The AES Corporation (AES) Q2 2024 earnings summary

Executive summary

• Q2 2024 Adjusted EBITDA with Tax Attributes rose to $843M from $607M year-over-year, driven by renewables, utility growth, and higher Energy Infrastructure contributions.

• Adjusted EPS increased to $0.38 from $0.21 year-over-year, reflecting new projects, rate base growth, and improved Energy Infrastructure results.

• Signed 2.5 GW of new agreements since May, including 2.2 GW with hyperscalers and 1.2 GW to support new data center load at US utilities.

• Project backlog under long-term contracts reached 12.6 GW, with 5.1 GW under construction and majority to be completed by 2027.

• On track to bring 3.6 GW of new projects online in 2024, with 1.6 GW already completed year-to-date.

Financial highlights

• Q2 2024 Adjusted EBITDA with Tax Attributes: $843M (up $236M year-over-year); Adjusted EBITDA: $652M (up $83M year-over-year).

• Q2 2024 Adjusted EPS: $0.38 (up $0.17 year-over-year); diluted EPS: $0.27, up from $(0.06) in Q2 2023.

• Q2 2024 revenue was $2.94B, down from $3.03B in Q2 2023; Q2 operating margin increased 11% to $553M.

• Q2 net income attributable to AES was $185M, up from a $39M loss; six-month net income attributable to AES was $617M, up from $112M.

• Q2 asset impairment expense was $230M, mainly from a $217M impairment at AES Brasil and $43M at Mong Duong.

Outlook and guidance

• 2024 Adjusted EBITDA with Tax Attributes and Adjusted EPS now expected in the top half of guidance ranges ($3.55B–$3.95B and $1.87–$1.97, respectively).

• Reaffirmed long-term growth rates and guidance through 2027, with clear line of sight to achieving strategic and financial targets.

• On track to add 3.6 GW of new projects to operations in 2024, with 1.6 GW already completed YTD.

• Expect to deliver most of the 12.6 GW backlog by 2027, with annual new PPA signings of 4.5–5.5 GW.

• All necessary solar panels for projects through 2026 are contracted and secured; majority of 2025–2026 panels expected on site by September.