AES reported third‑quarter 2025 results with net income of $517 million and adjusted EBITDA of $830 million. Adjusted earnings per share were $0.75, while diluted earnings per share were $0.94. Total revenue reached $3.35 billion, up 1.8% from $3.29 billion in the same quarter last year.
The company’s adjusted EPS fell short of consensus estimates of $0.78 by $0.03, a miss of 3.9%. The shortfall was largely driven by a one‑time restructuring charge and lower performance in the Energy Infrastructure segment, which saw margin compression due to drought‑related losses in South America. The GAAP diluted EPS of $0.89 was also below the consensus range, reflecting the impact of the restructuring and lower Energy Infrastructure earnings.
Revenue beat expectations by $60 million, with analysts forecasting $3.29 billion. The beat was powered by strong performance in the Renewables and Utilities segments. Renewables SBU revenue rose to $817 million, up 12% YoY, while Utilities SBU revenue reached $1.11 billion, up 9% YoY. Energy Infrastructure SBU generated $1.48 billion, slightly below the $1.55 billion estimate but still contributing to the overall revenue growth.
Segment‑level analysis shows Renewables EBITDA increased nearly 50% year‑to‑date, driven by the addition of 3 GW of new capacity online since Q3 2024. Utilities EBITDA grew 15% YoY, supported by a $1.4 billion capex plan that is on track to upgrade infrastructure and improve service reliability. Energy Infrastructure EBITDA contracted due to lower margins, a result of the drought‑related operational challenges and higher input costs.
AES reaffirmed its 2025 guidance, maintaining an adjusted EBITDA range of $2.65 billion to $2.85 billion and an adjusted EPS range of $2.10 to $2.26. The company highlighted an 11.1 GW backlog of signed Power Purchase Agreements, including 4 GW with hyperscaler customers, and confirmed that its U.S. utilities capex plan remains on schedule.
"I am very pleased with our performance year‑to‑date, which has us on track to achieve all of our financial and strategic objectives," said Andrés Gluski, AES President and CEO. "We currently have an 11.1 GW backlog of signed PPAs, including 4 GW with hyperscaler customers, and the majority of these will come online within the next three years," he added. Stephen Coughlin, CFO, noted that the company is on track with its $1.4 billion 2025 capex plan at U.S. utilities, which will deliver important upgrades to customers.
The earnings miss and revenue beat illustrate the company’s ongoing transition toward renewables and regulated utilities. While one‑time restructuring costs and Energy Infrastructure headwinds tempered earnings, the strong growth in Renewables and Utilities, coupled with a robust PPA backlog and capex plan, signal continued momentum in the company’s long‑term transformation strategy.
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