996 (in thousands) | – | – |
| Adjusted Recurring Net Investment Income, six months ended June 30non-GAAP | $208,207 (in thousands) | – | – |
| Total revenue, Q2 2026GAAP | $121 million | – | – |
| Income from equity method investments, Q2 2026GAAP | $179 million | – | – |
| Total expenses, Q2 2026GAAP | $111 million | – | – |
| Income tax expense, Q2 2026GAAP | $57 million | – | – |
| Interest and rental income, three months ended June 30GAAP | $84,470 (in thousands) | – | – |
| Management fees and retained interest income, three months ended June 30GAAP | $12,850 (in thousands) | – | – |
| Interest expense, three months ended June 30GAAP | $(87,469) (in thousands) | – | – |
| Adjusted income from equity method investments, three months ended June 30non-GAAP | $98,263 (in thousands) | – | 24% |
| Loss (gain) on debt modification or extinguishment, three months ended June 30non-GAAP | $1,387 (in thousands) | – | – |
| Interest and rental income, six months ended June 30GAAP | $167,159 (in thousands) | – | – |
| Management fees and retained interest income, six months ended June 30GAAP | $22,581 (in thousands) | – | – |
| Interest expense, six months ended June 30GAAP | $(186,744) (in thousands) | – | – |
| Adjusted income from equity method investments, six months ended June 30non-GAAP | $189,366 (in thousands) | – | – |
| GAAP-based ROE, Q2 2026GAAP | 20.3% | – | – |
| Adjusted ROE, Q2 2026non-GAAP | 15.2% | – | – |
| Managed Assets, as of June 30, 2026other | $17.6 billion | – | 20% |
| Portfolio Yield, three months ended June 30, 2026other | 9.2% | – | – |
2028 outlook
- NoteAdjusted EPS of $3.55 to $3.65, up from $3.50 to $3.60
- NoteAdjusted ROE of at least 17.0% in 2028
- Note$2-3 billion in new balance sheet/CCH1 investments this year
- Noteminimal ATM share issuances in 2026
What drove it
- Investment activity remained elevated due to heightened demand for new electric generation coupled with programmatic partnerships.
- Adjusted Recurring Net Investment Income increased due to a larger Portfolio comprised of higher-yielding assets.
- Interest and Rental Income Revenue was driven by higher yields on investments and investment fundings.
- Adjusted Income from Equity Method Investments was driven by growth in Equity Method Investments and higher yields.
- Management Fees and Retained Interest Income increased due to higher managed assets in the co-investment vehicle.
- Portfolio Yield increased due primarily to the funding of higher-yielding portfolio assets.
- The Company cited expanding investment margins enabled by steadily improving debt spreads and growing fee income from co-investment vehicles.
Concerns
- Total debt outstanding increased to $5.9 billion as of June 30, 2026 from $4.7 billion as of June 30, 2025.
- Weighted-average interest cost increased to 6.2% in Q2 2026 from 5.8% in Q2 2025, due to issuance of junior subordinated notes that bear a higher interest rate.
- Compensation and Benefits and General & Administrative expenses excluding Equity-Based Compensation increased $10 million, primarily due to growth in the size of the Company and timing of expenses.
- GAAP Net Income for the six months ended June 30, 2026 was $56,659 (in thousands), compared with $155,057 (in thousands) for the six months ended June 30, 2025.
What to watch
- Execution against the expectation for $2-3 billion in new balance sheet/CCH1 investments this year.
- Whether the Company maintains minimal ATM share issuances in 2026.
- Portfolio Yield and new asset yields, which were stated to be >11% on Portfolio investments year-to-date.
- Debt spreads, interest expense, and weighted-average interest cost.
- Growth in management fee income from co-investment vehicles and retained interests in securitization trusts.
- Progress from Adjusted ROE of 15.2% in Q2 2026 toward guidance of at least 17.0% in 2028.
Balance sheet and cash flow
- Managed Assets totaled $17.6 billion as of June 30, 2026.
- Receivables, Net of Allowance, and Receivables Held-for-Sale totaled $3.2 billion as of June 30, 2026, up 5% from $3.1 billion as of June 30, 2025.
- Equity Method Investments were $4.8 billion as of June 30, 2026, an increase of 17% from $4.1 billion as of June 30, 2025.
- HASI's proportionate share of co-investment vehicle CCH1 was $970 million as of June 30, 2026, compared to $559 million as of June 30, 2025.
- Assets held by partners in co-investment vehicles were $1.5 billion as of June 30, 2026, compared to $550 million as of June 30, 2025.
- Retained Interests in Securitization Trusts, Net of Allowance, were $332 million as of June 30, 2026, an increase of 22% from $272 million as of June 30, 2025.
- Total debt outstanding was $5.9 billion as of June 30, 2026, as compared to $4.7 billion as of June 30, 2025.
- Weighted-average interest cost was 6.2% in Q2 2026, compared to 5.8% in Q2 2025.
- Issued $1 billion in unsecured notes at an effective cost of ~5.6%.
- In July increased the capacity of the revolver by $425 million to $2.25 billion.
Analysis
HASI reported strong second-quarter operating results, with GAAP diluted earnings per share of $0.92 versus $0.74 in Q2 2025 and Adjusted Earnings per share of $0.75 versus $0.60. Adjusted Earnings increased to $98,716 (in thousands) from $74,988 (in thousands), while Adjusted Recurring Net Investment Income increased 26% to $107,024 (in thousands). The reported six-month Adjusted Earnings per share was $1.52 compared with $1.23, consistent with the release headline's 24% year-over-year Adjusted EPS growth year to date.
Underlying portfolio income expanded across debt, equity-method, and fee-related sources. Interest and rental income increased to $84,470 (in thousands) from $67,441 (in thousands), management fees and retained interest income increased to $12,850 (in thousands) from $8,988 (in thousands), and adjusted income from equity method investments increased to $98,263 (in thousands) from $79,094 (in thousands). Management attributed these gains to investment fundings, higher asset yields, growth in Equity Method Investments, and higher managed assets in its co-investment vehicle.
Asset growth and investment yields were notable. Managed Assets reached $17.6 billion as of June 30, 2026, up 20% year over year, while the Portfolio was approximately $8.2 billion. Portfolio Yield was 9.2% for the three months ended June 30, 2026 versus 8.2% in the comparable period. The Company reported closing approximately $1.1 billion of new transactions in Q2 2026 and more than $1.4 billion in balance sheet/CCH1 transactions year to date through the second quarter, with new asset yields on Portfolio investments >11%.
Funding costs and expense growth remain central monitoring items. Debt outstanding rose to $5.9 billion from $4.7 billion, and weighted-average interest cost increased to 6.2% from 5.8%. Interest expense was $(87,469) (in thousands) in Q2 versus $(79,746) (in thousands) a year earlier. Management stated that the higher average interest cost reflected junior subordinated notes, while noting that these instruments reduce the need to issue equity to maintain the desired financial leverage ratio. The Company also reported no new shares issued through its ATM year to date.
The Company raised Adjusted EPS guidance to $3.55 to $3.65 from $3.50 to $3.60 and maintained guidance for Adjusted ROE of at least 17.0% in 2028. Management linked the higher outlook to expected investment volumes, expanding investment margins from improving debt spreads, and growing co-investment fee income. Adjusted ROE was 15.2% in Q2 2026 and GAAP-based ROE was 20.3%.
Management, verbatim
We are very pleased with our first half results as investment activity remained elevated due to heightened demand for new electric generation coupled with our programmatic partnerships.
Jeffrey A. Lipson, President and Chief Executive Officer
Our outlook for new investment volumes, expanding investment margins enabled by steadily improving debt spreads, and growing fee income from our co-investment vehicles allows us to increase guidance for 2028 Adjusted EPS to $3.55 - $3.65 from $3.50 - $3.60.
Jeffrey A. Lipson, President and Chief Executive Officer
In Q2, we continued to manage our cost of capital with a further improvement in our spreads in our last debt issuance in June.
Chuck Melko, Chief Financial Officer
Not in the filing
stated, not guessed- Complete filing text and the remainder of the earnings release following the truncated new-transactions discussion.
- GAAP gross margin and non-GAAP gross margin.
- GAAP operating income and non-GAAP operating income.
- Operating cash flow.
- Free cash flow.
- Cash and cash equivalents.
- Dividend declaration, dividend amount, and dividend payment date.
- Share repurchases or other capital-return amounts.
- Revenue by operating segment.
- Prior-quarter comparisons for reported metrics.
- A separately provided previous-release outlook for guidance comparison.
- Guidance for revenue, gross margin, operating expenses, and tax rate.
AlphaAI 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.