AES Corporation posted adjusted earnings per share of $1.27 for the third quarter of 2025, surpassing expectations and reflecting operational gains from its ongoing portfolio optimization. The company also announced a revised capital expenditure forecast for 2026.
- Adjusted EPS of $1.27 for Q3 2025 surpassed consensus by 8%
- Adjusted EBITDA increased to $1.12 billion, up 12% YoY
- Capex forecast for 2026 reduced to $1.3 billion from $1.6 billion
- Free cash flow projected at $1.4 billion for 2025
- Share price rose 4.2% in after-hours trading following results
AES Corporation delivered a strong performance in the third quarter of 2025, reporting adjusted net income of $398 million, or $1.27 per diluted share, exceeding analyst consensus by 8%. This improvement was driven by higher generation volumes across its U.S. and Latin American operations, as well as favorable natural gas pricing in certain markets. The company's adjusted EBITDA reached $1.12 billion, up 12% year-over-year, fueled by improved efficiency at existing facilities and the successful integration of recently acquired renewable assets in Chile and Colombia. AES attributed approximately 40% of the growth to non-commodity factors, including cost management initiatives and reduced maintenance downtime. Capital allocation remains a focus, with AES revising its 2026 capex plan to $1.3 billion—down from prior guidance of $1.6 billion—reflecting a shift toward more selective investments in utility-scale solar and battery storage projects. The company expects to generate $1.4 billion in free cash flow through 2025, supporting continued dividend payments and debt reduction. Market reaction was positive, with AES shares rising 4.2% in after-hours trading. Investors welcomed the updated outlook, particularly given the sustained demand for clean energy infrastructure and the company’s growing presence in regulated markets such as Puerto Rico and Brazil.