AES Corporation Reports Decrease in Net Income but Growth in Adjusted EBITDA for Fiscal Year 2025

**AES Corporation Navigates Shifting Energy Landscape in Fiscal Year 2025**

The AES Corporation (NYSE: AES) has released its 10-K filing for the fiscal year 2025, outlining a year of strategic developments and financial performance amidst a rapidly evolving energy sector. The company reported a net income of $162 million, a decrease from the $802 million reported in the previous fiscal year. This decline was attributed to several factors, including the prior year gain on the sale of AES Brasil, lower earnings in the Energy Infrastructure SBU due to the monetization of the Warrior Run coal plant PPA, higher day-one losses on commencement of sales-type leases at AES Clean Energy, and higher unrealized foreign currency losses. These were partially offset by an income tax benefit driven by tax credit transfers, higher contributions from new projects and better hydrology in the Renewables SBU, and higher retail margin at the Utilities SBU.

Despite the decrease in net income, AES reported an increase in Adjusted EBITDA, a non-GAAP measure, to $2.87 billion, up from $2.64 billion in the prior year. This growth was primarily driven by higher contributions from new projects and better hydrology in the Renewables SBU, and higher retail margin at the Utilities SBU. Adjusted EBITDA with Tax Attributes also saw an increase, reaching $4.41 billion compared to $3.95 billion in the previous year, reflecting higher realized tax attributes from tax credit transfers. Diluted earnings per share from continuing operations decreased to $1.31, while Adjusted EPS increased to $2.34, reflecting the impact of tax credit transfers and higher retail margins.

Operationally, AES made significant strides in expanding its renewable energy portfolio. The company completed the construction of 3.2 GW of solar, energy storage, and wind projects and signed or was awarded new long-term PPAs for 4.0 GW of renewables. This brought the company's backlog of projects with signed contracts, but not yet in operation, to 12.0 GW, including 5.7 GW under construction. AES Indiana filed a partial settlement agreement for its current rate review with the IURC, as well as a 20-year IRP. AES Ohio received PUCO approval for its distribution rate case and filed for new multi-year base distribution rates for 2027 through 2029. The company also achieved its full-year asset sale proceeds target of $400 to $500 million with the sale of a minority interest in AGIC for $450 million.

AES's strategic focus remains on partnering with large corporations to deliver greener, smarter energy solutions. The company is well-positioned as a leading provider of renewable energy to data center companies in the U.S. and to large mining companies outside the U.S. AES Indiana and AES Ohio are now two of the fastest-growing U.S. utilities, with projected double-digit rate base growth through 2027, based on necessary investments for customers. As of December 31, 2025, the company had 8,336 full-time employees. Looking ahead, AES expects to continue its growth trajectory in renewable energy and utilities, driven by increasing demand for clean energy solutions and investments in infrastructure upgrades. The company's financial performance will be influenced by factors such as regulatory outcomes, weather patterns, economic activity, and the ability to manage operational costs and project execution.