AES Corp

AES Corp operates with a capital structure that is heavily leveraged, as evidenced by a debt-to-equity ratio of 10.21. The company's liquidity position is characterized as medium, with a current ratio of 0.78, indicating that its current liabilities exceed its current assets. The company's free cash flow is negative at -1.66 billion USD, which is a concern for its ability to fund operations and growth without external financing.

In terms of profitability, AES Corp's return on equity (ROE) is 14.9%, which is relatively strong, but its return on assets (ROA) is only 0.92%, suggesting that the company is not efficiently utilizing its assets to generate profits. The company's operating income of 537 million USD and net income of 432 million USD indicate a healthy margin, but these figures must be compared against the industry's preferred metrics and the median performance of its peers to fully assess its competitive standing.

AES Corp's revenue is primarily concentrated in Latin America, the United States, and Europe, with a significant portion of its operations in these regions. The company's exposure to these geographic markets may affect its performance due to regional economic conditions and regulatory environments. The company's revenue concentration in these regions is a key factor in its risk profile.

The company's growth trajectory is influenced by its capital expenditure of -2.15 billion USD, which reflects a significant investment in infrastructure and expansion. The outlook for the current fiscal year indicates a potential for growth, but the exact numeric deltas for revenue and earnings are not provided. The company's future performance will depend on its ability to manage its capital expenditures and generate positive free cash flow.

AES Corp faces several risk factors, including its high debt-to-equity ratio and negative free cash flow, which could lead to liquidity constraints. The company's dilution potential is currently low, but the risk assessment indicates that the company's net cash is negative after subtracting total debt, which could necessitate future equity or debt financing. The company's risk profile is further complicated by its exposure to regulatory changes and geopolitical factors in its operating regions.

Recent events, such as filings and transcripts, have not been provided in the input data, so no specific recent developments can be cited. However, the company's financial performance and strategic direction are likely to be influenced by its ongoing capital expenditures and the need to maintain a strong liquidity position.

AES Corp (A1ES34.SA) has expanded its renewable energy portfolio with the addition of several new assets, marking a notable shift in its operational footprint. The most significant development is the inclusion of the Cristales solar farm in Chile, a 379 MW utility-scale solar project currently in the pre-construction phase. This addition underscores the company's strategic focus on scaling up solar capacity in Latin America, a region where AES has been increasingly active. In addition to the Cristales project, AES has also added the Parque Eolico Terra - Terra 01 wind farm in Chile, which has a capacity of 350 MW and is in the pre-commissioned stage. This further solidifies the company's commitment to wind energy in the region. The simultaneous addition of these two large-scale renewable projects in Chile highlights a concentrated effort to diversify and expand its renewable energy sources in a key market. On the North American front, AES has added the Bliss (NY) onshore wind turbine, an operating asset with a capacity of 100.5 MW in the United States. This addition complements the company's existing renewable energy operations in the US, contributing to its overall capacity and reinforcing its presence in the American renewable energy sector. The inclusion of this operating asset provides immediate capacity benefits, unlike the pre-construction and pre-commissioned projects in Chile. The expansion of AES's asset base, particularly in renewable energy, is significant for investors as it reflects the company's ongoing strategy to transition towards cleaner energy sources. With 35 top holders and 3 analysts covering the stock, the market's attention on these developments is likely to be high. The addition of these assets, especially the large-scale projects in Chile, could have a material impact on AES's future revenue streams and its position in the global renewable energy market. However, as this is the first analysis for this ticker, there is no prior basis for delta computation, and the full impact of these changes will need to be assessed over time.

Net income surged to $1.68 billion in FY2025, marking a strong recovery from previous years' losses.

Free cash flow improved by 18.3% year-over-year to -$4.72 billion, indicating a positive trend in cash generation.

Revenue maintained stability with a 2.4% CAGR over four years, reaching $12.23 billion in FY2026.

A debt-to-equity ratio of 10.21 places AES in the bottom quartile, signaling extreme leverage risk compared to peers.

The company faces high credit risk, as explicitly flagged in the risk assessment data provided.

Long-term debt increased to $29.9 billion in FY2026, continuing a consistent upward trend over the past four years.

Revenue $3.10B, +4,7% YoY; Operating income −81,3% YoY.

• ▍Revenue $3.10B, +4,7% YoY
• ▍Operating income −81,3% YoY
• ▍Net income −42,9% YoY
• ▍Free cash flow −20,5% YoY
• ▍Net margin 10.3%

Revenue $3.35B, +1,9% YoY; Operating income +4,5% YoY.

• ▍Revenue $3.35B, +1,9% YoY
• ▍Operating income +4,5% YoY
• ▍Net income +26,8% YoY
• ▍Free cash flow +28,4% YoY
• ▍Net margin 19.1%

Revenue $2.85B, −3,0% YoY; Operating income −5,0% YoY.

• ▍Revenue $2.85B, −3,0% YoY
• ▍Operating income −5,0% YoY
• ▍Net income −134,4% YoY
• ▍Free cash flow +8,8% YoY
• ▍Net margin -3.3%

Revenue $2.93B, −5,2% YoY; Operating income −51,4% YoY.

• ▍Revenue $2.93B, −5,2% YoY
• ▍Operating income −51,4% YoY
• ▍Net income −89,3% YoY
• ▍Free cash flow +34,8% YoY
• ▍Net margin 1.6%

Revenue $2.96B; Operating income $627.0M.

• ▍Revenue $2.96B
• ▍Operating income $627.0M
• ▍Net margin 18.9%

Revenue $3.29B; Operating income $622.0M.

• ▍Revenue $3.29B
• ▍Operating income $622.0M
• ▍Net margin 15.3%

Revenue $2.94B; Operating income $378.0M.

• ▍Revenue $2.94B
• ▍Operating income $378.0M
• ▍Net margin 9.4%

Revenue $3.08B; Operating income $537.0M.

• ▍Revenue $3.08B
• ▍Operating income $537.0M
• ▍Net margin 14.0%

Revenue $12.23B, −0,4% YoY; Operating income −29,5% YoY.

• ▍Revenue $12.23B, −0,4% YoY
• ▍Operating income −29,5% YoY
• ▍Net income −45,8% YoY
• ▍Free cash flow +18,3% YoY
• ▍Net margin 7.4%

Revenue $12.28B, −3,1% YoY; Operating income +59,8% YoY.

• ▍Revenue $12.28B, −3,1% YoY
• ▍Operating income +59,8% YoY
• ▍Net income +574,3% YoY
• ▍Free cash flow +19,7% YoY
• ▍Net margin 13.7%

Revenue $12.67B, +0,4% YoY; Operating income +51,8% YoY.

• ▍Revenue $12.67B, +0,4% YoY
• ▍Operating income +51,8% YoY
• ▍Net income +145,6% YoY
• ▍Free cash flow −65,3% YoY
• ▍Net margin 2.0%

Revenue $12.62B, +13,2% YoY; Operating income +283,9% YoY.

• ▍Revenue $12.62B, +13,2% YoY
• ▍Operating income +283,9% YoY
• ▍Net income −33,5% YoY
• ▍Free cash flow −82,0% YoY
• ▍Net margin -4.3%