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Dec 31, 2024
Hannon Armstrong Q4 2024 Earnings Report
Hannon Armstrong reported strong revenue growth in Q4 2024, driven by higher portfolio yields and increased investment activity.
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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