Second Quarter 2025 Renewables SBU Adjusted EBITDA Grew 56% Versus Second Quarter 2024
Strategic Accomplishments
- On track to add 3.2 GW of new projects in operation in 2025
- 1.9 GW already completed
- Remaining 1.3 GW 78% complete
- Since the first quarter call in May, signed or awarded new long-term PPAs for 1.6 GW of solar and wind, all with data center companies
- PPA backlog of 12 GW, including 5.2 GW under construction
- AES Indiana filed a petition for regulatory rate review with the Indiana Utility Regulatory Commission (IURC)
Q2 2025 Financial Highlights
- GAAP Financial Metrics
- Net Loss of $150 million, compared to Net Income of $153 million in Q2 2024
- Net Loss Attributable to The AES Corporation of $95 million, compared to Net Income Attributable to The AES Corporation of $276 million in Q2 2024
- Diluted EPS of ($0.15), compared to $0.39 in Q2 2024
- Non-GAAP Adjusted Financial Metrics
- Adjusted EBITDA1 of $681 million, compared to $658 million in Q2 2024
- Adjusted EBITDA with Tax Attributes1,2 of $1,057 million, compared to $849 million in Q2 2024
- Adjusted EPS3 of $0.51, compared to $0.38 in Q2 2024
Financial Position and Outlook
- Reaffirming 2025 guidance for Adjusted EBITDA1 of $2,650 to $2,850 million
- Reaffirming annualized growth target of 5% to 7% through 2027, off a base of 2023 guidance
- Reaffirming expectation for 2025 Adjusted EBITDA with Tax Attributes1,2 of $3,950 to $4,350 million
- Reaffirming 2025 guidance for Adjusted EPS3 of $2.10 to $2.26
- Reaffirming annualized growth target of 7% to 9% through 2025, off a base of 2020 and 7% to 9% through 2027, off a base of 2023 guidance
ARLINGTON, Va., July 31, 2025 /PRNewswire/ — The AES Corporation (NYSE:AES) today reported financial results for the quarter ended June 30, 2025.
“AES is in a uniquely strong position due to our diversified operating portfolio, well-protected 12 GW backlog of signed long-term PPAs, and established domestic supply chain,” said Andrés Gluski, AES President and Chief Executive Officer. “With 1.6 GW of signed PPAs with data centers since our first quarter results in May, we are a leader in the fastest growing segment in the market.”
“We made excellent progress during the second quarter of 2025, as demonstrated by the robust growth in Adjusted EBITDA at our Renewables SBU, which was 56% higher than in the same period last year,” said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer. “Our strong track record with our customers, resilient supply chain strategy, and advanced construction execution enable us to confidently reaffirm both our 2025 guidance and long-term growth rate targets through 2027.”
Q2 2025 Financial Results
Second quarter 2025 Net Loss was $150 million, a decrease of $303 million compared to Net Income of $153 million in second quarter 2024, primarily due to higher day-one losses on sales type leases at AES Clean Energy Development4. In addition, Net Income was negatively impacted by higher income tax expense, lower margins from the Energy Infrastructure Strategic Business Unit (SBU) from prior year unrealized derivative gains and higher prior year revenues from the monetization of the Warrior Run coal plant PPA. This decrease was partially offset by the impact of reclassifying Mong Duong from held-for-sale to held and used, and higher contributions from renewables projects placed in service in the current year.
Second quarter 2025 Adjusted EBITDA5 (a non-GAAP financial measure) was $681 million, an increase of $23 million compared to second quarter 2024, driven by higher contributions from the Renewables SBU primarily due to higher revenues from renewables projects placed in service and prior year outages in Colombia. This was partially offset by the sale of AES Brasil, higher prior year revenues from the monetization of the Warrior Run coal plant PPA, and the impact of the sell-down of AES Ohio in the Utilities SBU.
Second quarter 2025 Adjusted EBITDA with Tax Attributes5,6 (a non-GAAP financial measure) was $1,057 million, an increase of $208 million compared to second quarter 2024, due to higher realized tax attributes driven by more projects placed in service and higher income from tax credit transfers, as well as the drivers above.
Second quarter 2025 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was ($0.15), a decrease of $0.54 compared to second quarter 2024, mainly driven by higher income tax expense, day-one losses on the commencement of sales-type leases at AES Clean Energy Development, and lower earnings at the Energy Infrastructure SBU primarily due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA. This was partially offset by the derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used.
Second quarter 2025 Adjusted Earnings Per Share7 (Adjusted EPS, a non-GAAP financial measure) was $0.51, an increase of $0.13 compared to second quarter 2024, mainly driven by a lower adjusted tax rate and higher contributions due to new renewables projects placed in service, partially offset by lower contributions from the Utilities SBU due to planned outages.
Strategic Accomplishments
- The Company’s backlog, which consists of projects with signed contracts, but which are not yet operational, is 12 GW, including 5.2 GW under construction. Since the Company’s first quarter 2025 earnings call in May 2025, the Company:
- Completed the construction of 1.2 GW of energy storage and solar, including the 1 GW Bellefield 1 solar-plus-storage facility, for a total of 1.9 GW year-to-date, and is on track to add a total of 3.2 GW to its operating portfolio by year-end 2025; and
- Signed or was awarded new long-term PPAs for 1.6 GW of renewables, all with data center companies, and a total of 2 GW year-to-date.
- In June, AES Indiana filed a petition for regulatory rate review with the Indiana Utility Regulatory Commission (IURC).
- This is AES Indiana’s first rate case using a forward-looking test year, which will enable a more efficient investment program to best serve customers with cost-effective and reliable electricity service.
Guidance and Expectations8,10
The Company is reaffirming its 2025 guidance for Adjusted EBITDA8 of $2,650 to $2,850 million. Growth in 2025 is expected to be driven by contributions from new renewables projects, rate base growth at the Company’s US utilities, and normalized results in Colombia and Mexico, partially offset by revenues from the monetization of the Warrior Run coal plant PPA in 2024 and asset sales.
The Company is reaffirming its expectation for annualized growth in Adjusted EBITDA8 of 5% to 7% through 2027, from a base of its 2023 guidance of $2,600 to $2,900 million.
The Company is reaffirming its expectation that 2025 Adjusted EBITDA with Tax Attributes8,9 of $3,950 to $4,350 million.
The Company is reaffirming its 2025 Adjusted EPS10 guidance of $2.10 to $2.26. Growth in 2025 is expected to be primarily driven by contributions from new renewables projects, rate base growth at the Company’s US utilities, and normalized results in Colombia and Mexico, partially offset by revenues from the monetization of the Warrior Run coal plant PPA in 2024, asset sales, higher Parent interest, and a higher adjusted tax rate.
The Company is reaffirming its annualized growth target for Adjusted EPS10 of 7% to 9% through 2025, from a base year of 2020. The Company is also reaffirming its annualized growth target for Adjusted EPS8 of 7% to 9% through 2027, from a base of its 2023 guidance of $1.65 to $1.75.
The Company’s 2025 guidance is based on foreign currency and commodity forward curves as of June 30, 2025.
The Company expects to maintain its current quarterly dividend payment of $0.17595 going forward.
Non-GAAP Financial Measures
See Non-GAAP Measures for definitions of Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, Tax Attributes, Adjusted Earnings Per Share, and Adjusted Pre-Tax Contribution, as well as reconciliations to the most comparable GAAP financial measures.
Attachments
Condensed Consolidated Statements of Operations, Segment Information, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows, Non-GAAP Financial Measures and Parent Financial Information.
Conference Call Information
AES will host a conference call on Friday, August 1, 2025 at 10:00 a.m. Eastern Time (ET). Interested parties may listen to the teleconference by dialing 1-833-470-1428 at least ten minutes before the start of the call. International callers should dial +1-404-975-4839. The Participant Access Code for this call is 439668. Internet access to the conference call and presentation materials will be available on the AES website at www.aes.com by selecting “Investors” and then “Presentations and Webcasts.”
A webcast replay will be accessible at www.aes.com beginning shortly after the completion of the call.
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1 |
Adjusted EBITDA is a non-GAAP financial measure. See attached “Non-GAAP Measures” for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter ended June 30, 2025. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort. |
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2 |
Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. |
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3 |
Adjusted EPS is a non-GAAP financial measure. See attached “Non-GAAP Measures” for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended June 30, 2025. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort. |
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4 |
Losses recognized on the commencement of sales-type leases primarily relate to the exclusion of the value of Investment Tax Credits from the fair value of the renewable asset. |
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5 |
Adjusted EBITDA is a non-GAAP financial measure. See attached “Non-GAAP Measures” for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended June 30, 2025. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort. |
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6 |
Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. |
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7 |
Adjusted EPS is a non-GAAP financial measure. See attached “Non-GAAP Measures” for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended June 30, 2025. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort. |
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8 |
Adjusted EBITDA is a non-GAAP financial measure. See attached “Non-GAAP Measures” for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended June 30, 2025. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort. |
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9 |
Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. |
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10 |
Adjusted EPS is a non-GAAP financial measure. See attached “Non-GAAP Measures” for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended June 30, 2025. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort. |
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About AES
The AES Corporation (NYSE:AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we’re improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A: “Risk Factors” and Item 7: “Management’s Discussion & Analysis” in AES’ 2024 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.
Any Stockholder who desires a copy of the Company’s 2024 Annual Report on Form 10-K filed March 11, 2025 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company’s website at www.aes.com.
Website Disclosure
AES uses its website, including its quarterly updates, as channels of distribution of Company information. The information AES posts through these channels may be deemed material. Accordingly, investors should monitor our website, in addition to following AES’ press releases, quarterly SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the “Subscribe to Alerts” page of AES’ Investors website. The contents of AES’ website, including its quarterly updates, are not, however, incorporated by reference into this release.
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THE AES CORPORATION Condensed Consolidated Statements of Operations (Unaudited) |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2025 |
2024 |
2025 |
2024 |
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(in millions, except share and per share amounts) |
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Revenue: |
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Non-Regulated |
$ 1,922 |
$ 2,070 |
$ 3,863 |
$ 4,302 |
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Regulated |
933 |
872 |
1,918 |
1,725 |
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Total revenue |
2,855 |
2,942 |
5,781 |
6,027 |
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Cost of Sales: |
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Non-Regulated |
(1,607) |
(1,671) |
(3,268) |
(3,404) |
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Regulated |
(795) |
(718) |
(1,619) |
(1,451) |
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Total cost of sales |
(2,402) |
(2,389) |
(4,887) |
(4,855) |
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Operating margin |
453 |
553 |
894 |
1,172 |
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General and administrative expenses |
(49) |
(66) |
(126) |
(141) |
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Interest expense |
(352) |
(389) |
(694) |
(746) |
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Interest income |
70 |
88 |
139 |
193 |
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Loss on extinguishment of debt |
(5) |
(9) |
(13) |
(10) |
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Other expense |
(295) |
(84) |
(347) |
(122) |
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Other income |
31 |
21 |
38 |
56 |
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Gain on disposal and sale of business interests |
70 |
1 |
69 |
44 |
|||
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Asset impairment reversals (expense) |
154 |
(38) |
105 |
(84) |
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Foreign currency transaction gains (losses) |
(28) |
38 |
(38) |
30 |
|||
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Other non-operating expense |
(10) |
— |
(10) |
— |
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INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY |
39 |
115 |
17 |
392 |
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Income tax benefit (expense) |
(167) |
35 |
(184) |
51 |
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Net equity in earnings (losses) of affiliates |
(22) |
3 |
(56) |
(12) |
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NET INCOME (LOSS) |
(150) |
153 |
(223) |
431 |
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Less: Net loss attributable to noncontrolling interests and redeemable stock of |
55 |
123 |
174 |
277 |
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NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION |
$ (95) |
$ 276 |
$ (49) |
$ 708 |
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Decrease (increase) in redemption value of redeemable stock of subsidiaries |
(10) |
6 |
(10) |
— |
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NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON |
$ (105) |
$ 282 |
$ (59) |
$ 708 |
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BASIC EARNINGS PER SHARE: |
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NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON |
$ (0.15) |
$ 0.40 |
$ (0.08) |
$ 1.01 |
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DILUTED EARNINGS PER SHARE: |
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NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON |
$ (0.15) |
$ 0.39 |
$ (0.08) |
$ 0.99 |
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DILUTED SHARES OUTSTANDING |
712 |
713 |
712 |
713 |
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THE AES CORPORATION |
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Strategic Business Unit (SBU) Information |
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(Unaudited) |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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(in millions) |
2025 |
2024 |
2025 |
2024 |
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REVENUE |
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Renewables SBU |
$ 644 |
$ 619 |
$ 1,310 |
$ 1,262 |
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Utilities SBU |
954 |
896 |
1,963 |
1,769 |
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Energy Infrastructure SBU |
1,306 |
1,462 |
2,626 |
3,071 |
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New Energy Technologies SBU |
— |
— |
— |
— |
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Corporate and Other |
43 |
40 |
79 |
73 |
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Eliminations |
(92) |
(75) |
(197) |
(148) |
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Total Revenue |
$ 2,855 |
$ 2,942 |
$ 5,781 |
$ 6,027 |
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THE AES CORPORATION Condensed Consolidated Balance Sheets (Unaudited) |
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June 30, 2025 |
December 31, |
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(in millions, except share and per share data) |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
$ 1,350 |
$ 1,524 |
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Restricted cash |
763 |
437 |
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Accounts receivable, net of allowance of $54 and $52, respectively |
1,865 |
1,646 |
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Inventory |
647 |
593 |
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Prepaid expenses |
132 |
157 |
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Other current assets, net of allowance of $2 and $0, respectively |
1,532 |
1,612 |
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Current held-for-sale assets |
31 |
862 |
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Total current assets |
6,320 |
6,831 |
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NONCURRENT ASSETS |
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