Outlook
Reaffirms 2025 Guidance and Long-Term Growth Rate TargetsGuidance reaffirmed
Strategic AccomplishmentsGuidance reaffirmed
On track to add 3.2 GW of new projects in operation in 2025
Results
2.9 GW completed year-to-date
Year-to-date, signed or awarded new long-term PPAs for 2.2 GW of renewables, including 1.6 GW with data centers
Outlook
On track to sign a total of 14-17 GW for 2023 through 2025
Results
PPA backlog of 11.1 GW, including 5 GW under construction
Corporate events
Filed settlements at both AES Indiana and AES Ohio related to outstanding rate reviews
Filed a 20-year Integrated Resource Plan (IRP) at AES Indiana
Results
Q3 2025 Financial Highlights
GAAP Financial Metrics
Net Income of $517 million, compared to $215 million in Q3 2024
Net Income Attributable to The AES Corporation of $639 million, compared to $504 million in Q3 2024
Diluted EPS of $0.94, compared to $0.72 in Q3 2024
Adjusted EBITDA 1 of $830 million, compared to $698 million in Q3 2024
Adjusted EBITDA with Tax Attributes 1,2 of $1,256 million, compared to $1,174 million in Q3 2024
Adjusted EPS 3 of $0.75, compared to $0.71 in Q3 2024
Outlook
Financial Position and Outlook
Reaffirming 2025 guidance for Adjusted EBITDA 1 of $2,650 to $2,850 millionGuidance reaffirmed
Reaffirming annualized growth target of 5% to 7% through 2027, off a base of 2023 guidanceGuidance reaffirmed
Reaffirming expectation for 2025 Adjusted EBITDA with Tax Attributes 1,2 of $3,950 to $4,350 millionGuidance reaffirmed
Reaffirming 2025 guidance for Adjusted EPS 3 of $2.10 to $2.26Guidance reaffirmed
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 guidanceGuidance reaffirmed
Management commentary
"I am very pleased with our performance year-to-date, which has us on track to achieve all of our financial and strategic objectives.
We currently have an 11.1 GW backlog of signed Power Purchase Agreements, including 4 GW with hyperscaler customers, and the large majority of which will come online within the next three years," said Andrés Gluski, AES President and Chief Executive Officer.
Outlook
"We are reaffirming our 2025 guidance and long-term growth rate targets through 2027," said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer.Guidance reaffirmed
1"Adjusted EBITDA from our Renewables SBU is up nearly 50% year-to-date primarily as a result of the 3 GW we brought online since third quarter 2024.
8We are also on track with our $1.4 billion 2025 capex plan at our US utilities, which will deliver important upgrades to our customers."Guidance reaffirmed
Results
Q3 2025 Financial Results
2Third quarter 2025 Net Income was $517 million, an increase of $302 million compared to third quarter 2024, primarily due to higher income tax benefit mainly driven by tax credit transfers, higher margins from new projects in the Renewables Strategic Business Unit (SBU), and an increase in rider revenues due to revised rates at AES Indiana and AES Ohio in the Utilities SBU.
This was partially offset by lower generation at the Energy Infrastructure SBU and the sale of AES Brasil.
5Third quarter 2025 Adjusted EBITDA 4 (a non-GAAP financial measure) was $830 million, an increase of $132 million compared to third quarter 2024, driven by higher contributions from new projects in the Renewables SBU, and an increase in rider revenues due to revised rates at AES Indiana and AES Ohio in the Utilities SBU.
This was partially offset by the sale of AES Brasil and the impact of the sell-down of AES Ohio.
6Third quarter 2025 Adjusted EBITDA with Tax Attributes 4,5 (a non-GAAP financial measure) was $1,256 million, an increase of $82 million compared to third quarter 2024, due to the drivers above, partially offset by lower realized tax attributes driven by timing of tax attribute recognition.
3Third quarter 2025 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.94, an increase of $0.22 compared to third quarter 2024, mainly driven by higher income tax benefit, higher contributions from new projects in the Renewables SBU, and higher retail margin at the Utilities SBU, partially offset by lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition and lower other income, and lower interest income.
4Third quarter 2025 Adjusted Earnings Per Share 6 (Adjusted EPS, a non-GAAP financial measure) was $0.75, an increase of $0.04 compared to third quarter 2024, mainly driven by a lower adjusted tax rate, including the impact of tax credit transfers, higher retail margin at the Utilities SBU, and lower general and administrative costs at Corporate, partially offset by lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition.
Management commentary
Strategic Accomplishments
Results
The Company's backlog, which consists of projects with signed contracts, but which are not yet operational, is 11.1 GW, including 5 GW under construction.
Year-to-date, the Company:
Outlook
7Completed the construction of 2.9 GW of solar, energy storage and wind, and is on track to add a total of 3.2 GW to its operating portfolio by year-end 2025; and
Corporate events
Signed or was awarded new long-term PPAs for 2.2 GW of renewables.
Management commentary
The Company's US utilities made progress toward securing future growth:
Corporate events
AES Ohio reached a unanimous settlement resolving its distribution rate review;
AES Indiana reached a partial settlement agreement for its current rate review; and
AES Indiana filed a 20-year IRP.
Outlook
Guidance and Expectations 4,6
The Company is reaffirming its 2025 guidance for Adjusted EBITDA 4 of $2,650 to $2,850 million.Guidance reaffirmed
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 EBITDA 7 of 5% to 7% through 2027, from a base of its 2023 guidance of $2,600 to $2,900 million.Guidance reaffirmed
The Company is reaffirming its expectation that 2025 Adjusted EBITDA with Tax Attributes 7,8 of $3,950 to $4,350 million.Guidance reaffirmed
The Company is reaffirming its 2025 Adjusted EPS 9 guidance of $2.10 to $2.26.Guidance reaffirmed
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 EPS 9 of 7% to 9% through 2025, from a base year of 2020.Guidance reaffirmed
The Company is also reaffirming its annualized growth target for Adjusted EPS 8 of 7% to 9% through 2027, from a base of its 2023 guidance of $1.65 to $1.75.Guidance reaffirmed
The Company's 2025 guidance is based on foreign currency and commodity forward curves as of September 30, 2025.
Capital return
The Company expects to maintain its current quarterly dividend payment of $0.17595 going forward.Guidance reaffirmed
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