Fluence Share Sale Gain
A gain of $186 million was recognized on the sale of Fluence shares, significantly boosting net income in the quarter.
Source: 10-Q Item 2 MD&A
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 returned to profitability in Q2 FY2026 as net income swung to a gain, driven by robust operating performance across Renewables and Energy Infrastructure, along with a $186 million gain on the sale of Fluence shares. Revenue growth was broad-based, led by a 46% surge in the Renewables segment from development services and favorable energy derivatives, while Energy Infrastructure benefited from higher spot sales in Argentina and Mexico. Higher interest expense and merger-related costs partially offset gains, and the pending acquisition by Horizon Parent introduces uncertainty around timing and completion.
Revenue
$3.42B
+19.86% YoY
EPS (Diluted)
$0.60
+500.00% YoY
Gross Margin
20.2%
+4.4 pts YoY
Source: SEC XBRL
Aes (AES) reported Q2 FY2026 revenue of $3.42B, up 19.9% year over year. AES's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| 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% |
| Mar 2025 | 0.27 | 0.35 | Miss -23.8% |
5 reported segments · SEC XBRL
Segment revenue totals $3.42B, which is the $3.42B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
A gain of $186 million was recognized on the sale of Fluence shares, significantly boosting net income in the quarter.
Source: 10-Q Item 2 MD&A
Lower contract sales volume, primarily due to the expiration of the Maritza PPA in Bulgaria, partially offset revenue gains at Energy Infrastructure.
Source: 10-Q Item 2 MD&A
Renewables revenue benefited from a $76 million favorable impact from energy derivatives in the U.S., contributing to the segment's margin expansion.
Source: 10-Q Item 2 MD&A
General and administrative expenses increased $13 million primarily due to $11 million in costs related to the proposed merger with Horizon Parent.
Source: 10-Q Item 2 MD&A
Other expense fell $268 million compared to the prior year, largely due to the absence of prior-year losses on commencement of sales-type leases at AES Clean Energy.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 1 high, 2 medium, 0 low
The proposed merger with Horizon Parent may not close on the expected timeline or at all, which could lead to business disruptions, loss of key personnel, and a decline in stock price. The Merger Agreement contains termination rights and could require AES to pay a $321 million termination fee under certain circumstances.
Source: 10-Q Item 1A Risk Factors
During the pendency of the merger, AES is subject to restrictions on acquisitions, dispositions, and other actions without Parent’s consent, limiting strategic flexibility. Additionally, significant transaction costs have been incurred and will continue even if the merger is not completed.
Source: 10-Q Item 1A Risk Factors
Securities class action and derivative lawsuits have been filed in connection with the Merger, alleging disclosure deficiencies. Defending these suits could result in substantial costs, divert management attention, and potentially delay or prevent the merger.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.42 $B | 2.86 $B | +19.86% |
Cost of Revenue $B | 2.73 $B | 2.40 $B | +13.66% |
Gross Profit $M | 692.00 $M | 453.00 $M | +52.76% |
Net Income $M | 426.00 $M | -95.00 $M | +548.42% |
EPS (Basic) $ | 0.60 $ | -0.15 $ | +500.00% |
EPS (Diluted) $ | 0.60 $ | -0.15 $ | +500.00% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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.
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