Group 1 - The article highlights AES Corporation (NYSE: AES) as a stock that is currently undervalued and presents a compelling investment opportunity [2] - The last coverage of AES Corporation was in December 2020 when the stock was trading at $21, indicating a historical perspective on its valuation [2] - The focus is on defensive stocks with a medium- to long-term investment horizon, suggesting a strategy aimed at stability and income generation [2] Group 2 - The article emphasizes the importance of conducting due diligence and forming independent conclusions before making investment decisions [4][5] - It clarifies that the article is for informational purposes and does not constitute financial advice, reinforcing the need for personal research [4][5] - The disclosure indicates a beneficial long position in AES shares, suggesting confidence in the stock's future performance [3]

Renewable Energy Capacity - The company's Renewables SBU has an operating installed capacity of 13,229 MW as of 2024, with an additional 3.7 GW added to the backlog of contracted projects[78]. - The company has a diverse portfolio of generation facilities, including hydro, solar, and wind, with various equity interests across projects[79]. - The company reported a total of 13,229 MW of renewable energy capacity across various projects, with significant contributions from solar, wind, and hydro sources[80]. - The hydro project Chiriqui-Esti in Panama has a capacity of 120 MW and is expected to operate until 2030, with a 49% efficiency rate[80]. - The solar project Uih Ela Ni in Hawaii has achieved a 100% efficiency rate with a capacity of 60 MW, operational from 2023 to 2048[80]. - The company has several projects in Argentina, including a hydro project Ullum with a capacity of 45 MW and a 100% efficiency rate, operational since 1996[81]. - The wind project Na Pua Makani in Hawaii has a capacity of 24 MW and is expected to operate until 2040, achieving a 100% efficiency rate[81]. - The company is expanding its energy storage capabilities, with projects like Westwing 2B in Arizona having a capacity of 59 MW and a 75% efficiency rate, operational until 2044[81]. - The solar project Bayasol in the Dominican Republic has a capacity of 50 MW and is expected to operate until 2036, with a 65% efficiency rate[81]. - The company is actively involved in energy storage projects, with the Laurel Mountain ES in West Virginia having a capacity of 16 MW and a 100% efficiency rate, operational since 2011[81]. - The company has multiple solar projects in Panama, including Esti Solar II with a capacity of 12 MW and a 49% efficiency rate, operational until 2044[81]. - The company is committed to renewable energy, with a focus on expanding its solar and wind projects across various regions, including the US, Panama, and Latin America[80][81]. Financial Performance and Reporting - The Adjusted EBITDA for the year ended December 31, 2024, reflects the performance of each SBU, with losses reported in the New Energy Technologies SBU[74]. - The Adjusted EBITDA metric is a key non-GAAP measure used to assess the operating performance of the SBUs[74]. - The company’s corporate activities are reported under "Corporate and Other" for financial reporting purposes, indicating no separate disclosure is required[75]. - The financial reporting includes detailed segment and geographic information to provide insights into the company's operational structure[75]. - AES recognized $1.3 billion related to the monetization of tax attributes to tax equity investors and transferability tax credit buyers for U.S. renewables projects in 2024[86]. - The budget for construction of projects currently under construction and contracted projects exceeds $9 billion[90]. - The majority of solar projects under AES Clean Energy have been financed with tax equity structures, which significantly influence earnings variability[88]. Project Development and Agreements - In 2024, AES Clean Energy signed or was awarded 3,506 MW of Power Purchase Agreements (PPAs), contributing to a backlog of 7.3 GW of projects expected to come online through 2027[90]. - AES Clean Energy's development pipeline has more than doubled since 2021, adding over 1 GW of high-quality projects to its backlog in 2024[85]. - AES Colombia is developing a pipeline of 1.3 GW of solar and wind projects, including six wind projects totaling 1,149 MW in La Guajira[96]. - AES Puerto Rico began construction on 485 MW of new renewables in 2024, supporting the territory's goal of 100% renewable energy by 2050[106]. - The Marahu Project, 70% owned by AES, secured a loan guaranty of $861 million from the US Department of Energy, with $322 million drawn to date for construction costs[110]. - AES Indiana plans to add up to 1,300 MW of wind, solar, and battery energy storage by 2027 as part of its Integrated Resource Plan[135]. Market and Operational Insights - AES Indiana and AES Ohio are targeting a combined 10% annual growth in rate base, driven by the increasing demand from data centers related to generative artificial intelligence[115]. - AES Indiana's total annual operating revenue increased by $71 million following the approval of a base rate order effective May 9, 2024, marking the first base rate increase request in five years[128]. - AES Indiana operates a 3,704 MW installed capacity across its generation facilities, including a 195 MW solar project that achieved full commercial operations in May 2024[116][122]. - AES Indiana's retail demand, weather, and maintenance costs are key financial drivers, with regulatory authority impacting tariff rates and recovery mechanisms[126][127]. - AES Ohio's GWh sold in 2024 totaled 14,311 GWh, with wholesale sales and SSO utility sales amounting to 2,440 GWh[116]. - AES Indiana's construction program includes capital expenditures for utility operations and compliance with environmental regulations, alongside discretionary investments[130]. - AES Indiana's seven-year TDSIC Plan includes $1.2 billion for transmission, distribution, and storage improvements from 2020 to 2026[134]. Regional Operations and Capacity - AES operates plants in Argentina totaling 1,407 MW, representing 3% of the country's total installed capacity[91]. - AES Dominicana has three operating subsidiaries, each owned 65% by AES, with a total of 150 MW capacity from solar and wind farms[104]. - AES Brasil's installed capacity increased from 2.7 GW in 2016 to 5.2 GW at the time of sale in 2024, with a diversified portfolio including hydro (2,658 MW), wind (2,189 MW), and solar (328 MW) generation[112]. - AES Chile has a 99.5% ownership interest in AES Andes and a 100% ownership interest in AES Pacífico Chile, which was created in 2024 to advance new renewable capacity[165]. - AES Chile is the second largest generation operator in Chile with an installed capacity of 3,685 MW, holding approximately 10% market share as of December 31, 2024[165]. - AES Argentina operates plants totaling 2,820 MW, representing 7% of Argentina's total installed capacity, with 75% of energy sold in the wholesale market in 2024[187][188]. - AES Vietnam's Mong Duong 2 plant has a gross capacity of 1,242 MW and is under a BOT agreement expiring in 2040; AES plans to sell its 51% interest by early 2026[188][189]. Environmental and Regulatory Developments - The company has committed to not building additional coal-based power plants and is advancing new renewable projects as part of its Green Blend strategy[167]. - The EPA's 2023 Federal Implementation Plan addresses air quality impacts and includes a revised trading program for NO emissions in 22 states[266]. - The EPA published a final rule in May 2024 to revise the Mercury and Air Toxics Standard (MATS) for coal and oil-fired electric generating units[273]. - The Colombian electricity sector has a reliability mechanism triggered under specific hydrological conditions, which was first activated from late September 2024 to late November 2024[253].

The AES Corporation (AES) focuses on increasing its renewable energy generation by adding solar, wind and battery energy storage on a regular basis to meet its long-term clean energy goals. It has also been expanding its footprint in the liquefied natural gas (LNG) market.However, this Zacks Rank #3 (Hold) company faces risks like a decline in wholesale prices.Tailwinds Favoring AES Like other utility providers, AES has been expanding its renewable generation portfolio to gain from the growing clean energy ...

Great investments are even better and more fruitful when you can buy them at a discount.Lots of investors enjoy keeping an eye on the market in general, and their portfolio in particular, standing ready to make a move whenever one is merited. Other people, however, have neither the time nor the inclination to monitor and manage their stocks. This crowd just wants to set it and forget it for years on end.If you're part of this latter group, then there's good news: You have options. If you want to invest diff ...

The AES Corporation’s (AES) fourth-quarter 2024 adjusted earnings of 54 cents per share beat the Zacks Consensus Estimate of 34 cents by 58.8%. However, the bottom line declined 26% from 73 cents per share in the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company generated GAAP earnings of 79 cents per share against the GAAP loss of 15 cents per share in the fourth quarter of 2023.AES reported 2024 adjusted earnings of $2.14 per share, which were higher than ...

The AES Corporation (NYSE:AES) Q4 2024 Earnings Conference Call February 28, 2025 10:00 AM ET Company Participants Susan Harcourt - Vice President, Investor Relations Andrés Gluski - President & Chief Executive Officer Steve Coughlin - Chief Financial Officer Ricardo Falú - Chief Operating Officer Conference Call Participants Nick Campanella - Barclays David Arcaro - Morgan Stanley Durgesh Chopra - Evercore ISI Julien Dumoulin-Smith - Jefferies Michael Sullivan - Wolfe Research Will Grainger - Mizuho Operat ...

The AES (AES) Q4 2024 Earnings Call February 28, 2025 10:00 AM ET Company Participants Susan Harcourt - VP - Investor RelationsAndrés Gluski - President & Chief Executive OfficerStephen Coughlin - Executive VP & CFONicholas Campanella - DirectorDavid Arcaro - Executive Director, Equity ResearchDurgesh Chopra - Managing DirectorRicardo Manuel Falú - EVP, COO & President - New Energy TechnologiesMichael Sullivan - Director - Equity ResearchWillard Grainger - Senior Associate Conference Call Participants Julie ...

The AES Corporation Fourth Quarter & Full Year 2024 Financial Review CONTAINS FORWARD-LOOKING STATEMENTS February 28, 2025 Safe Harbor Disclosure Certain statements in the following presentation regarding AES' business operations may constitute "forward-looking statements." 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 inste ...

Group 1: Earnings Performance - AES reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, but down from $0.73 per share a year ago, representing an earnings surprise of 58.82% [1] - Over the last four quarters, AES has surpassed consensus EPS estimates four times [2] - The company posted revenues of $2.96 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 9.12%, and down from $2.97 billion year-over-year [2] Group 2: Stock Performance and Outlook - AES shares have declined approximately 19.4% since the beginning of the year, compared to a decline of -0.3% for the S&P 500 [3] - The future performance of AES stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $3.27 billion, and for the current fiscal year, it is $2.02 on revenues of $12.79 billion [7] Group 3: Industry Context - The Utility - Electric Power industry, to which AES belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AES's stock performance [5]

Financial Performance - Full year 2024 Net Income was $698 million, an increase of $880 million compared to 2023, driven by higher contributions from renewables projects and lower impairments[8]. - Adjusted EBITDA for 2024 was $2,639 million, a decrease of $189 million from 2023, primarily due to drought conditions and outages in Colombia[9]. - Adjusted EPS for 2024 was $2.14, an increase of $0.38 compared to 2023, mainly driven by higher contributions from renewables projects[11]. - Total revenue for the year ended December 31, 2024 was $12,278 million, a decrease of 3.1% from $12,668 million in 2023[27]. - Net income attributable to The AES Corporation for the year ended December 31, 2024 was $1,679 million, compared to $249 million in 2023, representing a significant increase[27]. - Basic earnings per share for the year ended December 31, 2024 was $2.38, up from $0.37 in 2023[27]. - For the three months ended December 31, 2024, total revenue was $2,962 million, slightly down from $2,968 million in the same period of 2023[29]. - Operating margin for the year ended December 31, 2024 was $2,314 million, a decrease from $2,504 million in 2023[27]. - Interest expense increased to $1,485 million in 2024 from $1,319 million in 2023[27]. - The company reported a gain on disposal and sale of business interests of $444 million for the year ended December 31, 2024, compared to $134 million in 2023[27]. - The total cost of sales for the year ended December 31, 2024 was $9,964 million, down from $10,164 million in 2023[27]. - Net income for the year ended December 31, 2024, was $698 million, a significant recovery from a net loss of $182 million in 2023[35]. - Cash and cash equivalents at the end of 2024 were $2,039 million, up from $1,990 million in 2023, indicating a year-over-year increase of 2.5%[35]. - Total current liabilities decreased to $8,571 million in 2024 from $9,731 million in 2023, representing a reduction of approximately 11.9%[33]. - The company reported a net cash provided by operating activities of $2,752 million for the year ended December 31, 2024, compared to $3,034 million in 2023[35]. - Capital expenditures for the year were $7,392 million, a slight decrease from $7,724 million in 2023[35]. - The company reported a diluted EPS of $0.79 for Q4 2024, recovering from a loss of $0.14 in Q4 2023, with a twelve-month EPS of $2.37 compared to $0.34[45]. Strategic Initiatives - The company signed or awarded 6.8 GW of new contracts in 2024, including 4.4 GW of renewables under long-term PPAs[5]. - The PPA backlog consists of 11.9 GW, with 4.9 GW under construction, indicating strong future growth potential[13]. - The company is initiating 2025 guidance for Adjusted EBITDA of $2,650 to $2,850 million, with expected growth from new renewables projects[15]. - The company expects to complete construction of 3.2 GW of new renewables in 2025, contributing to future revenue growth[5]. - The company reaffirmed its annualized growth target of 5% to 7% for Adjusted EBITDA through 2027, based on 2023 guidance[15]. - The company plans to continue its market expansion efforts, particularly in renewable energy sectors, to align with global sustainability trends[36]. Debt and Liquidity Management - The company issued $1,450 million in recourse debt during 2024, compared to $1,400 million in 2023, reflecting a strategic move to enhance liquidity[35]. - Future guidance indicates a focus on reducing non-recourse debt, which stood at $20,626 million in 2024, down from $18,482 million in 2023[33]. - Parent Company liquidity at the end of December 2024 was $2.047 billion, comprising $265 million in cash and $1.782 billion available under credit facilities[50]. - The Parent Company relies on subsidiary distributions to fund debt service and other cash needs, highlighting the importance of these distributions for operational liquidity[50]. Impairments and Losses - Impairment losses for Q4 2024 were $195 million, a decrease from $559 million in Q4 2023, while the twelve-month impairment losses were $374 million compared to $877 million[45]. - The total asset impairments across various projects, including $198 million at Warrior Run and $139 million at New York Wind, significantly impacted the overall financial performance[48]. - Income tax benefits associated with impairments and losses amounted to $68 million related to AES Ventanas, $46 million for Warrior Run, and $13 million for AES Andes, impacting earnings per share positively[48]. - Losses incurred due to early retirement of debt at AES Andes totaled $46 million, or $0.07 per share, indicating financial strain from debt management[48]. - The company experienced day-one losses of $20 million, or $0.03 per share, at AES Renewable Holdings due to sales-type leases, indicating challenges in new project implementations[48]. Subsidiary Distributions - Total subsidiary distributions to the Parent Company for the last four quarters reached $1.633 billion, with $1.603 billion from subsidiary distributions and $30 million from returns of capital[50]. - The company reported a total of $1.504 billion in subsidiary distributions for the quarter ended September 30, 2024, reflecting a decrease from previous quarters[50].