HASI Announces Fourth Quarter and Full Year 2025 Results with New Investments up 87% Y/Y to a Record $4.3b, Adjusted ROE up 70 bps to 13.4% and Adjusted EPS up 10% to $2.70

Key Highlights

• Closed a record $4.3 billion of new investments in 2025, up 87% year-over-year with new portfolio asset yields above 10.5% for the second year in a row in 2025, as our pipeline increased to more than $6.5 billion at the end of 2025.
• Managed Assets grew 18% year-over-year to $16.1 billion in 2025, as our Portfolio grew 15% to $7.6 billion, and fee-generating assets at our co-investment structures rose to $1.0 billion.
• GAAP EPS of $1.41 on a fully diluted basis in 2025, compared with $1.62 in 2024, and Adjusted EPS of $2.70 on a fully diluted basis in 2025, up 10% compared to $2.45 in 2024.
• GAAP-based Net Investment Income was $28 million in 2025, compared to $50 million in 2024, and Adjusted Recurring Net Investment Income was $362 million in 2025, up 25% compared to $289 million in 2024.
• Adjusted ROE increased to 13.4% in 2025 from 12.7% in 2024.
• Inaugural issuance of $500 million principal amount of junior subordinated notes continued to broaden our capital funding platform while further improving our equity efficiency.
• Introducing 2028 guidance for Adjusted EPS of $3.50 to $3.60 and Adjusted ROE of more than 17%.
• Announcing an increase in our dividend to $0.425 per share for the first quarter of 2026, with our payout ratio now expected to be below 50% by 2028 and below 40% by 2030.

“Our resilient business achieved extraordinary outcomes in 2025 including a significant increase in new investments to a record $4.3 billion, a pipeline of greater than $6.5 billion, and growth in Adjusted Recurring Net Investment Income of 25%,” said Jeffrey A. Lipson, HASI President and Chief Executive Officer. “At the same time, Adjusted EPS grew more than 10% in 2025 for compound annual growth of 10% over the last 10 years, and our guidance points to similar ongoing growth through 2028.”

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

GAAP Net Income and Adjusted Earnings

“The returns we are generating in our business continue to grow through our increased investment activity, with our Adjusted ROE increasing to 13.4% and our incremental Adjusted ROE rising to 19% in 2025,” said HASI Chief Financial Officer, Chuck Melko. “The expansion of our finance platform including both an increase in our revolver capacity to more than $1.8 billion and our inaugural issuance of junior subordinated notes will contribute to supporting our growth and increasing the efficiency with which we use equity capital.”

GAAP Earnings and EPS

GAAP net income to controlling stockholders was $185 million for the year ended December 31, 2025, compared to $200 million for the year ended December 31, 2024. GAAP diluted earnings per share was $1.41 for the year ended December 31, 2025, compared to $1.62 for the year ended December 31, 2024. GAAP income in the current period was driven by total revenue of $401 million and income from equity method investments of $301 million, which were offset by total expenses of $428 million and income tax expense of $85 million.

Adjusted Earnings and EPS

Adjusted Earnings were $342 million in 2025, driven by Adjusted Recurring Net Investment Income of $362 million, Gain on Sale of Assets of $65 million, and Origination Fee and Other Income of $15 million, while Compensation and Benefits and General & Administrative expenses (excluding Equity-Based Compensation) were approximately $93 million.

Adjusted Earnings in 2025 increased $52 million compared to 2024, due to a $73 million increase in Adjusted Recurring Net Investment Income driven by a larger Portfolio and project refinancing proceeds. This was partially offset by a $15 million decrease in Gain on Sale of Assets and by a $5 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 $2.70 in 2025, compared to $2.45 in 2024, 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 was $28 million in 2025.

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 $362 million in 2025, an increase of 25% from $289 million in 2024.

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 December 31, 2025, our Receivables, Net of Allowance, and Receivables Held-for-Sale totaled $3.4 billion, up 14% from $3.0 billion as of December 31, 2024, due to the funding of additional investments over the previous 12 months. Interest and Rental Income Revenue was $286 million in 2025, compared to $266 million in 2024, driven by higher yields on our investments and investment fundings.
  

• Adjusted Income from Equity Method Investments
  
  As of December 31, 2025, our Equity Method Investments were $4.1 billion, an increase of 14% from $3.6 billion as of December 31, 2024. Equity Method Investments includes our proportionate share of our co-investment vehicle CCH1, which was $638 million as of December 31, 2025, compared to $309 million as of December 31, 2024. Approximately 25% of the assets in CCH1 were receivables or debt securities, and 75% were equity method investments as of December 31, 2025.
  
  Adjusted Income from Equity Method Investments¹ was $327 million in 2025, an increase of 37% compared to $239 million in 2024, driven by both growth in Equity Method Investments and higher yields, as well as the impact of project refinancing proceeds received in 2025.
  

• Management Fees and Retained Interest Income
  
  As of December 31, 2025, assets held by our partners in our co-investment vehicles were $951 million, compared to $300 million as of December 31, 2024. In addition, our Retained Interests in Securitization Trusts, Net of Allowance, were $300 million, an increase of 21% from $249 million as of December 31, 2024.
  
  Management Fees and Retained Interest Income Revenue was $34 million in 2025, compared to $26 million in 2024, due to higher managed assets in our co-investment vehicle.
  

• Interest Expense
  
  As of December 31, 2025, our total debt outstanding was $5.1 billion, as compared to $4.4 billion as of December 31, 2024, 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 5.8% in 2025, compared to 5.6% in 2024.
  
  Interest expense was $292 million in 2025, an increase of $50 million compared to $242 million in 2024.

Managed Assets and New Investment Activity

As of December 31, 2025, our Managed Assets totaled $16.1 billion, up 18% year-over-year, and consisted of (1) our Portfolio, (2) our partners’ portion of our co-investment vehicle CCH1, and (3) assets we have securitized. As of December 31, 2025, our Portfolio was approximately $7.6 billion, up 15% year-over-year. Portfolio yield was 8.8% as of December 31, 2025, compared to 8.3% as of December 31, 2024, due primarily to the funding of higher yielding portfolio assets.

We closed new transactions totaling approximately $2.8 billion in the fourth quarter, bringing total closed transactions to $4.3 billion for 2025. As of December 31, 2025, our pipeline was more than $6.5 billion.

Weighted average yields on new Portfolio investments were underwritten at more than 10.5% in 2025, for the second year in a row.

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 asset classes with approximately $3.9 billion of Behind-the-Meter assets, approximately $2.6 billion of Grid-Connected assets, with the remainder comprising assets in Fuels, Transport, 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 December 31, 2025:

Liquidity and Leverage

As of December 31, 2025, cash and cash equivalents totaled $110 million and our total liquidity was $1.8 billion, including approximately $1.7 billion of unused capacity under our revolving credit facility and our credit-enhanced commercial paper program. In 2025, we closed a $250 million delayed-draw term loan facility which can be drawn upon between March 16, 2026 and June 15, 2026. Drawn loans, if any, mature on June 15, 2028, and bear interest at current applicable margins of 1.650% for SOFR-based loans and 0.650% for alternative base rate-based loans.

Total debt outstanding was $5.1 billion at December 31, 2025, and our debt-to-equity ratio was 1.7x, within our target range of 1.5x to 2.0x and below our internal limit of 2.5x. Our leverage ratio includes adjustments to reflect our outstanding junior subordinated notes as being 50% equity, as this reflects the partial equity credit given by rating agencies to these instruments. Approximately 99% of our debt outstanding at December 31, 2025, was either fixed-rate or hedged base rate debt, and 1% was floating-rate debt or short-term commercial paper notes.

Sustainability and Impact Highlights

An estimated 1.7 million metric tons of carbon emissions will be avoided annually by the transactions closed in 2025, equating to a CarbonCount® score of 0.39 metric tons per $1,000 invested. In total, including assets not retained in our Portfolio, our Managed Assets are avoiding approximately 9.9 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 announcing today that its Board of Directors declared a quarterly cash dividend of $0.425 per share of common stock. This dividend will be paid on April 17, 2026, to stockholders of record as of April 2, 2026.

Conference Call and Webcast Information

HASI will host an investor conference call today, Thursday, February 12, 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 you want to be joined to the HASI 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, visit www.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 of 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.