AES CORP (AES)

AES Corporation, incorporated in 1981, is a global energy company operating through four market-based strategic business units (SBUs): US and Utilities, South America, MCAC (Mexico, Central America and the Caribbean), and Eurasia. The company operates two core lines of business—generation and utilities—with a generation portfolio of 32,326 MW diversified across renewables (46%), natural gas (32%), coal (20%), and other fuels including pet coke, diesel, and oil (2%). AES is positioning itself as a leader in the global energy transition, focusing on decarbonization, electrification, and digitalization, and was recognized by BNEF as the #1 global clean energy developer for corporations in 2022.

The company's strategy centers on partnering with large corporate customers seeking carbon-free electricity solutions, exemplified by long-term agreements to supply 24/7 carbon-free energy to data center companies and a partnership with Air Products to build the largest green hydrogen production facility in the U.S., including approximately 1.4 GW of wind and solar generation with electrolyzer capacity exceeding 200 metric tons per day. In 2022, AES signed 5,153 MW of renewables and energy storage under long-term power purchase agreements (PPAs) and completed construction or acquisition of 1,943 MW of primarily wind, solar, and storage projects across the U.S., Brazil, the Dominican Republic, Chile, and Colombia. The company's development backlog reached 12,179 MW, comprising 5,453 MW under construction and 6,726 MW with signed PPAs not yet under construction, while its broader development pipeline grew significantly from 55 GW to 64 GW during the year.

AES's US and Utilities SBU includes 47 generation facilities totaling 13,108 MW of operating capacity, along with two U.S. utilities (AES Indiana and AES Ohio) and four utilities in El Salvador, collectively serving 2.6 million customers. AES Indiana operates as a fully integrated utility, while AES Ohio functions as a transmission and distribution utility; both operate as sole electricity distributors within their territories under regulated rate structures that allow recovery of costs and a return on invested capital. The company's generation businesses rely on a mix of medium- and long-term contracts, which mitigate exposure to fuel price and currency volatility, and short-term market sales, which are more sensitive to spot pricing and merit-order dispatch dynamics.

Key performance drivers across AES's generation and utility businesses include contract structures, plant reliability, fuel costs, regulatory rate frameworks, seasonality, weather variability, economic activity, and cost management. The company continues to invest heavily in renewable energy development, supported by an innovation arm, AES Next, which incubates emerging energy technologies. Additionally, AES is undertaking a Just Transition initiative at facilities like AES Indiana, which plans to retire all coal generation by the end of 2025 while expanding renewable and natural gas capacity.

The company anticipates announcing internal management changes that will lead to modifications in its financial reporting segments.