Press Release: Clearway Energy, Inc. Reports Third Quarter 2025 Financial Results

Dow Jones11-05
   -- Solid third quarter results enabling the company to narrow it 2025 
      financial guidance range 
 
   -- Sponsor-enabled growth and repowerings for 2026/2027 COD on track with 
      over 2 GW of projects now on identified opportunities list 
 
   -- Signed binding 3rd party M&A agreement for operational solar portfolio 
 
   -- Opportunistically raised $50MM of equity through equity issuance program 

PRINCETON, N.J., Nov. 04, 2025 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) today reported third quarter 2025 financial results, including Net Income of $60 million, Adjusted EBITDA of $385 million, Cash from Operating Activities of $225 million, and Cash Available for Distribution $(CAFD)$ of $166 million.

"For the third quarter, our team operated our fleet with excellence, allowing us to reiterate and narrow our 2025 guidance range. Additionally, continued execution across our redundant growth pathways, including the Deriva solar portfolio acquisition, now allows us to set our sights on delivering at the top end or better of our 2027 financial target range. Following our annual strategic planning process, we are pleased to announce the establishment of our 2030 financial target range to further demonstrate the longevity of our robust earnings power for years to come. We are also pleased to announce that our investment opportunity set for 2026 and 2027 has expanded to now include over 2 GW of identified investment opportunities, with the combination of our repowering program and sponsor-enabled drop-downs providing transparent building blocks toward achieving our 2030 target," said Craig Cornelius, Clearway Energy, Inc.'s President and Chief Executive Officer.

Adjusted EBITDA and Cash Available for Distribution used in this press release are non-GAAP measures and are explained in greater detail under "Non-GAAP Financial Information" below.

Overview of Financial and Operating Results

Segment Results

Table 1: Net Income/(Loss)

 
($ millions)       Three Months Ended      Nine Months Ended 
Segment            9/30/25     9/30/24    9/30/25     9/30/24 
--------------   -----------  ---------  ----------  --------- 
Flexible 
 Generation              39         25          30       50 
Renewables & 
 Storage                 31         66          24       60 
Corporate               (10)       (64)        (86)    (125) 
---------------  ----  ----       ----   ---  ----    ----- 
Net 
 Income/(Loss)      $    60    $    27     $   (32)  $  (15) 
===============  ====  ====       ====   ===  ====    ===== 
 

Table 2: Adjusted EBITDA

 
($ millions)      Three Months Ended        Nine Months Ended 
Segment           9/30/25     9/30/24      9/30/25       9/30/24 
-------------   -----------  ---------  -------------  ----------- 
Flexible 
 Generation             60         66         156           174 
Renewables & 
 Storage               334        295         853           770 
Corporate               (9)        (7)        (29)          (26) 
--------------  ----  ----       ----   ---  ----          ---- 
Adjusted 
 EBITDA            $   385    $   354     $   980       $   918 
--------------  ----  ----       ----   ---  ----          ---- 
 

Table 3: Cash from Operating Activities and Cash Available for Distribution (CAFD)

 
                     Three Months Ended          Nine Months Ended 
($ millions)         9/30/25       9/30/24      9/30/25       9/30/24 
--------------   ---------------  ---------  --------------  --------- 
Cash from 
 Operating 
 Activities         $        225   $    301     $       511   $    578 
---------------  ----  ---------      -----  ----  --------      ----- 
Cash Available 
 for 
 Distribution 
 (CAFD)             $        166   $    146     $       395   $    385 
---------------  ----  ---------      -----  ----  --------      ----- 
 

For the third quarter of 2025, the Company reported Net Income of $60 million, Adjusted EBITDA of $385 million, Cash from Operating Activities of $225 million, and CAFD of $166 million. Net Income increased versus 2024 primarily due to lower tax expenses. Adjusted EBITDA results in the third quarter were higher than 2024 due to the contribution of growth investments and higher wind resource at certain facilities. CAFD results in the third quarter of 2025 were higher than 2024 primarily due to higher EBITDA.

Operational Performance

Table 4: Selected Operating Results(1)

 
(MWh in thousands)      Three Months Ended        Nine Months Ended 
                        9/30/25     9/30/24      9/30/25     9/30/24 
-------------------   -----------  ----------  -----------  ---------- 
Flexible Generation 
 Equivalent 
 Availability 
 Factor                 92.5%        87.5%        92.3%       90.3% 
    Solar MWh 
     generated/sold    2,930        2,943        7,318       6,999 
    Wind MWh 
     generated/sold    2,221        2,012        7,905       7,478 
                      ------  ---  ------      -------      ------ 
Renewables & Storage 
 generated/sold(2)     5,151        4,955       15,223      14,477 
--------------------  ------  ---  ------      -------      ------ 
 

In the third quarter of 2025, availability at the Flexible Generation segment was higher than the third quarter of 2024 primarily due to outages at certain facilities in 2024. Generation in the Renewables & Storage segment during the third quarter of 2025 was 4% higher than the third quarter of 2024 primarily due to the contribution of growth investments.

Liquidity and Capital Resources

Table 5: Liquidity

 
($ millions)                                      9/30/2025    12/31/2024 
----------------------------------------------   -----------  ------------ 
Cash and Cash Equivalents: 
     Clearway Energy, Inc. and Clearway Energy 
      LLC, excluding subsidiaries                  $      28   $       138 
     Subsidiaries                                        223           194 
Restricted Cash: 
     Operating accounts                                  185           184 
     Reserves, including debt service, 
      distributions, performance obligations 
      and other reserves                                 205           217 
                                                 ---  ------      -------- 
Total Cash, Cash Equivalents and Restricted 
 Cash                                                    641           733 
                                                 ---  ------      -------- 
     Revolving credit facility availability              193           597 
                                                 ---  ------      -------- 
Total Liquidity                                    $     834   $     1,330 
                                                 ===  ======      ======== 
 

Total liquidity as of September 30, 2025, was $834 million, which was $496 million lower than as of December 31, 2024, primarily due to the execution of growth investments.

As of September 30, 2025, the Company's liquidity included $390 million of restricted cash. Restricted cash consists primarily of funds to satisfy the requirements of certain debt arrangements and funds held within the Company's projects that are restricted in their use. As of September 30, 2025, these restricted funds were comprised of $185 million designated to fund operating expenses, approximately $79 million designated for current debt service payments, and $84 million of reserves for debt service, performance obligations and other items including capital expenditures. The remaining $42 million is held in distribution reserve accounts.

As of September 30, 2025, the Company had $405 million in outstanding borrowings under its revolving credit facility, primarily as a result of growth investments. As of October 31, 2025, the Company had $215 million in outstanding borrowings under the revolving credit facility. The facility will continue to be used for general corporate purposes including financing of future investments or acquisitions and posting letters of credit.

Potential future sources of liquidity include excess operating cash flow, availability under the revolving credit facility, asset dispositions, and, subject to market conditions, new corporate debt and equity financings.

Growth Investments and Strategic Announcements

San Juan Mesa Wind Repowering

During the fourth quarter of 2025, San Juan Mesa, a wind project located in Roosevelt County, New Mexico, with a repowering targeted in 2027, finalized a development service agreement with Clearway Group to manage the repowering. The Company will potentially invest approximately $50 million in long-term corporate capital, subject to closing adjustments, and the investment decision to repower the project is subject to negotiation both with Clearway Group, and the review and approval by the Company's Independent Directors.

Royal Slope Solar Plus Storage Project

During the fourth quarter of 2025, Clearway Group signed a 20-year PPA with an investment grade utility for the 520 MW Royal Slope solar plus storage project located in Grant County, Washington. The project is targeting a 2027 COD. The potential investment for Clearway Energy, Inc. is subject to receiving an offer from Clearway Group and negotiation both with Clearway Group, and the review and approval by the Company's Independent Directors.

Deriva Solar Portfolio

On October 3, 2025, the Company entered into a binding agreement to acquire a 613 MW operational solar portfolio located in eight states, from a third party. For 12 facilities in the portfolio located in the Western U.S. and comprising of 227 MW, the Company will co-invest in a 50/50 joint venture with a third-party cash equity investor. The weighted average remaining contract duration of the overall portfolio is approximately 10 years. After factoring in estimated closing adjustments and proceeds from facility-level financings, including the third party cash equity investor in a subset of the portfolio, the Company expects its net capital commitment to acquire the portfolio to be between $210 million and $230 million. The consummation of the transaction is subject to customary closing conditions and certain third-party approvals and is expected in the first half of 2026.

Financing Updates

Class C Share Equity Issuances

Since August 4, 2025, the Company raised gross proceeds of approximately $50 million through the sale of Class C common stock under the Company's equity issuance programs at a weighted average price of $31.62 per share.

Quarterly Dividend

On November 3, 2025, Clearway Energy, Inc.'s Board of Directors declared a quarterly dividend on Class A and Class C common stock of $0.4528 per share payable on December 15, 2025, to stockholders of record as of December 1, 2025.

Seasonality

Clearway Energy, Inc.'s quarterly operating results are impacted by seasonal factors, as well as weather variability which can impact renewable energy resource throughout the year. Most of the Company's revenues are generated from the months of May through September, as contracted pricing and renewable resources are at their highest levels in the Company's portfolio. Factors driving the fluctuation in Net Income, Adjusted EBITDA, Cash from Operating Activities, and CAFD include the following:

   -- Higher summer capacity and energy prices from flexible generation assets; 
 
   -- Higher solar insolation during the summer months; 
 
   -- Higher wind resources during the spring and summer months; 
 
   -- Renewable energy resource throughout the year 
 
   -- Debt service payments which are made either quarterly or semi-annually; 
 
   -- Timing of maintenance capital expenditures and the impact of both 
      unforced and forced outages; and 
 
   -- Timing of distributions from unconsolidated affiliates 

The Company takes into consideration the timing of these factors to ensure sufficient funds are available for distributions and operating activities on a quarterly basis.

Financial Guidance

The Company is narrowing its 2025 full year CAFD guidance to a range of $420 million to $440 million. The midpoint of the 2025 financial guidance range is based on median renewable energy production estimates for the full year, while the range reflects a range of potential distributions of outcomes on resource and performance for the remainder of the year. The guidance range also factors in completing committed growth investments on currently forecasted schedules.

The Company is establishing a 2026 full year CAFD guidance range of $470 million to $510 million. The midpoint of the 2026 financial guidance range is based on median renewable energy production estimates for the full year, while the range reflects a range of potential distributions of outcomes on resource and performance in the fiscal year. The guidance range also factors in completing committed growth investments on currently forecasted schedules.

Earnings Conference Call

On November 4, 2025, Clearway Energy, Inc. will host a conference call at 5:00 p.m. Eastern to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials by logging on to Clearway Energy, Inc.'s website at http://www.clearwayenergy.com and clicking on "Presentations & Webcasts" under "Investor Relations."

About Clearway Energy, Inc.

Clearway Energy, Inc. is one of the largest owners of clean energy generation assets in the US and is leading the transition to a world powered by clean energy. Our portfolio comprises approximately 12.7 GW of gross capacity in 27 states, including 9.9 GW of wind, solar, and energy storage and over 2.8 GW of dispatchable power generation providing critical grid reliability services. Through our diversified and primarily contracted clean energy portfolio, Clearway Energy endeavors to provide our investors with stable and growing dividend income. Clearway Energy, Inc.'s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by our controlling investor, Clearway Energy Group LLC. For more information, visit investor.clearwayenergy.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as "expect," "estimate," "target," "anticipate," "forecast," "plan," "outlook," "believe" and similar terms. Such forward-looking statements include, but are not limited to, statements regarding Clearway Energy, Inc.'s (the "Company's") dividend expectations and its operations, its facilities and its financial results, statements regarding the likelihood, terms, timing and/or consummation of the transactions described in this news release, the potential benefits, opportunities, and results with respect to the transactions, including the Company's future relationship and arrangements with Global Infrastructure Partners, TotalEnergies, and Clearway Energy Group(collectively and together with their affiliates, "Related Persons"), as well as the Company's Net Income, Adjusted EBITDA, Cash from Operating Activities, Cash Available for Distribution, the Company's future revenues, income, indebtedness, capital structure, strategy, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although the Company believes that the expectations are reasonable at this time, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated in this news release include, among others, the Company's ability to maintain and grow its quarterly dividend; potential risks relating to the Company's relationships with CEG and its owners; the Company's ability to successfully identify, evaluate and consummate investment opportunities, as well as acquisitions from, and dispositions to, third parties; risks related to the Company's ability to acquire assets, including risks that offered or committed transactions from Related Persons may not be approved, on the terms proposed or otherwise, by the Corporate Governance, Conflicts, and Nominating Committee of the Company's Board of Directors (the "GCN"), or if approved, timely consummated; the Company's ability to borrow additional funds and access capital markets due to its indebtedness, corporate structure, market conditions or otherwise; changes in law, including judicial decisions; hazards customary to the power production industry and power generation operations, such as fuel and electricity price volatility, unusual weather conditions (including wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to fuel supply costs or availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission or gas pipeline system constraints and the possibility that the Company may not have adequate insurance to cover losses as a result of such hazards; the Company's ability to operate its businesses efficiently, manage maintenance capital expenditures and costs effectively, and generate earnings and cash flows from its asset-based businesses in relation to its debt and other obligations; the willingness and ability of counterparties to the Company's offtake agreements to fulfill their obligations under such agreements; the Company's ability to enter into contracts to sell power and procure fuel on acceptable terms and prices; government regulations; operating and financial restrictions placed on the Company that are contained in the facility-level debt facilities and other agreements of the Company and its subsidiaries; and cyber terrorism and inadequate cybersecurity. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations.

In addition, this news release contains reference to certain offered and committed transactions with Related Persons, which transactions are subject to the review, negotiation and approval of the GCN. Transactions referred to as "offered" (or any variation thereof) have been presented to the Company by the Related Persons, but the terms remain subject to review and negotiation by the GCN. Transactions may have been recently offered or undergone more extensive negotiations. Unless otherwise noted, no assumptions should be made with respect to the stage of negotiation of an offered transaction, nor should any assumptions be made that any offered transaction will be approved, committed or ultimately consummated on the terms described herein. Transactions referred to as "committed" or "signed" (or any variation thereof) represent transactions which have been approved by the GCN and for which definitive agreements have been delivered; however, such transactions have not yet been consummated and remain subject to various risks and uncertainties (including financing, third party

consents and arrangements and regulatory approvals). The Company provides information regarding offered and committed transactions believing that such information is useful to an understanding of the Company's business and operations; however, given the uncertainty of such transactions, undue reliance should not be placed on any expectations regarding such transactions and the Company can give no assurance that such expectations will prove to be correct, as actual results may vary materially.

Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Cash Available for Distribution are estimates as of today's date, November 4, 2025, and are based on assumptions believed to be reasonable as of this date. The Company expressly disclaims any current intention to update such guidance. The foregoing review of factors that could cause The Company's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should not be construed as exhaustive and should be considered in connection with information regarding risks and uncertainties that may affect the Company's future results included in The Company's filings with the Securities and Exchange Commission at www.sec.gov. In addition, The Company makes available free of charge at www.clearwayenergy.com, copies of materials it files with, or furnishes to, the Securities and Exchange Commission.

# # #

Contacts:

 
    Investors:                                  Media: 
    Akil Marsh                                 Zadie Oleksiw 
    investor.relations@clearwayenergy.com      media@clearwayenergy.com 
    609-608-1500                               202-836-5754 
 
 
 
                      CLEARWAY ENERGY, INC. 
              CONSOLIDATED STATEMENTS OF OPERATIONS 
                           (Unaudited) 
 
                       Three months ended     Nine months ended 
                          September 30,         September 30, 
                                             -------------------- 
(In millions, except 
per share amounts)      2025      2024         2025      2024 
                       ------    ------                 ------ 
Operating Revenues 
    Total operating 
     revenues         $   429   $   486      $ 1,119   $ 1,115 
                       ------    ------       ------    ------ 
Operating Costs and 
Expenses 
     Cost of 
      operations, 
      exclusive of 
      depreciation, 
      amortization 
      and accretion 
      shown 
      separately 
      below               128       135          381       378 
   Depreciation, 
    amortization and 
    accretion             176       164          502       471 
   General and 
    administrative         10         9           31        29 
   Transaction and 
    integration 
    costs                   3        --            8         4 
    Total operating 
     costs and 
     expenses             317       308          922       882 
Operating Income          112       178          197       233 
                       ------    ------       ------    ------ 
Other Income 
(Expense) 
   Equity in 
    earnings of 
    unconsolidated 
    affiliates             15        13           27        33 
   Other income, net        7         8           22        36 
   Loss on debt 
    extinguishment         (7)       --           (7)       (3) 
   Interest expense       (98)     (139)        (297)     (284) 
                       ------    ------       ------    ------ 
    Total other 
     expense, net         (83)     (118)        (255)     (218) 
                       ------    ------       ------    ------ 
Income (Loss) Before 
 Income Taxes              29        60          (58)       15 
   Income tax 
    (benefit) 
    expense               (31)       33          (26)       30 
                       ------    ------       ------    ------ 
Net Income (Loss)          60        27          (32)      (15) 
                       ------    ------       ------    ------ 
     Less: Net loss 
      attributable 
      to 
      noncontrolling 
      interests and 
      redeemable 
      noncontrolling 
      interests          (176)       (9)        (305)     (100) 
                       ------    ------       ------    ------ 
Net Income 
 Attributable to 
 Clearway Energy, 
 Inc.                 $   236   $    36      $   273   $    85 
                       ======    ======       ======    ====== 
Earnings Per Share 
Attributable to 
Clearway Energy, 
Inc. Class A and 
Class C Common 
Stockholders 
     Weighted 
      average number 
      of Class A 
      common shares 
      outstanding - 
      basic and 
      diluted              35        35           35        35 
     Weighted 
      average number 
      of Class C 
      common shares 
      outstanding - 
      basic and 
      diluted              83        83           83        83 
Earnings Per 
 Weighted Average 
 Class A and Class C 
 Common Share - 
 Basic and Diluted    $  2.00   $  0.31      $  2.32   $  0.72 
Dividends Per Class 
 A Common Share       $0.4456   $0.4171      $1.3152   $1.2306 
                       ======    ======       ======    ====== 
Dividends Per Class 
 C Common Share       $0.4456   $0.4171      $1.3152   $1.2306 
                       ======    ======       ======    ====== 
 
 
 
                        CLEARWAY ENERGY, INC. 
            CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
                              (Unaudited) 
 
                     Three months ended         Nine months ended 
                        September 30,             September 30, 
                   -----------------------  -------------------------- 
(In millions)       2025          2024          2025          2024 
-----------------                 ----                        ---- 
Net Income (Loss)  $  60       $    27       $   (32)          (15) 
Other 
Comprehensive 
Loss 
  Unrealized loss 
   on derivatives 
   and changes in 
   accumulated 
   OCI/OCL, net 
   of income tax 
   benefit of 
   $--, $(2), 
   $(5) and $(2)      (5)          (13)          (23)          (13) 
                    ----          ----          ----          ---- 
  Other 
   comprehensive 
   loss               (5)          (13)          (23)          (13) 
                    ----          ----          ----          ---- 
Comprehensive 
 Income (Loss)        55            14           (55)          (28) 
  Less: 
   Comprehensive 
   loss 
   attributable 
   to 
   noncontrolling 
   interests and 
   redeemable 
   noncontrolling 
   interests        (178)          (18)         (319)         (107) 
                    ----          ----          ----          ---- 
Comprehensive 
 Income 
 Attributable to 
 Clearway Energy, 
 Inc.              $ 233       $    32       $   264       $    79 
                    ====          ====          ====          ==== 
 
 
 
                           CLEARWAY ENERGY, INC. 
                         CONSOLIDATED BALANCE SHEETS 
                                 (Unaudited) 
 
(In millions, except shares)       September 30, 2025     December 31, 2024 
                                 ----------------------  ------------------- 
            ASSETS                    (Unaudited) 
                                 ----------------------  ------------------- 
Current Assets 
   Cash and cash equivalents       $            251        $             332 
   Restricted cash                              390                      401 
   Accounts receivable -- trade                 238                      164 
   Inventory                                     71                       64 
   Derivative instruments                        22                       39 
   Prepayments and other 
    current assets                               87                       67 
                                 ---  -------------      ---  -------------- 
      Total current assets                    1,059                    1,067 
                                 ---  -------------      ---  -------------- 
Property, plant and equipment, 
 net                                         11,296                    9,944 
                                 ---  -------------      ---  -------------- 
Other Assets 
   Equity investments in 
    affiliates                                  301                      309 
   Intangible assets for power 
    purchase agreements, net                  2,343                    2,125 
   Other intangible assets, net                  65                       68 
   Derivative instruments                       113                      136 
   Deferred income taxes                         26                       -- 
   Right-of-use assets, net                     711                      547 
   Other non-current assets                     152                      133 
                                 ---  -------------      ---  -------------- 
      Total other assets                      3,711                    3,318 
                                 ---  -------------      ---  -------------- 
Total Assets                       $         16,066        $          14,329 
                                 ===  =============      ===  ============== 
 LIABILITIES AND STOCKHOLDERS' 
            EQUITY 
Current Liabilities 
   Current portion of long-term 
    debt                           $            342        $             430 
   Accounts payable -- trade                    152                       82 
   Accounts payable -- 
    affiliates                                   30                       31 
   Derivative instruments                        55                       56 
   Accrued interest expense                      36                       53 
   Accrued expenses and other 
    current liabilities                          72                       66 
                                 ---  -------------      ---  -------------- 
      Total current liabilities                 687                      718 
                                 ---  -------------      ---  -------------- 
Other Liabilities 
   Long-term debt                             8,084                    6,750 
   Deferred income taxes                         21                       89 
   Derivative instruments                       319                      315 
   Long-term lease liabilities                  792                      569 
   Other non-current 
    liabilities                                 374                      324 
                                 ---  -------------      ---  -------------- 
      Total other liabilities                 9,590                    8,047 
                                 ---  -------------      ---  -------------- 
Total Liabilities                            10,277                    8,765 
                                 ---  -------------      ---  -------------- 
Redeemable noncontrolling 
interest in subsidiaries                         74                       -- 
                                 ---  -------------      ---  -------------- 
Commitments and Contingencies 
Stockholders' Equity 
   Preferred stock, $0.01 par 
   value; 10,000,000 shares 
   authorized; none issued                       --                       -- 
   Class A, Class B, Class C 
    and Class D common stock, 
    $0.01 par value; 
    3,000,000,000 shares 
    authorized (Class A 
    500,000,000, Class B 
    500,000,000, Class C 
    1,000,000,000, Class D 
    1,000,000,000); 202,195,425 
    shares issued and 
    outstanding (Class A 
    34,613,853, Class B 
    42,738,750, Class C 
    83,266,680, Class D 
    41,576,142) at September 
    30, 2025 and 202,147,579 
    shares issued and 
    outstanding (Class A 
    34,613,853, Class B 
    42,738,750, Class C 
    82,833,226, Class D 
    41,961,750) at December 31, 
    2024                                          1                        1 
   Additional paid-in capital                 1,689                    1,805 
   Retained earnings                            372                      254 
   Accumulated other 
    comprehensive (loss) 
    income                                      (13)                       3 
   Noncontrolling interest                    3,666                    3,501 
                                 ---  -------------      ---  -------------- 
Total Stockholders' Equity                    5,715                    5,564 
                                 ---  -------------      ---  -------------- 
Total Liabilities and 
 Stockholders' Equity              $         16,066        $          14,329 
                                 ===  =============      ===  ============== 
 
 
 
                           CLEARWAY ENERGY, INC. 
                    CONSOLIDATED STATEMENTS OF CASH FLOWS 
                                 (Unaudited) 
 
                                        Nine months ended September 30, 
                                   ----------------------------------------- 
(In millions)                              2025                  2024 
                                                             ------------ 
Cash Flows from Operating 
Activities 
  Net Loss                          $           (32)      $           (15) 
    Adjustments to reconcile net 
    loss to net cash provided by 
    operating activities: 
      Equity in earnings of 
       unconsolidated affiliates                (27)                  (33) 
      Distributions from 
       unconsolidated affiliates                 19                    21 
      Depreciation, amortization 
       and accretion                            502                   471 
      Amortization of financing 
       costs and debt discounts                  11                    10 
      Amortization of intangibles               137                   137 
      Loss on debt extinguishment                 7                     3 
      Reduction in carrying 
       amount of right-of-use 
       assets                                    12                    11 
      Changes in deferred income 
       taxes                                    (26)                   23 
      Changes in derivative 
       instruments and 
       amortization of 
       accumulated OCI/OCL                        4                    34 
      Changes in other working 
       capital                                  (96)                  (84) 
                                       ------------          ------------ 
Net Cash Provided by Operating 
 Activities                                     511                   578 
                                       ------------          ------------ 
Cash Flows from Investing 
Activities 
      Acquisitions, net of cash 
       acquired                                (324)                   -- 
      Acquisition of Drop Down 
       Assets, net of cash 
       acquired                                (219)                 (671) 
      Capital expenditures                     (213)                 (237) 
      Return of investment from 
       unconsolidated affiliates                 14                    38 
      Decrease in note receivable 
       -- affiliate                              --                   184 
      Other                                       3                    12 
                                       ------------          ------------ 
Net Cash Used in Investing 
 Activities                                    (739)                 (674) 
                                       ------------          ------------ 
Cash Flows from Financing 
Activities 
      Contributions from 
       noncontrolling interests, 
       net of distributions                     734                 1,385 
      Payments of dividends and 
       distributions                           (266)                 (249) 
      Pro-rata distributions to 
       CEG                                       (7)                   -- 
      Buyout of noncontrolling 
       interest                                  (3)                   -- 
      Proceeds from the revolving 
      credit facility                           480                    -- 
      Payments for the revolving 
       credit facility                          (75)                   -- 
      Proceeds from the issuance 
       of long-term debt                        472                   255 
      Payments of debt issuance 
       costs                                     (7)                   (7) 
      Payments for long-term debt            (1,191)               (1,664) 
      Other                                      (1)                   (1) 
                                       ------------          ------------ 
Net Cash Provided by (Used in) 
 Financing Activities                           136                  (281) 
Net Decrease in Cash, Cash 
 Equivalents and Restricted Cash                (92)                 (377) 
Cash, Cash Equivalents and 
 Restricted Cash at Beginning of 
 Period                                         733                 1,051 
                                       ------------          ------------ 
Cash, Cash Equivalents and 
 Restricted Cash at End of 
 Period                             $           641       $           674 
                                       ============          ============ 
 
 
 
                                                        CLEARWAY ENERGY, INC. 
                                           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 
                                             For the Nine Months Ended September 30, 2025 
                                                             (Unaudited) 
 
                                                 Additional                  Accumulated Other                            Total 
                       Preferred      Common       Paid-In       Retained      Comprehensive      Noncontrolling      Stockholders' 
(In millions)            Stock         Stock       Capital       Earnings      Income (Loss)         Interest             Equity 
                     --------------   -------  --------------  ------------  -----------------  ------------------  ----------------- 
Balances at 
 December 31, 2024    $           --  $     1   $   1,805       $  254        $     3             $    3,501          $     5,564 
     Net income (loss)             --       --          --            4             --                   (108)                (104) 
    Unrealized loss on 
     derivatives and 
     changes in 
     accumulated OCI, 
     net of tax                    --       --          --           --             (2)                    (3)                  (5) 
    Distributions to 
     CEG, net of 
     contributions, 
     cash                          --       --          --           --             --                     (2)                  (2) 
    Contributions from 
     noncontrolling 
     interests, net of 
     distributions, 
     cash                          --       --          --           --             --                     51                   51 
    Distributions to 
     noncontrolling 
     interests, 
     non-cash                      --       --          --           --             --                     (4)                  (4) 
    Transfers of assets 
     under common 
     control                       --       --         (89)          --             (1)                    79                  (11) 
    Non-cash 
     adjustments for 
     change in tax 
     basis                         --       --          18           --             --                     --                   18 
    Stock-based 
     compensation                  --       --           1           --             --                     --                    1 
    Common stock 
     dividends and 
     distributions to 
     CEG unit holders              --       --          --          (51)            --                    (36)                 (87) 
    Other                          --       --          --           --             --                     (1)                  (1) 
                          -----------   ------      ------          ---  ---      ----  -------  ---  -------   ---  ---  -------- 
Balances at March 31, 
 2025                              --        1       1,735          207             --                  3,477                5,420 
    Net income (loss)              --       --          --           33             --                     (8)                  25 
    Unrealized loss on 
     derivatives and 
     changes in 
     accumulated OCI, 
     net of tax                    --       --          --           --             (4)                    (9)                 (13) 
    Contributions from 
     CEG, net of 
     distributions, 
     cash                          --       --          --           --             --                     46                   46 
    Contributions from 
     noncontrolling 
     interests, net of 
     distributions, 
     cash                          --       --          --           --             --                    238                  238 
    Pro-rata 
     distributions to 
     CEG, cash                     --       --          --           --             --                     (7)                  (7) 
    Transfers of assets 
     under common 
     control                       --       --         (93)          --             (6)                    (8)                (107) 
    Non-cash 
     adjustments for 
     change in tax 
     basis                         --       --          27           --             --                     --                   27 
    Stock-based 
     compensation                  --       --           1           --             --                     --                    1 
    Common stock 
     dividends and 
     distributions to 
     CEG unit holders              --       --          --          (51)            --                    (38)                 (89) 
    Other                          --       --          --           (1)            --                      2                    1 
                          -----------   ------      ------          ---           ----  -------  ---  -------  ----  ---  -------- 
Balances at June 30, 
 2025                              --        1       1,670          188            (10)                 3,693                5,542 
    Net income                     --       --          --          236             --                      9                  245 
    Unrealized loss on 
     derivatives and 
     changes in 
     accumulated OCL, 
     net of tax                    --       --          --           --             (3)                    (2)                  (5) 
    Contributions from 
     CEG, net of 
     distributions, 
     cash                          --       --          --           --             --                      5                    5 
    Contributions from 
     noncontrolling 
     interests, net of 
     distributions, 
     cash                          --       --          --           --             --                    144                  144 
    Transfer of assets 
     under common 
     control                       --       --          --           --             --                   (143)                (143) 
    Buyout of 
     noncontrolling 
     interest                      --       --          --           --             --                     (3)                  (3) 
    Non-cash 
     adjustments for 
     change in tax 
     basis                         --       --          18           --             --                     --                   18 
    Stock-based 
     compensation                  --       --           1           --             --                     --                    1 
    Common stock 
     dividends and 
     distributions to 
     CEG unit holders              --       --          --          (53)            --                    (37)                 (90) 
    Other                          --       --          --            1             --                     --                    1 
                          -----------   ------      ------          ---  ---      ----  -------  ---  -------  ----  ---  -------- 
Balances at 
 September 30, 
 2025                 $           --  $     1   $   1,689       $  372        $   (13)            $    3,666          $     5,715 
                         ===========   ======      ======          ===  ===      ====   ======  ===  =======  ====  ===  ======== 
 
 
 
                                                        CLEARWAY ENERGY, INC. 
                                           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 
                                             For the Nine Months Ended September 30, 2024 
                                                             (Unaudited) 
 
                                                 Additional                  Accumulated Other                            Total 
                       Preferred      Common       Paid-In       Retained      Comprehensive      Noncontrolling      Stockholders' 
(In millions)            Stock         Stock       Capital       Earnings         Income             Interest             Equity 
                     --------------   -------  --------------  ------------  -----------------  ------------------  ----------------- 
Balances at 
 December 31, 2023    $           --  $     1   $   1,732       $  361        $    7              $    2,893          $     4,994 
     Net loss                      --       --          --           (2)           --                     (45)                 (47) 
    Unrealized (loss) 
     gain on 
     derivatives and 
     changes in 
     accumulated OCI, 
     net of tax                    --       --          --           --            (2)                      1                   (1) 
    Distributions to 
     CEG, net of 
     contributions, 
     cash                          --       --          --           --            --                      (1)                  (1) 
    Contributions from 
     noncontrolling 
     interests, net of 
     distributions, 
     cash                          --       --          --           --            --                     215                  215 
    Transfers of assets 
     under common 
     control                       --       --           2           --            --                     (42)                 (40) 
    Non-cash 
     adjustments for 
     change in tax 
     basis                         --       --           6           --            --                      --                    6 
    Stock based 
     compensation                  --       --           1           --            --                      --                    1 
    Common stock 
     dividends and 
     distributions to 
     CEG unit holders              --       --          --          (47)           --                     (34)                 (81) 
    Other                          --       --          --           (1)           --                      --                   (1) 
                          -----------   ------      ------          ---           ---  --------  ---  -------  ----  ---  -------- 
Balances at March 31, 
 2024                              --        1       1,741          311             5                   2,987                5,045 
     Net income (loss)             --       --          --           51            --                     (51)                  -- 
    Unrealized gain on 
     derivatives and 
     changes in 
     accumulated OCI, 
     net of tax                    --       --          --           --            --                       1                    1 
    Contributions from 
     CEG, net of 
     distributions, 
     cash                          --       --          --           --            --                     222                  222 
    Contributions from 
     noncontrolling 
     interest, net of 
     distributions, 
     cash                          --       --          --           --            --                     988                  988 
    Distributions to 
     noncontrolling 
     interests, net of 
     contributions, 
     non-cash                      --       --          --           --            --                      (1)                  (1) 
    Transfers of assets 
     under common 
     control                       --       --           5           --            --                    (549)                (544) 
    Non-cash adjustment 
     for change in tax 
     basis                         --       --          85           --            --                      --                   85 
    Stock based 
     compensation                  --       --          (1)          --            --                      --                   (1) 
    Common stock 
     dividends and 
     distributions to 
     CEG unit holders              --       --          --          (48)           --                     (35)                 (83) 
    Other                          --       --          --           --            --                      (1)                  (1) 
                          -----------   ------      ------          ---  ---      ---  --------  ---  -------   ---  ---  -------- 
Balances at June 30, 
 2024                              --        1       1,830          314             5                   3,561                5,711 
     Net income (loss)             --       --          --           36            --                     (13)                  23 
    Unrealized loss on 
     derivatives and 
     changes in 
     accumulated OCI, 
     net of tax                    --       --          --           --            (4)                     (9)                 (13) 
    Contributions from 
     CEG, cash                     --       --          --           --            --                       6                    6 
    Distributions to 
     noncontrolling 
     interests, net of 
     contributions, 
     cash                          --       --          --           --            --                     (19)                 (19) 
    Stock based 
     compensation                  --       --           1           --            --                      --                    1 
    Common stock 
     dividends and 
     distributions to 
     CEG unit holders              --       --          --          (49)           --                     (36)                 (85) 
Balances at 
 September 30, 
 2024                 $           --  $     1   $   1,831       $  301        $    1              $    3,490          $     5,624 
                         ===========   ======      ======          ===  ===      ===  ========  ===  =======  ====  ===  ======== 
 

Appendix Table A-1: Three Months Ended September 30, 2025, Segment Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):

 
                        Flexible     Renewables 
($ in millions)        Generation     & Storage     Corporate     Total 
------------------   --------------  -----------  -------------  ------- 
Net Income (Loss)     $    39        $        31    $   (10)     $ 60 
-------------------      ----  ----   ----------  ---  ----       --- 
Plus: 
   Income Tax 
    Benefit                --                 --        (31)      (31) 
   Interest 
    Expense, net            8                 55         28        91 
   Depreciation, 
    Amortization, 
    and ARO                28                148         --       176 
   Contract 
    Amortization            5                 45         --        50 
   Loss on Debt 
    Extinguishment         --                  7         --         7 
   Mark to Market 
    (MtM) 
    (Gain)/Loss on 
    economic 
    hedges                (25)                30         --         5 
   Transaction and 
    integration 
    costs                  --                 --          3         3 
   Other 
    non-recurring           2                  8         --        10 
   Adjustments to 
    reflect CWEN's 
    pro-rata share 
    of Adjusted 
    EBITDA from 
    Unconsolidated 
    Affiliates              3                 10         --        13 
   Non-Cash Equity 
    Compensation           --                 --          1         1 
-------------------      ----  ----   ----------  ---  ----       --- 
Adjusted EBITDA       $    60        $       334    $    (9)     $385 
===================      ====  ====   ==========  ===  ====       === 
 

Appendix Table A-2: Three Months Ended September 30, 2024, Segment Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):

 
                        Flexible      Renewables & 
($ in millions)        Generation       Storage        Corporate     Total 
------------------   --------------  --------------  -------------  ------- 
Net Income (Loss)     $   25           $   66          $   (64)     $ 27 
-------------------      ---  -----  ---  ---  ----  ---  ----       --- 
Plus: 
   Income Tax 
    Expense               --               --               33        33 
   Interest 
    Expense, net           8              100               23       131 
   Depreciation, 
    Amortization, 
    and ARO               29              135               --       164 
   Contract 
    Amortization           5               41               --        46 
   Mark to Market 
    (MtM) 
    (Gain)/Loss on 
    economic 
    hedges                (4)             (68)              --       (72) 
   Other 
    non-recurring         --                9               --         9 
   Adjustments to 
    reflect CWEN's 
    pro-rata share 
    of Adjusted 
    EBITDA from 
    Unconsolidated 
    Affiliates             3               12               --        15 
   Non-Cash Equity 
    Compensation          --               --                1         1 
-------------------      ---  -----  ---  ---  ----  ---  ----       --- 
Adjusted EBITDA       $   66           $  295          $    (7)     $354 
===================      ===  =====  ===  ===  ====  ===  ====       === 
 

Appendix Table A-3: Nine Months Ended September 30, 2025, Segment Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):

 
                        Flexible     Renewables 
($ in millions)        Generation     & Storage     Corporate     Total 
------------------   --------------  -----------  -------------  ------- 
Net Income (Loss)     $    30        $        24    $   (86)     $(32) 
-------------------      ----  ----   ----------  ---  ----       --- 
Plus: 
   Income Tax 
    Benefit                --                 --        (26)      (26) 
   Interest 
    Expense, net           24                178         73       275 
   Depreciation, 
    Amortization, 
    and ARO                84                418         --       502 
   Contract 
    Amortization           14                125         --       139 
   Loss on Debt 
    Extinguishment         --                  7         --         7 
   Mark to Market 
    (MtM) 
    (Gain)/Loss on 
    economic 
    hedges                 (7)                36         --        29 
   Transaction and 
    Integration 
    costs                  --                 --          8         8 
   Other 
    Non-recurring           2                 36         --        38 
   Adjustments to 
    reflect CWEN's 
    pro-rata share 
    of Adjusted 
    EBITDA from 
    Unconsolidated 
    Affiliates              9                 29         --        38 
   Non-Cash Equity 
    Compensation           --                 --          2         2 
-------------------      ----  ----   ----------  ---  ----       --- 
Adjusted EBITDA       $   156        $       853    $   (29)     $980 
===================      ====  ====   ==========  ===  ====       === 
 

Appendix Table A-4: Nine Months Ended September 30, 2024, Segment Adjusted EBITDA Reconciliation

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):

 
                        Flexible     Renewables 
($ in millions)        Generation     & Storage     Corporate     Total 
------------------   --------------  -----------  -------------  ------- 
Net Income (Loss)     $    50        $        60   $   (125)     $(15) 
-------------------      ----  ----   ----------      -----       --- 
Plus: 
   Income Tax 
    Expense                --                 --         30        30 
   Interest 
    Expense, net           21                163         64       248 
   Depreciation, 
    Amortization, 
    and ARO                88                383         --       471 
   Contract 
    Amortization           14                124         --       138 
   Loss on Debt 
    Extinguishment         --                  3         --         3 
   Mark to Market 
    (MtM) 
    (Gain)/Loss on 
    economic 
    hedges                 (9)                 4         --        (5) 
   Transaction and 
    Integration 
    costs                  --                 --          4         4 
   Other 
    Non-recurring           1                  8         --         9 
   Adjustments to 
    reflect CWEN's 
    pro-rata share 
    of Adjusted 
    EBITDA from 
    Unconsolidated 
    Affiliates              9                 25         --        34 
   Non-Cash Equity 
    Compensation           --                 --          1         1 
-------------------      ----  ----   ----------      -----       --- 
Adjusted EBITDA       $   174        $       770   $    (26)     $918 
===================      ====  ====   ==========      =====       === 
 

Appendix Table A-5: Cash Available for Distribution Reconciliation

The following table summarizes the calculation of Cash Available for Distribution and provides a reconciliation to Cash from Operating Activities:

 
                      Three Months Ended       Nine Months Ended 
($ in millions)       9/30/25     9/30/24    9/30/25      9/30/24 
-------------------  ----------  ---------  ----------  ----------- 
Adjusted EBITDA        $   385    $   354     $   980    $   918 
-------------------  ---  ----       ----   ---  ----       ---- 
   Cash interest 
    paid(3)               (102)       (96)       (273)      (252) 
   Changes in 
    prepaid and 
    accrued 
    liabilities for 
    tolling 
    agreements              20         19           4          3 
   Adjustments to 
    reflect 
    sale-type 
    leases and 
    payments for 
    lease expenses           2        (10)          5         (5) 
   Pro-rata 
    Adjusted EBITDA 
    from 
    unconsolidated 
    affiliates             (27)       (25)        (65)       (64) 
   Distributions 
    from 
    unconsolidated 
    affiliates               6          6          19         21 
   Changes in 
    working capital 
    and other              (59)        53        (159)       (43) 
-------------------  ---  ----       ----   ---  ----       ---- 
Cash from Operating 
 Activities                225        301         511        578 
-------------------  ---  ----       ----   ---  ----       ---- 
   Changes in 
    working capital 
    and other               59        (53)        159         43 
   Return of 
    investment from 
    unconsolidated 
    affiliates(4)            4          3          14         10 
   Net 
    contributions 
    (to)/from 
    non-controlling 
    interest(5)            (28)       (14)        (62)       (43) 
   Cash receipts 
    from notes 
    receivable               4         --           7         -- 
   Maintenance 
    capital 
    expenditures            (2)        (4)        (11)        (8) 
   Principal 
    amortization of 
    indebtedness(6)        (96)       (87)       (235)      (205) 
-------------------  ---  ----       ----   ---  ----       ---- 
Cash Available for 
 Distribution 
 before 
 Adjustments               166        146         383        375 
-------------------  ---  ----       ----   ---  ----       ---- 
   Net impact of 
    drop downs from 
    timing of 
    construction 
    debt service            --         --          12         10 
-------------------  ---  ----       ----   ---  ----       ---- 
Cash Available for 
 Distribution          $   166    $   146     $   395    $   385 
-------------------  ---  ----       ----   ---  ----       ---- 
 

Appendix Table A-6: Nine Months Ended September 30, 2025, Sources and Uses of Liquidity

The following table summarizes the sources and uses of liquidity in 2025:

 
                                                         Nine Months Ended 
($ in millions)                                               9/30/25 
----------------------------------------------------   --------------------- 
Sources: 
   Contributions from noncontrolling interests, net 
    of distributions                                     $           734 
   Net cash provided by operating activities                         511 
   Proceeds from the revolving credit facility                       480 
   Proceeds from issuance of long-term debt                          472 
   Return of investments from unconsolidated 
    affiliates                                                        14 
 
Uses: 
   Payments for long-term debt                           $        (1,191) 
   Acquisitions, net of cash acquired                               (324) 
   Payments of dividends and distributions                          (266) 
   Acquisition of Drop Down Assets, net of cash 
    acquired                                                        (219) 
   Capital expenditures                                             (213) 
   Payments for the revolving credit facility                        (75) 
   Other net cash outflows                                           (15) 
 
Change in total cash, cash equivalents and restricted 
 cash                                                    $           (92) 
-----------------------------------------------------  ---  ------------ 
 

Appendix Table A-7: Adjusted EBITDA and Cash Available for Distribution Guidance

 
                                           2025 Full Year     2026 Full Year 
($ in millions)                             Guidance Range     Guidance Range 
----------------------------------------  -----------------  ----------------- 
Net Loss                                       (110) - (90)         (44) - (4) 
----------------------------------------  -----------------  ----------------- 
      Income Tax (Benefit) Expense                 (33)                  5 
      Interest Expense, net                        362                 395 
      Depreciation, Amortization, 
       Contract Amortization and ARO 
       Expense                                     960               1,022 
      Adjustment to reflect CWEN share 
       of Adjusted EBITDA in 
       unconsolidated affiliates                    53                  59 
      Non-Cash Equity Compensation                   3                   4 
----------------------------------------  ------------  ---  ------------- 
Adjusted EBITDA                               1,235 - 1,255      1,441 - 1,481 
----------------------------------------  -----------------  ----------------- 
      Cash interest paid                          (348)               (383) 
      Changes in prepaid and accrued 
       liabilities for tolling 
       agreements                                   (4)                 (3) 
      Adjustments to reflect sale-type 
       leases and payments for lease 
       expenses                                      6                   6 
      Pro-rata Adjusted EBITDA from 
       unconsolidated affiliates                   (81)                (82) 
      Cash distributions from 
       unconsolidated affiliates(7)                 48                  43 
      Income Tax Payments                           (2)                 -- 
----------------------------------------  ------------       ------------- 
Cash from Operating Activities                    854 - 874      1,022 - 1,062 
      Net distributions to 
       non-controlling interest(8)                (103)               (149) 
      Cash receipts from notes 
       receivable                                   10                  13 
      Maintenance capital expenditures             (21)                (32) 
      Principal amortization of 
       indebtedness(9)                            (320)               (384) 
Cash Available for Distribution                   420 - 440          470 - 510 
----------------------------------------  -----------------  ----------------- 
 

Non-GAAP Financial Information

EBITDA and Adjusted EBITDA

EBITDA, Adjusted EBITDA, and Cash Available for Distribution (CAFD) are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of non-GAAP financial measures should not be construed as an inference that Clearway Energy's future results will be unaffected by unusual or non-recurring items.

EBITDA represents net income before interest (including loss on debt extinguishment), taxes, depreciation and amortization. EBITDA is presented because Clearway Energy considers it an important supplemental measure of its performance and believes debt and equity holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:

   -- EBITDA does not reflect cash expenditures, or future requirements for 
      capital expenditures, or contractual commitments; 
 
   -- EBITDA does not reflect changes in, or cash requirements for, working 
      capital needs; 
 
   -- EBITDA does not reflect the significant interest expense, or the cash 
      requirements necessary to service interest or principal payments, on debt 
      or cash income tax payments; 
 
   -- Although depreciation and amortization are non-cash charges, the assets 
      being depreciated and amortized will often have to be replaced in the 
      future, and EBITDA does not reflect any cash requirements for such 
      replacements; and 
 
   -- Other companies in this industry may calculate EBITDA differently than 
      Clearway Energy does, limiting its usefulness as a comparative measure. 

Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to use to invest in the growth of Clearway Energy's business. Clearway Energy compensates for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA only supplementally. See the statements of cash flow included in the financial statements that are a part of this news release.

Adjusted EBITDA is presented as a further supplemental measure of operating performance. Adjusted EBITDA represents EBITDA adjusted for mark-to-market gains or losses, non-cash equity compensation expense, asset write offs and impairments; and factors which we do not consider indicative of future operating performance such as transition and integration related costs. The reader is encouraged to evaluate each adjustment and the reasons Clearway Energy considers it appropriate for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, the reader should be aware that in the future Clearway Energy may incur expenses similar to the adjustments in this news release.

Management believes Adjusted EBITDA is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods. This measure is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired.

Additionally, Management believes that investors commonly adjust EBITDA information to eliminate the effect of restructuring and other expenses, which vary widely from company to company and impair comparability. As we define it, Adjusted EBITDA represents EBITDA adjusted for the effects of impairment losses, gains or losses on sales, non-cash equity compensation expense, dispositions or retirements of assets, any mark-to-market gains or losses from accounting for derivatives, adjustments to exclude gains or losses on the repurchase, modification or extinguishment of debt, and any extraordinary, unusual or non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments. We adjust for these items in our Adjusted EBITDA as our management believes that these items would distort their ability to efficiently view and assess our core operating trends.

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