HASI · HA Sustainable Infrastructure Capital, Inc.

HA Sustainable Infrastructure Capital, Inc. delivered strong Q1 2026 non-GAAP results despite a GAAP net loss of $72 million, primarily from a $79 million loss in equity method investments due to timing differences in an investee's investment tax credit sale agreement under the HLBV method. This non-cash impact is expected to reverse upon cash distribution to tax equity investors without affecting underlying economics. Adjusted Earnings rose to $102 million from $78 million YoY, propelled by 29% growth in Adjusted Recurring Net Investment Income to $101 million, fueled by an 8% increase in receivables to $3.3 billion yielding higher interest income, 30% growth in adjusted equity method income from a 7% larger $4.3 billion base, and elevated management fees from expanded co-investment vehicles. Portfolio Yield improved to 9.2% from 8.3%, supported by $637 million in new closings at over 10.5% underwritten yields. Balance sheet strengthening included issuing $1 billion unsecured notes at 6.68% coupon to redeem higher 8% 2027 notes, extending maturities while average interest cost rose modestly to 6.1% amid higher debt to $5.4 billion. Managed Assets hit a record $16.4 billion, up 13% YoY, with a diversified portfolio showing strong credit quality—98% in top category. Management highlighted resilience amid geopolitical events, capital efficiency gains without ATM equity issuance, and affirmed 2028 guidance for Adjusted EPS $3.50-$3.60, ROE ≥17%, and payout ratio below 50%, targeting sub-40% by 2030, underscoring long-term margin expansion from lower cost of capital and high-yield originations.