Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $591 million, down from $640 million in the previous year, primarily due to prior year revenues from the accelerated monetization of the Warrior Run PPA and the sale of AES Brazil [23][24] - Adjusted EPS for the quarter was $0.27 compared to $0.50 last year, in line with expectations [24] - The company reaffirmed its 2025 adjusted EBITDA guidance of $2.65 billion to $2.85 billion and adjusted EPS guidance of $2.10 to $2.26 [28] Business Line Data and Key Metrics Changes - The Renewables segment saw a 45% year-over-year increase in EBITDA, driven by contributions from new projects and the inclusion of renewables in Chile [25] - The Utilities segment's higher adjusted PTC was driven by tax attributes from the Pike County Energy Storage Project, new rates in Indiana, demand growth, and favorable weather [27] - Lower EBITDA in the Energy Infrastructure segment was attributed to prior year revenues from the Warrior Run plant and the transition of Chile Renewables to the Renewables segment [27] Market Data and Key Metrics Changes - The company has a backlog of 11.7 gigawatts, with significant demand from corporate customers, particularly data centers [4][13] - The U.S. supply chain strategy protects against tariffs and inflation, with nearly all CapEx for projects scheduled to come online between 2025 and 2027 secured [10][12] Company Strategy and Development Direction - The company is focused on long-term contracted generation and growth in U.S. regulated utilities, with a robust growth program in place [6][18] - The strategy includes a significant investment program in AES Indiana and AES Ohio, with approximately $1.4 billion planned for 2025 [19] - The company aims to maintain control of its captive insurance business while utilizing asset sales to support growth capital for renewables and utilities [29][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model against economic uncertainties, including tariffs and potential recessions [6][34] - The demand from core corporate customers remains strong, with no signs of slowdown in energy needs from hyperscalers [34][67] - The company is optimistic about the future, expecting significant growth driven by projects already online and cost reduction actions [33] Other Important Information - The company completed the sale of a minority stake in its global insurance company for $450 million, achieving its asset sale target for the year [5][29] - The company has hedged 100% of its benchmark interest rate exposure for all corporate financings through 2027 [32] Q&A Session Summary Question: Impact of the insurance transaction on EBITDA - The expected EBITDA impact from the insurance transaction is in the range of $25 million to $30 million, viewed as a low-cost equity financing [39][40] Question: Clarification on tariff exposure - The company has minimized tariff exposure through strategic partnerships and domestic supply, with only a small potential exposure related to batteries imported from Korea [46][48] Question: Renewable demand trends - There is continued strong demand from data center customers, with no pull forward observed due to potential IRA changes [67] Question: Status on asset sale targets - The company is close to achieving its $3.5 billion asset sale target, with ongoing discussions for additional sales [88][91] Question: Regulatory changes in Ohio - Recent legislation is seen as net positive for AES Ohio, providing a more constructive regulatory framework for rate filings [115][116]