AES Corporation

Overview

AES Corporation is a global power company operating approximately 34.7 gigawatts of generating capacity across 12 countries. Founded in 1981 as Applied Energy Services, AES was among the first independent power producers to operate internationally and today ranks as one of the largest non-utility power companies in the world. The company is headquartered in Arlington, Virginia, and trades on the New York Stock Exchange.

In March 2026, AES agreed to be taken private by a consortium led by Global Infrastructure Partners (part of BlackRock) and EQT Infrastructure, with CalPERS and the Qatar Investment Authority as co-investors, for $15.00 per share in cash. The deal values AES at roughly $10.7 billion in equity and about $33.4 billion including assumed debt, a premium of about 40% to the share price before the sale process became public. Stockholders approved the transaction in June 2026; it is expected to close in late 2026 or early 2027, subject to regulatory approvals, after which AES would be delisted from the New York Stock Exchange.

AES is led by Andrés Gluski, CEO since 2011 and now also chairman. Under his tenure, AES has shifted toward renewables and storage, targeting an exit from the substantial majority of its coal generation by the end of 2025 and from all coal by the end of 2027. The company co-founded Fluence, a grid-scale energy storage company, as a joint venture with Siemens in 2018.

Business segments

Fluence

AES co-founded Fluence Energy (NASDAQ: FLNC) as a joint venture with Siemens in 2018, combining AES's Advancion battery storage platform with Siemens's grid expertise. Fluence has deployed several gigawatts of storage capacity across more than 40 markets and is among the largest grid-scale storage integrators. AES has steadily sold down its holding and, as of May 2026, retained a roughly 22% passive stake; it no longer consolidates Fluence.

Fluence operates a hardware integration business (deploying battery storage systems from suppliers including LG, Samsung, and BYD) and a software platform (Fluence IQ) that optimizes storage dispatch and bidding in wholesale electricity markets. The Fluence holding has added both value and volatility to AES's results.

Financial performance

AES reported FY2025 revenue of approximately $12.2 billion, roughly flat with the prior year. Net income attributable to AES fell about 46% to $910 million, largely because the prior year included a gain on the sale of AES Brasil. Adjusted EPS, the company's preferred operating metric, was $2.34 in FY2025, up from $2.14 in FY2024. AES targets 7–9% annual adjusted EPS growth and 5–7% annual adjusted EBITDA growth through 2027, measured from a 2023 base, and has grown its dividend at roughly 6% annually.

AES's balance sheet carries significant debt from its project-finance-heavy business model, where individual generation assets are typically financed with non-recourse project debt. This structure limits holding company recourse but creates complexity in assessing consolidated leverage. The company has targeted asset dispositions and equity recycling to fund its clean energy buildout without excessive dilution.

Strategy & outlook

AES is executing a multi-year transition away from fossil fuels toward renewables and storage, with corporate hyperscalers as its primary growth customers. The company has signed long-term PPAs with Amazon, Google, and Microsoft to supply renewable power to their data center campuses. AES signed 4.0 GW of new renewables contracts in 2025 and aims to add several gigawatts of contracted capacity each year.

AES's international footprint gives it exposure to faster-growing electricity demand markets in Latin America and Asia, while its U.S. regulated utilities provide stable, rate-base-driven cash flows. Executing the coal exit while growing the renewables pipeline at scale will shape the portfolio the Global Infrastructure Partners–EQT consortium is acquiring.

Key considerations

AES runs a diversified portfolio spanning international generation, a passive stake in Fluence, and legacy thermal assets. It has long traded at a valuation discount to pure-play renewables peers such as NextEra and faced recurring pressure to simplify its structure or separate its international and domestic businesses. The pending take-private by the Global Infrastructure Partners–EQT consortium removes AES from public markets; completion still depends on regulatory approvals across multiple jurisdictions.

Currency risk is a meaningful factor: AES generates a significant share of its earnings in Latin American currencies, creating translation headwinds in periods of dollar strength. Regulatory and political risk in developing markets, including tariff disputes, currency controls, and contract renegotiations, has historically been a source of earnings volatility.

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