Hannon Armstrong Q4 2024 Earnings Report
Key Takeaways
Hannon Armstrong (HASI) achieved a 17.02% YoY revenue growth in Q4 2024, reaching $101,298,000. Adjusted EPS increased by 16.98% to $0.62, supported by record investment activity and higher portfolio yields. Despite revenue gains, GAAP net income declined by 21.91% YoY, primarily due to higher interest expenses and other costs. The company remains focused on long-term growth, extending its 8%-10% adjusted EPS growth guidance through 2027.
Revenue grew 17.02% YoY to $101,298,000 in Q4 2024.
Adjusted EPS rose 16.98% YoY to $0.62, while GAAP EPS fell 27.03% to $0.54.
Net income declined 21.91% YoY to $70,087,000 due to increased expenses.
Record $1.1 billion in new transactions closed in Q4, boosting total 2024 investments to $2.3 billion.
Hannon Armstrong Revenue
Hannon Armstrong EPS
Forward Guidance
HASI extended its adjusted EPS growth guidance of 8%-10% annually through 2027, while expecting a decline in payout ratio and maintaining high investment yields.
Positive Outlook
- Extended 8%-10% adjusted EPS growth guidance through 2027.
- Portfolio yield exceeded 10.5%, up from 9% in 2023.
- Dividend payout ratio expected to decline to 55%-60% by 2027.
- Continued investment pipeline of over $5.5 billion.
- Strong capital access, demonstrated by expanded credit facilities and bond offerings.
Challenges Ahead
- GAAP net income declined 21.91% YoY due to higher expenses.
- Interest expense increased by 21.67% YoY, impacting profitability.
- Higher cost of debt financing may pressure margins in the near term.
- Dividend growth could be slower as payout ratio declines.
- Macroeconomic and policy uncertainties may impact long-term growth.