Ha Sustainable Infrastructure Capital, Inc. · NYSE:HASI
Ha Sustainable Infrastructure Capital — Q2 2025 Earnings Presentation
34 slides from Ha Sustainable Infrastructure Capital's earnings presentation, Aug 7, 2025
Slide 1: Earnings Presentation Second Quarter 2025
Earnings Presentation Second Quarter 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the information contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used herein, words such as "believe," "expect," "an
Slide 3: Q2 2025 Highlights
Q2 2025 Highlights >$6b $900m $0.74 $0.60 Pipeline Debt refinanced GAAP EPS2 Adjusted EPS3 >10.5% ~$600m $5m $164m New asset Increased CCH1 GAAP-Based Adj. Recurring yield YTD1 capacity NII YTD4 NII YTD3,4 Reaffirming Guidance for Adjusted EPS CAGR of 8-10% into 20275 1. Represents yields on new por
Slide 4: Strong Tailwinds Driven by Energy Demand and Pricing
Strong Tailwinds Driven by Energy Demand and Pricing Energy Markets • Elevated U.S. power demand • Storage ITC complements utility-scale requires an “all-of-the-above” solution and distributed solar through the mid- 2030s • Likelihood of higher power prices improve renewable economics • Clean Fuel P
Slide 5: Our Positioning in the Project Lifecycle Minimizes Our Risk
Our Positioning in the Project Lifecycle Minimizes Our Risk Range of Investment Timing for a Typical Utility-Scale Project Pipeline Commitment Funding Regulatory Permits Interconnection Parts PPA Start of Commercial & Approvals Agreement Procurement Signing Construction Operation HASI typically fund
Slide 6: Material Growth in our Pipeline in Q2
Material Growth in our Pipeline in Q2 BTM: Higher retail utility rates improve the value proposition for both rooftop solar and energy efficiency Behind-the-Meter Grid-Connected 43% 27% BTM Solar 21% GC: Client activity elevated by strong power demand >$6b 12-mo Pipeline1 BTM Energy Efficiency 22% N
Slide 7: ROE Continues to be Enhanced by Our Capital Efficiency
ROE Continues to be Enhanced by Our Capital Efficiency $900 CCH1 Debt per $100 of HASI Equity Total Investment Capital $300 $600 KKR Equity $300 $300 $300 HASI Debt $200 $200 $200 HASI Equity $100 $100 $100 Pre-CCH1 CCH1 (Unlevered) CCH1 (0.5x Leverage) HASI’s Incremental Investment ROE1 19% 21% 28%
Slide 8: New Transaction Volumes and New Asset Yields
New Transaction Volumes and New Asset Yields Closed Transaction Volumes New Asset Yields1 >10.5% >10.5% $2.3b $2.3b >9.0% >7.5% 2022 2023 2024 1H 2025 $894m Closed Transactions by Asset Class (1H25) $815m $822m Resi Solar & Storage Leases 37% Public Sector 28% 2023 2024 1H25 FTN 28% Second Half of t
Slide 9: Managed Assets Up 13% Y/Y to $14.6 Billion
Managed Assets Up 13% Y/Y to $14.6 Billion 2 Managed Assets1 Portfolio2 By Investment Type $14.6 Equity Investments 21% $13.7 GC Solar $12.3 & Storage 20% $9.8 Resi Solar $8.8 & Storage Receivables 31% $7.2 79% Portfolio: Onshore $7.2b Wind By Asset Class GC Solar 17% $7.2 27% Community $6.2 $6.6 $4
Slide 10: Adjusted Recurring Net Investment Income of $164m YTD
Adjusted Recurring Net Investment Income of $164m YTD Management Fees Adjusted Recurring Adjusted Net $289 Net Investment Investment Income + and Retained = Income2 (prior definition) Interest Income1 (new definition) $237 $198 Interest Income + CCH1 management Recurring income Adjusted Income from
Slide 11: Refinanced $900m in Near-Term Debt Maturities in Q2
Refinanced $900m in Near-Term Debt Maturities in Q2 Laddered long-term debt maturities through 20351 $1b of new term debt issued in Q2 2025 in part to repay near- $1,200 term debt maturities Debt Maturities ($m) $1,000 Following S&P upgrade, three IG $800 ratings from S&P (BBB-), Moody’s $600 (Baa3)
Slide 12: Maintaining Strong Margins Amidst Higher Interest Rates
Maintaining Strong Margins Amidst Higher Interest Rates 12.5% 12.3% 11.8% 11.2% 11.4% 11.1% 10.5% 10.7% 8.3% 8.3% 7.9% 7.6% 7.6% 7.5% 7.5% 6.8% 5.6% 5.7% 5.4% 4.9% 5.1% 5.0% 4.6% 4.3% 2018 2019 2020 2021 2022 2023 2024 1H 2025 1 Adjusted ROE Portfolio Yield 2 Interest Expense / Avg Debt Balance 3 Ad
Slide 13: Q2 2025 Profitability Metrics
Q2 2025 Profitability Metrics Adjusted Recurring Net Q2 2024 Q2 2025 1H 2024 1H 2025 Investment Income grew 25% Y/Y in Q2 GAAP Diluted EPS $0.23 $0.74 $1.22 $1.18 GAAP Net Income attributable $26.5m $98.4m $149.6m $155.1m to Non-Controlling Shareholders GAAP-Based Net Investment GAAP-Based Net $8.6m
Slide 14: 2Q25 Sustainability and Impact Highlights
2Q25 Sustainability and Impact Highlights In coordination with Emissions First Submitted feedback to SBTi on draft Partnership, urged Greenhouse HASI Foundation granted >$300k Corporate Standard to encourage Gas Protocol to adopt impactful to mission-aligned nonprofits science-based climate action e
Slide 15: Guidance for 2027 Supported by Strong Pipeline and Funding Platform
Guidance for 2027 Supported by Strong Pipeline and Funding Platform Strong Investment Activity Access to Low-Cost Capital Guidance Reaffirmed • Pipeline growth of >$0.5b • Latest issuance of 5- and 10- • Adjusted EPS CAGR of 8- QoQ to >$6b year unsecured notes at an 10% to 20272 effective cost of ~6
Slide 16: Appendix
Appendix 16
Slide 17: Our Evolution to the "Next Frontier" of Asset Classes
Our Evolution to the “Next Frontier” of Asset Classes The Next Frontier Building Electrification CHP Data Centers Fuel Cell Next-Gen Geothermal Hydrogen Hydropower Manufacturing Natural Gas w/CCUS Advanced Nuclear Other Clean Fuels Resiliency & Adaptation Sustainable Agriculture Sustainable Aviation
Slide 18: Portfolio Bridge: Q1 2025 to Q2 2025
Portfolio Bridge: Q1 2025 to Q2 2025 $ millions Portfolio at 3/31/25 $7,056 Funding of new investments $6 Funding of prior investments $197 Principal collections1 ($200) Syndications and securitizations ($48) Other $157 Portfolio at 6/30/25 $7,168 1. Reflects principal collections of receivables and
Slide 19: Adjusted Cash Flow from Operations Plus Other Portfolio Collections
Adjusted Cash Flow from Operations Plus Other Portfolio Collections1 $ millions2 2Q25 (TTM) 2024 2023 Cash collected from our Portfolio $659 $891 $442 Cash collected from sale of assets3 $122 $325 $34 Cash used for compensation and benefits and G&A expenses ($89) ($86) ($79) Interest paid4 ($211) ($
Slide 20: Strong Portfolio with Positive Credit Attributes
Strong Portfolio with Positive Credit Attributes Recent Portfolio Performance Positive Credit Attributes Rating Description Performance Metric Asset Class Portfolio(%)5 Structural Seniority Obligor Credit Subordinated Debt > 380k consumers WAVG 1 Performing1 ~99% Residential 31% or Structured Equity
Slide 21: Summary of Total Debt and Hedge Portfolio
Summary of Total Debt and Hedge Portfolio Debt Facility Debt Amount (millions) 1 Effective Interest Rate2 Maturity Year Corporate Senior Unsecured Notes $600 3.38% 2026 Corporate Senior Unsecured Notes $450 7.75% 2027 Term Loan A $241 5.76% 2027 Commercial Paper Notes3 $357 5.23% 2028 Convertible No
Slide 22: 2024-27 Guidance Bridge to Long-Term Business Model
2024-27 Guidance Bridge to Long-Term Business Model Adjusted EPS1 Dividend Long-Term Business Model 10% CAGR 50% payout ratio2 (Realized 2014-2024 CAGR of 10%) 2027 Guidance 8-10% CAGR3 55-60% payout ratio2 $3.26 $3.03 2023 2024 2025 2026 2027 1. Please see Appendix slides 30-31 for explanation of A
Slide 23: Income Statement
Income Statement HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (@OLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) For the Three Months For the Six Months Ended June 30, Ended June 30, 2025 2024 2025 2024 Revenue Interest and rental income $ 67,441
Slide 24: Balance Sheet
Balance Sheet HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Tune 30, 2025 (unaudited) December 31, 2024 Assets Cash and cash equivalents s 86,508 $ 129,758 Equity method investments 4,082,998 3,612,394 Rece
Slide 25: Statement of Cashflows
Statement of Cashflows HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS) (UNAUDITED) Six Months Ended June 30, ‘Six Months Ended June 30, as 20 aa ea Cash flows from operating activities Caner ane ‘Net income (loss) $ 157,980 $ 151,492
Slide 26: Adjusted Cash Flow from Operations Plus Other Portfolio Collections
Adjusted Cash Flow from Operations Plus Other Portfolio Collections 26
Slide 27: Reconciliation of GAAP Net Income to Adjusted Earnings
Reconciliation of GAAP Net Income to Adjusted Earnings (1) The per share data reflects the GAAP diluted earnings per share and is the most comparable GAAP measure to our adjusted earnings per share. (2) This is a non-GAAP adjustment to reflect the return on capital of our equity method investments a
Slide 28: Reconciliation of GAAP-based Net Investment Income to Adjusted Recurring Net Investment Income
Reconciliation of GAAP-based Net Investment Income to Adjusted Recurring Net Investment Income (1) GAAP-based net investment income (loss) as reported in previous periods was not defined to include Management fees and retained interest income. It has been included here in comparative periods to refl
Slide 29: Reconciliation of GAAP-Based Portfolio to Managed Assets
Reconciliation of GAAP-Based Portfolio to Managed Assets (1) Total assets in co-investment structures are $1.1 billion as of June 30, 2025. 29
Slide 30: Explanatory Notes
Explanatory Notes Adjusted Cash Flow from Operations plus Other Portfolio Collections We operate our business in a manner that considers total cash collected from our portfolio reduced by operating and debt service payments to assess the amount of cash we have available to fund dividends and investm
Slide 31: Supplemental Financial Data
Supplemental Financial Data Adjusted Earnings and Earnings on Equity Method Investments We calculate adjusted earnings as GAAP net income (loss) excluding non-cash equity expense, provisions for loss on receivables, amortization of intangibles, non-cash provision (benefit) for taxes, losses or (gain
Slide 32: Supplemental Financial Data
Supplemental Financial Data Managed Assets We consolidate assets on our balance sheet, securitize assets off-balance sheet, and manage assets in which we co-invest with other parties via equity method investments. Therefore, certain receivables and other assets are not reflected on our balance sheet
Slide 33: Visit our website at www.hasi.com
Visit our website at www.hasi.com Listen to the HASI Climate Positive podcast Securities are offered by HASI Securities, LLC, a registered broker dealer, member FINRA and SIPC and subsidiary of HA Sustainable Infrastructure Capital, Inc.
Slide 34: Illustrative Incremental ROE on New Investments
Illustrative Incremental ROE on New Investments CCH1 CCH1 Pre-CCH1 (Unlevered) (0.5x Leverage) Gross asset yield 10.5% 10.5% 10.5% less cost of debt (6.5%) (6.5%) (6.5%) Net asset margin 4.0% 4.0% 4.0% plus management fees (% of Capital) 0.0% 0.8% 1.1% Total asset returns 4.0% 4.8% 5.1% HASI Equity
HA Sustainable Infrastructure Capital — Q2 2025 Earnings Presentation on 6ix