HA Sustainable Infrastructure Capital (HASI)

Climate investment firm HA Sustainable Infrastructure Capital (NYSE:HASI) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 12.2% year on year to $103.1 million. Its non-GAAP profit of $0.80 per share was 16.1% above analysts’ consensus estimates.

Company Overview

With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE:HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.

Specialty finance companies provide targeted lending or financial services for specific industries or needs. They benefit from expertise in particular sectors, often reduced competition in specialized niches, and tailored underwriting that can yield higher margins. Challenges include concentration risk in specific industries, difficulty achieving scale efficiencies, and potential vulnerability during sector-specific downturns affecting their specialized markets.

HASI's competitors include other renewable energy and infrastructure investors such as Brookfield Renewable Partners (NYSE:BEP), NextEra Energy Partners (NYSE:NEP), and Clearway Energy (NYSE:CWEN), as well as larger asset managers with dedicated renewable energy investment platforms.

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, HA Sustainable Infrastructure Capital’s revenue grew at an exceptional 23.4% compounded annual growth rate over the last five years. Its growth beat the average financials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. HA Sustainable Infrastructure Capital’s annualized revenue growth of 17% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, HA Sustainable Infrastructure Capital reported year-on-year revenue growth of 12.2%, and its $103.1 million of revenue exceeded Wall Street’s estimates by 17.3%.

Revenue growth is one major determinant of business quality, and the efficiency of operations is another. For Specialty Finance companies, we look at pre-tax profit rather than the operating margin that defines sectors such as consumer, tech, and industrials.

Financials companies manage interest-bearing assets and liabilities, making the interest income and expenses included in pre-tax profit essential to their profit calculation. Taxes, being external factors beyond management control, are appropriately excluded from this alternative margin measure.

Over the last four years, HA Sustainable Infrastructure Capital’s pre-tax profit margin has fallen by 52.9 percentage points, going from 48.3% to 101%. It has also expanded by 92.2 percentage points on a two-year basis, showing its expenses have consistently grown at a slower rate than revenue. This typically signals prudent management.

HA Sustainable Infrastructure Capital’s pre-tax profit margin came in at 116% this quarter. This result was 144.5 percentage points better than the same quarter last year.

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

HA Sustainable Infrastructure Capital’s EPS grew at a decent 10.7% compounded annual growth rate over the last five years. Despite its pre-tax profit margin improvement during that time, this performance was lower than its 23.4% annualized revenue growth, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For HA Sustainable Infrastructure Capital, its two-year annual EPS growth of 11.2% is similar to its five-year trend, implying stable earnings power.

In Q3, HA Sustainable Infrastructure Capital reported adjusted EPS of $0.80, up from $0.52 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects HA Sustainable Infrastructure Capital’s full-year EPS of $2.66 to grow 7.7%.

Return on equity, or ROE, tells us how much profit a company generates for each dollar of shareholder equity, a key funding source for banks. Over a long period, banks with high ROE tend to compound shareholder wealth faster through retained earnings, buybacks, and dividends.

Over the last five years, HA Sustainable Infrastructure Capital has averaged an ROE of 8.2%, uninspiring for a company operating in a sector where the average shakes out around 10%.

HA Sustainable Infrastructure Capital reported $301.8 million of cash and $5.03 billion of debt on its balance sheet in the most recent quarter.

As investors in high-quality companies, we primarily focus on whether a company’s profits can support its debt.

With $195.3 million of EBITDA over the last 12 months, we view HA Sustainable Infrastructure Capital’s 24.2× net-debt-to-EBITDA ratio as inadequate. The company’s lacking profits relative to its borrowings give it little breathing room, raising red flags.

We were impressed by how significantly HA Sustainable Infrastructure Capital blew past analysts’ revenue expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 1.7% to $29.05 immediately after reporting.

Updated: December 3, 2025 at 11:19 PM EST

Before investing in or passing on HA Sustainable Infrastructure Capital, we urge you to understand the company’s business quality (or lack thereof), valuation, and the latest quarterly results - in that order.

HA Sustainable Infrastructure Capital is a pretty decent company if you ignore its balance sheet. To kick things off, its revenue growth was exceptional over the last five years. And while HA Sustainable Infrastructure Capital’s mediocre ROE lags the market and is a headwind for its stock price, its expanding pre-tax profit margin shows the business has become more efficient.

HA Sustainable Infrastructure Capital’s P/E ratio based on the next 12 months is 11.7x. All that said, we aren’t investing at the moment because its balance sheet makes us balk. We recommend investors interested in the company wait until it generates sufficient cash flows or raises money before getting involved.

Wall Street analysts have a consensus one-year price target of $39.14 on the company (compared to the current share price of $33.33).