AES (AES) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -27.03%. A quarter ago, it was expected that this power company would post earnings of $0.34 per share when it actually produced earnings of $0.54, delivering a surprise of 58.82%.Over the last four quarters, the company has su ...

Q1 2025 Financial Highlights Financial Position and Outlook AES Reaffirms 2025 Guidance and Long-Term Growth Rate Targets Reports First Quarter 2025 Results in Line with Expectations Strategic Accomplishments Press Release Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.com Media Contact: Amy Ackerman 703-682-6399, amy.ackerman@aes.com ARLINGTON, Va., May 1, 2025 – The AES Corporation (NYSE: AES) today reported financial results for the quarter ended March 31, 2025. Q1 2025 Financial Resul ...

Core Insights - The AES Corporation reported a net loss of $73 million for Q1 2025, a significant decline from a net income of $278 million in Q1 2024, primarily due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA and one-time restructuring costs [3][6][10] - The company reaffirmed its 2025 guidance for Adjusted EBITDA between $2,650 million and $2,850 million, with expected growth driven by new renewable projects and rate base growth at U.S. utilities [8][9][10] Strategic Accomplishments - The company completed the construction of 643 MW of energy storage and solar projects and is on track to add a total of 3.2 GW of new projects by the end of 2025 [10][11] - AES signed or awarded new long-term Power Purchase Agreements (PPAs) for 443 MW of solar and energy storage [10][11] - The sale of a minority interest in AES Global Insurance Company (AGIC) for $450 million helped achieve the full-year asset sale proceeds target of $400 to $500 million [10][11] Financial Highlights - Q1 2025 Adjusted EBITDA was $591 million, down from $640 million in Q1 2024, mainly due to lower contributions from the Energy Infrastructure SBU [4][7] - Adjusted EPS for Q1 2025 was $0.27, a decrease from $0.50 in Q1 2024, driven by lower realized tax attributes and contributions from the Energy Infrastructure SBU [7][10] - The company reported total revenue of $2,926 million for Q1 2025, compared to $3,085 million in Q1 2024, reflecting a decline in both regulated and non-regulated revenue streams [24][25] Financial Position and Outlook - The company reaffirmed its expectation for annualized growth in Adjusted EBITDA of 5% to 7% through 2027, based on a 2023 guidance base of $2,600 million to $2,900 million [9][10] - The total assets of the company increased to $48,615 million as of March 31, 2025, compared to $47,406 million at the end of 2024 [26][27] - The company expects to maintain its quarterly dividend payment of $0.17595 going forward [13]

[PART I: FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) AES reported a **net loss of $73 million** for Q1 2025, with revenue down 5% to **$2.93 billion**, assets up to **$48.6 billion**, and operating cash flow improving to **$545 million** Consolidated Financial Highlights (Q1 2025 vs Q1 2024) | Financial Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $2,926 | $3,085 | -5.1% | | **Operating Margin** | $441 | $619 | -28.8% | | **Net Income (Loss)** | $(73) | $278 | NM | | **Net Income Attributable to AES** | $46 | $432 | -89.4% | | **Diluted EPS** | $0.07 | $0.60 | -88.3% | | **Net Cash from Operating Activities** | $545 | $287 | +89.9% | Balance Sheet Summary | Balance Sheet Item | March 31, 2025 (in millions) | Dec 31, 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $7,878 | $6,831 | +15.3% | | **Total Assets** | $48,615 | $47,406 | +2.5% | | **Total Current Liabilities** | $9,344 | $8,571 | +9.0% | | **Total Liabilities** | $39,991 | $38,764 | +3.2% | | **Total AES Stockholders' Equity** | $3,468 | $3,644 | -4.8% | [Note 1 - Financial Statement Presentation](index=11&type=section&id=Note%201%20-%20Financial%20Statement%20Presentation) Interim financial statements follow GAAP, treating transferable tax credits as income tax expense reductions, with no material impact from new 2025 accounting pronouncements - The company accounts for transferable **Investment Tax Credits (ITCs)** from the **Inflation Reduction Act (IRA)** as a **reduction in income tax expense**, including the cash to be received in its annual effective tax rate calculation[19](index=19&type=chunk) - In Q1 2025, the company received **$75 million** in cash proceeds related to a tax credit transfer agreement executed in 2024, which is treated as an **operating cash inflow**[19](index=19&type=chunk) [Note 3 - Fair Value](index=12&type=section&id=Note%203%20-%20Fair%20Value) Fair value measurements as of March 31, 2025, show **$613 million** in assets and **$493 million** in liabilities, including a **$17 million impairment** for the Mong Duong business and increased contingent consideration - Contingent consideration liabilities, measured at fair value, increased to **$173 million** as of March 31, 2025, from **$145 million** at year-end 2024, primarily related to acquisitions of renewables development projects[26](index=26&type=chunk)[30](index=30&type=chunk) - The Mong Duong business, classified as held-for-sale, was written down to its fair value, resulting in a **pre-tax impairment loss of $17 million** in Q1 2025[32](index=32&type=chunk) - The company recognized **$31 million** of pre-tax asset impairment expense for abandoned AES Clean Energy Development Projects in Q1 2025, compared to **$7 million** in Q1 2024[33](index=33&type=chunk) [Note 8 - Obligations](index=19&type=section&id=Note%208%20-%20Obligations) In Q1 2025, AES issued **$800 million** in senior notes and expanded its commercial paper program, while **$531 million** of subsidiary non-recourse debt was in default, and supplier financing arrangements totaled **$605 million** - In March 2025, the Parent Company issued **$800 million** of 5.80% senior notes due 2032, using the proceeds to tender for its 3.30% senior notes due in 2025[52](index=52&type=chunk) - The company's commercial paper program was expanded to a maximum of **$1.5 billion** in April 2025. As of March 31, 2025, **$255 million** was outstanding[53](index=53&type=chunk) Subsidiary Non-Recourse Debt in Default (as of March 31, 2025) | Subsidiary | Primary Nature of Default | Debt in Default (in millions) | | :--- | :--- | :--- | | AES Dominican Renewable Energy | Covenant | $353 | | AES Puerto Rico | Payment | $150 | | AES Ilumina (Puerto Rico) | Covenant | $22 | | AES Jordan Solar | Covenant | $6 | | **Total** | | **$531** | - Outstanding balances under supplier financing arrangements decreased to **$605 million** as of March 31, 2025, from **$917 million** at year-end 2024[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Note 9 - Commitments and Contingencies](index=22&type=section&id=Note%209%20-%20Commitments%20and%20Contingencies) As of March 31, 2025, contingent contractual obligations totaled **$4.8 billion**, with estimated potential losses for material contingencies ranging from **$174 million** to **$223 million** Parent Company Contingent Contractual Obligations (as of March 31, 2025) | Type | Maximum Exposure (in millions) | | :--- | :--- | | Guarantees and commitments | $4,322 | | Letters of credit (all types) | $450 | | Surety bonds | $2 | | **Total** | **$4,774** | - The company estimates the range of potential losses for reasonably possible material contingencies (excluding accrued amounts and tax matters) to be between **$174 million** and **$223 million**[82](index=82&type=chunk) [Note 12 - Equity](index=25&type=section&id=Note%2012%20-%20Equity) In Q1 2025, Equity Units converted into **40.5 million shares**, while noncontrolling interests increased by **$82 million** from the Rexford project sale and **$150 million** from the Pike County BESS project - On February 15, 2024, the company's Corporate Units were converted into **40,531,845 shares** of AES common stock, and the associated Series A Preferred Stock was canceled[97](index=97&type=chunk) - In Q1 2025, AES Renewable Holdings sold a noncontrolling interest in the Rexford project, increasing NCI by **$82 million**[100](index=100&type=chunk) - Following the Pike County BESS project being placed in service in March 2025, AES Indiana received an additional **$150 million** from its tax equity investor, increasing NCI[101](index=101&type=chunk) [Note 13 - Segments](index=28&type=section&id=Note%2013%20-%20Segments) Effective Q1 2025, segment reporting shifted Chile renewables to the Renewables SBU; Energy Infrastructure remained the largest contributor despite declines, while Utilities showed strong growth - Beginning in Q1 2025, the company's businesses in Chile (excluding two remaining coal plants) are reported as part of the **Renewables SBU** instead of the **Energy Infrastructure SBU**, reflecting a strategic shift after the sale of coal assets. Prior period information has been retrospectively revised for comparability where possible[110](index=110&type=chunk) Segment Revenue and Adjusted EBITDA (Q1 2025 vs Q1 2024) | Segment | Revenue Q1 2025 (M) | Revenue Q1 2024 (M) | Adj. EBITDA Q1 2025 (M) | Adj. EBITDA Q1 2024 (M) | | :--- | :--- | :--- | :--- | :--- | | Renewables | $666 | $643 | $161 | $111 | | Utilities | $1,009 | $873 | $223 | $182 | | Energy Infrastructure | $1,320 | $1,609 | $254 | $356 | | New Energy Technologies | $0 | $0 | $(25) | $(17) | - **Renewables SBU** performance was boosted by higher generation in Panama from better hydrology, new businesses, and the re-segmentation of AES Andes, though partially offset by increased fixed costs and the sale of AES Brasil[231](index=231&type=chunk) - **Utilities SBU** growth was driven by higher retail rates from the 2024 Base Rate Order, increased demand from weather, and higher transmission revenues[234](index=234&type=chunk) [Note 16 - Asset Impairment Expense](index=33&type=section&id=Note%2016%20-%20Asset%20Impairment%20Expense) Total asset impairment expense for Q1 2025 was **$49 million**, mainly from a **$31 million** write-off for abandoned U.S. renewables projects and a **$17 million** impairment on the Mong Duong coal plant Asset Impairment Expense Breakdown (in millions) | Asset | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | AES Clean Energy Development Projects | $31 | $7 | | Mong Duong | $17 | $37 | | Other | $1 | $2 | | **Total** | **$49** | **$46** | [Note 18 - Held-for-Sale and Dispositions](index=33&type=section&id=Note%2018%20-%20Held-for-Sale%20and%20Dispositions) As of March 31, 2025, Dominican Republic Renewables and Mong Duong (Vietnam) were held-for-sale, with Mong Duong incurring a **$17 million impairment**; the Ventanas coal facility sale was completed - In December 2024, an agreement was made to sell 50% of interests in Dominican Republic Renewables, which is now classified as **held-for-sale** with an expected closing in Q2 2025[138](index=138&type=chunk) - The Mong Duong coal plant in Vietnam remains classified as **held-for-sale**, with an expected closing by early 2026. The business recorded a **pre-tax impairment of $17 million** in Q1 2025[139](index=139&type=chunk) - In January 2025, the company completed the sale of its Ventanas coal-fired generation facility in Chile for **$5 million**[141](index=141&type=chunk) [Note 21 - Restructuring](index=35&type=section&id=Note%2021%20-%20Restructuring) A restructuring program initiated in February 2025 resulted in **$48 million** of pre-tax charges in Q1 2025, primarily for employee severance costs - A restructuring program initiated in February 2025 resulted in **$48 million** of pre-tax charges in Q1 2025, mainly for employee severance[150](index=150&type=chunk) [Note 22 - Subsequent Events](index=36&type=section&id=Note%2022%20-%20Subsequent%20Events) Subsequent to quarter-end, AES sold a minority interest in AGIC for **$450 million** and an approximate 30% indirect equity interest in AES Ohio for **$544 million** - On April 30, 2025, the company sold a minority interest in its captive insurance company, AGIC, for **$450 million** in total proceeds[152](index=152&type=chunk) - On April 4, 2025, the sale of an approximately 30% indirect equity interest in AES Ohio was consummated, with total proceeds of approximately **$544 million**[155](index=155&type=chunk) [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=37&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the Q1 2025 net loss to prior-year gains and restructuring costs; Adjusted EBITDA decreased to **$591 million**, while strategic progress included new projects and achieving the 2025 asset sale target [Executive Summary](index=37&type=section&id=Executive%20Summary) Q1 2025 saw a **net loss of $73 million** and diluted EPS of **$0.07**, with Adjusted EBITDA decreasing to **$591 million**, while strategic highlights included new projects and achieving the 2025 asset sale target Key Performance Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income (Loss) | ($73 M) | $278 M | ($351 M) | | Adjusted EBITDA | $591 M | $640 M | ($49 M) | | Diluted EPS | $0.07 | $0.60 | ($0.53) | | Adjusted EPS | $0.27 | $0.50 | ($0.23) | - Strategic highlights include completing **643 MW** of new projects, signing **443 MW** of new PPAs, and achieving the full-year 2025 asset sale target of **$400-$500 million** through the sale of a minority stake in its insurance company, AGIC, for **$450 million**[175](index=175&type=chunk) [Review of Consolidated Results of Operations](index=41&type=section&id=Review%20of%20Consolidated%20Results%20of%20Operations) Consolidated revenue for Q1 2025 decreased 5% to **$2.9 billion**, primarily due to Energy Infrastructure SBU declines, while operating margin fell 29% to **$441 million** due to prior-year gains and restructuring costs - The **$159 million** decrease in total revenue was driven by a **$289 million** decline at the Energy Infrastructure SBU, largely due to the prior year monetization of the Warrior Run PPA and the re-segmentation of the AES Andes portfolio[179](index=179&type=chunk) - The **$178 million** decrease in operating margin was primarily caused by a **$205 million** drop at the Energy Infrastructure SBU, again linked to the Warrior Run PPA monetization and prior year derivative gains[188](index=188&type=chunk) - A significant driver for the year-over-year variance in Gain (loss) on disposal was a **$52 million** gain in Q1 2024 from the dilution of AES's ownership interest in Uplight[191](index=191&type=chunk) [SBU Performance Analysis](index=45&type=section&id=SBU%20Performance%20Analysis) In Q1 2025, Utilities SBU Adjusted EBITDA grew 23% to **$223 million**, Renewables SBU increased 45% to **$161 million**, and Energy Infrastructure SBU declined 29% to **$254 million** SBU Adjusted EBITDA Performance (Q1 2025 vs Q1 2024) | SBU | Adjusted EBITDA Q1 2025 (M) | Adjusted EBITDA Q1 2024 (M) | % Change | | :--- | :--- | :--- | :--- | | Renewables | $161 | $111 | +45% | | Utilities | $223 | $182 | +23% | | Energy Infrastructure | $254 | $356 | -29% | | New Energy Technologies | $(25) | $(17) | -47% | - **Renewables SBU** performance was boosted by higher generation in Panama from better hydrology, new businesses, and the re-segmentation of AES Andes, though partially offset by increased fixed costs and the sale of AES Brasil[231](index=231&type=chunk) - **Utilities SBU** growth was driven by higher retail rates from the 2024 Base Rate Order, increased demand from weather, and higher transmission revenues[234](index=234&type=chunk) [Key Trends and Uncertainties](index=51&type=section&id=Key%20Trends%20and%20Uncertainties) Key trends include persistent supply chain risks, IRA implementation uncertainty, and regulatory changes, as the company continues its decarbonization strategy aiming to exit most coal facilities by year-end 2025 - The company has **mitigated supply chain risks** from U.S. tariffs by contracting and importing all solar panels needed for its 2025 U.S. project backlog and contracting for U.S.-manufactured panels for its 2026-2027 backlog[253](index=253&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk) - The **Inflation Reduction Act (IRA)** is beneficial for the U.S. renewables business, but its implementation faces **uncertainty** due to potential administrative changes and the need for substantial guidance from the U.S. Treasury[265](index=265&type=chunk)[269](index=269&type=chunk) - The company intends to **exit the substantial majority of its coal facilities by year-end 2025** as part of its **decarbonization strategy**, though efforts in some markets will continue beyond 2027[286](index=286&type=chunk) - The European Union's DG Comp is conducting a **preliminary review** of the AES Maritza PPA in Bulgaria for compliance with State Aid rules, creating **uncertainty** about the contract's future[292](index=292&type=chunk) [Capital Resources and Liquidity](index=61&type=section&id=Capital%20Resources%20and%20Liquidity) As of March 31, 2025, the company had **$1.8 billion** in cash and **$1.7 billion** in Parent Company Liquidity, with total debt at **$30 billion**; net cash from operations significantly increased to **$545 million** Liquidity Position | Metric | March 31, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | Consolidated cash and cash equivalents | $1,753 | $1,524 | | Parent Company Liquidity | $1,677 | $2,047 | Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $545 | $287 | | Net cash used in investing activities | $(1,282) | $(2,386) | | Net cash provided by financing activities | $1,317 | $2,606 | - The **$258 million** increase in operating cash flow was driven by a **$611 million** favorable change in working capital, which offset a **$353 million** decrease in adjusted net income[337](index=337&type=chunk)[344](index=344&type=chunk) - Capital expenditures decreased by **$894 million** year-over-year, primarily due to lower growth expenditures for U.S. renewables projects[345](index=345&type=chunk)[346](index=346&type=chunk) [Critical Accounting Policies and Estimates](index=68&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies and estimates, as described in its 2024 Form 10-K, remained unchanged for Q1 2025 - There were **no changes** to the company's critical accounting policies and estimates during the first quarter of 2025[361](index=361&type=chunk) [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=68&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks from commodity prices, interest rates, and foreign currency, with a 100-basis-point interest rate increase projected to impact 2025 pre-tax earnings by less than **$15 million** - As of March 31, 2025, the company projects that a 10% increase in commodity prices would result in a pre-tax earnings gain of **less than $5 million** for power, a gain of **less than $5 million** for gas, and a loss of **less than $5 million** for coal[366](index=366&type=chunk) - The company has unhedged forward-looking earnings exposed to the **Argentine peso**. A 10% USD appreciation against key foreign currencies is estimated to result in a potential loss of **less than $10 million** on cash distributions[374](index=374&type=chunk) - A one-time **100-basis-point increase** in interest rates would impact 2025 pre-tax earnings by **less than $15 million** on interest expense for debt denominated in key currencies[378](index=378&type=chunk) [CONTROLS AND PROCEDURES](index=71&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) As of March 31, 2025, disclosure controls were ineffective due to a material weakness related to the AES Brasil disposition, with remediation efforts expected by June 30, 2025 - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of March 31, 2025, due to a **material weakness** in internal control over financial reporting[380](index=380&type=chunk) - The material weakness relates to **ineffective controls** over the review of the AES Brasil disposition, specifically the use of **incomplete data** in estimating the fair value for the impairment calculation when the asset was classified as held-for-sale[381](index=381&type=chunk) - Management has begun **remediation efforts**, including policy updates and training, and expects these to be completed by **June 30, 2025**[383](index=383&type=chunk)[384](index=384&type=chunk) [PART II: OTHER INFORMATION](index=72&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) [LEGAL PROCEEDINGS](index=72&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company faces several legal proceedings, including a long-standing arbitration with GRIDCO, lawsuits in the Dominican Republic seeking over **$1.9 billion**, and a new securities class action against Fluence and AES - A long-pending arbitration with GRIDCO in India, where GRIDCO sought approximately **$189 million**, remains **unresolved** as GRIDCO's challenge to a 2007 award in AES's favor is still pending in Indian court[388](index=388&type=chunk) - The company faces multiple lawsuits in the Dominican Republic related to coal combustion residuals (CCRs) delivered in 2003-2004, with claimants seeking **over $1.9 billion** in alleged damages for personal injuries[392](index=392&type=chunk)[393](index=393&type=chunk)[397](index=397&type=chunk) - In April 2025, a **securities class action lawsuit** was filed against **Fluence Energy, Inc.**, its officers, and **AES**, alleging violations of the Securities Exchange Act. AES is named as an alleged "control person"[400](index=400&type=chunk) [RISK FACTORS](index=75&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's 2024 Form 10-K - **No material changes** to the risk factors disclosed in the 2024 Form 10-K have occurred[401](index=401&type=chunk) [UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=75&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not repurchase common stock in Q1 2025, with **$264 million** remaining available under its stock repurchase program - **No shares** of common stock were repurchased during the first quarter of 2025[402](index=402&type=chunk) - As of March 31, 2025, **$264 million** remains available under the company's stock repurchase authorization[402](index=402&type=chunk)

Group 1: Dividend Stocks Appeal - Investors are shifting focus to dividend stocks as growth in the technology sector becomes uncertain, with dividends providing total return and mitigating downside risk [1] - The Coca-Cola Company (KO) stock has increased by approximately 17% over the last 12 months, and with a dividend yield of 2.12%, the total return approaches 20% [2] - Several high-yield dividend stocks are currently trading near their 52-week lows but have potential growth catalysts for 2025, allowing investors to collect dividends while waiting [3] Group 2: AES Corporation - AES Corporation (AES) has a dividend yield of 6.99% and an annual dividend of $0.70, with a 12-year track record of dividend increases and a 4.40% annualized 3-year dividend growth [4] - The company operates power plants and distributes electricity, utilizing a variety of fuels, including coal and renewable energy projects [5][6] - Despite potential risks to federal funding for renewable projects, earnings are considered undervalued by at least 20%, with analysts predicting a stock price increase of over 35% alongside a 6.95% dividend yield [7] Group 3: Pfizer Inc. - Pfizer Inc. (PFE) offers a dividend yield of 7.05% and an annual dividend of $1.72, with a 16-year history of dividend increases and a 2.50% annualized 3-year dividend growth [9] - The company faces challenges, including the discontinuation of an obesity drug candidate and potential revenue loss of $18 billion due to patent expirations, but it has a strong pipeline bolstered by the acquisition of Seagen [10] - Analysts forecast a stock price gain of around 22% in the next 12 months, with a dividend protected by a 58% payout ratio based on current-year estimates [11] Group 4: LyondellBasell Industries - LyondellBasell Industries (LYB) has a dividend yield of 9.20% and an annual dividend of $5.36, with a 13-year track record of dividend increases and a 5.88% annualized 3-year dividend growth [12] - The company is a major producer of plastics and resins, but faces challenges from tariffs and a slowing economy, impacting its short-term outlook [13][14] - Despite a high payout ratio of 165.43%, the company has shown no signs of cutting dividends, which have increased by an average of 5.5% over the last three years [12][14]

The AES Corporation (AES) is scheduled to release its first-quarter 2025 results on May 1, after market close.The company delivered an earnings surprise of 58.82% in the last reported quarter. Moreover, AES holds a four-quarter average earnings surprise of 34.74%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors to Consider Ahead of AES’ Q1 ResultsAES’ service territories witnessed a b ...

Industry Overview - The demand for renewable energy is increasing globally, with wind power leading the transition towards renewables, crucial for combating climate change [1] - In the U.S., wind energy has been the largest renewable source of electricity generation since 2019, with installed capacity exceeding 153 gigawatts (GW) in 2024 [2][3] - The global wind energy market was valued at $95.55 billion in 2024, projected to grow at a CAGR of 9% from 2025 to 2032, reaching $190.39 billion [4] U.S. Wind Power Growth - Wind power output accounted for 10% of total U.S. utility-scale electricity generation in 2024, marking a 6.4% year-over-year increase [2] - The U.S. grid is expected to add 7.7 GW of wind generation capacity in 2025, up from 5.1 GW added in the previous year [3] Key Companies in Wind Energy - **AES Corporation**: A leading power generation company with a portfolio of 34,596 megawatts (MW). It plans to add 3.2 GW of new renewables by the end of 2025 and has a 51 GW pipeline for growth [7][9] - **Exelon Corporation**: Focused on clean energy transmission and distribution, expected to invest $21.7 billion in electric distribution and $12.6 billion in electric transmission from 2025 to 2028 [10] - **PG&E Corporation**: Operates California's largest regulated electric and gas utility, with a focus on wind energy procurement and development [12] - **Brookfield Renewable Partners**: Owns and operates renewable power facilities, targeting to invest $8-$9 billion over the next five years and has a strong development pipeline of 200 GW worth of projects [15][16][17] Investment Opportunities - The wind energy sector is becoming increasingly attractive for investors, with companies like Exelon, Brookfield Renewable, AES, and PG&E being essential for investment portfolios [5] - Thematic investment tools are available to identify companies that are shaping the future of renewable energy [6]

Core Insights - The decline in AES's share price was perceived as excessive considering the fundamental value of the business [1] - The share price experienced volatility, reaching a peak of $13.23 in January before dropping again [1] Company Analysis - The analyst emphasizes a strategy of seeking companies that provide both growth and value, indicating a preference for undervalued firms with strong growth potential [1] - The analyst has extensive experience in the financial sector, having worked for 15 years in various roles related to analysis and risk management [1] Investment Philosophy - The belief is that the best investments are those that are undervalued yet possess significant growth prospects [1] - The analyst's approach is independent, focusing on personal analysis rather than following market trends without critical evaluation [1]

AES Corporation (NYSE: AES ) looks broken on the surface with high debt, cheap valuation, but I believe the story is changing. The company is delivering real earnings growth, ramping up 6.6GW new capacity of clean energy, and turningI am currently working as an investment analyst at a family office. My specialty is identifying high-quality and/or severely mispriced investment ideas. I believe that a great investment idea would "jump" at you intuitively and it comes in buying great companies at great prices. ...

Core Viewpoint - The AES Corporation is focused on expanding its renewable energy generation and has also been increasing its presence in the liquefied natural gas (LNG) market, while facing challenges from declining wholesale prices [1]. Group 1: Renewable Energy Expansion - AES is enhancing its renewable generation portfolio to meet the rising electricity demand, completing 3 gigawatts (GW) of new capacity in 2024 and planning to add 3.2 GW by the end of 2025 [2]. - The company is actively retiring coal-fired units to promote clean energy, having retired 481 megawatts (MW) of coal generation in Chile and the United States in 2024 [3]. Group 2: LNG Operations - AES operates LNG import terminals in the Dominican Republic with a storage capacity of 160,000 cubic meters and has long-term contracts to supply re-gasified LNG to industrial users and third-party power plants [4]. - The completion of a new 670 MW combined-cycle gas plant in Panama is expected to enhance the utilization of AES's existing LNG regasification and storage facilities [4]. Group 3: Financial Challenges - The company faces headwinds from a significant decline in wholesale electricity costs due to increased renewable energy use and low-cost natural gas, which may negatively impact its financial performance [5]. - As of December 31, 2024, AES had a long-term debt of $25.43 billion and a current debt of $3.59 billion, with cash equivalents of $2.04 billion, indicating a potential liquidity concern [6]. Group 4: Stock Performance - AES shares have decreased by 12.9% over the past month, contrasting with a 1% decline in the industry [7].