AES(US:AES) ZACKSยท2025-05-02 13:40Core Viewpoint - The AES Corporation reported a significant decline in adjusted earnings and total revenues for the first quarter of 2025, primarily due to lower contributions from its Energy Infrastructure segment and changes in tax attributes [1][3]. Financial Performance - Adjusted earnings for Q1 2025 were 27 cents per share, missing the Zacks Consensus Estimate of 37 cents by 27% and down 46% from 50 cents per share in the same quarter last year [1]. - GAAP earnings were reported at 7 cents per share, a decrease from 60 cents in Q1 2024, attributed to lower contributions from the Energy Infrastructure segment and one-time restructuring costs [2]. - Total revenues amounted to $2.93 billion, a 5.3% decline year-over-year, and missed the Zacks Consensus Estimate of $3.20 billion by 8.7% [3]. Cost and Income Analysis - Total cost of sales for the quarter was $2.49 billion, reflecting a 0.8% increase year-over-year [4]. - Operating income decreased to $441 million, down 28.8% from $619 million in the prior year [4]. - Interest expenses were $342 million, down 4.2% from $357 million in the same quarter last year [4]. Operational Highlights - The company signed 443 megawatts (MW) of new long-term power-purchase agreements (PPAs) for solar and energy storage, increasing the total backlog to 11.7 gigawatts (GW), with 5.3 GW currently under construction [5]. Financial Condition - Cash and cash equivalents stood at $1.75 billion as of March 31, 2025, up from $1.52 billion at the end of 2024 [6]. - Non-recourse debt increased to $21.61 billion from $20.63 billion as of December 31, 2024 [6]. - Net cash flow from operating activities was $545 million in Q1 2025, compared to $287 million in Q1 2024 [6]. Capital Expenditure - Total capital expenditure for the first quarter was $1.25 billion, down from $2.15 billion recorded a year ago [7]. Future Guidance - AES reaffirmed its 2025 earnings guidance, expecting adjusted earnings in the range of $2.10-$2.26 per share, with the Zacks Consensus Estimate at $2.16 per share [8]. - The company maintains an average annual earnings growth target of 7-9% through 2027 [8].