The AES Corporation (AES) Earnings & Analysis

Latest quarter

AES reported Q3 FY2026 revenue of $3.9 billion, up from $3.4 billion a year earlier. Diluted earnings per share fell to $0.76 from $0.89. Gross margin was 25.4%, compared with 21.9% a year earlier, while free cash flow was −$307.0 million, compared with −$511.0 million.

In its filing, AES attributed higher revenue at Renewables partly to Colombian spot sales, where elevated prices and favorable hydrology at its Chivor basin contributed. Utilities revenue rose with weather-driven retail demand, higher rates and transmission revenue. Energy Infrastructure revenue also rose, as higher spot sales and prices helped offset lower contracted sales following the expiration of the Maritza power purchase agreement in Bulgaria.

AES reported adjusted EBITDA of $1,090 million, up from $830 million a year earlier, citing higher spot sales and prices and higher utility rates and demand. Net income attributable to AES fell to $553 million from $639 million; the filing cited higher impairment expense at AES Clean Energy Development among the drivers.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

In its filing, AES attributed the increase in quarterly adjusted EBITDA to higher spot sales and prices and higher utility retail rates and demand, partly offset by lower contracted volumes. An earnings call was not available for the quarter.

Guidance

In an earlier results release, AES reaffirmed its adjusted EBITDA and adjusted EPS growth targets from their respective guidance bases; those statements were reaffirmations rather than changes to the targets.