NYSE$AES

AES Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported positive momentum in the first quarter and reaffirmed 2023 guidance, introducing new strategic business units.

AES Corporation reported a positive start to 2023, with financial results putting the company on track to meet its 2023 guidance and longer-term growth rates. Strategic accomplishments included the settlement agreement of AES Ohio's rate case and the termination of Warrior Run's thermal PPA.

  • On track to complete 2023 construction projects of more than 3 GW of renewables
  • AES Ohio signed a comprehensive settlement for its Electric Security Plan (ESP4), providing the regulatory foundation necessary to drive future growth
  • Announced next decarbonization milestone with the agreement to terminate the PPA for the 205 MW Warrior Run coal plant in Maryland, for a total payments of $357 million
  • Signed agreements to extend the operation of 1.4 GW of gas generation at the Southland legacy units in Southern California for three more years

Headline financials

Total Revenue

$3.24B

Previous: $2.85B+13.6%
EPS (adj)

$0.22

Previous: $0.21+4.8%
Adjusted EBITDA

$628M

No prior period
Capital Expenditures

$1.55B

Previous: -$766M+302.5%
Free Cash Flow

-$926M

Previous: -$651M-42.2%
Net Income

$189M

Previous: $115M+64.3%
Operating Income

$594M

Previous: $193M+207.8%
Gross Profit

$594M

Previous: $530M+12.1%
Cash & Equivalents

$1.44B

Previous: $1.06B+36.5%
Total Assets

$39.4B

Previous: $34.6B+13.6%

Revenue & EPS history

AES · Revenue · Quarterly

$3.24B

Q1 2023+13.6%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

AES · $36M total across 1 segment · Q4 2022

  • Corporate and Other
    $36M

Forward guidance

The Company is reaffirming its 7% to 9% annualized growth rate target through 2025, from a base year of 2020. The Company is reaffirming its 2023 guidance for Adjusted EPS of $1.65 to $1.75. Growth in 2023 is expected to be primarily driven by 3.4 GW of new renewables expected to come online.

Tailwinds

  • Growth in 2023 is expected to be primarily driven by 3.4 GW of new renewables expected to come online.

Headwinds

  • Lower margins from the Company's LNG business, due to normalization of LNG prices and the roll-off of a gas supply contract.
  • Lower contract margins in Chile.
  • Higher interest expense in Colombia.
  • Impact of 0.6 GW of new renewables likely coming online in 2024, instead of 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.4%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.9%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+13.1%

Q3 2023

Best reaction

-10.7%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%+0.3%+3.0%
Q4 2025+7.0%-12.1%-13.8%
Q3 2025+5.8%+5.7%+3.6%
Q1 2025+2.2%+3.5%+1.4%
Q4 2024-3.5%-6.2%+7.2%
Q3 2024-10.4%-5.5%-20.6%
Q2 2024-3.7%-7.1%-3.7%
Q1 2024+2.8%+3.7%+18.8%
Q4 2023-5.6%-3.3%+7.8%
Q3 2023+13.1%+8.7%+22.1%
Q2 2023-6.7%-6.7%-15.0%
Q1 2023+1.0%-0.8%-10.1%
Q4 2022-2.5%-0.9%-7.3%
Q3 2022+2.3%+0.2%+9.5%
Q2 2022+3.8%+6.2%+13.7%
Q1 2022-4.5%-8.9%+1.6%
Q4 2021+2.7%+0.6%+18.6%
Q3 2021-1.0%-5.8%-6.3%
Q2 2021+3.9%+1.0%+3.0%
Q1 2021-2.6%-4.3%-5.7%
Q4 2020-5.1%-4.3%-6.0%
Q3 2020+0.0%+1.5%+0.5%
Q2 2020+11.4%+10.3%+14.1%
Q1 2020+2.7%-0.5%+14.1%
Q4 2019-0.4%-2.5%-26.5%
Q3 2019+2.2%+4.3%+8.9%
Q2 2019-4.0%-4.6%-5.4%
Q1 2019-4.9%-3.3%+0.9%
Q4 2018-0.3%-1.0%+4.6%
Q3 2018+3.5%+3.0%+2.5%
Q2 2018+0.9%-1.9%-3.9%
Q1 2018-2.4%-0.6%+2.8%
Q4 2017+4.0%+3.9%+8.8%
Q3 2017-0.8%-0.6%+0.9%
Q2 2017+1.4%+0.0%+0.5%
Q1 2017+0.2%+0.1%+2.2%
Q4 2016-3.4%-3.2%-5.7%
Q3 2016+5.6%+2.2%-4.9%
Q2 2016-1.9%-1.9%-1.5%
Q1 2016+3.3%
Q4 2015+4.1%
Q3 2015-5.7%
Q2 2015-2.3%
Q1 2015+0.4%
Q4 2014+8.1%
Q3 2014-3.5%
Q2 2014+2.7%
Q1 2014-3.0%
Q4 2013-3.6%
Q3 2013+1.1%
Q2 2013+1.7%
Q1 2013-4.2%
Q4 2012+6.1%
Q3 2012-3.1%
Q2 2012-5.9%
Q1 2012-1.1%
Q4 2011-2.6%
Q3 2011+3.0%
Q2 2011-10.7%
Q1 2011+0.2%
Q4 2010+3.8%
Q3 2010-1.2%
Q2 2010+3.7%
Q4 2009-0.6%
Q1 2010+2.1%
Q3 2009+0.4%
Q3 2008+0.4%
Q4 2006+1.4%
Q1 2009+1.4%
Q4 2007+1.4%
Q2 2008+6.4%
Q4 2008+6.4%
Q2 2009+6.4%

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