Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$15.50Last close (Nov 2, 2023)
Post-Earnings Price$16.00Open (Nov 3, 2023)
Price Change
$0.50(+3.23%)
- AES is experiencing very strong demand from target customers, especially tech companies in the data center business, in key markets like California, New York, and PJM. The company has not seen a slowdown in demand in these markets.
- Mechanical completion has been achieved on 93% of new capacity, with an increase in the year-end construction target from 3.4 GW to 3.5 GW. This strong execution gives confidence in achieving year-end numbers, and provides a clear line of sight to potential EPS upside.
- AES is leveraging technological innovations, such as AI in wind farm operations and robotics in solar farm construction, which show a lot of promise for cost savings and efficiency improvements. The company expects these innovations to have significant benefits over time, including potential monetization opportunities.
- AES plans to raise at least $2 billion through asset sales in 2024 and 2025, which may be challenging to achieve in current market conditions, potentially impacting their ability to finance growth.
- AES may delay exiting 3.5 GW of coal assets beyond 2025 to support energy reliability, which could hinder its decarbonization goals and expose the company to environmental and regulatory risks.
- The company's emphasis on maintaining investment-grade credit ratings as a top priority may limit financial flexibility and constrain funding for future growth initiatives.