Clearway Energy's Q3 Net Income Soars Amidst Revenue Dip, Debt Increase

TL;DR

**Clearway Energy's Q3 looks good on paper, but a deeper dive into the nine-month financials and rising debt suggests underlying operational challenges and a cautious outlook for investors.**

AI Summary

Clearway Energy LLC reported a significant increase in Net Income Attributable to Clearway Energy LLC, reaching $351 million for the three months ended September 30, 2025, up from $118 million in the same period of 2024. However, total operating revenues decreased to $429 million for the three months ended September 30, 2025, compared to $486 million in 2024. For the nine months ended September 30, 2025, the company recorded a Net Loss of $56 million, a substantial decline from a Net Income of $16 million in the prior year, despite total operating revenues remaining relatively stable at $1,119 million versus $1,115 million. Operating costs and expenses rose to $920 million for the nine months ended September 30, 2025, from $881 million in 2024, driven by increased depreciation, amortization, and accretion, which hit $502 million. The company also incurred a $7 million loss on debt extinguishment in 2025, compared to $3 million in 2024. Cash flows from operating activities decreased to $509 million for the nine months ended September 30, 2025, from $580 million in 2024, while cash used in investing activities increased to $739 million, primarily due to acquisitions totaling $543 million. Long-term debt — external increased significantly to $8,084 million as of September 30, 2025, from $6,750 million at December 31, 2024.

Why It Matters

Clearway Energy LLC's mixed financial results present a complex picture for investors. While the substantial increase in net income attributable to the company in Q3 2025 is positive, the overall nine-month net loss and declining operating cash flow raise concerns about underlying profitability and operational efficiency. The significant increase in long-term debt to $8,084 million could impact future financial flexibility and distribution growth, a key factor for investors in energy infrastructure. In a competitive renewable energy market, the ability to manage costs and integrate acquisitions effectively will be crucial for Clearway Energy LLC to maintain its market position and deliver consistent returns to its unitholders.

Risk Assessment

Risk Level: medium — The company's Net Loss of $56 million for the nine months ended September 30, 2025, compared to a Net Income of $16 million in the prior year, indicates a deterioration in overall profitability. Furthermore, long-term debt — external increased by $1,334 million to $8,084 million from December 31, 2024, which could increase interest expense and financial leverage, posing a medium-term risk to financial stability.

Analyst Insight

Investors should scrutinize Clearway Energy LLC's upcoming earnings calls for detailed explanations on the nine-month net loss and the strategy for managing increased long-term debt. Consider holding existing positions but deferring new investments until there's clearer evidence of sustained profitability and debt reduction, especially given the decrease in operating cash flow.

Financial Highlights

debt To Equity

N/A

revenue

$429M

operating Margin

26.1%

total Assets

$16,030M

total Debt

$8,084M

net Income

$351M

eps

N/A

gross Margin

N/A

cash Position

$251M

revenue Growth

-11.7%

Revenue Breakdown

Key Numbers

• $351M — Net Income Attributable to Clearway Energy LLC (Increased from $118M in Q3 2024, showing strong quarterly performance.)
• $429M — Total Operating Revenues (Decreased from $486M in Q3 2024, indicating revenue pressure.)
• -$56M — Net Income (Loss) (Shifted from a $16M Net Income in 9M 2024 to a Net Loss in 9M 2025.)
• $1,119M — Total Operating Revenues (9M) (Remained stable compared to $1,115M in 9M 2024.)
• $920M — Total Operating Costs and Expenses (9M) (Increased from $881M in 9M 2024, impacting profitability.)
• $502M — Depreciation, Amortization and Accretion (9M) (Increased from $471M in 9M 2024, contributing to higher costs.)
• $7M — Loss on Debt Extinguishment (9M) (Increased from $3M in 9M 2024, reflecting financing activities.)
• $509M — Net Cash Provided by Operating Activities (9M) (Decreased from $580M in 9M 2024, indicating reduced operational cash generation.)
• $739M — Net Cash Used in Investing Activities (9M) (Increased from $674M in 9M 2024, primarily due to acquisitions.)
• $8,084M — Long-term Debt — External (Increased from $6,750M at Dec 31, 2024, raising leverage concerns.)

Key Players & Entities

• Clearway Energy LLC (company) — Registrant and energy infrastructure investor
• Clearway Energy Group LLC (company) — Sponsor and holder of Class B and D units
• BlackRock, Inc. (company) — Indirect parent of GIM and GIP
• $351 million (dollar_amount) — Net Income Attributable to Clearway Energy LLC for Q3 2025
• $429 million (dollar_amount) — Total operating revenues for Q3 2025
• $56 million (dollar_amount) — Net Loss for the nine months ended September 30, 2025
• $8,084 million (dollar_amount) — Long-term debt — external as of September 30, 2025
• $509 million (dollar_amount) — Net Cash Provided by Operating Activities for the nine months ended September 30, 2025
• $739 million (dollar_amount) — Net Cash Used in Investing Activities for the nine months ended September 30, 2025

FAQ

Risk Factors

• Increased Debt Levels [high — financial]: Long-term debt increased significantly to $8,084 million as of September 30, 2025, from $6,750 million at December 31, 2024. This substantial rise in leverage could increase financial risk and impact the company's ability to service its debt obligations, especially if interest rates rise or cash flows decline.
• Declining Operating Income [medium — financial]: Operating income decreased to $199 million for the nine months ended September 30, 2025, from $234 million in the same period of 2024. This 14.9% decline, driven by rising operating costs and expenses, indicates pressure on the company's core profitability.
• Reduced Cash Flow from Operations [medium — financial]: Net cash provided by operating activities decreased to $509 million for the nine months ended September 30, 2025, from $580 million in 2024. This 12.2% reduction suggests a weakening ability to generate cash from ongoing business operations, potentially impacting distributions and investment capacity.
• Increased Capital Expenditures [medium — operational]: Cash used in investing activities increased to $739 million for the nine months ended September 30, 2025, primarily due to acquisitions totaling $543 million. While acquisitions can drive growth, a significant increase in investment activity, especially if debt-financed, can strain financial resources.
• Loss on Debt Extinguishment [low — financial]: The company incurred a $7 million loss on debt extinguishment in the nine months ended September 30, 2025, up from $3 million in the prior year. While not a primary driver, these costs reflect ongoing adjustments to the company's capital structure.
• Revenue Pressure [medium — market]: Total operating revenues decreased by 11.7% for the three months ended September 30, 2025, compared to the prior year. While revenues were stable year-to-date, this quarterly decline highlights potential sensitivity to market conditions or specific project performance.
• Shift to Net Loss (Year-to-Date) [high — financial]: For the nine months ended September 30, 2025, the company reported a Net Loss of $56 million, a significant shift from a Net Income of $16 million in the same period of 2024. This indicates a substantial deterioration in overall profitability on a year-to-date basis.
• Rising Depreciation and Amortization [medium — operational]: Depreciation, amortization, and accretion expenses increased to $502 million for the nine months ended September 30, 2025, from $471 million in 2024. This rise, a 6.6% increase, contributes to higher operating costs and impacts net income.

Industry Context

Clearway Energy LLC operates in the North American energy infrastructure sector, focusing on clean energy assets like wind, solar, and battery storage, alongside dispatchable combustion assets for grid reliability. The majority of its revenues are secured by long-term contracts, providing a stable revenue base. The company is sponsored by Clearway Energy Group LLC, which is equally owned by GIP and TotalEnergies, indicating strong backing from major energy players.

Regulatory Implications

As an energy infrastructure investor, Clearway Energy is subject to various environmental, energy, and financial regulations. Changes in renewable energy tax credits, grid interconnection rules, and environmental compliance standards could impact operational costs and project economics. The company's significant debt levels also place it under scrutiny regarding financial stability and compliance with debt covenants.

What Investors Should Do

1. Monitor debt levels and leverage ratios
2. Analyze the drivers of the year-to-date net loss
3. Evaluate the impact of acquisitions on cash flow and profitability
4. Assess the sustainability of quarterly net income performance
5. Scrutinize the impact of noncontrolling interests

Key Dates

• 2025-09-30: End of Q3 2025 — Reported Net Income Attributable to Clearway Energy LLC of $351 million, a significant increase from $118 million in Q3 2024, but total operating revenues decreased to $429 million from $486 million.
• 2025-09-30: End of Nine Months 2025 — Reported a Net Loss of $56 million, a substantial decline from a Net Income of $16 million in 2024, despite stable revenues. Operating costs and expenses increased to $920 million.
• 2025-09-30: Balance Sheet Date — Long-term debt stood at $8,084 million, a significant increase from $6,750 million at December 31, 2024, indicating higher leverage.
• 2025-09-30: Nine Months Investing Activities — Cash used in investing activities increased to $739 million, driven by $543 million in acquisitions, signaling active growth initiatives.
• 2025-09-30: Nine Months Operating Cash Flow — Net cash provided by operating activities decreased to $509 million from $580 million in 2024, suggesting reduced operational cash generation.

Glossary

Depreciation, amortization and accretion

Non-cash expenses that represent the reduction in value of tangible assets (depreciation), intangible assets (amortization), and the increase in the value of assets due to accretion (e.g., for asset retirement obligations). (These costs increased significantly to $502 million for the nine months ended September 30, 2025, contributing to higher operating expenses and impacting net income.)

Loss on debt extinguishment

A loss recognized when a company repays or redeems its debt before its scheduled maturity, often due to refinancing at a lower interest rate or restructuring. The loss typically represents unamortized debt issuance costs and premiums paid. (Clearway Energy LLC incurred a $7 million loss on debt extinguishment in the nine months ended September 30, 2025, indicating activity in managing its debt portfolio.)

Noncontrolling interests and redeemable noncontrolling interests

Represents the portion of equity in a subsidiary that is not attributable to the parent company (noncontrolling interests). Redeemable noncontrolling interests have terms that allow the holder to require the company to repurchase their interest. (A significant negative amount ($483 million for nine months ended Sept 30, 2025) is subtracted to arrive at Net Income Attributable to Clearway Energy LLC, highlighting the impact of these interests on reported net income.)

Equity investments in affiliates

Investments made by the company in other companies where it has significant influence but not control, often accounted for using the equity method. (These investments totaled $301 million as of September 30, 2025, representing a portion of the company's long-term assets.)

Intangible assets for power purchase agreements

Assets representing the value derived from long-term contracts to purchase electricity, often recognized when acquiring renewable energy projects. These are typically amortized over the life of the agreement. (These are substantial assets for Clearway Energy, totaling $2,343 million as of September 30, 2025, reflecting the contracted nature of its revenue streams.)

Right-of-use assets, net

Assets recognized under lease accounting standards, representing the right to use an underlying asset for the lease term. These are typically amortized over the lease term. (These assets increased to $711 million as of September 30, 2025, indicating an increase in leased assets, likely related to operational infrastructure.)

Year-Over-Year Comparison

Compared to the prior year, Clearway Energy LLC shows a mixed financial picture. While Q3 2025 net income attributable to Clearway Energy LLC surged to $351 million from $118 million, total operating revenues for the quarter declined to $429 million from $486 million. Year-to-date, the company swung from a net income of $16 million to a net loss of $56 million, despite relatively stable revenues. Operating costs and expenses rose, driven by higher depreciation, amortization, and accretion, while cash flow from operations decreased. A significant increase in long-term debt to $8,084 million from $6,750 million at year-end 2024 highlights increased financial leverage.

Key Financial Figures

• $850 million — n February 25, 2025. 2028 Senior Notes $850 million aggregate principal amount of 4.75% uns
• $925 million — Energy Operating LLC 2031 Senior Notes $925 million aggregate principal amount of 3.75% uns
• $350 million — Energy Operating LLC 2032 Senior Notes $350 million aggregate principal amount of 3.75% uns

Filing Documents

• cwen-20250930.htm (10-Q) — 2117KB
• clearwayllcex31110-q2025q3.htm (EX-31.1) — 10KB
• clearwayllcex31210-q2025q3.htm (EX-31.2) — 10KB
• clearwayllcex3210-q2025q3.htm (EX-32) — 11KB
• cwen-20250930_g1.jpg (GRAPHIC) — 63KB
• 0001628280-25-049060.txt ( ) — 10600KB
• cwen-20250930.xsd (EX-101.SCH) — 59KB
• cwen-20250930_cal.xml (EX-101.CAL) — 80KB
• cwen-20250930_def.xml (EX-101.DEF) — 361KB
• cwen-20250930_lab.xml (EX-101.LAB) — 688KB
• cwen-20250930_pre.xml (EX-101.PRE) — 510KB
• cwen-20250930_htm.xml (XML) — 1959KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 6

— FINANCIAL STATEMENTS AND NOTES

ITEM 1 — FINANCIAL STATEMENTS AND NOTES 6

— MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2 — MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 38

— QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 58

— CONTROLS AND PROCEDURES

ITEM 4 — CONTROLS AND PROCEDURES 59

— OTHER INFORMATION

PART II — OTHER INFORMATION 60

— LEGAL PROCEEDINGS

ITEM 1 — LEGAL PROCEEDINGS 60

— RISK FACTORS

ITEM 1A — RISK FACTORS 60

— UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 60

— DEFAULTS UPON SENIOR SECURITIES

ITEM 3 — DEFAULTS UPON SENIOR SECURITIES 60

— MINE SAFETY DISCLOSURES

ITEM 4 — MINE SAFETY DISCLOSURES 60

— OTHER INFORMATION

ITEM 5 — OTHER INFORMATION 60

— EXHIBITS

ITEM 6 — EXHIBITS 61

SIGNATURES

SIGNATURES 62 2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This Quarterly Report on Form 10-Q of Clearway Energy LLC, together with its consolidated subsidiaries, or the Company, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The words "believes," "projects," "anticipates," "plans," "expects," "intends," "estimates" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors, risks and uncertainties include the factors described under Item 1A — Risk Factors in Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as well as the following: The Company's ability to maintain and grow its quarterly distributions; Potential risks related to the Company's relationships with CEG and its owners; The Company's ability to successfully identify, evaluate and consummate investment opportunities, as well as acquisitions from, and dispositions to, third parties; The Company's ability to acquire assets from CEG; The Company's ability to borrow additional funds and access capital markets, as well as the Company's substantial indebtedness and the possibility that the Company may incur additional indebtedness going forward; Changes in law, including judicial decisions; Hazards customary to the power production industry and power generation operations such as fuel and electricity price volatility, unusual weather conditions (including wind and solar conditions), catastrophic weather-related o

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

— FINANCIAL STATEMENTS

ITEM 1 — FINANCIAL STATEMENTS CLEARWAY ENERGY LLC CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended September 30, Nine months ended September 30, (In millions) 2025 2024 2025 2024 Operating Revenues Total operating revenues $ 429 $ 486 $ 1,119 $ 1,115 Operating Costs and Expenses Cost of operations, exclusive of depreciation, amortization and accretion shown separately below 128 135 380 378 Depreciation, amortization and accretion 176 164 502 471 General and administrative 10 9 30 28 Transaction and integration costs 3 — 8 4 Total operating costs and expenses 317 308 920 881 Operating Income 112 178 199 234 Other Income (Expense) Equity in earnings of unconsolidated affiliates 15 13 27 33 Other income, net 7 8 22 36 Loss on debt extinguishment ( 7 ) — ( 7 ) ( 3 ) Interest expense ( 98 ) ( 139 ) ( 297 ) ( 284 ) Total other expense, net ( 83 ) ( 118 ) ( 255 ) ( 218 ) Net Income (Loss) 29 60 ( 56 ) 16 Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests ( 322 ) ( 58 ) ( 483 ) ( 183 ) Net Income Attributable to Clearway Energy LLC $ 351 $ 118 $ 427 $ 199 See accompanying notes to consolidated financial statements. 6 CLEARWAY ENERGY LLC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three months ended September 30, Nine months ended September 30, (In millions) 2025 2024 2025 2024 Net Income (Loss) $ 29 $ 60 $ ( 56 ) $ 16 Other Comprehensive Loss Unrealized loss on derivatives and changes in accumulated OCI/OCL ( 5 ) ( 15 ) ( 28 ) ( 15 ) Other comprehensive loss ( 5 ) ( 15 ) ( 28 ) ( 15 ) Comprehensive Income (Loss) 24 45 ( 84 ) 1 Less: Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests ( 322 ) ( 63 ) ( 486 ) ( 185 ) Comprehensive Income Attributable to Clearway Energy LLC $ 346 $ 108 $ 402 $ 186 See accompanying notes to consolidated financial statements. 7 CLEARWAY ENERGY LLC CONSOLIDATED BALANCE S

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Nature of Business Clearway Energy LLC, together with its consolidated subsidiaries, or the Company, is an energy infrastructure investor with a focus on investments in clean energy and owner of modern, sustainable and long-term contracted assets across North America. The Company is sponsored by Clearway Energy Group LLC, or CEG, which is equally owned by GIP and TotalEnergies. The Company is one of the largest owners of clean energy generation assets in the U.S. The Company's portfolio comprises approximately 12.7 GW of gross capacity in 27 states, including approximately 9.9 GW of wind, solar and battery energy storage systems, or BESS, and approximately 2.8 GW of dispatchable combustion-based power generation assets included in the Flexible Generation segment that provide critical grid reliability services. Through this environmentally-sound, diversified and primarily contracted portfolio, the Company endeavors to provide its investors with stable and growing distributions. The majority of the Company's revenues are derived from long-term contractual arrangements for the output or capacity from these assets. Clearway Energy, Inc., or Clearway, Inc., consolidates the results of the Company through its controlling interest, with CEG's interest shown as contributed capital in the Company's consolidated financial statements. The holders of Clearway, Inc.'s outstanding shares of Class A and Class C common stock are entitled to dividends as declared. CEG receives its distributions from the Company through its ownership of the Company's Class B and Class D units. As of September 30, 2025, Clearway, Inc. owned 58.30 % of the economic interests of the Company, with CEG owning 41.70 % of the economic interests of the Company. 12 The following table represents a summarized structure of the Company as of September 30, 2025: Basis of Presentation The accompanying unaudited interim consolidated financ

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