AES CORP (AES)

AES is a global energy company, incorporated in 1981, that develops, builds, owns and operates electric generation and utilities. Its strategy centers on partnering with large corporations to deliver the electricity they need, and it positions itself as a leading provider of renewable energy to data center companies, particularly in the U.S., and to large mining companies outside the U.S. In 2025 it signed long-term contracts for 4.0 GW of renewables, bringing its backlog of signed but not yet operating projects to 12.0 GW, of which 5.7 GW is under construction. It completed 3.2 GW of solar, storage and wind construction during the year. Bloomberg New Energy Finance has consistently rated it among the two largest global sellers of renewable power to corporate customers.

The company is organized into four technology-oriented strategic business units. Renewables covers solar, wind, energy storage and hydro, with 17.8 GW in operation across ten countries: the U.S., Chile, Argentina, Colombia, Panama, the Dominican Republic, Mexico, Bulgaria, Jordan and the Netherlands. Utilities covers AES Indiana, AES Ohio and the AES El Salvador regulated utilities and their generation. Energy Infrastructure covers natural gas, LNG, coal, pet coke, diesel and oil plants. New Energy Technologies holds investments in Fluence, Maximo and other energy technology businesses, and generated losses in 2025. The company has two lines of business, generation and utilities, and measures SBU performance using Adjusted EBITDA. It owns and/or operates a generation portfolio of 34,740 MW. By capacity, 54% is renewable, 29% natural gas, 15% coal and 2% pet coke or oil. Its six utilities distribute power to 2.7 million customers, and its two U.S. utilities include 4,056 MW of generation capacity.

Generation businesses sell electricity under medium-term (two to five years) or long-term PPAs, or under short-term sales and spot markets, and may also sell renewable energy certificates and ancillary services. Contracts typically pass through or hedge fuel costs, include capacity payments, and match currency of revenue and costs, often supported by non-recourse project financing. Customers include utilities, industrial users, technology and data center companies such as Amazon, Microsoft, Google and Apple, mining companies such as Codelco, Collahuasi and Minera Los Pelambres, and other intermediaries. The regulated utilities sell directly to residential, commercial, industrial and governmental end users under tariffs set by regulators, which allow a regulated rate of return on the asset base. AES Indiana and AES Ohio are the sole electricity distributors in their jurisdictions, and AES Indiana projects double-digit rate base growth through 2027.

The company develops and constructs new facilities, prioritizing growth markets such as the U.S. and Chile. It generally signs long-term contracts before construction and uses third-party contractors supervised by its own construction management team. It may also monetize projects through Develop-Transfer Agreements or provide development services, including for data centers. Fuel is sourced locally where possible: gas from local suppliers, with LNG imported in the Dominican Republic and Panama, and coal from domestic and international markets under a global sourcing program. Pet coke comes largely from Mexico and the U.S. Contracted businesses face limited competition during the contract term, while short-term sales are subject to market competition and dispatch rules. El Salvador's distribution businesses face limited competition because of high barriers to entry.