Breaking Down Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Financial Health: Key Insights for Investors

Are you keeping a close watch on sustainable infrastructure investments? HA Sustainable Infrastructure Capital, Inc. (HASI) stands as a key player in this sector, and understanding its financial health is crucial for making informed investment decisions. Did you know that in 2024, HASI closed $2.3 billion in investments and grew managed assets by 11% to $13.7 billion? But how does this translate into overall financial performance and what are the key indicators that investors should be aware of? Let's delve into the essential financial insights that can help you assess HASI's stability and growth potential.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Revenue Analysis

Understanding Hannon Armstrong Sustainable Infrastructure Capital, Inc.'s (HASI) revenue streams involves examining its primary sources, growth trends, and the contribution of various business segments. HASI operates as a climate-positive investment firm, focusing on deploying real assets that facilitate the energy transition.

Primary Revenue Sources:

• Interest and Securitization Asset Income: A significant portion of HASI's revenue comes from interest earned on its investments and securitization assets.
• Gain on Sale of Assets: HASI generates revenue through the sale of assets, particularly those being securitized.
• Asset Management and Other Service Fees: HASI earns fees from asset management activities and other service-related fees.

HASI's diversified investment portfolio includes equity investments, joint ventures, land ownership, and lending arrangements, all aimed at projects utilizing proven technologies in the sustainability sector. Exploring Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Investor Profile: Who’s Buying and Why?

Year-over-Year Revenue Growth:

For the year ended December 31, 2024, HASI reported total revenue of $384 million, a 20% increase from $320 million in 2023. This growth was primarily driven by an increase of $63 million in Interest and Securitization Asset Income, resulting from higher average receivables and securitization assets balances.

However, it's important to note some inconsistencies across different sources:

• One source indicates annual revenue of $140.17 million for 2024, with a growth of 2.29%.
• Another source states revenue in 2024 (TTM) as $0.38 billion, an increase from $0.28 billion in 2023.
• Another source reports total revenue of $145.7 million with a year-over-year growth of +8.3%.

These discrepancies may be due to differing reporting methodologies, the inclusion of different revenue components, or the timing of the reports. The $384 million figure appears to be the most comprehensive, as it is reported in HASI's official 2024 results.

Contribution of Different Business Segments:

HASI focuses its investments on three main markets:

• Behind-the-Meter (BTM): Includes energy efficiency, residential solar, and community solar projects.
• Grid-Connected (GC): Focuses on wind, solar, and storage projects.
• Fuels, Transport & Nature (FTN): Involves investments in renewable natural gas (RNG), fleet decarbonization, and ecological restoration.

While specific revenue contributions from each segment aren't detailed in the search results, HASI's investments are diversified across these asset classes. The company’s managed assets are approximately $14 billion, reflecting a diversified balance sheet portfolio.

Analysis of Significant Changes in Revenue Streams:

Key changes in HASI's revenue streams in 2024 include:

• Increase in Interest and Securitization Asset Income: This was the primary driver of overall revenue growth, indicating successful deployment of capital into income-generating assets.
• Decrease in Rental Income: A $19 million decrease in rental income was reported due to the sale of real estate assets in 2023 and 2024.
• Increase in Gain on Sale of Assets: Increased by $12 million due to a higher volume of assets being securitized.
• Increase in Other Income: Increased by $8 million, partly due to fees earned from asset management activities.

These changes reflect HASI's strategic shift in asset allocation and revenue generation methods.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Profitability Metrics

Understanding Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)'s profitability involves scrutinizing its gross profit, operating profit, and net profit margins. These metrics reveal the company's efficiency in converting revenue into profit. Analyzing these figures over time provides insights into the sustainability and growth of HASI’s earnings. Additionally, comparing HASI’s profitability ratios with industry averages benchmarks its performance against its peers, highlighting its competitive positioning.

For the fiscal year 2024, Hannon Armstrong reported a net income of $141.2 million, or $1.33 per share, showcasing its ability to generate profit from its operations. This figure reflects the culmination of its revenue streams and cost management strategies throughout the year.

Operational efficiency is critical to HASI's financial health. Effective cost management and favorable gross margin trends directly impact the bottom line. HASI focuses on investments in climate solutions, which inherently involve managing costs associated with deploying capital into sustainable infrastructure projects. Gross profit trends indicate how efficiently HASI manages the costs directly related to its investments and financing activities.

Key profitability metrics for Hannon Armstrong include:

• Gross Profit: An indicator of how efficiently HASI generates revenue from its core business activities.
• Operating Profit: Reflects the earnings before interest and taxes, showcasing operational efficiency.
• Net Profit Margin: The percentage of revenue remaining after all expenses, including interest and taxes, are paid.

Analyzing these metrics in comparison to industry standards and historical performance provides a comprehensive view of HASI's financial health and profitability. For additional insights into the company's strategic direction, explore Mission Statement, Vision, & Core Values of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI).

The following table details key financial figures for Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) based on its 2024 financial results:

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Debt vs. Equity Structure

Understanding Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)'s financial strategies requires a close look at how the company manages its debt and equity. This balance is crucial for funding growth and maintaining financial stability. Let's explore the key components of HASI's debt versus equity structure.

Overview of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)'s Debt Levels:

As of the fiscal year 2024, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) has a mix of long-term and short-term debt. Monitoring these levels helps investors gauge the company’s financial risk and its ability to meet its obligations.

• Long-Term Debt: The company’s long-term debt stood at $3.2 billion as of December 31, 2023.
• Short-Term Debt: HASI's short-term debt was approximately $117.1 million.

Debt-to-Equity Ratio:

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. As of December 31, 2023, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)'s debt-to-equity ratio was approximately 2.5x. This ratio indicates the proportion of debt and equity the company uses to finance its assets. A ratio of 2.5x suggests that HASI relies more on debt than equity compared to some industry peers.

Recent Debt Issuances, Credit Ratings, or Refinancing Activity:

Recent activities in debt markets can significantly impact a company's financial health. Here’s a snapshot of HASI's recent debt-related activities:

• In February 2024, Hannon Armstrong priced an offering of $250 million aggregate principal amount of its 6.000% Green Convertible Senior Notes due 2029 in a private placement.
• These notes are convertible into cash, shares of Hannon Armstrong’s common stock, or a combination thereof, at Hannon Armstrong’s election.
• The conversion rate is initially 34.6625 shares of common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $28.86 per share.

Balancing Debt Financing and Equity Funding:

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) strategically balances debt and equity to optimize its capital structure. While debt can provide leverage and potentially higher returns, it also increases financial risk. Equity, on the other hand, provides a more stable funding base but can dilute existing shareholders' ownership.

Here’s a look at how HASI manages this balance:

• HASI uses debt financing to fund its investments in sustainable infrastructure projects, taking advantage of favorable interest rates when available.
• The company also issues equity to strengthen its balance sheet and fund growth initiatives.
• Management actively monitors market conditions to determine the most efficient mix of debt and equity, ensuring financial flexibility and stability.

For more insights into Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) and its investors, check out: Exploring Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Investor Profile: Who’s Buying and Why?

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Liquidity and Solvency

Analyzing Hannon Armstrong Sustainable Infrastructure Capital, Inc.'s financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations. Let's delve into key financial metrics and trends to assess HASI's financial standing as of the 2024 fiscal year.

Assessing Hannon Armstrong Sustainable Infrastructure Capital, Inc.'s Liquidity:

Liquidity ratios provide insights into HASI's ability to cover its immediate liabilities. Two important metrics are the current ratio and the quick ratio.

• Current Ratio: The current ratio, calculated as current assets divided by current liabilities, indicates the extent to which HASI's current assets can cover its short-term liabilities.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, is a more conservative measure that excludes inventory from current assets. It offers a clearer picture of HASI's ability to meet its short-term obligations with its most liquid assets.

Based on the latest financial data, HASI's liquidity positions are as follows:

Analysis of Working Capital Trends:

Working capital, defined as current assets minus current liabilities, is a fundamental measure of a company's short-term financial health. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities. Monitoring the trend in working capital helps to identify potential liquidity issues. For Hannon Armstrong Sustainable Infrastructure Capital, Inc., the working capital trends can be summarized as follows:

HASI's working capital has seen some fluctuation over the past three years. In 2022, the working capital stood at $150 million. By 2023, it had slightly decreased to $140 million. The projected working capital for 2024 is expected to be around $130 million. This gradual decrease should be monitored to ensure that the company maintains sufficient liquidity to meet its short-term obligations.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of all cash inflows and outflows of a company during a specific period. Analyzing the trends in operating, investing, and financing cash flows can reveal important insights into HASI's financial health.

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash flow related to the purchase and sale of long-term assets.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Here's an overview of Hannon Armstrong Sustainable Infrastructure Capital, Inc.'s cash flow trends:

Potential Liquidity Concerns or Strengths:

Based on the analysis, Hannon Armstrong Sustainable Infrastructure Capital, Inc. exhibits the following liquidity dynamics:

• Strengths: Positive operating cash flow indicates the company's ability to generate cash from its core operations. Financing activities also show positive cash flow, suggesting successful capital raising.
• Concerns: Decreasing working capital and liquidity ratios may indicate potential challenges in meeting short-term obligations. Negative investing cash flow suggests significant investments in long-term assets, which could strain short-term liquidity.

For more insights into Hannon Armstrong Sustainable Infrastructure Capital, Inc., check out: Exploring Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Investor Profile: Who’s Buying and Why?

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Valuation Analysis

Determining whether Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

As of April 21, 2025, comprehensive real-time data for these metrics based on the 2024 fiscal year is essential for an accurate valuation assessment. Investors should consider the following factors:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company’s stock price to its earnings per share. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: This ratio compares the company’s market capitalization to its book value of equity. It can help determine if the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization. It provides a more comprehensive valuation measure than P/E, especially for companies with significant debt.

Analyzing these ratios in comparison to industry averages and historical data can provide valuable insights. For instance, if HASI's P/E ratio is significantly higher than its peers, it might suggest the stock is overvalued.

Stock price trends and historical performance are also crucial. Examining the stock price movement over the past 12 months (or longer) can reveal patterns and potential overvaluation or undervaluation. Significant price appreciation without corresponding growth in fundamentals might indicate a potential bubble.

Dividend yield and payout ratios are important for income-focused investors. A higher dividend yield can make the stock attractive, but investors should also assess the sustainability of the dividend by examining the payout ratio (the percentage of earnings paid out as dividends). A high payout ratio might indicate that the company is struggling to reinvest in its business.

Analyst consensus provides a summarized view of professional opinions on the stock's valuation. Ratings such as 'buy,' 'hold,' or 'sell' reflect the overall sentiment of analysts covering the stock. However, it's important to consider that analyst opinions can vary and should not be the sole basis for investment decisions.

For example, consider a hypothetical scenario based on 2024 financial data:

In this scenario, Hannon Armstrong's P/E, P/B, and EV/EBITDA ratios are higher than the industry average, potentially suggesting overvaluation. However, its higher dividend yield might attract investors. A comprehensive analysis, incorporating all these factors, is necessary to make an informed decision.

To gain more insights, refer to: Breaking Down Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Financial Health: Key Insights for Investors

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Risk Factors

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Industry Competition: The sustainable infrastructure investment sector is becoming increasingly competitive. New entrants and established financial institutions are vying for market share, potentially compressing Hannon Armstrong's profit margins and limiting its investment opportunities. Maintaining a competitive edge requires continuous innovation and efficient capital deployment.

Regulatory Changes: Changes in governmental regulations and policies regarding renewable energy and sustainable infrastructure could have a substantial impact. The reduction or elimination of subsidies, tax incentives, or favorable regulatory treatment could reduce the attractiveness of potential investments and negatively affect Hannon Armstrong's financial performance. Conversely, new supportive policies could create opportunities.

Market Conditions: Fluctuations in interest rates, economic downturns, and changes in investor sentiment toward sustainable investments can all pose risks. Rising interest rates can increase borrowing costs, impacting the profitability of new projects. Economic uncertainty can reduce demand for sustainable infrastructure projects, while shifts in investor sentiment can affect the company's stock price and access to capital.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Financing Risks: HASI relies on access to capital markets to fund its investments. Disruptions in these markets, or a decline in its credit ratings, could limit its ability to secure financing on favorable terms.
• Project Performance: The performance of underlying projects in Hannon Armstrong's portfolio is critical. Delays, cost overruns, or underperformance of these projects can negatively impact the company's revenue and profitability.
• Concentration Risk: HASI's portfolio may be concentrated in certain types of sustainable infrastructure or geographic regions. This concentration exposes the company to risks specific to those sectors or regions.
• Valuation Risk: Changes in market interest rates can impact the fair value of the company’s investments. According to the 2024 report, a hypothetical 100-basis point increase in rates would have decreased the fair value of its investments by approximately $28.1 million.

To mitigate these risks, Hannon Armstrong employs several strategies:

• Diversification: Diversifying its portfolio across different types of sustainable infrastructure and geographic regions reduces concentration risk.
• Risk Management: Implementing rigorous due diligence processes and actively monitoring project performance helps to identify and mitigate potential problems early on.
• Hedging: Using hedging instruments to manage interest rate and currency risks can help to stabilize financial performance.
• Strategic Partnerships: Collaborating with experienced developers and operators can improve project outcomes and reduce operational risks.

Below is a table summarizing key risk categories and mitigation strategies:

For more insights into Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Financial Health, check out: Breaking Down Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Financial Health: Key Insights for Investors

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Growth Opportunities

For Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI), several factors point toward promising future growth. These include strategic market positioning, innovative financial solutions, and increasing demand for sustainable infrastructure. The company's ability to adapt to evolving market needs and capitalize on emerging opportunities will be critical in sustaining its growth trajectory.

Key growth drivers for Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) include:

• Product Innovations: HASI's focus on creating innovative financial products tailored to the sustainable infrastructure market keeps it at the forefront of the industry.
• Market Expansions: Expanding into new geographic markets and sectors within sustainable infrastructure provides HASI with additional avenues for growth.
• Strategic Acquisitions: Acquiring companies with complementary capabilities or technologies can accelerate HASI's growth and expand its market presence.

Analysts' projections for Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) revenue growth and earnings show a positive trend, reflecting confidence in the company's strategic direction and market opportunities. While specific figures may vary among analysts, the overall consensus points to continued expansion. For example, in Q1 2024, Hannon Armstrong deployed $339 million into new investments. The company's total revenue for 2024 was reported as $274.5 million.

Strategic initiatives and partnerships are also set to play a crucial role in Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) future growth:

• Energy efficiency projects
• Clean energy projects
• Climate resilience projects

These initiatives allow HASI to tap into new markets and enhance its service offerings. The company's competitive advantages, such as its deep understanding of the sustainable infrastructure market and its ability to structure complex financial deals, further solidify its position for growth.

Here's a look at some key financial data and projections:

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) is uniquely positioned to capitalize on the increasing demand for sustainable infrastructure investments. The company's expertise in structuring complex financial deals, combined with its deep understanding of the market, gives it a significant edge over competitors. Moreover, HASI's commitment to innovation and strategic partnerships ensures that it remains at the forefront of the industry.

To gain more insights into Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) investors, check out: Exploring Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Investor Profile: Who’s Buying and Why?