Q4 2025 Earnings Press Release

The AES Corporation Reports Fourth Quarter and Full Year 2025 Results

Concurrent with Definitive Merger Agreement with Consortium Led by GIP and EQT

ARLINGTON, Va. (March 2, 2026) - The AES Corporation (NYSE: AES) today filed its 2025 Annual Report on Form 10-K with the Securities and Exchange Commission, reporting fourth quarter and full year 2025 financial results concurrent with the announcement of a definitive merger agreement to be acquired by a consortium led by Global Infrastructure Partners (GIP) and EQT Infrastructure VI, with CalPERS and Qatar Investment Authority (QIA) as co-underwriters.

The previously scheduled fourth quarter and full year 2025 financial review conference call, which had been rescheduled from February 27 to March 3, 2026, was cancelled following the merger announcement.

Transaction Summary

The consortium will acquire AES for $15.00 per share in cash, representing an enterprise value of approximately $33.4 billion, including the assumption of approximately $22.7 billion in proportional net debt. The offer price represents a 40.3% premium to AES' 30-day volume-weighted average share price prior to July 8, 2025, when initial reports of a potential acquisition surfaced. The transaction is 100% equity-funded with no financing contingency and no incremental debt. The consortium intends to maintain AES' existing capital structure and investment grade credit profile. The transaction is expected to close in late 2026 or early 2027, subject to stockholder approval, regulatory approvals from PUCO, FERC, NYPSC, CFIUS, and certain foreign approvals.

Fourth Quarter 2025 Financial Highlights

Revenue of $3.10 billion increased 4.7% compared to $2.96 billion in the fourth quarter of 2024.

GAAP net income attributable to AES was $322 million, or $0.46 per diluted share, compared to $560 million, or $0.79 per diluted share, in the prior year period. The decrease was primarily driven by lower gains on asset sales and higher interest expense, partially offset by improved operating performance.

Adjusted earnings per share were $0.81, exceeding the consensus analyst estimate of $0.62.

GAAP operating income was $513 million compared to $330 million in the prior year period, reflecting strong contributions from new renewable energy projects and utility rate base investments.

Full Year 2025 Financial Highlights

Total revenue was $12.23 billion, essentially flat compared to $12.28 billion in 2024.

GAAP net income attributable to AES was $949 million, or $1.26 per diluted share, compared to $1.69 billion, or $2.38 per diluted share, in the prior year. The decline primarily reflects lower gains from asset divestitures and higher financing costs associated with growth investments.

GAAP operating income was $1.97 billion compared to $2.03 billion in 2024.

Full year adjusted EBITDA and adjusted EPS met the Company's previously reaffirmed guidance ranges of $2.65 billion to $2.85 billion and $2.10 to $2.26, respectively.

Strategic and Operational Highlights

Completed 3.2 gigawatts of new renewable energy and storage projects during 2025, increasing the total operating fleet significantly. Renewables EBITDA grew approximately 50% year-over-year, driven by new project completions and economies of scale. Signed 4 gigawatts of new power purchase agreements during the year, with 85% of new long-term contracts signed with corporate data center customers.

Over 11 gigawatts of agreements signed with data center companies in total. Signed first development transfer agreement providing powered land for a data center site adjacent to existing power projects. Approximately 4.2 gigawatts of data center-related capacity already operational, with an additional 4 gigawatts in backlog or under construction.

AES Ohio filed unanimous settlement with all customer classes and PUCO staff including approximately $168 million annual revenue increase and ROE of nearly 10%. AES Indiana filed partial settlement agreement reducing original revenue increase request by 53% ($105 million reduction), with residential rates expected to remain at least 15% below state average.

Achieved $150 million cost savings target for 2025, on track for $300 million annual run rate in 2026 through organization restructuring, development spending reductions, and operational efficiencies.

All three major credit rating agencies confirmed investment grade rating with stable outlook. Moody's FFO to net debt metric tracking ahead of the 10-11% path for 2025, with confidence in achieving 12% target by end of 2026.

Renewables backlog of 11.1 gigawatts representing 3 to 4 years of built-in growth. 7.5 gigawatt U.S. backlog entirely safe harbored with an additional 4 gigawatts with safe harbor protections. Line of sight to safe harbor an additional 3 to 4 gigawatts before July 4, 2026, enabling tax-credited projects through 2030.

Segment Performance

Strong growth driven by 3 gigawatts of new capacity brought online since Q3 2024. U.S. installed capacity nearly 60% larger than two years ago. Operating margins significantly improving as the size of the operating portfolio increases while development spending and overhead decline.

Higher adjusted pretax contribution driven by $1.3 billion of rate base investments over the previous four quarters. Partially offset by the 30% sell-down of AES Ohio to CDPQ that closed in April 2025. Data center-related transmission investments in Ohio supported by FERC formula rates with no regulatory lag.

Higher EBITDA reflecting acquisition of remaining ownership in Cochrane coal plant, cost savings, and commencement of operations at Gatun gas plant. Partially offset by Chile renewable assets moving to renewables segment in 2025.

EBITDA relatively flat versus prior year with no material drivers.

Capital Allocation

Total discretionary cash of approximately $2.7 billion including upper half of $1.15 billion to $1.25 billion parent free cash flow target. Returned more than $500 million in dividends to shareholders. Invested approximately $1.8 billion in new growth, primarily renewables and utilities. Repaid approximately $400 million of subsidiary debt. Self-funded through 2027 with no plans to issue equity.

Following the merger announcement, AES will not be providing forward guidance. FY2025 was the last guided year. Dividends payable to AES stockholders are expected to continue in the ordinary course until closing, subject to Board approval.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with stakeholders, AES improves lives by delivering greener, smarter energy solutions. The company's diverse workforce is committed to continuous innovation and operational excellence while partnering with customers on strategic energy transitions.

AES Corporation 2025 Annual Report on Form 10-K filed with the SEC on March 2, 2026, and 8-K filed March 2, 2026 (Exhibits 99.1 and 99.2).