Cash flow efficiency is constrained by a CAPEX-to-OCF ratio that reached 110.0% in 2026Q1, necessitating frequent external capital raises to maintain operations and dividend payouts.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 994M | 688M | 770M | 702M | 787M | 701M | 545M | 477M | 498M | 516M | 560M | 405M | 293M | 141M | 58M | 33M |
| Operating CF Growth % | 286.49% | -10.65% | 9.69% | -10.8% | 12.27% | 28.62% | 14.26% | -4.22% | -3.49% | -7.86% | 38.27% | 38.23% | 107.8% | 143.1% | 75.76% | - |
| Operating CF / Revenue % | 66.94% | 48.15% | 56.16% | 53.42% | 66.13% | 54.51% | 45.45% | 46.22% | 47.29% | 51.14% | 54.85% | 42.5% | 42.53% | 45.05% | 33.14% | 20.12% |
| Net Income | 2M | 169M | -63M | -14M | 582M | 51M | -62M | -96M | 54M | -23M | -15M | 65M | 112M | 109M | 13M | 15M |
| Depreciation & Amortization | 898M | 885M | 809M | 711M | 701M | 664M | 518M | 472M | 401M | 404M | 375M | 353M | 193M | 52M | 25M | 23M |
| Deferred Taxes | 55M | 53M | 25M | 13M | 194M | 12M | 8M | -8M | 62M | 72M | -1M | 12M | 4M | 8M | 10M | 9M |
| Other Non-Cash Items | 2M | -389M | 46M | 62M | -708M | -17M | 75M | 126M | 24M | 25M | 20M | 18M | 10M | 2M | 14M | 6M |
| Working Capital Changes | 139M | -30M | -47M | -70M | 18M | -9M | 6M | -17M | -30M | -10M | -1M | -15M | -15M | -3M | 6M | -11M |
| Capital Expenditures | -805M | -319M | -725M | -523M | 1.13B | -151M | -124M | -468M | -185M | -283M | -161M | -1.11B | -1.06B | -388M | -380M | -219M |
| CapEx / Revenue % | 54.21% | 22.32% | 52.88% | 39.8% | 94.54% | 11.74% | 10.34% | 45.35% | 17.57% | 28.05% | 15.77% | 116.26% | 153.41% | 123.96% | 217.14% | 133.54% |
| CapEx / D&A | 0.90x | 0.36x | 0.90x | 0.74x | 1.60x | 0.23x | 0.24x | 0.99x | 0.46x | 0.70x | 0.43x | 3.14x | 5.48x | 7.46x | 15.20x | 9.52x |
| CapEx Coverage (OCF/CapEx) | 1.23x | 2.16x | 1.06x | 1.34x | 0.70x | 4.64x | 4.40x | 1.02x | 2.69x | 1.82x | 3.48x | 0.37x | 0.28x | 0.36x | 0.15x | 0.15x |
| Cash from Investing | -805M | 321M | -725M | -523M | 1.13B | 88M | -62M | -468M | -185M | -283M | -161M | -1.11B | -1.06B | -388M | -405M | -219M |
| Acquisitions | -43M | 634M | -678M | -14M | 1.29B | 434M | -37M | -266M | -126M | -276M | -129M | -1.09B | -1.23B | -154M | -27M | -88M |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -34M | -73M | -83M | -402M | -357M | -34M | 0 | 0 |
| Sale of Investments | 1M | 15M | 0 | 0 | 13M | 47M | 0 | 0 | 45M | 47M | 28M | 42M | 357M | 34M | 0 | 0 |
| Other Investing | -430M | -9M | 240M | -215M | -70M | -242M | 99M | 26M | 24M | 24M | -12M | 16M | 206M | 4M | 2M | 1M |
| Cash from Financing | -220M | -924M | -363M | -124M | -1.57B | -600M | -435M | -175M | -46M | -257M | -193M | 385M | 1.11B | 261M | 345M | 180M |
| Dividends Paid | -366M | -358M | -334M | -311M | -353M | -268M | -211M | -155M | -130M | -108M | -183M | -139M | -187M | -722M | -72M | -18M |
| Dividend Payout Ratio % | - | 211.83% | 379.55% | 393.67% | 60.65% | 525.49% | 844% | - | 495.83% | - | 303.51% | 421.21% | 775% | 115.38% | 553.85% | 120% |
| Debt Issuance (Net) | 0 | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K |
| Stock Issued | 98M | 48M | 0 | 0 | 0 | 0 | 62M | 100M | 153M | 34M | 0 | 599M | 630M | 468M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 380M | -24M | 1.47B | 973M | -14M | 7M | 157M | 149M | 77M | -22M | -179M | 63M | -87M | -5M | 497M | 215M |
| Net Change in Cash | -31M | 85M | -318M | 55M | 342M | 189M | 48M | -166M | 267M | -182M | 206M | -318M | 347M | 14M | -2M | -6M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -15M | 0 | 0 | 0 |
| Cash at Beginning | 818M | 733M | 1.05B | 996M | 654M | 465M | 417M | 583M | 316M | 498M | 111M | 429M | 59M | 22M | 24M | 30M |
| Cash at End | 680M | 818M | 733M | 1.05B | 996M | 654M | 465M | 417M | 583M | 316M | 317M | 111M | 406M | 36M | 22M | 24M |
| Free Cash Flow | 189M | 369M | 45M | 179M | 1.91B | 550M | 421M | 9M | 313M | 233M | 399M | -703M | -764M | -247M | -322M | -186M |
| FCF Growth % | -5.03% | 720% | -74.86% | -90.64% | 247.64% | 30.64% | 4577.78% | -97.12% | 34.33% | -41.6% | 156.76% | 7.98% | -209.31% | 23.29% | -73.12% | - |
| FCF Margin % | 12.73% | 25.82% | 3.28% | 13.62% | 160.67% | 42.77% | 35.11% | 0.87% | 29.72% | 23.09% | 39.08% | -73.77% | -110.89% | -78.91% | -184% | -113.41% |
| FCF / Net Income % | 9450% | 218.34% | 51.14% | 226.58% | 328.52% | 1078.43% | 1684% | -81.82% | 652.08% | -1456.25% | 700% | -2130.3% | -4775% | -1900% | -2476.92% | -1240% |
High capital intensity volatility
As reported in recent financial statements, Clearway Energy's CAPEX-to-OCF ratio reached a peak of 185.9% in 2025Q4, indicating that the company is consistently reinvesting significantly more than its generated operating cash flow to sustain its renewable and conventional generation asset base.
The persistent elevation of CAPEX relative to operating cash flow suggests that the company remains in a heavy investment cycle, likely driven by the need to maintain aging wind and solar fleets. This structural reliance on external funding for growth and maintenance may limit the company's ability to achieve self-funding status in the near term.
Based on the provided quarterly data, the company frequently experiences negative free cash flow, such as the $248 million deficit in 2024Q2, necessitating consistent reliance on external financing markets to bridge the gap between operational cash generation and the capital requirements of its generation portfolio.
The recurring need for external capital, evidenced by periodic stock issuances and debt adjustments, highlights the company's sensitivity to market conditions. Investors should monitor whether the cost of this external capital remains accretive to the dividend, as any increase in financing costs could pressure the sustainability of distributions.
According to the company's reported figures, the OCF-to-dividend coverage ratio has fluctuated significantly, dropping as low as 1.0x in 2024Q1, which suggests that the dividend payout is highly sensitive to the seasonal and operational variances inherent in the company's renewable and conventional power generation segments.
While the dividend appears supported by operating cash flow on an aggregate basis, the narrow coverage in certain quarters warrants caution. The reliance on non-cash accounting adjustments to net income further complicates the assessment of true cash-based dividend sustainability, suggesting that investors should prioritize CAFD metrics over GAAP earnings.
As indicated by the company's financial disclosures, the cash flow statement may be masking long-term decommissioning obligations for its renewable assets, which are not yet fully reflected in current cash outflows but could represent significant future capital requirements that are currently absent from the reported CAPEX figures.
The absence of explicit decommissioning cash outflows in the provided data suggests that these costs may be deferred or accounted for through long-term accruals. This potential for future capital strain implies that the current free cash flow profile may be overstated relative to the long-term economic reality of the asset base.
Quick answers to the most common questions about buying CWEN stock.
Clearway Energy, Inc. (CWEN) generated $688.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Clearway Energy, Inc. (CWEN) generated $369.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Clearway Energy, Inc. (CWEN) spent $319.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Clearway Energy, Inc. (CWEN) returned $358.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.