The AES Corporation (AES) AI Stock Analysis

The AES Corporation owns and operates an international portfolio of power generation and distribution facilities with approximately 32,326 megawatts of total generating capacity. It produces electricity utilizing a diverse technology footprint that includes natural gas, coal, hydroelectric, wind, solar, and biomass, alongside energy storage and landfill gas infrastructure. AES distributes, transmits, and sells power to utilities, industrial users, intermediaries, and governmental customers, as well as residential consumers in its utility territories. Headquartered in Arlington, Virginia, the company operates across key regions including the United States, Latin America, Europe, and Asia.

Over the five-year period from FY2020 to FY2025, AES generated a revenue compound annual growth rate of 4.8%. Top-line revenue moved from $11.14B in FY2021 to a peak of $12.68B in FY2023, before settling at $12.23B in FY2025 as annual revenue growth contracted 0.4%. Net income improved over this timeline from -$413.0M in FY2021 to $949.0M in FY2025, delivering an annual net margin of 7.8% and EPS of $2.34. For the trailing twelve months ended June 30, 2026, total revenue reached $13.05B with an operating margin of 18.7%. In the latest quarter, year-over-year revenue grew 19.9%, while quarterly earnings growth jumped 951.1%.

As of June 30, 2026, AES held $1.85B in cash and short-term investments against total debt of $32.12B, translating to net debt of $30.26B and a debt-to-equity ratio of 6.50. The current ratio stood at 0.75 on total assets of $54.24B. In FY2025, operating cash flow reached $4.31B, but capital expenditures of $5.93B produced free cash flow of -$1.62B. Cash allocation during FY2025 included $501.0M in dividends paid, while share issuance totaled $992.0M as share count rose 7.2% over five years.

AES trades at a trailing price-to-earnings multiple of 5.6x and a forward P/E of 6.6x, compared to medians of 21.0x and 16.0x for its S&P 500 Utilities peers. Its enterprise value of $40.83B represents an EV-to-EBITDA multiple of 10.7x, below the peer group median of 12.2x, while its price-to-sales ratio is 0.8x versus the peer median of 2.9x. Over the past year, AES delivered a price return of 5.9%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock is down 25.1%, compared to an 83.0% gain for the benchmark.

AES provides an annualized forward dividend of $0.70 per share, representing a dividend yield of 4.71% against its last close of $14.95. Distributions are paid quarterly, supported by a payout ratio of 24.8%. The company has paid consecutive dividends for 15 years, with a five-year annualized dividend growth rate of 4.2%. Its last ex-dividend date was October 30, 2026.

Wall Street coverage includes 9 Hold recommendations, with 0 Strong Buy, Buy, Sell, or Strong Sell ratings. The mean price target of $15.00 sits 0.3% above the last close of $14.95. Consensus estimates for the fiscal year ending December 31, 2026, anticipate EPS of $2.29 on revenue of $13.32B. For next fiscal year, 9 analysts project EPS of $2.37 on revenue of $13.44B. AES has beaten EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of The AES Corporation (AES). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AES income statement, AES balance sheet, AES key metrics, AES analyst forecast, AES chart. See the AES stock overview for the latest quote and news.