AES CORP

In 2024, AES delivered on its strategic and financial objectives. We completed construction or the acquisition of 3.0 GW of renewables and energy storage, construction of a 670 MW combined cycle gas plant, and signed long-term PPAs for an additional 4.4 GW of new renewable energy. See Overview of our Strategy included in Item 1.—Business of this Form 10-K for further information.

Compared with last year, net income increased $984 million, from a net loss of $182 million in 2023 to net income of $802 million in 2024. This increase is the result of lower impairments, unrealized foreign currency gains in the current year versus losses in the prior year, gain on sale of AES Brasil, favorable contributions at the Utilities and New Energy Technologies SBUs, and higher contributions from renewables projects placed in service in the current year; partially offset by higher interest expense and lower interest income, and the prior year gain on sell-down of Fluence.

Adjusted EBITDA, a non-GAAP measure, decreased $189 million, from $2,828 million to $2,639 million, mainly driven by record-breaking drought conditions and outages in Colombia at the Renewables SBU, lower margins at the Energy Infrastructure SBU due to prior year margin at the hedged merchant Southland facilities that are contracted primarily for capacity in the current year and higher outages; partially offset by higher contributions at the Utilities SBU and higher revenues from new projects at the Renewables SBU.

Adjusted EBITDA with Tax Attributes, a non-GAAP measure, increased $513 million, from $3,439 million to $3,952 million, primarily due to higher realized tax attributes driven by more renewables projects placed in service, partially offset by the drivers above.

Compared with last year, diluted earnings per share from continuing operations increased $2.03, from $0.34 to $2.37. This increase is mainly driven by lower long-lived asset impairments in the current year, higher contributions from renewables projects placed in service in the current year, prior year unrealized foreign currency losses at the Energy Infrastructure SBU, the gain on sale of AES Brasil, and lower income tax expense. This was partially offset by higher interest expense and lower interest income, and lower margins due to outages.

Adjusted EPS, a non-GAAP measure, increased $0.38 from $1.76 to $2.14, mainly driven by higher contributions from renewables projects placed in service in the current year, a lower adjusted tax rate, and higher contributions from the Utilities SBU; partially offset by lower contributions from the Energy Infrastructure SBU.