AES Corporation (AES)

Over the past six months, AES stock experienced notable movements impacted by several events. AES stock was up 27.09% over the past 30 days and 18.45% over the past six months, but down 21.72% over the past 12 months. The stock jumped 15% following reports of a potential sale due to interest from private equity firms. The stock plunged after a Senate budget proposal maintained the phaseout of wind and solar production tax credits. Disappointing first-quarter 2025 results negatively impacted investor confidence. High debt levels signaled a weak solvency position. Jefferies downgraded AES's stock rating from Buy to Hold. AES Dominicana Renewables Energy sold a 50% stake in its solar, wind, and BESS portfolio to TotalEnergies. AES announced plans to build a new wind farm in Argentina. AES signed an agreement with Microsoft for projects in the MISO grid. AES and Meta signed long-term PPAs to deliver 650 MW of solar capacity in Texas and Kansas. AES announced quarterly common stock dividends on July 11, 2025.

Demand for AES's products and services exhibits clear seasonality, primarily driven by weather conditions and customer behavior. Electricity demand typically peaks during the summer months due to increased usage of air conditioning. Heating also accounts for a significant portion of home energy usage, suggesting increased demand during colder months. AES businesses can be affected by variations in general weather patterns and unusually severe weather. The number of load-consuming assets is increasing, and total electricity demand is growing.

The AES Corporation is a global power company that generates and distributes electrical power. It operates as a utility and power generation company, developing, financing, constructing, owning, and operating generation facilities and utility businesses. AES generates electricity from various sources, including natural gas, coal, hydro, wind, and solar, and sells it to utilities, industrial users, and wholesale markets. The company is involved in energy storage solutions through grid-scale battery projects and its joint venture, Fluence. AES also owns and operates regulated electricity distribution networks and engages in energy trading and marketing, offering customized energy solutions and consulting services. AES operates through four business segments: Renewables, Utilities, Energy Infrastructure, and New Energy Technologies, and is transitioning towards clean energy technologies with a net-zero carbon emissions target by 2040.

The AES Corporation has a global operational footprint, operating in 14 to 15 countries across North America, South America, Europe, Asia, and the Middle East. Its presence includes the United States, Mexico, Central America, the Caribbean, Chile, Colombia, Argentina, Brazil, specific regions within Europe and Asia including India and Kazakhstan, and the Middle East including Jordan.

In the past year, AES has maintained a generally positive brand reputation, particularly in innovation, ethics, and sustainability. AES was named to Fast Company's Best Workplaces for Innovators and recognized as one of the World's Most Ethical Companies by Ethisphere. Consumer advocates have called for stricter penalties against AES Ohio due to power outages. Recent insights hint at potential headwinds due to diminished rankings in financial strength, growth, and valuation. AES shares underperformed its industry, sector, and the S&P 500 composite due to dismal first-quarter 2025 results and poor financials.

The ownership of AES is primarily dispersed among institutional investors, with a smaller portion held by individual investors and insiders. Institutional investors hold a significant majority of shares. Terrific Investment Corp is the largest individual shareholder. Insiders hold a small percentage of the stock.