AES Corporation Reports Successful 2024 Achievements and Sets Ambitious 2025 Goals for Growth

The AES Corporation, a leading global energy company, has recently shared its impressive results for the financial year 2024, marking a significant turnaround from a loss in the previous year. For 2024, AES reported a net income of $698 million, a substantial increase compared to a loss of $182 million in 2023. This remarkable recovery is primarily attributed to higher contributions from renewable energy projects and a more favorable financial landscape.

Strategic Achievements in 2024

In 2024, AES made substantial progress with the signing and awarding of 6.8 gigawatts (GW) of new contracts. This includes engaging in long-term Power Purchase Agreements (PPAs) for 4.4 GW of renewable energy, as well as catering to data center load growth in US utilities. Additionally, AES has demonstrated its strong market position by being ranked as the top clean energy provider for corporations globally by BloombergNEF for the third consecutive year.

Moreover, AES successfully completed the construction or acquisition of 3.0 GW of renewable energy capabilities, primarily concentrated in the United States and Chile. Notably, a 670 MW combined cycle gas plant was constructed in Panama, reflecting AES’s commitment to expansion and diversification of its energy portfolio.

Financial Highlights and Guidance for 2025

For the upcoming year, AES has provided an optimistic financial outlook, initiating 2025 guidance suggesting an Adjusted EBITDA between $2.650 billion and $2.850 billion. This projection indicates a robust growth trajectory driven by new renewable projects and a strategic increase in rate base growth from its US utility segment. The company is reaffirming a long-term annualized growth target of 5% to 7% through 2027, with expectations that significant projects in its pipeline will bolster growth.

Significantly, the company also foresees strong demand from booming sectors like AI data centers and new manufacturing plants in the US. AES has a backlog of nearly 12 GW of signed PPAs, with plans to deliver 85% of this capacity by the end of 2027. As stated by AES President and CEO, Andrés Gluski, “2025 will be an inflection point for AES,” emphasizing the anticipated strong growth due to increasing renewable energy contributions and efficient operational structures.

In terms of earnings per share, AES is initiating guidance for a 2025 Adjusted EPS between $2.10 and $2.26, with 7% to 9% annualized growth forecast through both 2025 and 2027.

Reflecting on Strategic Outlook

AES has strategically positioned itself to meet the evolving energy demands of the future by making significant investments and partnerships, such as the strategic alliance in Ohio with the Caisse de dépôt et placement du Québec (CDPQ), aimed to bolster AES's growth in that region. Furthermore, the company has made moves towards reducing its coal footprint, retiring 481 MW of coal generation in Chile and the United States, consistent with its sustainability goals.

In conclusion, AES Corporation's performance in 2024 reflects its resilience and strategic acumen in navigating the energy sector's complexities. The ambitious goals set forth for 2025 signal the company’s intention to maintain its leadership in the renewable energy market, positioning itself favorably against emerging industry trends and customer demands. Through continued innovation and operational excellence, AES is poised for sustained growth in the coming years.