Energy firm AES Q3 revenue beats estimates helped by rate revisions

The AES

04/11/2025 22:01

Overview

AES Q3 2025 revenue beats analyst expectations, adjusted EPS slightly misses estimates

Net income for Q3 2025 increased to $517 mln, driven by higher income tax benefit

AES reaffirms 2025 guidance and long-term growth targets through 2027

Outlook

AES reaffirms 2025 Adjusted EBITDA guidance of $2,650 to $2,850 mln

Company maintains 2025 Adjusted EPS guidance of $2.10 to $2.26

AES expects annualized growth of 5% to 7% in Adjusted EBITDA through 2027

Result Drivers

RENEWABLES CONTRIBUTION - Higher margins from new projects in the Renewables SBU significantly boosted results

RATE REVISIONS - Increased rider revenues due to revised rates at AES Indiana and AES Ohio contributed to higher earnings

LOWER GENERATION - Results were partially offset by lower generation at the Energy Infrastructure SBU and the sale of AES Brasil

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$3.35 bln
$3.22 bln (5 Analysts)
Q3 Adjusted EPS
Miss
$0.75
$0.76 (8 Analysts)
Q3 EPS
$0.94
Q3 Net Income
$517 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the electric utilities peer group is "buy."

Wall Street's median 12-month price target for AES Corp is $15.00, about 9.2% above its November 3 closing price of $13.62

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nPnbcrHhha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)