AES Q2 Earnings Preview: Analysts Expect 23.7% YoY Profit Increase

The AES Corporation is expected to report Q2 2025 earnings after the market closes on July 31. Analysts predict a profit of $0.47 per share, up 23.7% from the year-ago quarter. For fiscal 2025, analysts expect AES to report a profit of $2.15 per share, up marginally from fiscal 2024. Shares have declined 19.9% over the past 52 weeks, underperforming both the S&P 500 Index and the Utilities Select Sector SPDR Fund. Wall Street analysts are moderately optimistic about AES' stock, with a "Moderate Buy" rating overall. The mean price target for AES is $14, indicating a 2.3% potential upside from current price levels.

The AES Corporation (AES) is poised to release its Q2 2025 earnings after the market closes on Thursday, July 31. Analysts are expecting the utility giant to report a profit of $0.47 per share, marking a 23.7% increase from the $0.38 per share reported in the year-ago quarter [1].

AES, headquartered in Arlington, Virginia, operates in over 15 countries and manages a diverse energy portfolio that includes regulated utilities, renewable power, advanced energy storage, and thermal generation. The company is recognized for its leadership in battery-based storage solutions and ranks among the world’s top solar developers, playing a pivotal role in the global transition to clean, reliable energy [2].

For the fiscal year 2025, analysts predict AES to report a profit of $2.15 per share, a marginal increase from the $2.14 reported in fiscal 2024. This growth is expected to continue into fiscal 2026, with analysts forecasting an earnings per share (EPS) of $2.23, representing a 3.7% year-over-year increase [1].

Despite these promising earnings expectations, AES shares have declined by 19.9% over the past 52 weeks, significantly underperforming both the S&P 500 Index and the Utilities Select Sector SPDR Fund. The S&P 500 Index gained 14.5% over the same period, while the Utilities Select Sector SPDR Fund rose by 19.8% [1].

Wall Street analysts are moderately optimistic about AES' stock, with a "Moderate Buy" rating overall. Among the 11 analysts covering the stock, six recommend a "Strong Buy," three suggest "Hold," one advises a "Moderate Sell," and one recommends a "Strong Sell" rating. The mean price target for AES is $14, indicating a 2.3% potential upside from current price levels [1].

The recent surge in AES shares, which saw a nearly 20% increase on July 9, can be attributed to strong interest from private equity firms such as Brookfield Asset Management and BlackRock’s Global Energy Partners. These firms are attracted to AES's strategic position as a key clean-energy supplier to hyperscalers like Meta Platforms, Inc., Microsoft Corporation, and Amazon.com, Inc. [1].

AES has signed contracts totaling 10.1 GW of renewable energy with these AI-driven data center operators, highlighting the company's pivotal role in the transition to clean energy [1].

References:
[1] https://www.barchart.com/story/news/33548248/aes-corporations-q2-2025-earnings-what-to-expect?.tsrc=rss
[2] https://stockanalysis.com/stocks/aes/