Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
AES Corporation's FY2025 results showed nearly flat revenue of $12.2B but a sharp 45.8% decline in net income to $910M, while operating cash flow surged 56.5% to $4.3B, reflecting significant non-cash or one-time impacts on earnings amid heavy capital investment in energy infrastructure.
Revenue
$12.23B
-0.37% YoY
EPS (Diluted)
$1.26
-46.61% YoY
Gross Margin
18.1%
-0.8 pts YoY
Source: SEC XBRL
Aes (AES) reported FY2025 revenue of $12.23B, down 0.4% year over year. Operating cash flow was $4.31B, up 56.5% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.44 | 0.52 | Miss -15.1% |
| Mar 2026 | 0.67 | 0.37 | Beat +80.3% |
| Sep 2025 | 0.75 | 0.76 | Miss -1.8% |
| Jun 2025 | 0.51 | 0.40 | Beat +27.7% |
Compiled by AI from this SEC filing
AES reported FY2025 revenue of $12.23B, down just 0.4% from $12.28B in the prior year, suggesting the company's utility and power generation businesses maintained relatively steady top-line performance despite market headwinds.
Source: 10-K Income Statement (XBRL Financial Data)
Net income fell from $1.68B to $910M year-over-year, a drop of nearly $769M. This significant decline likely reflects increased depreciation, interest expense, impairment charges, or other non-operating items associated with the company's large capital investment program.
Source: 10-K Income Statement (XBRL Financial Data)
Despite the earnings decline, operating cash flow jumped from $2.75B to $4.31B, a strong signal that underlying cash generation from operations improved materially, potentially due to working capital improvements or non-cash charges that reduced net income without affecting cash.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Investing cash outflows of $6.21B in FY2025, while an improvement from $7.70B in the prior year, underscore AES's continued aggressive investment in renewable energy and infrastructure expansion, consistent with its long-term clean energy transition strategy.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Total assets expanded from $47.4B to $51.8B, reflecting the ongoing build-out of the company's asset base, while stockholders' equity also rose 11.5% to $4.06B, indicating retained earnings and/or equity issuances supported the balance sheet.
Source: 10-K Balance Sheet (XBRL Financial Data)
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
AES's current ratio stands at approximately 0.77, meaning current liabilities of $8.49B significantly exceed current assets of $6.50B. This negative working capital position could create near-term liquidity pressure if operating cash flows or credit facilities are insufficient to meet obligations.
Source: 10-K Balance Sheet (XBRL Financial Data)
The 45.8% decline in net income despite stable revenues suggests significant exposure to impairment charges, mark-to-market losses, or other non-cash items. This earnings volatility can make it difficult for investors to assess underlying business performance and may affect dividend sustainability.
Source: 10-K Income Statement (XBRL Financial Data)
AES invested $6.21B in capital activities in FY2025 and raised $1.98B through financing activities, indicating continued reliance on external capital markets to fund its growth. Rising interest rates or tightening credit conditions could increase the cost of this financing and pressure returns.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Cost of revenue rose 0.6% to $10.02B while revenue declined 0.4%, compressing gross margin from 18.85% to 18.07%. Sustained cost inflation in fuel, operations, or construction could further erode profitability if not offset by rate increases or efficiency gains.
Source: 10-K Income Statement (XBRL Financial Data)
With ROA of just 1.76% on a $51.8B asset base, AES generates relatively modest returns on its deployed capital. As the company continues to expand its asset base through renewable investments, failure to improve asset productivity could weigh on long-term shareholder value.
Source: 10-K Balance Sheet & Income Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 12.23 $B | 12.28 $B | -0.37% |
Cost of Revenue $B | 10.02 $B | 9.96 $B | +0.58% |
Gross Profit $B | 2.21 $B | 2.31 $B | -4.45% |
Net Income $B | 0.91 $B | 1.68 $B | -45.80% |
EPS (Basic) $ | 1.26 $ | 2.38 $ | -47.06% |
EPS (Diluted) $ | 1.26 $ | 2.36 $ | -46.61% |
Answers draw on this SEC filing and the data on this page
AES swung to a strong profit in Q2 FY2026 driven by Renewables and Energy Infrastructure margins, a Fluence sale gain, and lower income taxes, despite merger costs and the expiration of the Maritza PPA in Bulgaria.
AES delivered a strong Q1 FY2026 with revenue rising 8.7% to $3.18B and net income surging nearly 10x year-over-year to $487M, driven by significantly improved gross margins and more than doubled operating cash flow.
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