| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 79 | 5.6x | 17.8x | Top tier | |
Growth | 44 | 8.5% | 7.1% | Around median | |
Quality | 42 | 7.8% | 4.5% | Around median | |
Safety | 26 | 7.5x | 2.6x | Bottom tier | |
Capital Return | 43 | 4.76% | 2.12% | Around median | |
Momentum | 53 | 9.0% | 2.9% | Around median | |
Sentiment | 75 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The AES Corporation operates as a diversified energy company combining renewable energy projects, regulated electric utilities in Indiana and Ohio, energy infrastructure, and new energy technologies. It generates revenue from long-term power purchase agreements, investments added to the utilities’ asset base, operation of generation and storage facilities, and the development of projects associated with data centers. In fiscal Q3 2025, management attributed growth in adjusted earnings before interest, taxes, depreciation, and amortization to bringing new renewable capacity online, investing $1.3 billion in the utilities’ asset base over four quarters, and the cost-reduction program.
In fiscal Q2 2026, AES reported revenue of $3.4 billion, gross profit of $692 million, net income of $426 million, and earnings per share of $0.60. This equates to a gross profit margin of approximately 20.4% and a net income margin of approximately 12.5%, compared with revenue of $3.2 billion and net income of $487 million in fiscal Q1 2026. On a trailing twelve-month basis ending in fiscal 2026, the latest data show revenue of $13.1 billion, gross profit of $2.6 billion, net income of $1.8 billion, and earnings per share of approximately $2.57.
The business mix in fiscal Q3 2025 showed clear strength in renewables and utilities: adjusted earnings before interest, taxes, depreciation, and amortization for renewables increased 46% since the beginning of fiscal 2025, while the group’s adjusted earnings for the quarter reached $830 million versus $698 million a year earlier. Adjusted earnings per share rose to $0.75 from $0.71, but higher interest and depreciation expenses and the timing of lower recognition of renewable tax benefits limited its growth.
The average analyst price target is $18.75, approximately 6.2% above the upper end of the 52-week range of $17.65, while analyst targets range from $7 to $32. The Neutral consensus and the wide $25 spread between the highest and lowest targets indicate that analysts do not agree on a single valuation, despite the regulatory progress recorded by the AES sale transaction on August 28, 2026. Evaluating the case requires balancing growth in renewables and data centers against project execution risks, higher interest expenses, and the incomplete status of certain regulatory rate proceedings according to the November 5, 2025 call.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The most prominent driver in fiscal Q3 2025 came from renewables, where the segment’s earnings before interest, taxes, depreciation, and amortization increased 46% since the beginning of the year. The company added 3 gigawatts of capacity since fiscal Q3 2024, and another 4.8 gigawatts were under construction within an 11.1-gigawatt backlog. Utilities also support growth through a $1.3 billion investment in the asset base over four quarters and a target of approximately 11% growth in the utilities’ asset base.
Power purchase agreement projects associated with data centers reached 8.2 gigawatts in fiscal Q3 2025, including 4.2 gigawatts in operation and 4 gigawatts in the backlog. Of the total 2.2 gigawatts of agreements signed by the company since the beginning of fiscal 2025, 1.6 gigawatts were associated with data centers, while AES Ohio signed separate agreements totaling 2.1 gigawatts. Management said returns on data center projects fall at the upper end of the 12% to 15% range, and it signed its first agreement to transfer a powered-land project with an ongoing power purchase agreement.
On August 28, 2026, AES received approval from the Committee on Foreign Investment in the United States for its sale to an investment consortium. According to the available report, the approval removed one of the most important legal obstacles related to national security and increased confidence in the likelihood of completing the transaction. The provided information does not include the transaction value or specific consideration per share, so the approval alone cannot be used to derive a final valuation for shareholders.
Automated analysis for informational purposes only — not investment advice.
In fiscal Q2 2026, revenue reached $3.4 billion, gross profit was $692 million, and net income was $426 million. Earnings per share were $0.60, with a gross profit margin of approximately 20.4% and a net income margin of approximately 12.5%. Compared with fiscal Q1 2026, revenue increased from $3.2 billion, but net income declined from $487 million and earnings per share declined from $0.68.
During the November 5, 2025 call, management reaffirmed its fiscal 2025 adjusted earnings before interest, taxes, depreciation, and amortization range of $2.65 billion to $2.85 billion and adjusted earnings per share range of $2.10 to $2.26. It also maintained a long-term growth rate of 5% to 7% through 2027 and expected growth to increase to the low double digits in 2026. The plan includes reaching an annualized savings rate of $300 million in 2026 and generating $400 million in additional annual earnings before interest, taxes, depreciation, and amortization after 2027 from projects already in the portfolio.
A significant portion of growth is tied to completing the 4.8 gigawatts that were under construction in fiscal Q3 2025, making delivery and commissioning timing a key factor. The company also plans to invest approximately $1.8 billion in growth and borrow an additional $500 million at the parent-company level, at a time when interest and depreciation expenses have limited adjusted earnings per share growth. Other factors include the expiration of the Maritza agreement in 2026, volatility in the timing of tax benefits, and regulatory decisions concerning AES Indiana and AES Ohio rates.
