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AES Q3 Earnings Miss Estimates, Revenues Increase Y/Y

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Key Takeaways

  • AES' Q3 adjusted earnings rose 5.6% year over year to 75 cents per share.
  • Revenues increased 1.9% to $3.35 billion, topping the consensus estimate of $3.29 billion.
  • AES reaffirmed 2025 EPS guidance of $2.10-$2.26 and its 7-9% annual growth goal through 2027.

The AES Corporation’s (AES - Free Report) third-quarter 2025 adjusted earnings of 75 cents per share missed the Zacks Consensus Estimate of 78 cents by 3.9%. The bottom line, however, improved 5.6% from 71 cents in the year-ago quarter.

The company reported GAAP earnings of 89 cents per share compared with 91 cents in the third quarter of 2024.

The year-over-year improvement was due to increased revenues and higher operating margins.

AES’ Total Revenues

The company’s total revenues amounted to $3.35 billion, up 1.9% year over year due to higher regulated revenues. The figure also surpassed the Zacks Consensus Estimate of $3.29 billion by 1.9%.

The AES Corporation Price, Consensus and EPS Surprise

The AES Corporation Price, Consensus and EPS Surprise

The AES Corporation price-consensus-eps-surprise-chart | The AES Corporation Quote

Highlights of AES’ Q3 Release

The total cost of sales in the third quarter was $2.62 billion, up 1.9% year over year.

The operating income totaled $735 million, up 1.8% from $722 million in the year-ago period.

Interest expenses amounted to $348 million, down 8.2% from $379 million in the prior-year quarter.

AES’ Financial Condition

AES had cash and cash equivalents of $1.76 billion as of Sept. 30, 2025, compared with $1.52 billion as of Dec. 31, 2024.

Non-recourse debt totaled $21.66 billion as of the same date, up from $20.63 billion as of Dec. 31, 2024.

The net cash flow from operating activities amounted to $2.82 billion during the first nine months of 2025 compared with $1.66 billion in the first nine months of 2024.

Total capital expenditure was $4.39 billion during the first nine months of 2025, down from $5.67 billion recorded a year ago.

AES’ 2025 Guidance

AES reaffirmed its 2025 earnings guidance. It still expects to generate adjusted earnings in the range of $2.10-$2.26 per share. The Zacks Consensus Estimate is pegged at $2.17, which lies below the midpoint of the company’s guided range.

The company reaffirmed its average annual earnings growth target in the band of 7-9% through 2027.

AES’ Zacks Rank

AES currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

FirstEnergy Corp. (FE - Free Report) reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate of 76 cents by 9.2%.

FE’s long-term (three to five years) earnings growth is pegged at 6.46%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $2.53, indicating a year-over-year decline of 3.8%.

NextEra Energy (NEE - Free Report) posted third-quarter 2025 adjusted earnings of $1.13 per share, which surpassed the Zacks Consensus Estimate of $1.04 by 8.65%.

NEE’s long-term earnings growth is currently pegged at 8.04%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $3.68, indicating year-over-year growth of 7.29%.

NiSource Inc. (NI - Free Report) reported third-quarter 2025 operating earnings per share of 19 cents, which missed the Zacks Consensus Estimate of 20 cents by 5%.

NI’s long-term earnings growth is currently pegged at 7.72%. The Zacks Consensus Estimate for 2025 earnings per share is pegged at $1.88, indicating year-over-year growth of 7.43%.

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