AES Q4 2024 Earnings Report
Key Takeaways
AES reported full year 2024 Net Income of $698 million and Adjusted EBITDA of $2,639 million. The company initiated 2025 guidance for Adjusted EBITDA of $2,650 to $2,850 million and Adjusted EPS of $2.10 to $2.26, reaffirming long-term growth rate targets.
Signed or awarded 6.8 GW of new contracts, including renewables PPAs, data center load growth at US utilities, and retail supply for data centers.
Ranked the #1 provider of clean energy globally to corporations by BloombergNEF for the third consecutive year.
Completed the construction or acquisition of 3.0 GW of renewables primarily in the United States and Chile, and completed the construction of a 670 MW combined cycle gas plant in Panama.
Received approval from the IURC to implement new base rates and an ROE of 9.9% at AES Indiana.
AES
AES
AES Revenue by Segment
Forward Guidance
The Company is initiating 2025 guidance for Adjusted EBITDA of $2,650 to $2,850 million and Adjusted EPS of $2.10 to $2.26. The Company is reaffirming its expectation for annualized growth in Adjusted EBITDA of 5% to 7% through 2027 and Adjusted EPS of 7% to 9% through 2025.
Positive Outlook
- Growth in 2025 is expected to be driven by contributions from new renewables projects.
- Rate base growth at the Company's US utilities.
- Normalized results in Colombia and Mexico.
- Expecting to complete construction of 3.2 GW of new renewables in 2025.
- On track to achieve target of signing 14 to 17 GW in 2023 to 2025
Challenges Ahead
- Revenues from the monetization of the Warrior Run PPA in 2024.
- Asset sales.
- Higher Parent interest.
- A higher adjusted tax rate.
- Growth in 2025 is expected to be partially offset by revenues from the monetization of the Warrior Run PPA in 2024, higher Parent interest, and a higher adjusted tax rate.