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Sep 30, 2024
AES Q3 2024 Earnings Report
Reported financial results for the quarter, signed new contracts, and completed construction, reaffirming 2024 guidance and long-term growth rates.
Key Takeaways
AES reported mixed third-quarter financial results. While adjusted EPS increased, net income and adjusted EBITDA decreased compared to the previous year. The company reaffirmed its 2024 guidance and long-term growth rates and signed 2.2 GW of new contracts and completed 1.2 GW of construction.
Signed or awarded 2.2 GW of new contracts, including long-term renewables PPAs and data center load growth at US utilities.
Completed the construction of 1.2 GW; on track to add a total of 3.6 GW of new projects to operations in full year 2024.
Announced or closed nearly three-quarters of $3.5 billion asset sale proceeds target through 2027.
Reaffirmed expectation of achieving upper half of 2024 Adjusted EPS and Adjusted EBITDA with Tax Attributes guidance range.
AES
AES
Forward Guidance
The Company is reaffirming its 2024 Adjusted EPS and Adjusted EBITDA with Tax Attributes guidance and long-term growth rates through 2027. Adjusted EBITDA is expected to be towards the low end of the guidance range.
Positive Outlook
- Reaffirming expectation of achieving upper half of 2024 Adjusted EPS guidance range of $1.87 to $1.97.
- Reaffirming annualized Adjusted EPS growth target of 7% to 9% through 2025, off a base of 2020 and 7% to 9% through 2027, off a base of 2023 guidance.
- Reaffirming 2024 guidance for Adjusted EBITDA of $2,600 to $2,900 million.
- Reaffirming annualized growth target of 5% to 7% through 2027, off a base of 2023 guidance.
- Reaffirming expectation of achieving upper half of 2024 Adjusted EBITDA with Tax Attributes range of $3,550 to $3,950 million.
Challenges Ahead
- 2024 Adjusted EBITDA is expected to be towards the low end of the range due to extreme weather in Colombia.
- 2024 Adjusted EBITDA is expected to be towards the low end of the range due to lower margins in the Energy Infrastructure SBU.
- Results for the year will also be driven by significant asset sales closed in 2023 and 2024.
- Growth in 2024 is expected to be primarily driven by new renewables commissionings, rate base growth at US utilities, and improved margins in Chile, but partially offset by asset sales.
- Growth in 2024 is expected to be partially offset by prior year margins on LNG transactions.