The AES Corporation (AES) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 4, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, everyone, and welcome to today's conference call titled the AES Corporation Second Quarter Financial Review Call. My name is Ellen, and I will be coordinating the call for today. At the end of today’s presentation there will be an opportunity to ask question. [Operator Instructions]

It's now my pleasure to turn the call over to Susan Harcourt, Vice President of Investor Relations. Susan, please go ahead whenever you are ready.

Susan Harcourt

Thank you, operator. Good morning, and welcome to our second quarter 2023 financial review call. Our press release, presentation and related financial information are available on our website at aes.com.

Today, we will be making forward-looking statements. There are many factors that may cause future results to differ materially from these statements, which are discussed in our most recent 10-K and 10-Q filed with the SEC. Reconciliations between GAAP and non-GAAP financial measures can be found on our website along with the presentation.

Joining me this morning are Andres Gluski, our President and Chief Executive Officer; Steve Coughlin, our Chief Financial Officer; and other senior members of our management team.

With that, I will turn the call over to Andres.

Andres Gluski

Good morning, everyone, and thank you for joining our second quarter 2023 financial review call. Today, I will discuss our second quarter results as well as the excellent progress we're making towards our financial and strategic objectives. Steve Coughlin, our CFO, will give some more detail on our financial performance and outlook.

For the second quarter, adjusted EBITDA with tax attributes was $607 million, and adjusted earnings per share was $0.21. Results for the quarter as well as for the first half of the year are very much in line with our expectations. Thus, we're reaffirming our 2023 guidance for all metrics and our targeted annualized growth rate through 2027. As we noted earlier this year, approximately 75% of our 2023 earnings will come in the second half of the year.

Now for an update on our strategic priorities. At the core of our strategy is a focus on, first, new renewables with the target to triple our installed capacity by 2027. Second, growth at our U.S. utilities, where we expect to increase the rate base by more than 10% per year through 2027. And third, the transformation of our portfolio as we exit coal by the end of 2025 and invest in the new technologies that will define our industry for years to come.