The AES Corporation (AES): Business Model Canvas [Dec-2025 Updated]

You're looking at a utility giant making a massive, necessary pivot, and honestly, it's a masterclass in energy transition strategy. As of late 2025, The AES Corporation is wrapping up its exit from coal generation and is laser-focused on securing the future with clean power, evidenced by their 12 GW contracted renewable backlog and a projected \$2.75 billion midpoint Adjusted EBITDA for the year. This isn't just about being green; it's about locking in revenue by powering the AI revolution with hyperscalers, which you can see clearly laid out in their Key Activities and Value Propositions. Dive into the full Business Model Canvas below to see exactly how their partnerships, like the \$4 billion green hydrogen JV, translate into predictable, rate-base-driven growth and massive contracted revenue streams.

The AES Corporation (AES) - Canvas Business Model: Key Partnerships

You're looking at how The AES Corporation (AES) builds its business by leaning on key external players to fund growth and secure capacity. Honestly, these alliances are what let AES scale its clean energy ambitions so fast.

Caisse de dépôt et placement du Québec (CDPQ) as a financial partner in AES Ohio and AES Indiana

AES has a financial partnership with Caisse de dépôt et placement du Québec (CDPQ) that structures capital for its US utilities. AES agreed to sell a 30% indirect equity interest in AES Ohio to CDPQ for approximately \$546 million, with closing expected in the first half of 2025. This deal mirrors the existing ownership structure at AES Indiana, where CDPQ is also a partner. This funding supports AES Ohio's investment program, which totals more than \$1.5 billion planned from 2024 through 2027 to modernize the system. For context, AES Ohio's 2023 rate base was \$1,564 million. Furthermore, AES Ohio has a settlement agreement for Smart Grid program Phase 2 that enables an investment of more than \$240 million over a four-year period.

Air Products for a \$4 billion joint venture developing green hydrogen in Texas

AES and Air Products initially planned a joint venture to build and operate a green hydrogen production facility in Wilbarger County, Texas, with an investment of approximately \$4 billion. This project was slated to include about 1.4 GW of wind and solar power generation and electrolyzer capacity for over 200 metric tons per day of green hydrogen, targeting commercial operations in 2027. However, the latest development shows Air Products pulled out in late 2024, selling its development rights back to its partner, AES, because the project did not reach a Final Investment Decision (FID) under Air Products' criteria. Air Products had mentioned a value of \$4.5 billion for the project when it pulled out.

Hyperscale technology companies (e.g., Microsoft, Meta) for large-scale Power Purchase Agreements (PPAs)

AES has cemented its role as a major energy supplier to hyperscale technology customers. The company has signed contractual arrangements totaling 10.1 GW with these major global players. Of this total, 7.7 GW are long-term renewable energy PPAs specifically built to support data center energy needs.

Here's a breakdown of the scale of these customer relationships:

• The AES Corporation has a total backlog of signed long-term PPAs at 12.3 GW.
• AES signed two solar energy PPAs with Meta in May 2025 to supply 650 MW for its data centers in the Southwest Power Pool (SPP) market.
• AES signed a similar deal with Microsoft in March 2025.
• AES currently has 32.7 GW of energy capacity in operation.

Engineering, Procurement, and Construction (EPC) contractors for 3.2 GW of 2025 project completions

The execution of AES's development pipeline relies heavily on its EPC partners. AES is on track to add 3.2 GW of new projects to its operating portfolio by the end of 2025. As of the first quarter of 2025, AES reported completing construction on 643 MW of renewables. The remaining projects scheduled for 2025 completion were approximately 80% complete at that time.

Key 2025 capacity additions include the 250 MW Morris Solar project with Microsoft (completed in April 2025) and the 1 GW Bellefield 1 Solar + Storage project with Amazon (expected operational in summer 2025). The 2 GW Bellefield project, acquired in 2023, has phases expected to come online in 2025 and 2026.

Equipment manufacturers for solar, wind, and battery storage technology supply

AES manages its supply chain to mitigate external risks, which is key when dealing with large-scale equipment procurement for solar, wind, and battery storage. The company reported minimal exposure to US import tariffs, with only about \$50 million exposure representing just 0.3% of total US Capital Expenditures (CapEx). This suggests strong contractual agreements are in place with manufacturers, securing equipment either on site or via domestic production contracts through 2027.

You can see the scale of the required equipment supply in this table:

The AES Corporation (AES) - Canvas Business Model: Key Activities

You're looking at the core actions The AES Corporation (AES) is taking right now to execute its strategy as of late 2025. This is where the rubber meets the road for their transition plan, focusing on building out renewables while systematically shedding older assets.

A major focus is on securing future revenue through firm contracts. The AES Corporation (AES) has a well-protected PPA (Power Purchase Agreement) backlog of 12 GW of signed long-term contracts. Of that total, 5.2 GW is currently under construction. Furthermore, The AES Corporation (AES) is on track to add 3.2 GW of new projects to its operating portfolio by the end of 2025.

Operating and maintaining the existing fleet is still a massive undertaking. As of late 2024, The AES Corporation (AES) had a total generation portfolio exceeding 32 GW. The shift in this fleet is dramatic; by the second quarter of 2025, the Renewables Strategic Business Unit (SBU) was already contributing over 53% of the generation portfolio.

The commitment to decarbonize is firm, with The AES Corporation (AES) executing the full exit from coal generation by year-end 2025. This is a major operational shift, building on prior work where they had already sold or retired more than 13.1 GW of coal assets since 2017.

For the US regulated utilities segment, The AES Corporation (AES) is actively investing to drive growth. They are targeting 10% annual rate base growth. To give you a recent benchmark, utility investments in AES Indiana and AES Ohio actually drove 20% rate base growth in 2024, and the company expects this segment to continue growing at an annualized rate of at least 11% through 2027.

Advancing new energy technologies is also a key activity, showing a move beyond just solar and wind. The AES Corporation (AES) is pioneering utility-scale battery storage and Maximo, which is described as the first-of-its-kind, AI-enabled solar installation robot solution. Plus, they have a green hydrogen joint venture with Air Products.

Here are some of the specific project and contract milestones related to these activities:

• Completed construction of 643 MW of energy storage and solar projects in Q1 2025.
• 1.9 GW of the 3.2 GW planned 2025 additions were already completed as of Q2 2025.
• Signed or awarded new long-term PPAs totaling 443 MW of solar and energy storage capacity in Q1 2025.
• Signed or awarded 1.6 GW of new long-term PPAs, all with data center companies, since May 2025.
• The 170 MW Crossvine solar-plus-storage project in Indiana received final regulatory approval in April 2025.
• The company achieved its full year 2025 asset sale proceeds target of $400 to $500 million with the sale of a minority interest in AGIC.

The AES Corporation (AES) is definitely busy executing on multiple fronts simultaneously. Finance: review the cash flow impact of the $1.4B in tax credits mentioned against the $1.3B reduction in planned renewable CapEx through 2027 by next Tuesday.

The AES Corporation (AES) - Canvas Business Model: Key Resources

PPA Backlog and Future Revenue Certainty

The AES Corporation has a well-protected PPA backlog of signed renewable projects totaling 12 GW as of the second quarter of 2025. This backlog provides a clear runway for future revenue visibility.

A portion of this backlog, specifically 5.2 GW, was under construction as of the second quarter of 2025. Furthermore, The AES Corporation was on track to add a total of 3.2 GW of new projects to its operating portfolio by the end of 2025.

Regulated Utility Assets and Stable Earnings

The regulated utility assets, including AES Indiana and AES Ohio, drive stable, rate-base-driven earnings. For AES Ohio, the 2023 rate base was reported as US$1,564 million. The utility anticipates compound annual rate base growth in the mid-teens through 2027 as a result of planned investments.

The AES Corporation reaffirmed its 2025 Adjusted EBITDA guidance to be between $2,650 to $2,850 million.

Global Portfolio and Infrastructure

The global portfolio is heavily weighted toward solar, wind, and battery storage, supporting the company's transformation away from coal, which The AES Corporation intends to fully exit by the end of 2025. The company's total capacity is targeted to reach 57-62 GW in 2027, with renewables expected to comprise 79% of that mix.

Key portfolio metrics as of mid-2025 include:

Intellectual Property and Expertise

The AES Corporation deploys proprietary technology in its construction efforts. For example, the company utilized its AI robotic solar installation technology, Maximo, during construction, which makes the process faster, less labor intensive, and more cost-effective.

The company is also advancing expertise in energy storage, evidenced by the completion of the first phase of the Bellefield 1 project, a 1,000 MW solar-plus-storage facility.

Access to Capital and Strategic Partners

Access to capital markets is supported by strategic partnerships, notably with Caisse de dépôt et placement du Québec (CDPQ). The AES Corporation closed on the sale of an approximate 30% indirect equity interest in AES Ohio to a CDPQ subsidiary for approximately US$546 million, with closing expected in the first half of 2025. This transaction expands the existing partnership with CDPQ, which also holds an interest in AES Indiana.

The company also achieved its full-year 2025 asset sale proceeds target of $400 to $500 million with the sale of a minority stake in AES Global Insurance Company (AGIC) for $450 million.

• CDPQ investment in AES Ohio: US$546 million.
• AES Ohio planned investment (2024-2027): more than US$1.5 billion.
• AES Ohio Smart Grid Phase 2 potential investment: more than US$240 million over four years.
• 2025 Asset Sale Proceeds Target Achieved: $400 to $500 million.

The AES Corporation (AES) - Canvas Business Model: Value Propositions

You're looking at the core value The AES Corporation (AES) delivers to its customers and the market as of late 2025. It's about certainty in an uncertain energy transition, which is why their contracted business model is so compelling.

A primary value is providing 24/7 carbon-free energy solutions, which is critical for corporate decarbonization goals. AES is aggressively moving away from fossil fuels, having committed to phasing out coal by 2025. The company is aiming for renewables to represent 76% of its total energy generation capacity by 2027.

The stability you seek is baked into their contracts. AES offers long-term, fixed-price Power Purchase Agreements (PPAs) for cost stability. As of the third quarter of 2025, the PPA backlog stood at 11.1 GW, with 4.8 GW already under construction, which locks in revenue streams for years. Year-to-date in 2025, AES signed or awarded new long-term PPAs for 2.2 GW of renewables.

The AES Corporation is enhancing grid reliability and resilience through energy storage and modernization investments. For instance, AES Clean Energy is partnering on Luna Storage, a 400 MWh lithium-ion battery storage facility. Furthermore, in the US utilities segment, AES Indiana is executing a modernization plan involving a $1.2 billion investment to improve grid reliability for its customers.

You can see their scale in the utility footprint. AES is delivering reliable electricity distribution to over 2.7 million customers in the US and El Salvador. Specifically, AES El Salvador serves more than 1.56 million customers across its four distribution utilities, covering 80% of the national territory.

The company is actively enabling the AI revolution by securing 8.2 GW in power agreements with data centers. This focus on hyperscalers is a major growth driver; as of early 2025, AES had signed 10.1 GW in total contractual arrangements with major global tech companies, including 7.7 GW in long-term renewable energy PPAs dedicated to supporting data center operations.

Here's a quick look at the scale of their contracted pipeline and recent financial performance, which underpins these value propositions:

The value proposition is also supported by their financial discipline. The company reaffirmed its 2025 Adjusted EPS guidance of $2.10 to $2.26, showing confidence in monetizing this contracted pipeline. Also, the Renewables EBITDA saw a 46% increase year-to-date in Q3 2025, showing the direct financial benefit of these clean energy contracts.

• Renewables capacity target by 2027: 76%
• Coal phase-out target: By 2025
• AES Indiana Grid Modernization Investment: $1.2 billion
• AES El Salvador Customers: More than 1.56 million

If you're evaluating AES, focus on the backlog conversion rate; that's where the rubber meets the road for realizing these stated values. Finance: draft 13-week cash view by Friday.

The AES Corporation (AES) - Canvas Business Model: Customer Relationships

You're looking at how The AES Corporation (AES) manages its relationships across its diverse customer base, which spans massive tech firms to regulated local ratepayers. It's a dual approach: lock in long-term, high-volume contracts on one side, and manage regulated service quality on the other. Honestly, the numbers show a clear focus on the former right now.

Dedicated account teams for large corporate and hyperscaler customers

The AES Corporation is definitely leaning into the hyperscaler segment. They solidified their position as one of the top providers of energy to data center companies in 2024, with BloombergNEF naming them the #1 provider of clean energy globally to corporations for the third consecutive year. This relationship management is clearly working, as demand from these key corporate customers remains strong.

Here's a look at the volume of those corporate clean energy commitments as of late 2025:

Long-term, take-or-pay contractual relationships through PPAs

The backbone of the commercial side is the long-term, take-or-pay Power Purchase Agreement (PPA). This structure provides revenue stability, which the CEO noted demonstrates resiliency to tariffs and economic policies. The company expects to complete construction of a total of 3.2 GW of new renewable energy projects in 2025, adding to this contracted base.

The AES Corporation expects to complete construction of the majority of its 11.9 GW backlog of signed contracts with investment grade, large corporate customers through 2027. This long-term visibility helps underpin their financial outlook.

Regulated service model for utility customers (AES Indiana, AES Ohio)

For the regulated utilities, the relationship is defined by regulatory filings and infrastructure investment. In 2024, The AES Corporation invested over $1.6 billion across AES Indiana and AES Ohio, which resulted in rate base growth of 20%. This investment supports reliability and local economic development.

Key regulatory milestones as of late 2025 include:

• AES Indiana received approval for new base rates and an ROE of 9.9% in 2024.
• AES Indiana filed a 20-year Integrated Resource Plan (IRP) in Q3 2025.
• Both AES Indiana and AES Ohio filed settlements related to outstanding rate reviews in Q3 2025.
• AES Ohio saw 2.1 GW of data center load growth in 2024.

Strategic, collaborative partnerships with governments and municipalities

While direct contract numbers with governments aren't always broken out separately from PPAs, the utility rate base investments and IRP filings represent a deep, collaborative relationship with state-level regulators and local governments to modernize infrastructure and transition away from coal. The AES Corporation is committed to phasing out coal by 2025. Furthermore, the company agreed to sell a 30% indirect equity interest in AES Ohio to Caisse de dépôt et placement du Québec (CDPQ), simplifying governance and supporting growth there.

Investor relations and transparent communication on clean energy transition

The relationship with investors is managed through clear financial guidance, which The AES Corporation reaffirmed in 2025, showing confidence in the contracted model. You can see this commitment in the reaffirmed guidance:

• Reaffirmed 2025 Adjusted EBITDA guidance: $2,650 to $2,850 million.
• Reaffirmed 2025 Adjusted EPS guidance: $2.10 to $2.26.
• Reaffirmed annualized growth target for Adjusted EPS through 2025: 7% to 9% (from a 2020 base).

Finance: draft 13-week cash view by Friday.

The AES Corporation (AES) - Canvas Business Model: Channels

You're looking at how The AES Corporation gets its power and services to customers and partners; it's a multi-pronged approach that blends direct deals with regulated utility service.

Direct sales and negotiation teams for securing long-term PPAs with corporations

The direct sales channel is heavily focused on securing long-term Power Purchase Agreements (PPAs), especially with large technology customers. The AES Corporation is the global market leader among hyperscalers for corporate renewables contracts. As of mid-2025, The AES Corporation has secured 10.1 GW of contractual arrangements directly with major global hyperscalers. This includes 7.7 GW under long-term PPAs specifically for renewable capacity to power their data centers. In the second quarter of 2025 alone, The AES Corporation signed or was awarded new long-term PPAs for 1.6 GW of solar and wind, all with data center companies. The total PPA backlog, representing projects with signed contracts not yet operational, stood at 12 GW as of the second quarter of 2025, with 5.2 GW of that amount currently under construction. To give you a sense of delivery, The AES Corporation completed construction of 643 MW of energy storage and solar in the first quarter of 2025 and is on track to add a total of 3.2 GW to its operating portfolio by the end of 2025. The company completed 1.9 GW year-to-date as of the second quarter of 2025. Bloomberg New Energy Finance ranked The AES Corporation as a top provider of clean energy to corporations for the third consecutive year based on its 2024 Corporate Energy Market Outlook.

The scale of these direct corporate channel activities can be seen in the project pipeline:

Regulated utility distribution networks (e.g., AES Ohio) for retail delivery

For retail delivery, The AES Corporation uses its regulated utility distribution networks. As of 2022, The AES Corporation served 2.6 million customers across 15 countries. The utility segment is a key growth driver, partly through attracting new large customers. AES Ohio, for instance, has 2.1 GW of new data centers in its service territory, prompting a $500 million transmission investment needed to serve a new Amazon data center. To help fund this substantial growth, The AES Corporation closed on the sale of an approximate 30% indirect equity interest in AES Ohio to CDPQ in April 2025 for $544 million. The financial contribution from the utility segment shows growth; Adjusted PTC (Profit to Customer/Consumer) for the Utilities SBU was $121 million in the first quarter of 2025, up from $41 million in the first quarter of 2024. The AES Corporation is also working on rate base investment, as AES Indiana filed a petition for regulatory rate review with the Indiana Utility Regulatory Commission (IURC) in the second quarter of 2025.

Wholesale energy markets for selling excess capacity and generation

Excess capacity and generation are channeled into wholesale energy markets, though recent financial reporting emphasizes contracted sales. The Energy Infrastructure Strategic Business Unit (SBU) saw lower margins in the second quarter of 2025, partly due to prior year unrealized derivative gains, which is a common factor in wholesale trading and hedging activities. In 2024, The AES Corporation completed construction of a 670 MW combined cycle gas plant in Panama, which feeds into regional power markets.

Direct engagement with government and regulatory bodies for project approvals

Securing project approvals involves direct engagement with regulatory bodies. For example, in April 2025, AES Indiana received final regulatory approval from the Indiana Utility Regulatory Commission (IURC) for the 170 MW Crossvine solar-plus-storage project, which is expected to come online in 2027. Furthermore, in 2024, The AES Corporation received approval from the IURC to implement new base rates and an ROE of 9.9% at AES Indiana. The company also achieved its full year 2025 asset sale proceeds target of $400 to $500 million with the sale of a minority stake in AES Global Insurance Company (AGIC) for $450 million in the first half of 2025.

Joint ventures (JVs) and strategic partnerships for large-scale project development

The AES Corporation uses JVs and partnerships to develop large-scale projects. A significant example is the advancement of a $4 billion joint venture with Air Products to develop green hydrogen ($\text{H}_2$) in North Texas. This partnership is a critical channel for entering new decarbonization markets.

• The AES Corporation is advancing a $4 billion green $\text{H}_2$ joint venture with Air Products.
• The company sold a 30% indirect equity interest in AES Ohio for $544 million to CDPQ in April 2025.
• The company achieved its 2025 asset sale target of $400 to $500 million via a $450 million sale.

The AES Corporation (AES) - Canvas Business Model: Customer Segments

You're looking at the core groups The AES Corporation (AES) serves to generate its revenue, which is heavily weighted toward long-term contracts. Honestly, the numbers show a clear pivot toward large-scale, creditworthy buyers for their clean energy buildout.

Hyperscale Data Center Operators and large technology corporations.

This segment is a major growth driver, especially in the US. The AES Corporation solidified its position as one of the top providers of clean energy to corporations, with BloombergNEF naming them the #1 provider globally to corporations as of year-end 2024. As of early 2025, the PPA backlog stood at 11.7 GW, with 5.3 GW currently under construction. The company expects to complete the majority of its 11.9 GW backlog of signed contracts with investment grade, large corporate customers through 2027. To be fair, this focus is clear: as of late 2024, AES had signed 10.1 GW in contractual agreements with major hyperscale technology companies, 7.7 GW of which were long-term renewable energy PPAs dedicated to data center support. A concrete example is the two long-term Power Purchase Agreements (PPAs) signed with Meta to provide 650 MW of solar energy for their data centers in Kansas and Texas.

The customer segments for corporate clean energy contracts, based on 2024 new awards, show significant scale:

Regulated residential and commercial customers in US utilities (e.g., Indiana, Ohio).

The regulated utilities, AES Indiana and AES Ohio, represent a stable base, with significant capital investment programs underway. AES Indiana provides retail electric service to more than 500,000 customers. As of the Q2 2025 fact sheet, AES Indiana served 531,000 customers, and AES Ohio served 537,000 customers. These utilities are executing multi-year investment programs; for instance, AES Indiana invested over $1.6 billion in 2024, resulting in 20% rate base growth. AES Ohio plans to invest over $1.5 billion from 2024 through 2027 to improve system reliability. The growth prospects are tied to local industrial demand, with AES Ohio potentially seeing peak load increase of over 50% by 2030 due to data center demand. Furthermore, AES is advancing its transition by planning the conversion of two generation units in Petersburg (AES Indiana) from coal to natural gas in 2025, supporting the overall corporate commitment to exit coal usage by the end of 2025.

The utility customer base breakdown includes:

• AES Indiana customers: More than 500,000.
• AES Ohio customers (T&D): 537,000 as of Q2 2025.
• AES Indiana customers (Integrated): 531,000 as of Q2 2025.
• AES Indiana 2022 IRP projected savings for customers: More than $240 million over 20 years compared to status quo operations.

Industrial and Commercial (C&I) clients seeking custom clean energy solutions.

The AES Corporation delivers tailored clean energy solutions across various C&I sectors, including retail, education, oil and gas, and manufacturing. A specific example involves Anheuser-Busch, where the AES Baldwinsville Solar Project in New York generates enough renewable energy to produce 3.6 million cases of beverages annually, helping the company meet its goal of 100% renewable energy by 2025. In the AES Panama segment, the C&I customer base is defined:

Government entities and municipalities requiring reliable public infrastructure power.

The AES Corporation delivers cost-competitive clean energy to communities and organizations to meet their sustainability commitments. While specific 2025 financial figures for this segment are not explicitly itemized in the provided data, the general customer base includes entities requiring reliable power for public infrastructure. For example, the AES Indiana 2022 IRP noted that its resource decisions are inclusive and economical, reflecting extensive stakeholder engagement.

Other power utilities through energy trading and wholesale agreements.

AES engages with other power utilities through wholesale channels and terminal services, which contribute to its revenue mix. For context, in 2023, AES sold approximately 2,839,704.22 megawatt hours through wholesale channels to other electricity providers. For AES Ohio, wholesale sales and Standard Service Offer (SSO) utility sales totaled 2,440 GWh in 2024. The AES Panama revenue mix for Year-to-Date Q2 2025 shows contributions from infrastructure services:

• Gas Sales: 18% of revenue mix.
• Terminal Services: 10% of revenue mix.

The AES Corporation (AES) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive The AES Corporation's operations as we move through late 2025. This cost structure is heavily weighted toward long-term infrastructure investment and the ongoing transition away from thermal assets, which is a major financial undertaking.

Significant capital expenditure (CapEx) for renewables and storage project construction.

A primary cost driver is the massive investment required to build out the clean energy portfolio. The AES Corporation is actively completing projects from its large backlog, which supports future revenue but demands significant upfront capital. You should note that The AES Corporation has proactively reduced its planned investment in renewables by $1.3 billion through 2027 to manage capital intensity and avoid new equity issuance. Still, the pace of deployment is high.

Here are some key figures related to the construction pipeline:

• Capacity targeted to come online in 2025: 3.2 gigawatts.
• Project backlog targeted for completion through 2027: 11.1 gigawatts, with 4.8 gigawatts under construction as of Q3 2025.
• Operating renewable assets as of year-end 2024: 16.2 GW.

Fuel costs for natural gas and remaining thermal generation assets.

While The AES Corporation is aggressively exiting coal, fuel costs for its remaining natural gas and thermal assets remain a variable cost component. The company benefits from its transition fuel strategy in certain markets, which helps mitigate higher commodity price exposure compared to older fuels.

For instance, The AES Corporation's Liquefied Natural Gas (LNG) facilities in the Dominican Republic help save that country approximately $500 million per year in fuel costs. This demonstrates a cost-saving mechanism embedded in their transition fuel operations, even as they manage the cost of gas procurement.

Operating and maintenance (O&M) expenses for a globally diversified fleet.

Operating and Maintenance (O&M) expenses cover keeping the entire global fleet-renewables, gas, and remaining coal-running reliably. The AES Corporation has been focused on realizing overhead savings as part of its portfolio simplification efforts. The company achieved the majority of its planned $150 million in annualized cost savings for 2025, targeting a $300 million annual run rate by 2026.

In specific utility operations, The AES Corporation has demonstrated cost discipline; for example, AES Indiana has kept its O&M costs flat for five years.

Interest expense on substantial debt financing for infrastructure projects.

Given the capital-intensive nature of building large-scale power infrastructure, interest expense on debt financing is a significant, non-discretionary cost. You can see the impact clearly in the year-to-date figures.

Here's how interest expense has trended:

Higher interest expense in YTD 2025 compared to YTD 2024 was noted as a partial offset to Adjusted EPS growth.

Costs associated with the coal exit and asset retirement obligations by year-end 2025.

The commitment to exit the substantial majority of coal facilities by year-end 2025 directly translates into specific balance sheet and income statement costs, primarily through asset impairments and Asset Retirement Obligations (AROs). The company accelerated its expected asset sale proceeds from the coal transition to $1 billion through 2025, up from a prior expectation of $500 million.

Costs related to asset retirement are captured in Depreciation, Amortization, and Accretion of AROs. For YTD 2025, this figure was substantial:

• Depreciation, Amortization, and Accretion of AROs (YTD 2025): $691 million.
• Depreciation, Amortization, and Accretion of AROs (Q1 2025): $337 million.

Specific impairment charges related to assets like the Norgener coal-fired plant in Chile were recorded in prior periods as part of this transition strategy.

Finance: draft 13-week cash view by Friday.

The AES Corporation (AES) - Canvas Business Model: Revenue Streams

You're looking at The AES Corporation (AES) to see exactly where the money is coming from in late 2025. The revenue streams are built on a foundation of contracted assets, which is what gives the business its predictable cash flow profile.

The primary stream comes from Sales of electricity and capacity under long-term PPAs (Power Purchase Agreements). This provides that predictable cash flow you're looking for. As of the third quarter of 2025, The AES Corporation's PPA backlog stood at 11.1 GW, though other reports cite 11.7 GW or 12 GW. To keep that pipeline full, the company signed or was awarded new long-term PPAs totaling 443 MW of solar and energy storage capacity since the first quarter of 2025.

Next up are the Regulated returns on equity from US utility rate base investments. This is where the regulated utility businesses, like AES Indiana and AES Ohio, contribute. AES Indiana received approval from the Indiana Utility Regulatory Commission (IURC) to implement new base rates and an ROE (Return on Equity) of 9.9%. The growth in this segment is a key driver for 2025 expectations.

Here's a snapshot of the key financial expectations for the fiscal year:

The company is actively managing its portfolio, which impacts top-line revenue but frees up capital. The Proceeds from strategic asset sales are a planned source of cash. The AES Corporation reached its full year 2025 target of \$400 to \$500 million with the sale of a minority stake in AES Global Insurance Company (AGIC) for \$450 million. This is partially offset against revenue expectations, as seen in the total revenue figures.

For Revenue from energy distribution networks and utility services, you see direct growth from rate base expansion. The Utilities Strategic Business Unit (SBU) saw growth of 9.7% in Q2 2025. A concrete example of this is the 900 MW of new data center load growth secured at AES Ohio. To give you context on the overall revenue picture, the Trailing Twelve Months (TTM) revenue ending September 30, 2025, was approximately \$12.09 billion, representing a small year-over-year decline of about 1.55%. This dip is due to those asset sales and prior-year PPA monetization, not a failure in the core business.

The growth drivers for the 2025 guidance are clear:

• Contributions from new renewables projects coming online.
• Rate base growth at the US utilities.
• Normalized results in Colombia and Mexico.
• The company is on track to add 3.2 GW of new projects to operations in full year 2025.

Finance: draft 13-week cash view by Friday.