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- **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.


The AES Corporation (AES) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

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Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

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Income Tax Adjustments

Net Income from Continuing Operations

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Net Income

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Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS from Discontinued Operations

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