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What were the key takeaways from The Aes's earnings call?

- **Renewables Growth Acceleration**: 46% YTD EBITDA increase, 3 GW new capacity additions, and 11.1 GW backlog driving 5%-7%+ long-term EBITDA growth.
- **Data Center Expansion**: 8.2 GW of data center PPAs in operation/backlog, targeting 4 GW+ of new PPAs by year-end.
- **Balance Sheet Strength**: $2.7B discretionary cash, no equity needed through 2027, and 12%+ FFO to debt ratio target for 2026.
- **Strategic Innovation**: First DTA with data center customer for powered land, expanding beyond traditional PPA model.
- **Utility Leadership**: 11% rate base growth, 40% transmission rate base by 2027, and 10% ROE approved in Ohio.


**【CEO Summary Section】**
- Reaffirmed full-year 2025 guidance for adjusted EBITDA ($2.65B-$2.85B), adjusted EPS ($2.10-$2.26), and parent free cash flow ($1.15B-$1.25B). 
- Signed 2.2 GW of PPAs year-to-date, targeting 4 GW+ by year-end. 3.2 GW of construction projects completed YTD, with 4.8 GW of 11.1 GW backlog under construction.
- Renewables EBITDA up 46% YTD, driven by 3 GW of new capacity additions. U.S. renewables installed capacity up 60% vs. 2023 levels.
- AES Indiana repowering 1.2 GW of natural gas fleet, with 295 MW of new capacity coming online by end-2025.
- Signed first DTA with data center customer for powered land adjacent to AES projects, expanding beyond traditional utility-PPA model.
- U.S. utility rate base growth of 11% expected, with 40% of AES Ohio rate base tied to transmission by 2027.

**【CFO Financial Commentary】**
- Q3 2025 adjusted EBITDA: $830M (vs. $698M YoY), driven by renewables growth and $150M cost savings program (on track to achieve full $300M annualized run rate by 2026).
- Adjusted EPS: $0.75 (vs. $0.71 YoY), benefiting from lower tax rate and cost savings offsetting higher interest expense.
- 2025 parent free cash flow: $1.15B-$1.25B, with $2.7B total discretionary cash available.
- Long-term EBITDA growth: 5%-7% through 2027, with 2026 growth rate expected to exceed 10%.
- $400M incremental EBITDA expected from projects completed by end-2027 but not yet fully realized in guidance period.
- Balance sheet strength: Moody's FFO to net debt ratio tracking ahead of 10%-11% 2025 target, with 12%+ target for 2026.

**【Q&A Key Highlights】**
- **Data Center Demand**: 8.2 GW of data center PPAs in operation/backlog, with 4 GW under construction. 1.6 GW signed YTD, targeting 4 GW+ by year-end.
- **Energy Storage**: >50% of new solar projects include batteries. AES Indiana added 200 MW of storage, largest in MISO.
- **Utility IRP**: Filed 20-year IRP for Indiana, evaluating scenarios with 520 MW-2.5 GW of new load from data centers.
- **Balance Sheet**: No equity issuance planned; self-funded through 2027 with $2B+ cash reductions from asset sales and cost savings.
- **Regulatory Environment**: Stable investment-grade ratings; 10% ROE approved in Ohio distribution rate case.
- **Powered Land Solution**: First-of-kind DTA monetizing land adjacent to AES projects, combining generation and site development.


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