HASI

HA Sustainable Infrastructure Capital is a specialty financier of energy-transition assets, with roughly $16.1 billion of managed assets and a ~$7.6 billion on-balance-sheet portfolio of over 700 long-dated (≈16-year weighted average life) receivables, debt securities, and renewable-project equity. The model earns a net interest spread plus gain-on-sale, securitization, and asset-management fees. The franchise is scaling — it completed ~$4.3B of transactions in 2025 (up from $2.3B) and revenue grew 4.4% to $401M — and it benefits from deep relationships with US clean-energy developers and utilities.

The pressure point is the spread. The portfolio's average yield rose to 8.6%, but the average cost of debt climbed faster to 5.8% (from 5.0% in 2023), interest expense jumped 21% to $292M, and a $12M provision for receivable losses (up from $1M) hit results. Net income fell 7.7% to $185M and EPS dropped 13.0% to $1.41 (also diluted by a 7.5% rise in shares) — the company is heavily dependent on $300M of equity-method income to offset a loss before those investments. Leverage is 2.08x liabilities/equity, intrinsic to the finance model but rate-sensitive.