Earning Preview: Clearway Energy Inc Class A this quarter’s revenue is expected to increase by 13.90%, and institutional views are neutral

Abstract

Clearway Energy Inc Class A will report quarterly results on February 23, 2026, Post Market; investors expect revenue growth versus last year alongside seasonal earnings volatility, with Street projections pointing to higher top line but softer margins and EPS amid resource and timing effects.

Market Forecast

Consensus projections for Clearway Energy Inc Class A this quarter point to revenue of 334.95 million, up 13.90% year over year; EBIT is estimated at 7.47 million, reflecting an 85.23% year-over-year decline, and adjusted EPS is projected at -$0.18, implying a 383.77% year-over-year contraction from a positive base. Margin forecasts are not explicitly provided in the available projections, suggesting a cautious stance on profitability given seasonal variability and resource timing.

The company’s main revenue engine is concentrated in contracted energy sales and availability-based payments, which together are expected to drive steadier cash receipts even as weather and price effects create quarter-to-quarter variability. Within the portfolio, renewable energy contributed 323.00 million last quarter and remains the most promising segment for incremental earnings leverage as newly commissioned capacity and improved resource conditions normalize through-year output levels.

Last Quarter Review

Clearway Energy Inc Class A delivered last quarter revenue of 429.00 million (down 11.73% year over year), a gross profit margin of 70.16%, GAAP net income attributable to the parent of 236.00 million, a net profit margin of 55.01%, and adjusted EPS of $2.00 (up 545.16% year over year). Net profit rose 615.15% quarter on quarter, underscoring the swing factor from resource and valuation/timing items layered on top of a high margin profile for the period.

Main business highlights show renewable energy revenue at 323.00 million and new-type generation revenue at 106.00 million, reflecting the heavy weighting of contracted clean generation in the revenue mix. Operationally, the company showed strong conversion of revenue into gross profit and net income during the quarter, with EBIT of 112.00 million despite year-over-year pressure (-37.08%), indicating that the combination of pricing mechanics and cost discipline supported bottom-line strength even as the quarterly pathway remained uneven.

Current Quarter Outlook

Core Revenue Drivers This Quarter

This quarter’s revenue is projected at 334.95 million, a 13.90% year-over-year increase, setting a constructive top-line tone versus the prior-year period. The anticipated improvement reflects the combination of more normalized renewable resource availability against easier comps and incremental contributions from assets that were ramping in the comparison quarter. The revenue outlook also embeds the effect of the portfolio’s contracted profile, which helps stabilize cash inflows even when realized output or prices fluctuate within normal seasonal ranges.

Despite the higher revenue base, EBIT and EPS forecasts imply softer profitability versus last year. The current-quarter EBIT projection of 7.47 million (-85.23% year over year) and an estimated adjusted EPS of -$0.18 (-383.77% year over year) point to a period characterized by seasonal maintenance, timing of resource capture, and potential non-cash valuation effects that can depress GAAP profitability in a shoulder-season quarter. The profile suggests investors should focus on the cadence of quarterly results, recognizing that a single quarter can underrepresent run-rate earnings power while revenue trends continue to track the contracted schedule and availability metrics.

Segment With Highest Growth Potential

Renewable energy remains the source of the company’s largest incremental growth potential this quarter and through the year, driven by the segment’s 323.00 million revenue contribution last quarter and the visibility provided by long-term offtake contracts. As additions and repowerings transition from construction to operations, the run-rate effect on generation hours and availability typically begins to show more consistently in revenue. Given the 13.90% consolidated revenue growth forecast for the quarter, renewable energy is positioned to capture a significant share of the upside, particularly when underlying resource conditions normalize versus last year’s comparables.

The translation of growth potential into realized earnings, however, can be uneven in any single period. The forecast of negative EPS this quarter underscores that non-operational factors and seasonality can offset otherwise constructive revenue dynamics. Areas to watch include curtailment in select regions during off-peak demand windows, timing of availability guarantees, and the quarterly distribution of incentive monetization or hedge settlements that may defer recognition past the reporting period.

Key Stock Price Swing Factors

The biggest swing factor for shares around the print is likely the contrast between higher expected revenue and weaker projected profitability. A headline revenue beat against a negative EPS print can introduce volatility if investors focus solely on the income statement instead of the quarter’s cash profile and forward visibility. Commentary on realized resource conditions, curtailment levels, and the timing of any carryover items will matter for how the Street interprets this quarter’s earnings power relative to full-year run rates.

Another element to watch is the mix and pacing of capacity that either recently entered service or is scheduled to contribute in the coming periods. Even small timing differences between mechanical completion, commercial operation dates, and revenue recognition can meaningfully skew single-quarter EBIT and EPS, particularly when starting from low winter-season baselines. Any update on commissioning milestones, availability trajectories, or expected quarterly timing of contracted step-ups can recalibrate the Street’s quarterly sequencing assumptions.

Finally, the cost of capital and debt service dynamics can influence the quarter’s income statement more than the cash flow statement. As EBIT is expected to be light, any higher interest expense, derivative marks, or amortization-related items can push EPS negative despite healthy revenue. Investors will pay close attention to management’s commentary on refinancing cadence, interest-rate hedging, and the expected path of non-cash P&L items, as these drivers disproportionately impact quarterly EPS while having a more muted effect on the medium-term cash yield of the portfolio.

Analyst Opinions

Across the limited written previews available within the review window, the prevailing stance skews neutral, with most institutions adopting a hold-style posture heading into a quarter that pairs a constructive revenue setup with softer profitability optics. The majority view frames this period as a seasonal and timing-driven trough for margins and EPS rather than a change in the company’s run-rate economics, emphasizing that the key watch items are resource normalization, commissioning milestones, and the quarterly cadence of non-cash items. The market’s neutral tilt reflects a wait-and-see approach to the balance of the year, where any signs of smoother revenue-to-EPS conversion in subsequent quarters would be viewed favorably.

The neutral majority underscores three points for this print. First, consensus acknowledges the 13.90% year-over-year revenue growth estimate but tempers enthusiasm because EBIT is forecast to fall 85.23% year over year and adjusted EPS is projected at -$0.18. Second, the group expects management to reiterate that revenue stability stems from contracted structures while quarter-to-quarter earnings fluctuate with seasonality and accounting dynamics; clarity on the pace at which EBIT and EPS normalize into the spring and summer quarters is seen as critical. Third, investors are encouraged to evaluate any update on the timing of recently completed or soon-to-complete projects, as incremental capacity and improved availability typically show up first in revenue, with the full benefit to margins and EPS realized as resource hours increase later in the year.

On balance, the neutral stance implies that upside or downside reactions will be driven less by headline revenue and more by qualitative guidance on margins, operating drivers, and the timing of non-cash effects that suppressed EBIT and EPS in the forecast. A constructive long-term tone around capacity ramp, availability, and incremental contributions in subsequent quarters would support a recovery in consensus profitability expectations, while any indication of prolonged pressure on margins or timing slippage could keep shares range-bound in the near term. As a result, the consensus view heading into February 23, 2026, is neutral, keyed to the idea that this quarter’s numbers are a waypoint within a seasonal earnings path rather than a determinant of full-year performance.