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ARLINGTON, Va. - The AES Corporation (NYSE: AES), a global energy company currently trading near its 52-week low at $9.95 per share, reported a net loss of $73 million for the first quarter of 2025, a notable decline from the net income of $278 million in the same period last year. The decrease was attributed to one-time restructuring costs, a drop in revenue from a power purchase agreement monetization, and a dilution gain in 2024 from the company’s interest in Uplight. According to InvestingPro analysis, the company appears undervalued at current levels, despite recent challenges.
Despite the net loss, the company achieved significant strategic milestones, including completing 643 MW of solar and energy storage construction and reaching its full-year 2025 asset sale proceeds target by selling a minority stake in AES Global Insurance Company for $450 million. The company maintains a significant dividend yield of 7.16% and has raised its dividend for 13 consecutive years, as noted by InvestingPro. AES Indiana received regulatory approval for a 170 MW solar-plus-storage project, and AES Ohio secured funding for growth by selling a 30% indirect equity interest to a subsidiary of Caisse de dépôt et placement du Québec (CDPQ).
First-quarter adjusted EBITDA was $591 million, down from $640 million in the prior year, mainly due to lower contributions from the Energy Infrastructure business unit. Adjusted EPS for the quarter was $0.27, a reduction from $0.50 in Q1 2024. The company currently trades at a P/E ratio of 4.18, with a market capitalization of $7.09 billion. InvestingPro data reveals 10+ additional key insights about AES’s financial health and market position, available exclusively to subscribers.
AES reaffirmed its 2025 guidance for adjusted EBITDA of $2,650 to $2,850 million and adjusted EPS of $2.10 to $2.26. The company also maintained its annualized growth targets of 5% to 7% through 2027 for adjusted EBITDA and 7% to 9% for adjusted EPS. These projections are based on foreign currency and commodity forward curves as of March 31, 2025. For deeper insights into AES’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
The company’s President and CEO, Andrés Gluski, highlighted the resilience of AES’s long-term contracted business model against tariffs and economic policies. Stephen Coughlin, AES Executive Vice President and CFO, credited the growth to new projects and higher investment in the Renewables and Utilities Strategic Business Units.
AES’s financial position is based on a press release statement and reflects the company’s performance and expectations without speculation on future market trends or broader industry impacts.
In other recent news, AES Corporation announced a restatement of its financial results for the second and third quarters of 2024 due to an overstatement of impairment expenses related to its stake in AES Brasil Energia S.A. The overstatement totaled approximately $192 million for the quarter ended June 30, 2024, and $5 million for the quarter ended September 30, 2024. The company emphasized that these restatements do not impact its previously reported revenues, operating margin, net income, cash flows, or Adjusted EBITDA. Meanwhile, AES is planning a senior notes offering to manage its debt, with the proceeds intended to repurchase its existing 3.300% Senior Notes due in 2025. Jefferies recently downgraded AES Corp’s stock rating from Buy to Hold, lowering the price target to $10.00, citing concerns about the company’s complex international ownership structure and weaker-than-expected balance sheet. In contrast, Mizuho Securities maintained its Outperform rating for AES, keeping the price target at $15.00, highlighting the company’s asset divestiture strategy and confidence in achieving its 2025 EBITDA guidance. These developments reflect AES’s ongoing efforts to navigate financial and strategic challenges while maintaining investor confidence.
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