AES Stock Sparkles In After-Hours Trading On Buzz Of Possible Sale

Utility and power generation firm AES Corp (AES) stock jumped 12.5% in extended trading on Tuesday after a report said that it was exploring options, including a potential sale.

Bloomberg News reported, citing people familiar with the matter, that Brookfield Asset Management (BAM) and BlackRock’s (BLK) Global Infrastructure Partners unit have been monitoring AES as the company’s valuation has halved over the past two years.

AES stock closed at $11.07 on Tuesday, valuing the company at $7.9 billion. However, the $40 billion enterprise value of the company could make it one of the biggest leveraged buyouts of all time, the report noted.

Retail sentiment on Stocktwits for AES rose to ‘extremely bullish’ late Tuesday from ‘bullish’ a day ago.

The company owns several renewable energy-producing assets, including solar and wind facilities, as well as two utilities in Indiana and Ohio. It has also inked agreements with the likes of Microsoft, Alphabet’s Google, and Meta to supply power to their data centers.

However, the report added that there’s no certainty of a deal taking place. A takeover of AES will be one of the biggest deals in the power industry this year. Blackstone agreed to buy TXNM Energy for about $11.8 billion, while Constellation Energy struck a deal to acquire Calpine Corp. for $16.4 billion in 2025.

The company, which recently completed the first phase of the largest solar-plus-storage project in the U.S., has seen its fortunes decline amid a push by the Trump administration to reduce renewable energy subsidies. The company’s first-quarter profit had slumped to $46 million from $432 million in the year-ago quarter.

Rumors of a buyout sparked heightened retail chatter on Stocktwits.

“Some people really don’t realize how valuable these energy companies are. Every data center in the world needs them,” one user wrote.

AES stock has fallen 38% over the past 12 months, compared with over 18% gains in the S&P 500 Utilities sector.

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