AES (AES) FY2025 results: revenue $12.2 billion, down 0.4% on the year

AES was incorporated in 1981 and describes itself as a global energy company with over four decades of experience developing, operating and owning electric generation and utilities. It has two lines of business. In generation it owns or operates power plants and sells power to customers such as utilities, industrial users and other intermediaries. In utilities it owns or operates utilities that generate or purchase, transmit, distribute and sell electricity to end users in the residential, commercial, industrial and governmental sectors within a defined service area, and in certain cases sells on the wholesale market as well. It owns or operates a generation portfolio of 34,740 MW, including the generation of its integrated utility in Indiana.

The company is organised into four technology-oriented business units: Renewables, covering solar, wind, energy storage and hydro; Utilities, covering the regulated utilities in Indiana, Ohio and El Salvador and their generation; Energy Infrastructure, covering natural gas, LNG, coal, pet coke, diesel and oil generation; and New Energy Technologies, holding investments in newer energy technology businesses.

The strategy, in its own words

The filing says the focus of the strategy is to partner with large corporations to deliver the electricity they need when they need it, and that the company is well-positioned as a leading provider of renewable energy to data centre companies, particularly in the United States, and to large mining companies outside it. It says those customers work with AES because of a track record of customised solutions and of delivering projects on time and on budget, and that it has been consistently rated by one industry research house as one of the two largest sellers globally of renewable power to corporate customers.

In 2025 it signed or was awarded long-term contracts for 4.0 GW of renewables and completed construction of 3.2 GW of solar, energy storage and wind. Its backlog, meaning projects with signed contracts that are not yet operational, stood at 12.0 GW, of which 5.7 GW was under construction.

How the generation is sold

Most generation businesses sell electricity and the associated generation attributes under medium-term contracts of two to five years or long-term contracts of more than five years, in either regulated or competitive markets, and some sell under short-term agreements in competitive markets averaging less than two years, including spot sales. Contracts that require fuel are structured to recover variable costs, including fuel and variable operating and maintenance costs, through direct or index-based pass-throughs or tolling arrangements; where there is no fuel pass-through the company typically hedges fuel costs or enters fuel or energy supply agreements for a similar period.

The filing says certain contracts include capacity payments that cover the projected fixed costs of the plant, and most require the majority of those payments to be denominated in the currency that matches the fixed costs. In some U.S. markets the capacity payment covers only the resource adequacy or reliability benefit, leaving the electricity itself to be sold separately. The filing says these arrangements significantly mitigate exposure to changes in electricity and fuel prices, currency movements and interest rates.

Renewables

Assets in operation grew to 17.8 GW during 2025, with total operating installed capacity of 17,836 MW, and an incremental 3.7 GW was added to the contracted backlog. The unit has generation facilities in ten countries: the United States, Chile, Argentina, Colombia, Panama, the Dominican Republic, Mexico, Bulgaria, Jordan and the Netherlands.

Utilities

AES Indiana is an integrated utility generating, transmitting, distributing and selling electricity to retail customers in Indianapolis and neighbouring areas, with an exclusive right to serve its territory of about 528 square miles and an estimated population of approximately 982,000. It owns four generating stations, all in Indiana: Petersburg, two coal-fired units that the filing says are being converted to natural gas in 2026; Harding Street, three gas-fired boilers and steam turbines plus five combustion turbines running on gas and fuel oil, with a 20 MW battery storage unit providing frequency response; Eagle Valley, a combined cycle gas plant; and Georgetown, a gas peaking station. It also holds long-term contracts for 200 MW of wind and 94 MW of solar electricity.

AES Ohio transmits and distributes electricity to approximately 541,000 retail customers across a 6,000 square mile area of west central Ohio, with the exclusive right to provide transmission and distribution there, and procures standard service offer electric supply on customers' behalf through a competitive bid auction.

AES El Salvador is the majority owner of four of the five distribution companies in El Salvador, covering 77 percent of the country and accounting for 4,744 GWh of market energy sales in 2025. It owns four solar farms of 4 MW, 3 MW, 15 MW and 1 MW, the last with battery storage, a 6 MW biomass plant, and half shares in solar farms of 100 MW and 10 MW, with all the output contracted to its own utilities there.

New Energy Technologies

Ownership stakes in third-party platforms and internally developed initiatives, which the filing names as Fluence, Maximo, the AI Fund, Uplight and 5B. The filing says this unit generated losses for the year.

From AES's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 2 March 2026: read the full 10-K.