The AES Corporation

Worth knowing

• Profitable, but burning cash. Reports a profit, but free cash flow is negative.

  AES reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

• Paying shareholders without free cash flow. Paid out $1.4B over the 3 fiscal years to 2025 with -$11.0B of free cash flow.

  AES returned $1.4B in buybacks and dividends over three fiscal years while its free cash flow totalled -$11.0B. The money came from its cash pile or from borrowing.

• Valuation signals disagree. Cheaper than 95% of peers on earnings, but only 45% on operating cash profit (EBITDA).Cheaper than 95% of peers on earnings, but only 45% on operating cash profit.

  Relative to its earnings, AES looks cheaper than 95% of peers; relative to its operating cash profit (EBITDA), cheaper than only 45%. The valuation score blends the two, so look at which measure fits this business best.Relative to its earnings, AES looks cheaper than 95% of peers; relative to its operating cash profit, cheaper than only 45%. The valuation score blends the two, so look at which measure fits this business best.

• Swings more than its peers. Beta 0.95: swings more than most peers, though less than the market.

  AES's shares have swung more with the market than most peers' (beta 0.95).