AES Corporation (AES)

The AES Corp.'s stock price has experienced a significant downturn over the past year. Key events impacting the stock price in the past six months include dismal Q1 2025 results, a weak solvency position, and analyst downgrades. Positive developments include the completion of the first phase of the largest solar-plus-storage project in the United States, long-term Power Purchase Agreements with Meta, reaffirmation of 2025 guidance and long-term growth rate targets, and increasing confidence in the stock's earnings generation capabilities.

Demand for The AES Corp.'s electricity exhibits clear seasonality, largely driven by weather patterns. Electricity demand typically peaks during the summer months due to higher temperatures and increased usage of air conditioning. Heating and cooling account for over half of a home's energy usage, making these factors significant drivers of demand seasonality. Overall electricity demand is growing due to an increasing number of load-consuming assets and a growing request for efficient green electricity sources.

The AES Corporation is a global power utility company headquartered in Arlington, Virginia, U.S., operating primarily in the Electric Utilities sector and industry. The company generates, transmits, and distributes electricity from diverse sources, including hydro, solar, wind, coal, gas, and biomass, and provides energy storage solutions. AES's operations are organized into segments: Contract Generation, Competitive Supply, Large Utilities, Growth Distribution, Renewables, and New Energy Technologies. Beyond electricity, AES also manufactures wireless communication products for fire, security, and facility applications.

The AES Corporation has a significant global operational presence across North America, Asia, Europe, South America, Central America, and the Caribbean. As of the end of 2023, AES owned 113 power plants worldwide with a production capacity of 32,326 MW. Its net sales are geographically distributed with the United States accounting for 35.1%, Chile for 15.3%, and the Dominican Republic for 11.1%. AES operates in 14 countries with potential for expansion.

The AES Corporation has maintained a positive brand reputation, particularly in areas of innovation, ethics, and clean energy leadership. AES was named to Fast Company's Best Workplaces for Innovators for the second consecutive year and was recognized as one of the World's Most Ethical Companies by Ethisphere. AES was also named to JUST Capital's list of Just Companies in the U.S. The AES Corporation was ranked as the top seller of clean energy to corporations globally in 2024 for the third consecutive year.

The ownership structure of The AES Corp. is primarily institutional, with approximately 80.05% of the company's shares held by institutional investors such as Vanguard Group Inc. and BlackRock, Inc. Individual ownership accounts for approximately 0.5% of the company, with Terrific Investment Corp being the largest individual AES shareholder. Insiders hold about 0.48% of the stock.