Q1 2025 AES Corp Earnings Call Transcript
Key Points
- The AES Corp (AES) reaffirmed its 2025 guidance and long-term growth rate targets, indicating strong execution and business resilience.
- The company completed the construction of 643 megawatts and signed or were awarded 443 megawatts of new PPAs, increasing its backlog to 11.7 gigawatts.
- AES achieved its asset sale proceeds target for the year, including a $450 million sale of a minority stake in its global insurance company.
- The company's supply chain strategy protects it from potential tariffs and inflation, with nearly all US CapEx protected and minimal tariff exposure.
- AES's US utilities are undergoing the largest investment program in their history, with $1.4 billion planned for 2025 to improve customer reliability and support economic development.
- Adjusted EBITDA for Q1 2025 was $591 million, down from $640 million a year ago, primarily due to prior year revenues from the accelerated monetization of the Warrior Run PPA and the sale of AES Brazil.
- Adjusted EPS for the quarter was $0.27, down from $0.50 last year, impacted by higher parent interest and prior year tax benefits.
- The company faces a potential $50 million tariff exposure related to a small quantity of batteries imported from Korea for projects coming online in 2026.
- Lower EBITDA was reported in the energy infrastructure SBU due to prior year revenues from the accelerated monetization of the coal PPA at Warrior Run and the movement of Chile renewables to the renewables segment.
- The company anticipates higher interest and a higher adjusted tax rate impacting growth in the remaining quarters of 2025.
Hello, everybody, and welcome to the AES Corporation Q1 2025 financial review call. My name is Emily, and I'll be moderating your call today.
(Operator Instructions) I will now hand the call over to Susan Harcourt, Vice President of Investor Relations to begin. Susan, please go ahead.
Thank you, operator. Good morning, and welcome to our first quarter 2025 financial review call. Our press release, presentation and related financial information are available on our website at aes.com. Today, we will be making forward-looking statements.
There are many factors that may cause future results to differ materially from these statements, which are disclosed in our most recent 10-K and 10-Q filed with the SEC. Reconciliations between GAAP and non-GAAP financial measures can be found on our website along with the presentation.
Joining me this morning are Andres Gluski, our President and Chief Executive Officer; Steve Coughlin, our Chief Financial Officer; Ricardo Falu, our Chief
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