HA Sustainable Infrastructure Capital (NYSE:HASI) reported third-quarter 2026 adjusted earnings of $0.82 per share, boosted by a valuation gain on its SunStrong Management investment, and reaffirmed its longer-term earnings and return targets.
President and CEO Jeff Lipson said the company’s outlook had not changed following the election. HASI expects adjusted earnings per share of $3.55 to $3.65 and adjusted return on equity of at least 17% in 2028.
For the first nine months of 2026, adjusted earnings per share rose 15% year over year to $2.34, while adjusted earnings increased 21% to $309 million. Adjusted return on equity rose to 15.6% from 13.4%, Chief Financial Officer Chuck Melko said.
Adjusted recurring net investment income increased 23% to $330 million over the first three quarters. That figure included a $35 million SunStrong gain, partly offset by a $21 million charge related to a renewable natural gas, or RNG, asset.
Investment activity and pipeline
HASI closed more than $1 billion of transactions in the third quarter and $2.8 billion through the first nine months of the year. Of the year-to-date total, $2.5 billion was expected to be held on HASI’s balance sheet or at CCH1.
Melko said the company expects full-year balance sheet and CCH1 transactions to reach the higher end of its $2 billion to $3 billion target. Lipson told analysts that the fourth-quarter pipeline looked strong, although the timing of closings could shift transactions into the first quarter of 2027.
The company’s pipeline remained above $6.5 billion at quarter-end after being replenished following the recent closings. Managed assets rose 26% year over year to $19 billion, while the investment portfolio increased 20% from the end of 2025 to more than $9 billion.
Among the quarter’s investments was a common equity position in an Invenergy portfolio comprising 10 utility-scale solar-plus-storage and wind projects across seven states, totaling 2.7 gigawatts. Lipson said the investment offered more upside than preferred equity and an expected internal rate of return consistent with HASI’s recent grid-connected investments.
SunStrong gain and RNG charge
HASI increased the book value of its SunStrong Management investment to $41 million after an independent third-party valuation. Lipson said the solar servicing company had exceeded $100 million in revenue in 2025, grown revenue significantly in 2026 and become EBITDA-positive.
SunStrong Management serviced more than 5 gigawatts of solar capacity and approximately 450,000 solar customers at the end of the third quarter, Lipson said. The business emerged from a restructuring of the SunStrong joint venture following SunPower’s bankruptcy.
The $21 million charge concerned an RNG project that HASI consolidated in the second quarter after equipment problems. Melko said equipment replacement was proceeding as planned and the plant was expected to come online in the first half of 2027, with a potential sale before the end of that year.
The company still expects to recover all of its invested capital in the RNG project, but Melko said there was risk to that outlook and a reserve was appropriate. He said the asset had moved into HASI’s category for investments performing significantly below metrics.
Funding and future growth
Lipson said HASI’s year-to-date weighted average yield on balance sheet investments exceeded 11%, and its portfolio yield had risen more than 70 basis points during the year. The company uses long-term debt, hedges and limited floating-rate exposure to manage interest-rate volatility, he said.
HASI ended the quarter with $2 billion of liquidity and an adjusted leverage ratio of 1.8 times debt to equity, within its 1.5 to 2 times target. Melko said the company had not used its at-the-market share issuance program during the quarter and continued to expect minimal issuance under the program in 2026.
On a prospective CCH2 vehicle, Lipson said HASI was talking with parties beyond KKR and expected the vehicle to begin early next year. He said its structure was unlikely to differ substantially from CCH1’s, although HASI’s ownership could be lower than its 50% stake in CCH1, depending on participation.
Lipson also said HASI was exploring opportunities in carbon removal and water infrastructure, though its water strategy remained in the early stages. The company has no direct exposure to data centers, he said, but sees their electricity demand supporting renewable energy development.
About HA Sustainable Infrastructure Capital (NYSE:HASI)
HA Sustainable Infrastructure Capital, Inc (NYSE: HASI) is an investment firm focused on financing sustainable infrastructure and climate solutions. The company provides capital to projects and businesses involved in renewable energy, energy efficiency, sustainable real estate and other infrastructure that supports the transition to a lower-carbon economy.
Its investment activities may include lending, equity investments and other forms of project financing. HA Sustainable Infrastructure Capital typically works with developers, owners and operators of infrastructure assets, helping fund projects such as distributed solar, utility-scale renewable energy, energy-efficiency improvements and resilient infrastructure.
Founded in 1981, the company has historically operated under the name Hannon Armstrong Sustainable Infrastructure Capital, Inc and became publicly traded in 2013.
