AES Reports Mixed Q2 Results, Reaffirms Outlook with $0.51 EPS Beat, $2.86B Revenue Miss.

AES reported Q2 non-GAAP EPS of $0.51, beating expectations by $0.11. Revenue of $2.86B (-2.7% Y/Y) missed by $150M. Net loss of $150 million, compared to net income of $153 million in Q2 2024. The company reaffirmed its outlook.

AES Corporation (NYSE: AES) released its Q2 2025 financial results, showing mixed performance compared to expectations. The company reported a non-GAAP EPS of $0.51, beating analyst estimates by $0.11. However, revenue of $2.86 billion, a 2.7% year-over-year decline, missed expectations by $150 million [1].

The company also reported a net loss of $150 million for the quarter, a significant drop from the net income of $153 million in Q2 2024. This loss was primarily driven by higher day-one losses on sales-type leases at AES Clean Energy Development and higher income tax expense [2].

Despite the mixed results, AES reaffirmed its 2025 guidance for Adjusted EBITDA of $2,650 to $2,850 million. The company also reaffirmed its expectation for annualized growth in Adjusted EBITDA of 5% to 7% through 2027 and Adjusted EPS of $2.10 to $2.26 for 2025 [1].

AES also reported strong progress in its renewable energy segment, with Adjusted EBITDA growing by 56% year-over-year, driven by higher revenues from renewables projects placed in service [2]. The company completed the construction of 1.9 GW of energy storage and solar projects year-to-date and signed or was awarded new long-term PPAs for 1.6 GW of renewables, all with data center companies [2].

In conclusion, AES reported mixed Q2 2025 results, with non-GAAP EPS beating expectations but revenue and net income falling short. The company reaffirmed its 2025 guidance and expects strong growth in its renewable energy segment. Investors should closely monitor AES's progress in its renewable energy projects and regulatory rate reviews.

References:
[1] https://seekingalpha.com/news/4476244-aes-gives-mixed-q2-results-reaffirms-outlokk
[2] https://www.placera.se/pressmeddelanden/aes-aes-reports-second-quarter-2025-results-on-track-to-deliver-on-2025-guidance-and-long-term-targets-20250801