HA Sustainable Infrastructure Capital, Inc. (HASI) Q1 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:02.994 in 2027 and beyond. 00:00:02.994 -- 00:00:07.519 It is reasonable to assume that by that time our developer clients will have adapted 00:00:07.519 -- 00:00:12.345 to any remaining tariffs by both on showing more of their procurement and passing on 00:00:12.345 -- 00:00:14.647 any increased costs. 00:00:14.647 -- 00:00:18.972 In fact, most of the public developers and sponsors who have already reported their first 00:00:18.972 -- 00:00:23.557 quarter results have confirmed strong confidence in their long-term pipelines just in 00:00:23.557 -- 00:00:25.765 the last few weeks. 00:00:25.765 -- 00:00:30.753 We also have a portion of our business that involves capital recycling on existing projects, 00:00:30.753 -- 00:00:34.680 which is an investment profile unimpacted by tariffs. 00:00:34.680 -- 00:00:39.268 In summary, we expect very limited impact from any increased tariffs on our business, 00:00:39.268 -- 00:00:42.229 particularly in the guidance period. 00:00:43.014 -- 00:00:47.862 Turning to page five, another issue worth discussing is the expected impact of a recession 00:00:47.862 -- 00:00:52.959 on our business. GDP contracted in the first quarter of 2025 and many 00:00:52.959 -- 00:00:59.643 economic forecasts have increased the likelihood of a 2025 recession above 50%. 00:00:59.686 -- 00:01:05.291 However, as depicted on the slide, U.S. electric generation capacity continues to expand, 00:01:05.291 -- 00:01:11.238 even during economic downturns, in recent years substantially driven by wind and solar. 00:01:11.238 -- 00:01:16.603 If a recession occurs in 2025, we would expect investments in clean energy generation 00:01:16.603 -- 00:01:20.529 to be only marginally impacted and we 00:01:20.529 -- 00:01:26.259 would not expect an...