The AES Corporation
AESBusiness Overview
ticker: AES step: 01 generated: 2026-05-13 source: quick-research
The AES Corporation (AES) — Business Overview
Business Description
AES Corporation is the largest US-based global power company, operating generation and utility businesses across 15 countries with over 32 GW of total capacity — 50% renewable as of 2024. Unlike domestic regulated utilities, AES combines a global renewables development platform (17.9 GW operating, 67 GW in development) with regulated utility subsidiaries (AES Indiana, AES Ohio) and long-term Power Purchase Agreement (PPA) contracts with investment-grade corporates, primarily hyperscale data centers. BNEF named AES the top corporate clean energy seller globally for three consecutive years (2022–2024). The company targeted full coal exit by year-end 2025.
Revenue Model
AES generates revenue through two primary channels: (1) contracted power generation — selling electricity under long-term PPAs to utilities, corporations, and data center hyperscalers at locked-in prices; and (2) regulated utility operations (AES Indiana, AES Ohio) earning authorized returns on rate base. The PPA model provides revenue visibility and insulates from commodity price swings. As of Q1 2025, AES had 11.7 GW in signed PPA backlog with 5.3 GW under construction — 80% with investment-grade data center and manufacturing customers.
Products & Services
- Renewable generation — wind, solar, and battery storage (17.9 GW operating; 67 GW in development)
- Thermal/gas generation — natural gas and LNG peakers and combined-cycle plants
- Regulated utilities — AES Indiana and AES Ohio (domestic T&D and generation)
- Hydro and LNG — global portfolio including Latin America and Caribbean
- Data center clean energy supply — 1.6 GW of data center PPAs signed YTD in 2025; #1 global corporate clean energy seller
Customer Base & Go-to-Market
AES sells power under long-term PPAs to utilities, municipalities, industrial customers, and — increasingly — hyperscale data centers (Google, Microsoft, Amazon, Meta). The 11.7 GW backlog is 80% data center and manufacturing. AES also serves ~1M retail utility customers through AES Indiana and AES Ohio. Global operations span the US, Chile, Colombia, Brazil, Panama, Vietnam, and other markets.
Competitive Position
AES is distinguished from peers by its global scale, renewables development pipeline (67 GW), and data center PPA leadership. However, global operations introduce emerging market regulatory, political, and currency risks absent in domestic regulated peers. AES's coal exit positions it for ESG-driven capital flows and corporate clean energy procurement. M&A interest emerged in early 2026 from BlackRock's Global Infrastructure Partners (GIP) and EQT AB.
Key Facts
- Founded: 1981
- Headquarters: Arlington, Virginia
- Employees: ~8,500
- Exchange: NYSE
- Sector / Industry: Utilities / Independent Power Producers
- Market Cap: ~$9B (at ~$13/share, ~700M shares)
Financial Snapshot
ticker: AES step: 04 generated: 2026-05-13 source: quick-research
The AES Corporation (AES) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $12.62B | $12.67B | $12.28B | -3.1% |
| Adj. EBITDA | ~$2.8B | $2.83B | $2.64B | -6.7% |
| GAAP Net Income | ~-$600M | ~$260M | ~$1.75B | n/m |
| Adj. EPS (non-GAAP) | ~$1.76 | $1.76 | $2.14 | +21.6% |
GAAP EPS is highly volatile due to asset impairments, disposals, and emerging market adjustments — adj. EPS is the more meaningful operating metric.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$1.5B |
| Free Cash Flow | Modestly negative (heavy capex) |
| Capital Expenditures | ~$3.5B |
| Cash & Equivalents | ~$1.0B |
| Total Debt | ~$25B |
Debt-to-capital ratio ~79.8% — highly leveraged; reflects project-finance structure across global generation assets.
Key Ratios (approximate)
- P/E: ~6x (adj.) | EV/EBITDA: ~14x | Dividend Yield: ~4.5%
- Adj. EPS growth (FY2024): +21.6% | Adj. EBITDA growth target: 5–7% annually
Growth Profile
AES's revenue is relatively flat due to asset sales and emerging market currency headwinds, but adj. EPS grew 22% in 2024 on renewables additions and a lower tax rate. The company added 6.8 GW of new contracts in 2024 (4.4 GW renewables PPAs) and plans 3.2 GW of new renewable projects in 2025. The 11.7 GW signed PPA backlog provides revenue visibility through the late 2020s. Debt is elevated but is largely project-financed at the asset level, limiting recourse to the parent.
Forward Estimates
- FY2025: 3.2 GW renewable additions; adj. EBITDA growth target 5–7%
- 2025 YTD new PPAs: 2.2 GW (1.6 GW with data center customers)
- PPA backlog: 11.7 GW signed / 5.3 GW under construction (Q1 2025)
- Coal exit: targeted year-end 2025
- Analyst avg. price target: ~$19.60 (Moderate Buy; ~50% upside from ~$13 stock)
- M&A: BlackRock GIP + EQT AB acquisition interest reported February 2026
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $AES.