HASI Announces First Quarter 2026 Results With 20% Y/Y Growth in Adjusted EPS and Record Adjusted ROE of 15.7%

Key Highlights

• GAAP EPS of $(0.57), compared with $0.44 in Q1 2025, and Adjusted EPS of $0.77, compared to $0.64 in Q1 2025.
• GAAP-based Net Investment Income (Loss) was $(6.9) million in Q1, and Adjusted Recurring Net Investment Income totaled $101 million in Q1, up 29% year-over-year.
• GAAP-based ROE was (11.4)% in Q1 2026, and Adjusted ROE increased to 15.7% in Q1.
• Managed Assets grew 13% year-over-year to $16.4 billion as of March 31, 2026.
• Closed more than $600 million in transactions through the first quarter of 2026 with new asset yields on Portfolio investments >10.5%.
• Issued $1 billion in unsecured notes with a weighted average coupon of ~6.68%, and redeemed our 8.00% senior unsecured notes due 2027.
• Affirming guidance for Adjusted EPS in the range of $3.50 to $3.60 and Adjusted ROE of at least 17% in 2028, and a reduction in our payout ratio to below 50% in 2028 and below 40% in 2030.

“Demonstrating the resilience of our business to recent geopolitical events, we have started 2026 with strong momentum, affirming guidance and reporting solid Q1 results and record Adjusted ROE of more than 15%,” said HASI President and Chief Executive Officer Jeffrey A. Lipson. “Importantly, our ability to maintain double-digit new asset yields while lowering our cost of capital has also translated into ongoing, attractive margins.”

A summary of our financial results is detailed in the table below:

GAAP Net Income and Adjusted Earnings

“In Q1, we continued to make significant strides at strengthening our balance sheet by redeeming our 8% notes due 2027, further laddering and extending the average maturity of our debt, while also materially improving the spreads on our new debt issuances,” said HASI Chief Financial Officer, Chuck Melko. “Our recent initiatives to enhance our capital efficiency have contributed to our higher Adjusted ROE, as we issued no new shares through our ATM in Q1 to fund our business, setting the stage for further improvement in our ROE in the near future.”

GAAP Earnings and EPS

GAAP net income (loss) to controlling stockholders was $(72) million in Q1 2026, compared to $57 million in Q1 2025. GAAP diluted earnings (loss) per share was $(0.57) in Q1 2026, compared to $0.44 in Q1 2025. GAAP net loss in the current period was driven by a loss from equity method investments of $79 million, which was caused by a timing difference between an investee’s execution of an investment tax credit sale agreement and their distribution of cash for the credit sale to the tax equity investors. The execution of the sale agreement increased the tax equity investors’ capital accounts, which increased their allocation of GAAP equity relative to ours under the HLBV method. The tax equity investors’ capital accounts are expected to normalize in a subsequent period when the cash is distributed to the tax equity investors, which will increase our allocation of GAAP equity and thus our income from equity method investments. The timing of the tax capital account impacts does not affect our economics from the investment.

Adjusted Earnings and EPS

Adjusted earnings were $102 million in Q1 2026, driven by Adjusted Recurring Net Investment Income of $101 million, Gain on Sale of Assets of $23 million, and Origination Fee and Other Income of $9 million, while Compensation and Benefits and General & Administrative expenses (excluding Equity-Based Compensation) were approximately $28 million.

Adjusted Earnings in Q1 2026 increased $24 million compared to Q1 2025, due to a $23 million increase in Adjusted Recurring Net Investment Income, driven by a larger Portfolio and higher Portfolio Yield, and a $4 million increase in Gain on Sale of Assets. These items were partially offset by a $6 million increase in Compensation and Benefits and General & Administrative expenses (excluding Equity-Based Compensation) primarily due to growth in the size of the Company.

Adjusted EPS was $0.77 in Q1 2026, compared to $0.64 in Q1 2025, due to the increase in Adjusted Earnings described above.

An explanation and reconciliation of GAAP Earnings and EPS to Adjusted Earnings and EPS can be found at the end of this release.

Adjusted Recurring Net Investment Income

HASI’s Managed Assets consists of three major components: our Portfolio, our co-investment structures, and our securitized assets. HASI generates recurring income from each of these components: (1) income generated from our Portfolio, including both our debt investments (“Receivables” and “Real Estate and Debt Securities”), and our equity investments (“Equity Method Investments”), (2) management fee income from our securitization trusts and our partner’s share of our co-investment structures, and (3) income from our retained interests in our securitized assets. Adjusted Recurring Net Investment Income measures the recurring income we generate from these three sources, net of interest expense.

GAAP-based net investment income captures Interest and Rental Income revenue as well as Management Fees and Retained Interest Income, less Interest Expense. However, it does not include the income generated from our Equity Method Investments (as defined below) and thus fails to capture all of the economic returns earned by our Portfolio. GAAP-based net investment income (loss) was $(7) million in Q1 2026.

Adjusted Recurring Net Investment Income captures not only our management fee income and income from our retained interests in our securitized assets, but also our income from our entire Portfolio, including both our equity and debt investments, net of interest expense. As a result, management views Adjusted Recurring Net Investment Income as a helpful indicator of the full underlying economics of our investments, enabling a useful comparison of financial results between periods. Adjusted Recurring Net Investment Income was $101 million in Q1 2026, an increase of 29% from $78 million in Q1 2025.

A reconciliation of GAAP-based Net Investment Income to Adjusted Recurring Net Investment Income is shown below, and further explanation can be found at the end of this release.

Adjusted Recurring Net Investment Income represents the sum of (1) Interest and Rental Income Revenue, (2) Adjusted Income from Equity Method Investments, and (3) Management Fees and Retained Interest Income, net of (4) Interest Expense and (5) the elimination of our proportionate share of fees earned from co-investment structures. It also excludes other non-cash items such as Amortization of Real Estate Intangibles and, when applicable, Loss (Gain) on Debt Modification or Extinguishment:

• Interest and Rental Income Revenue
  
  As of March 31, 2026, our Receivables, Net of Allowance, and Receivables Held-for-Sale totaled $3.3 billion, up 8% from $3.1 billion as of March 31, 2025, due to the funding of additional investments over the previous 12 months. Interest and Rental Income Revenue was $83 million in Q1 2026, compared to $66 million in Q1 2025, driven by higher yields on our investments and investment fundings.

• Adjusted Income from Equity Method Investments
  
  As of March 31, 2026, our Equity Method Investments were $4.3 billion, an increase of 7% from $4.0 billion as of March 31, 2025. Equity Method Investments includes our proportionate share of our co-investment vehicle CCH1, which was $820 million as of March 31, 2026, compared to $506 million as of March 31, 2025. Approximately 28% of the assets in CCH1 were receivables or debt securities, and 72% were equity method investments as of March 31, 2026.
  
  Adjusted Income from Equity Method Investments¹ was $91 million in Q1 2026, an increase of 30% compared to $70 million in Q1 2025, driven by both growth in Equity Method Investments and higher yields.

• Management Fees and Retained Interest Income
  
  As of March 31, 2026, assets held by our partners in our co-investment vehicles were $1.1 billion, compared to $494 million as of March 31, 2025. In addition, our Retained Interests in Securitization Trusts, Net of Allowance, were $326 million, an increase of 23% from $265 million as of March 31, 2025.
  
  Management Fees and Retained Interest Income was $10 million in Q1 2026, compared to $7 million in Q1 2025, due to higher managed assets in our co-investment vehicle.

• Interest Expense
  
  As of March 31, 2026, our total debt outstanding was $5.4 billion, as compared to $4.7 billion as of March 31, 2025, and our weighted-average interest cost, as measured by GAAP interest expense as adjusted for loss on debt modification or extinguishment divided by average debt outstanding, was 6.1% in Q1 2026, compared to 5.7% in Q1 2025. Our average interest cost increased due to the issuance of junior subordinated notes that bear a higher interest rate, but which reduce our need to issue equity to maintain our desired financial leverage ratio because of the partial equity treatment of these instruments by rating agencies.
  
  Interest expense was $99 million in Q1 2026, an increase of $35 million compared to $65 million in Q1 2025 due in part to $19 million of fees and expensed debt issuance costs associated with the redemption of our 8.000% senior unsecured notes due 2027.

Managed Assets and New Investment Activity

As of March 31, 2026, our Managed Assets totaled $16.4 billion, up 13% from March 31, 2025, and consisted of (1) our Portfolio, (2) our partners’ portion of our co-investment vehicle CCH1, and (3) assets we have securitized. As of March 31, 2026, our Portfolio was approximately $7.6 billion. Portfolio Yield was 9.2% as of March 31, 2026, compared to 8.3% as of March 31, 2025, due primarily to the funding of higher-yielding portfolio assets.

We closed new transactions totaling approximately $637 million in Q1 2026, including $462 million in transactions to be held on our balance sheet or at our co-investment structures. As of March 31, 2026, our pipeline was more than $6.5 billion.

Weighted average yields on new Portfolio investments were underwritten at more than 10.5% during Q1 2026, consistent with the weighted average yields on Portfolio investments over the prior five quarters.

An explanation and reconciliation of GAAP-based Portfolio to Managed Assets can be found at the end of this release.

Our Portfolio remains well-diversified across established clean energy end markets with approximately $3.8 billion of Behind-the-Meter assets, approximately $2.6 billion of Grid-Connected assets, with the remainder comprising assets in Fuels, Transportation, and Nature.

We continued to experience strong credit performance and negligible losses across our Portfolio of investments. The following is an analysis of the performance ratings of our Portfolio as of March 31, 2026.

Liquidity and Leverage

As of March 31, 2026, cash and cash equivalents totaled $124 million, and our total liquidity was $2.3 billion, including approximately $2.2 billion of unused capacity under our revolving credit facility, delayed-draw term loan facility, and commercial paper program.

Total debt outstanding was $5.4 billion at March 31, 2026, and our debt-to-equity ratio was 1.6x, within our target range of 1.5x to 2.0x and below our internal limit of 2.5x. Our leverage ratio includes adjustments to account for our outstanding junior subordinated notes as being 50% equity, reflecting the partial equity credit given by rating agencies to these instruments. 100% of our debt outstanding at March 31, 2026, was either fixed-rate or hedged base rate debt.

Sustainability and Impact Highlights

An estimated 259,000 metric tons of carbon emissions will be avoided annually by the transactions closed this quarter, equating to a CarbonCount^® score of 0.29 metric tons per $1,000 invested. In total, including assets not retained in our Portfolio, our Managed Assets are avoiding approximately 10.2 million metric tons of carbon emissions annually, based on our proprietary CarbonCount score.

Guidance

We expect Adjusted Earnings per Share in the range of $3.50 to $3.60 in 2028. In addition, we expect Adjusted Return on Equity of more than 17% in 2028. We also expect distributions of annual dividends per share of common stock to decline to less than 50% of annual Adjusted Earnings per Share by 2028 and less than 40% by 2030. This guidance reflects our judgments and estimates of (i) yield on our existing Portfolio; (ii) yield on incremental Portfolio investments, inclusive of our existing pipeline; (iii) the volume and profitability of transactions; (iv) amount, timing, and costs of debt and equity capital to fund new investments; (v) changes in costs and expenses reflective of our forecasted operations; and (vi) the general interest rate and market environment. In addition, distributions are subject to approval by our Board of Directors on a quarterly basis. We have not provided GAAP guidance as discussed in the Forward-Looking Statements section of this press release.

Dividend

The Company is also announcing today that our Board of Directors approved a quarterly cash dividend of $0.425 per share of common stock. This dividend will be paid on July 10, 2026, to stockholders of record as of July 2, 2026.

Conference Call and Webcast Information

HASI will host an investor conference call today, Thursday, May 7, 2026, at 5:00 p.m. Eastern Time. The conference call can be accessed live over the phone by dialing 1-877-407-0890 (Toll-Free) or +1-201-389-0918 (toll). Participants should inform the operator that they want to join the “HASI First Quarter 2026 Results” call. The conference call will also be accessible as an audio webcast with slides on our website. A replay after the event will be accessible as on-demand webcast on our website.

About HASI

HASI is an investor in sustainable infrastructure assets advancing the energy transition. With more than $16 billion in managed assets, our investments are diversified across multiple asset classes, including utility-scale solar, storage, and onshore wind; distributed solar and storage; RNG; and energy efficiency. We combine deep expertise in energy markets and financial structuring with long-standing programmatic client partnerships to deliver superior risk-adjusted returns and measurable environmental benefits. HA Sustainable Infrastructure Capital, Inc. is listed on the New York Stock Exchange (Ticker: HASI). For more information, please visit hasi.com.

Forward-Looking Statements

Some of the information contained in this press release is 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, that are subject to risks and uncertainties. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, we intend to identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements.

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption “Risk Factors” included in our most recent Annual Report on Form 10-K as well as in other periodic reports that we file with the U.S. Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement.

The Company has not provided GAAP guidance as forecasting a comparable GAAP financial measure, such as net income, would require that the Company apply the hypothetical liquidation at book value (“HLBV”) method to these investments. In order to forecast under the HLBV method, the Company would be required to make various assumptions related to expected changes in the net asset value of the various entities and how such changes would be allocated under HLBV. GAAP HLBV earnings over a period of time are very sensitive to these assumptions especially in regard to when a partnership transaction flips and thus the liquidation scenarios change materially. The Company believes that these assumptions would require unreasonable efforts to complete and if completed, the wide variation in projected GAAP earnings based upon a range of scenarios would not be meaningful to investors. Accordingly, the Company has not included a GAAP reconciliation table related to any Adjusted Earnings guidance.

Estimated carbon savings are calculated using the estimated kilowatt hours, gallons of fuel oil, million British thermal units of natural gas and gallons of water saved as appropriate, for each project. The energy savings are converted into an estimate of metric tons of CO2 equivalent emissions based upon the project’s location and the corresponding emissions factor data from the U.S. Government and International Energy Agency. Portfolios of projects are represented on an aggregate basis.