AES CORP
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
AES$14.87-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000874761-25-000075
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSExecutive SummaryReview of Consolidated Results of OperationsSBU Performance AnalysisKey Trends and UncertaintiesCapital Resources and LiquidityCritical Accounting Policies and EstimatesCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0000874761-25-000084
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSExecutive SummaryReview of Consolidated Results of OperationsSBU Performance AnalysisKey Trends and UncertaintiesCapital Resources and LiquidityCritical Accounting Policies and EstimatesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 423 previous paragraphs and 442 current paragraphs.
197 unchanged; 158 reworded; 71 added; 46 removed; 22 previous and 16 current paragraphs rearranged.
Tables are not compared: 14 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (71)
Current report
Compared with last year, third quarter net income increased $302 million, from $215 million to $517 million. This increase is primarily due to higher income tax benefit mainly driven by tax credit transfers, higher margins from new projects in the Renewables SBU, and an increase in rider revenues due to revised rates at AES Indiana and AES Ohio in the Utilities SBU. This was partially offset by lower generation at the Energy Infrastructure SBU and the sale of AES Brasil.
Current report
Compared with last year, third quarter diluted earnings per share from continuing operations increased $0.22, from $0.72 to $0.94. This increase is mainly driven by higher income tax benefit, higher contributions from new projects in the Renewables SBU, and higher retail margin at the Utilities SBU. This was partially offset by lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition, lower other income, and lower interest income.
Current report
Adjusted EPS, a non-GAAP measure, increased $0.04 from $0.71 to $0.75, mainly driven by a lower adjusted tax rate, including the impact of tax credit transfers, higher retail margin at the Utilities SBU, and lower general and administrative costs at Corporate. This was partially offset by lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition.
Current report
•Our U.S. utilities made progress toward securing future growth:
Current report
◦AES Ohio reached a unanimous settlement resolving its distribution rate review;
Current report
◦AES Indiana reached a partial settlement agreement for its current rate review; and
Current report
This favorable impact was partially offset by decreases of:
Current report
•$32 million at Utilities primarily driven by an increase of $47 million due to transmission and rider revenues and deferral of cost in the current year; partially offset by a $9 million increase in depreciation expense from additional assets placed in service, and a $9 million increase in fixed cost mainly driven by higher property taxes;
Current report
•$24 million at Renewables mainly driven by an $80 million positive impact from new businesses and a $20 million impact from AES Andes moving to Renewables in 2025, as described below; partially offset by a $66 million impact from the sale of AES Brasil and a $14 million increase in fixed costs primarily due to an accelerated growth plan; and
Current report
These favorable impacts were partially offset by a decrease of $57 million at Energy Infrastructure mainly driven by $29 million of lower generation due to dispatch, $20 million of prior year operating margin at AES Andes, which is reported in the Renewables SBU beginning in 2025, and $9 million driven by lower LNG sales; partially offset by $12 million of higher contract margin driven by lower fuel costs.
Current report
Nine Months Ended September 30, 2025
Current report
Interest income decreased $43 million, or 36%, to $76 million for the three months ended September 30, 2025, compared to $119 million for the three months ended September 30, 2024, primarily due to prior year interest recognized of $33 million on the Stabilization Fund receivables in Chile and a $14 million impact from the sale of AES Brasil in October 2024.
Current report
Other income decreased $45 million, or 70%, to $19 million for the three months ended September 30, 2025, compared to $64 million for the three months ended September 30, 2024, mainly due to a $13 million decrease in gains on remeasurement of contingent consideration primarily on projects acquired at AES Clean Energy and a $12 million impact from an indexation adjustment of Stabilization Fund receivables at AES Andes in prior year, partially offset by a $10 million gain at AES Andes corresponding to the write-off of contingent consideration for a renewables development project determined to be no longer viable.
Current report
and a $5 million gain on contract termination, partially offset by a $10 million gain at AES Andes corresponding to the write-off of contingent consideration for a renewables development project determined to be no longer viable.
Current report
Other expense decreased $5 million, or 16%, to $26 million for the three months ended September 30, 2025, compared to $31 million for the three months ended September 30, 2024, mainly due to a $16 million decrease in losses on remeasurement of contingent consideration primarily on projects acquired at AES Clean Energy; partially offset by $13 million in current period losses on commencement of sales-type leases at AES Clean Energy and AES Renewable Holdings.
Current report
Gain (loss) on disposal and sale of business interests
Current report
The Company recognized net foreign currency transaction losses of $19 million for the three months ended September 30, 2025, primarily driven by unrealized losses due to the depreciation of the Argentine peso and net unrealized losses in Chile due to the appreciation of the Colombian peso, which negatively impacted foreign currency forwards, partially offset by unrealized gains due to the depreciation of the Chilean peso.
Current report
Other non-operating expense was $32 million for the three months ended September 30, 2025 due to an impairment of the Uplight equity method investment and adjustments to the convertible notes and related embedded derivative feature included within the convertible notes for Uplight as a result of observable market factors.
Current report
Loss from disposal of discontinued businesses
Current report
Net loss from disposal of discontinued businesses was $37 million for the nine months ended September 30, 2025, compared to $7 million for the nine months ended September 30, 2024, primarily related to alleged damages plus interest, as well as potential future damages, under a dispute related to representations and warranties in the 2016 share purchase agreement for Sul in the current year.
Current report
See Note 22—Discontinued Operations included in Item 1.—Financial Statementsof this Form 10-Q for further information.
Current report
Net income attributable to The AES Corporation increased $135 million, or 27%, to $639 million for the three months ended September 30, 2025, compared to $504 million for the three months ended September 30, 2024. This increase was primarily due to:
Current report
•Higher income tax benefit of $334 million due to a lower effective tax rate, mainly driven by tax credit transfers;
Current report
•Higher margins from the Renewables SBU of $23 million primarily due to increased revenue from new projects;
Current report
•Lower general and administrative expenses of $13 million after implementation of the restructuring program;
Current report
•Higher margins at AGIC of $10 million due to a decrease in reserve for losses and increase in insurance premiums earned.
Current report
•Lower contributions from renewables projects placed in service in the current year of $155 million;
Current report
•Lower other income of $34 million primarily related to decreased gains on remeasurement of contingent consideration primarily on projects acquired at AES Clean Energy and an indexation adjustment of Stabilization Fund receivables at AES Andes in the prior year, partially offset by a write-off of contingent consideration for a renewables project no longer viable at AES Andes;
Current report
•Lower interest income of $33 million primarily due to prior year interest recognized on Stabilization Fund receivables in Chile and the sale of AES Brasil;
Current report
•Other non-operating expense of $32 million due to an impairment of the Uplight equity method investment and adjustments to the convertible notes and related embedded derivative feature within the convertible notes for Uplight; and
Current report
•Higher loss from disposal of discontinued businesses of $30 million primarily due to a dispute in the current year related to representations and warranties in the 2016 share purchase agreement for Sul.
Current report
Net income attributable to The AES Corporation decreased $622 million, or 51%, to $590 million for the nine months ended September 30, 2025, compared to $1,212 million for the nine months ended September 30, 2024. This decrease was primarily due to:
Current report
•Higher other expense of $164 million primarily related to day-one losses on commencement of sales-type leases at AES Clean Energy Development;
Current report
•Lower contributions from renewables projects placed in service in the current year of $162 million;
Current report
•Higher impairments of $81 million at AES Clean Energy Development due to the write-off of project development intangibles and capitalized development costs for projects that were determined to be no longer viable;
Current report
•Lower interest income of $56 million primarily due to the sale of AES Brasil, prior year interest recognized on Stabilization Fund receivables in Chile, and lower short-term investments at lower rates in Argentina;
Current report
•Higher foreign currency translation losses of $56 million primarily related to depreciation of the Argentine peso and appreciation of the Colombian peso;
Current report
•Lower other income of $51 million primarily related to a prior year indexation adjustment of Stabilization Fund receivables at AES Andes, a decrease in AFUDC at our U.S. utilities, and the prior year impacts of a gain on commencement of a sales-type lease on land, insurance proceeds, and a gain on contract termination, partially offset by a write-off of contingent consideration for a renewables project no longer viable at AES Andes;
Current report
•Other non-operating expense of $42 million due to an impairment of the Uplight equity method investment and adjustments to the convertible notes and related embedded derivative feature included within the convertible notes for Uplight, as well as an other-than-temporary impairment of convertible notes for 5B.
Current report
•Higher income tax benefit of $105 million due to a lower effective tax rate, mainly driven by tax credit transfers; and
Showing the first 40 of 71 passages. Open the source sections for the rest.
Removed paragraphs (46)
Previous report
45 | The AES Corporation | June 30, 2025 Form 10-Q
Previous report
Compared with last year, second quarter net income decreased $303 million, from $153 million to a net loss of $150 million. This decrease is primarily due to higher income tax expense, day-one losses on the commencement of sales type leases at AES Clean Energy Development, and lower earnings from the Energy Infrastructure SBU due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA and prior year unrealized derivative gains; partially offset by the derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used, and higher contributions from renewables projects placed in service in the current year.
Previous report
Compared with last year, second quarter diluted earnings per share from continuing operations decreased $0.54, from $0.39 to a diluted loss of $0.15. This decrease is mainly driven by higher income tax expense, day-one losses on the commencement of sales-type leases at AES Clean Energy Development, and lower earnings at the Energy Infrastructure SBU primarily due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA; partially offset by the derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used, and higher contributions from renewables projects placed in service in the current year.
Previous report
Adjusted EPS, a non-GAAP measure, increased $0.13 from $0.38 to $0.51, mainly driven by a lower adjusted tax rate and higher contributions due to new renewables projects placed in service, partially offset by higher prior year revenues from the monetization of the Warrior Run coal plant PPA.
Previous report
◦This is AES Indiana's first rate case using a forward-looking test year, which will enable a more efficient investment program to best serve customers with cost-effective and reliable electricity service.
Previous report
•$58 million at Utilities mainly driven by an $87 million increase in transmission, distribution, and rider revenues mainly due to higher rates; partially offset by an $11 million decrease due to lower Fuel Adjustment Charge rider revenue and a $9 million decrease due to lower retail demand; and
Previous report
•$82 million at Energy Infrastructure mainly driven by $64 million higher prior year revenues from the monetization of the Warrior Run coal plant PPA, $43 million due to prior year unrealized derivative gains as part of our commercial hedging strategy, and $22 million of lower generation due to dispatch; partially offset by an increase of $39 million driven by higher availability in 2025 due to lower maintenance;
Previous report
•$20 million at Utilities primarily driven by a $13 million increase in depreciation expense from additional assets placed in service, a $9 million decrease due to the impact of planned outages, and $8 million resulting from lower demand due to the impact of weather; partially offset by an increase of $13 million due to higher retail rates as a result of the 2024 Base Rate Order; and
Previous report
•$15 million at Renewables mainly driven by a $52 million impact from the sale of AES Brasil and a $43 million negative impact related to changes in mark-to-market of energy derivatives; partially offset by a $32 million positive impact from new businesses, a $25 million increase related to higher generation in Colombia as a result of increased availability and lower spot prices on energy purchases, and $17 million impact of lower fixed costs, including lower people costs after restructuring.
Previous report
Six Months Ended June 30, 2025
Previous report
and a $15 million increase in fixed cost driven by higher property taxes and higher software costs.
Previous report
Interest income decreased $18 million, or 20%, to $70 million for the three months ended June 30, 2025, compared to $88 million for the three months ended June 30, 2024, primarily due to a $15 million impact from the sale of AES Brasil in October 2024.
Previous report
Other income increased $10 million, or 48%, to $31 million for the three months ended June 30, 2025, compared to $21 million for the three months ended June 30, 2024, mainly due to a $22 million increase in gains on remeasurement of contingent consideration at AES Clean Energy.
Previous report
Other income decreased $18 million, or 32%, to $38 million for the six months ended June 30, 2025, compared to $56 million for the six months ended June 30, 2024, mainly due to the prior year impacts of a $5 million gain on
Previous report
Net equity in losses of affiliates increased $44 million to $56 million for the six months ended June 30, 2025,
Previous report
Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $68 million to $55 million for the three months ended June 30, 2025, compared to $123 million for the three months ended June 30, 2024. This decrease was primarily due to $123 million at Mong Duong mostly driven by the derecognition of a valuation allowance on a loan receivable accounted for under ASC 310 upon reclassifying Mong Duong from held-for-sale to held and used, $26 million related to the partial sale of Dominican Republic Renewables, and $15 million related to the sale of AES Brasil; partially offset by $50 million due to day-one losses on the commencement of sales-type leases at AES Clean Energy Development and higher allocation of losses to tax equity investors on projects placed in service at AES Renewable Holdings of $49 million.
Previous report
Net income (loss) attributable to The AES Corporation
Previous report
•Higher income tax expense of $216 million due to a higher effective tax rate;
Previous report
•Day-one losses on the commencement of sales-type leases at AES Clean Energy Development of $149 million;
Previous report
•Lower margins from the Energy Infrastructure SBU of $81 million primarily due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA and prior year unrealized gains on power swaps;
Previous report
•Higher impairments at AES Clean Energy of $59 million;
Previous report
•Higher net equity in losses of affiliates of $25 million primarily related to lower contributions from renewables projects that came online at sPower; and
Previous report
•Gain on sale of AES DR Renewables Holdings of $45 million; and
Previous report
•Higher contributions from renewables projects placed in service in the current year of $28 million and higher margins from the Renewables SBU of $13 million due to prior year outages and increased revenue from projects placed in service.
Previous report
Net income attributable to The AES Corporation decreased $757 million to a $49 million loss for the six months ended June 30, 2025, compared to income of $708 million for the six months ended June 30, 2024. This decrease was primarily due to:
Previous report
•Higher income tax expense of $231 million due to a higher effective tax rate;
Previous report
•Foreign currency translation losses of $37 million compared to prior year gains of $29 million primarily related to the depreciation of the Chilean peso and unrealized losses on forwards and options in Euros;
Previous report
•Higher interest expense of $13 million and lower interest income of $23 million in the current year; and
Previous report
•Higher net equity in losses of affiliates of $44 million primarily related to lower contributions from renewables projects that came online at sPower.
Previous report
These decreases were partially offset by $127 million related to an increase in the carrying value of the Mong Duong asset group primarily due to the derecognition of a valuation allowance on the loan receivable accounted for under ASC 310 upon reclassifying Mong Duong from held-for-sale to held and used.
Previous report
Operating Margin for the three months ended June 30, 2025 decreased $15 million. This decrease was primarily driven by a $52 million impact from the sale of AES Brasil, and $43 million negative impact related to changes in mark-to-market of energy derivatives. These negative impacts were partially offset by a $32 million positive impact from new businesses, a $25 million increase related to higher generation in Colombia as a result of increased availability and lower spot prices on energy purchases, and $17 million impact of lower fixed costs, including lower people costs after restructuring.
Previous report
Operating Margin for the three months ended June 30, 2025 decreased $20 million, mainly driven by $13 million increase in depreciation expense from additional assets placed in service, $9 million decrease due to the impact of planned outages, $8 million resulting from lower demand due to the impact of weather. These decreases are partially offset by $13 million due to higher retail rates as a result of the 2024 Base Rate Order.
Previous report
Operating Margin for the three months ended June 30, 2025 decreased $82 million, driven by $64 million higher prior year revenues from the monetization of the Warrior Run coal plant PPA, $43 million due to prior year unrealized derivative gains as part of our commercial hedging strategy, and $22 million of lower generation due to dispatch; partially offset by an increase of $39 million driven by higher availability due to lower maintenance in 2025.
Previous report
Operating Margin for the three months ended June 30, 2025 decreased $2 million, with no material drivers.
Previous report
Operating Margin for the six months ended June 30, 2025 was unchanged from the prior year.
Previous report
During the reciprocal-tariff suspension, many countries have been seeking to reach bilateral trade agreements with the U.S. and the ultimate outcome of any reciprocal or other tariffs with these countries is uncertain.
Previous report
As of mid-2025, the equatorial Pacific remains in an ENSO-neutral state, with no active El Niño or La Niña conditions. Forecasts from leading climate institutions, including the International Research Institute for Climate and Society (“IRI”) suggest that these neutral conditions are likely to persist through the remainder of the year, although there is a probability of La Niña developing in the latter part of the fourth quarter of 2025.
Previous report
Hydrological patterns during the first half of 2025 have varied across the region, reflecting the transition from weak La Niña conditions to ENSO-neutral, as well as localized atmospheric influences.
Previous report
In Colombia, hydrological conditions have exceeded historical norms, resulting in elevated reservoir levels and increased hydroelectric output. This has reduced thermal dispatch requirements, lowered spot market prices, and mitigated drought-related risks.
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Reworded paragraphs (158)
Previous wording
Adjusted EBITDA, a non-GAAP measure, increased $23 million, from $658 million to $681 million, driven by higher contributions from the Renewables SBU primarily due to higher revenues from renewables projects placed in service and prior year outages in Colombia. This was partially offset by the sale of AES Brasil, higher prior year revenues from the monetization of the Warrior Run coal plant PPA, and the impact of the selldown of AES Ohio in the Utilities SBU.
Current wording
Adjusted EBITDA, a non-GAAP measure, increased $132 million, from $698 million to $830 million, driven by higher contributions from new projects in the Renewables SBU and an increase in rider revenues due to revised rates at AES Indiana and AES Ohio in the Utilities SBU. This was partially offset by the sale of AES Brasil and the impact of the selldown of AES Ohio.
Previous wording
Adjusted EBITDA with Tax Attributes, a non-GAAP measure, increased $208 million, from $849 million to $1,057 million primarily due to higher realized tax attributes driven by more projects placed in service and higher income from tax credit transfers, as well as the drivers above.
Current wording
Adjusted EBITDA with Tax Attributes, a non-GAAP measure, increased $82 million, from $1,174 million to $1,256 million, due to the drivers above, partially offset by lower realized tax attributes driven by timing of tax attribute recognition.
Previous wording
Compared with last year, net income for the six months ended June 30, 2025 decreased $654 million from $431 million to a net loss of $223 million. This decrease is primarily driven by lower earnings from the Energy Infrastructure SBU due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA and unrealized derivative gains, higher income tax expense, higher day-one losses on the commencement of sales type leases at AES Clean Energy Development, and foreign currency translation gains in the prior year; partially offset by the derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used.
Current wording
Compared with last year, net income for the nine months ended September 30, 2025 decreased $352 million from $646 million to $294 million. This decrease is primarily driven by lower earnings from the Energy Infrastructure SBU due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA, higher day-one losses on the commencement of sales type leases at AES Clean Energy Development, and the sale of AES Brasil. This was partially offset by the derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used, higher margins from new projects in the Renewables SBU, higher income tax benefit mainly driven by tax credit transfers, lower interest expense, and higher retail margin at AES Indiana in the Utilities SBU under the 2024 Base Rate Order, including the impact of certain riders now included in base rates.
Previous wording
Adjusted EBITDA, a non-GAAP measure, decreased $26 million, from $1,298 million to $1,272 million, for the six months ended June 30, 2025, mainly driven by higher prior year revenues from the monetization of the Warrior Run coal plant PPA and the sale of AES Brasil; partially offset by higher revenues from new projects placed in service at the Renewables SBU, higher retail margin under the 2024 Base Rate Order at AES Indiana, and better hydrology.
Current wording
Adjusted EBITDA, a non-GAAP measure, increased $106 million, from $1,996 million to $2,102 million, for the nine months ended September 30, 2025, mainly driven by higher contributions from new projects in the Renewables SBU and higher retail margin at AES Indiana in the Utilities SBU under the 2024 Base Rate Order, including the impact of certain riders now included in base rates. This was partially offset by higher prior year revenues from the monetization of the Warrior Run coal plant PPA and the sale of AES Brasil.
Previous wording
Adjusted EBITDA with Tax Attributes, a non-GAAP measure, increased $117 million, from $1,717 million to $1,834 million, for the six months ended June 30, 2025, due to higher realized tax attributes driven by more projects placed in service and higher income from tax credit transfers, partially offset by the drivers above.
Current wording
Adjusted EBITDA with Tax Attributes, a non-GAAP measure, increased $199 million, from $2,891 million to $3,090 million, for the nine months ended September 30, 2025, due to the drivers above as well as higher realized tax attributes driven by higher income from tax credit transfers.
Previous wording
Compared with last year, diluted earnings per share from continuing operations for the six months ended June 30, 2025 decreased $1.07, from $0.99 to a diluted loss of $0.08. This decrease is mainly driven by lower earnings at the Energy Infrastructure SBU primarily due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA, higher income tax expense, day-one losses on the commencement of sales-type leases at AES Clean Energy Development, foreign currency losses compared to prior year gains, higher net equity in losses of affiliates primarily related to higher prior year contributions from renewables projects that came online at sPower, higher interest expense, and lower interest income, partially offset by the derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used.
Current wording
Compared with last year, diluted earnings per share from continuing operations for the nine months ended September 30, 2025 decreased $0.85, from $1.71 to $0.86. This decrease is mainly driven by lower earnings at the Energy Infrastructure SBU primarily due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA, day-one losses on the commencement of sales-type leases at AES Clean Energy Development, lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition, lower interest income, higher foreign currency losses, and lower other income. This was partially offset by the derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used and higher income tax benefit mainly driven by tax credit transfers.
Previous wording
Adjusted EPS, a non-GAAP measure, decreased $0.11 from $0.89 to $0.78, for the six months ended June 30, 2025, mainly driven by lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition, and lower contributions at the Energy Infrastructure SBU primarily due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA, partially offset by a lower adjusted tax rate and higher contributions at the Utilities SBU.
Current wording
Adjusted EPS, a non-GAAP measure, decreased $0.07 from $1.60 to $1.53, for the nine months ended September 30, 2025, mainly driven by lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition, and lower contributions at the Energy Infrastructure SBU primarily due to higher prior year revenues from the monetization of the Warrior Run coal plant PPA. This was partially offset by a lower adjusted tax rate, including the impact of tax credit transfers, and higher realized tax attributes and retail margin at the Utilities SBU.
Previous wording
•Our PPA backlog, which consists of projects with signed contracts, but which are not yet operational, is 12 GW, including 5.2 GW under construction. Since our first quarter 2025 earnings call in May 2025, we:
Current wording
•Our PPA backlog, which consists of projects with signed contracts, but which are not yet operational, is 11.1 GW, including 5 GW under construction. Year-to-date, we:
Previous wording
◦Completed the construction of 1.2 GW of energy storage and solar, for a total of 1.9 GW year-to-date, and we are on track to add a total of 3.2 GW to our operating portfolio by year-end 2025; and
Current wording
◦Completed the construction of 2.9 GW of solar, energy storage, and wind, and we are on track to add a total of 3.2 GW to our operating portfolio by year-end 2025; and
Previous wording
◦Signed or were awarded new long-term PPAs for 1.6 GW, for a total of 2 GW year-to-date.
Current wording
◦Signed or were awarded new long-term PPAs for 2.2 GW.
Previous wording
•In June 2025, AES Indiana filed a petition for regulatory rate review with the Indiana Utility Regulatory Commission (IURC).
Previous wording
Components of Revenue, Cost of Sales, and Operating Margin —Revenue includes revenue earned from the sale of energy from our utilities and the production and sale of energy from our generation plants, which are classified as regulated and non-regulated, respectively, on the Condensed Consolidated Statements of Operations. Revenue also includes the gains or losses on derivatives associated with the sale of electricity.
Current wording
Components of Revenue, Cost of Sales, and Operating Margin —Revenue includes revenue earned from the sale of energy from our utilities and the production and sale of energy from our generation plants, which are
Previous wording
include electricity and fuel purchases, operations and maintenance costs, depreciation and amortization expenses, bad debt expense and recoveries, and general administrative and support costs (including employee-related costs directly associated with the operations of the business). Cost of sales also includes the gains or losses on derivatives associated with the purchase of electricity or fuel.
Current wording
Cost of sales includes costs incurred directly by the businesses in the ordinary course of business. Examples include electricity and fuel purchases, operations and maintenance costs, depreciation and amortization expenses, bad debt expense and recoveries, and general administrative and support costs (including employee-related costs directly associated with the operations of the business). Cost of sales also includes the gains or losses on derivatives associated with the purchase of electricity or fuel.
Previous wording
Consolidated Revenue — Revenue decreased $87 million, or 3%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, driven by:
Current wording
Consolidated Revenue — Revenue increased $62 million, or 2%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, driven by:
Previous wording
•$48 million at Renewables mainly driven by $419 million increase due to the results of AES Andes moving to Renewables in 2025 as described above, net of a current year decrease in regulated contract sales, and $122 million due to new projects in service; partially offset by $339 million impact from the sale of AES Brasil, $89 million due to net lower spot sales and prices, mainly at Colombia, and a $44 million negative impact related to changes in mark-to-market of energy derivatives.
Current wording
•$63 million at Renewables mainly driven by a $241 million increase due to the results of AES Andes moving to Renewables in 2025 as described below, net of a current year increase in contracted sales in Chile, and $112 million due to new projects in service; partially offset by a $201 million negative impact from the sale of AES Brasil and $85 million net lower spot sales and prices, mainly at Colombia.
Previous wording
•$445 million at Energy Infrastructure primarily driven by $471 million of prior year revenue related to the AES Andes portfolio, which is reported in the Renewables SBU beginning in 2025 following the sale and expiration of certain coal-related assets and contracts; $171 million of prior year revenues from the monetization of the Warrior Run coal plant PPA, and $126 million due to prior year unrealized and realized derivative gains; partially offset by $142 million higher CO 2 purchases passed through due to higher production, $96 million higher fuel prices and transportation costs passed through to the offtaker, $37 million of higher LNG sales and terminal fees, and $35 million impact of foreign currency, primarily appreciation of the Mexican peso; and
Current wording
•$131 million at Energy Infrastructure driven by $225 million of prior year revenue related to the AES Andes portfolio, which is reported in the Renewables SBU beginning in 2025 following the sale and expiration of certain coal-related assets and contracts and $21 million due to prior year unrealized and realized derivative gains; partially offset by $90 million higher fuel prices and transportation costs passed through to the offtaker, net of foreign exchange impact, and $21 million due to higher availability in 2025; and
Previous wording
•$14 million at Corporate, Other and Eliminations mainly driven by higher eliminations of inter-segment revenue.
Current wording
•$13 million at Corporate, Other and Eliminations mainly driven by higher eliminations of inter-segment revenue.
Previous wording
Consolidated Operating Margin — Operating margin decreased $100 million, or 18%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, driven by:
Current wording
Consolidated Operating Margin — Operating margin increased $13 million, or 2%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, driven by:
Previous wording
These unfavorable impacts were partially offset by an increase of $19 million at Corporate, Other and Eliminations mainly driven by higher premiums earned by AES’ self-insurance company and higher charge-outs of IT and other costs to the businesses.
Current wording
•$15 million at Corporate, Other and Eliminations mainly driven by higher charge-outs of IT and other costs to the businesses and higher premiums earned by AGIC.
Previous wording
Consolidated Revenue — Revenue decreased $246 million, or 4%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, driven by:
Current wording
Consolidated Revenue — Revenue decreased $184 million, or 2%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, driven by:
Previous wording
•$156 million at Energy Infrastructure driven by $232 million of prior year revenue related to the AES Andes portfolio, which is reported in the Renewables SBU beginning in 2025 following the sale and expiration of certain coal-related assets and contracts; $64 million of prior year revenues from the monetization of the Warrior Run coal plant PPA, and $40 million due to prior year unrealized and realized derivative gains; partially offset by $65 million higher fuel prices and transportation costs passed through to the offtaker, $60 million higher CO 2 purchases passed through due to higher production, $23 million of higher LNG sales and terminal fees, and $13 million due to higher availability in 2025; and
Current wording
•$576 million at Energy Infrastructure primarily driven by $697 million of prior year revenue related to the AES Andes portfolio, which is reported in the Renewables SBU beginning in 2025 following the sale and expiration of certain coal-related assets and contracts; $171 million of prior year revenues from the monetization of the Warrior Run coal plant PPA, and $145 million due to prior year unrealized and realized derivative gains; partially offset by $272 million higher fuel prices and transportation costs passed through to the offtaker, $126 million higher CO 2 purchases passed through due to higher production, $24 million due to higher availability, and $16 million of higher LNG sales and terminal fees; and
Previous wording
•$43 million at Corporate, Other and Eliminations mainly driven by higher eliminations of inter-segment revenue.
Current wording
•$56 million at Corporate, Other and Eliminations mainly driven by higher eliminations of inter-segment revenue.
Previous wording
•$194 million at Utilities mainly driven by a $205 million increase in transmission, distribution, rider, and wholesale revenues mainly due to higher rates, and $20 million due to higher net retail demand mainly driven by favorable weather; partially offset by $32 million of lower Fuel Adjustment Charge rider revenue; and
Current wording
•$338 million at Utilities mainly driven by a $306 million increase in transmission, distribution, rider, and wholesale revenues mainly due to higher rates and $42 million due to higher net retail demand mainly driven by favorable weather; partially offset by $6 million of lower Fuel Adjustment Charge rider revenue; and
Previous wording
•$25 million at Renewables mainly driven by a $216 million increase due to the results of AES Andes moving to Renewables in 2025 as described above, net of a current year decrease in regulated contract sales, and $72 million due to new projects in service; partially offset by $169 million impact from the sale of AES Brasil, a $43 million negative impact related to changes in mark-to-market of energy derivatives, and $39 million net lower spot sales and prices, mainly at Colombia.
Current wording
•$111 million at Renewables mainly driven by a $623 million increase due to the results of AES Andes moving to Renewables in 2025 as described above, net of a current year decrease in regulated contract sales, and $234 million due to new projects in service; partially offset by a $540 million negative impact from the sale of AES Brasil, $174 million net lower spot sales and prices, mainly at Colombia, and a $48 million negative impact related to changes in mark-to-market of energy derivatives.
Previous wording
Consolidated Operating Margin — Operating margin decreased $278 million, or 24%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, driven by:
Current wording
Consolidated Operating Margin — Operating margin decreased $265 million, or 14%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, driven by:
Previous wording
•$287 million at Energy Infrastructure mainly driven by $160 million higher prior year revenues from the monetization of the Warrior Run coal plant PPA, $114 million due to prior year unrealized derivative gains as part of our commercial hedging strategy, $22 million of prior year operating margin related to the AES Andes portfolio, which is reported in the Renewables SBU beginning in 2025 following the sale and expiration of certain coal-related assets and contracts, $19 million of one-time costs due to restructuring, and $17 million due to the prior year selldown of Amman East and IPP4 in Jordan; partially offset by $54 million driven by higher availability in 2025 due to lower maintenance; and
Current wording
•$344 million at Energy Infrastructure mainly driven by $160 million higher prior year revenues from the monetization of the Warrior Run coal plant PPA, $117 million due to prior year net derivative gains as part of our commercial hedging strategy, $42 million of prior year operating margin related to the AES Andes portfolio, which is reported in the Renewables SBU beginning in 2025 following the sale and expiration of certain coal-related assets and contracts, $28 million of lower generation mainly driven by dispatch, $20 million of one-time costs due to restructuring, and $17 million due to the prior year selldown of Amman East and IPP4 in Jordan; partially offset by $45 million driven by higher availability in 2025 due to lower maintenance.
Previous wording
This unfavorable impact was partially offset by increases of:
Current wording
These unfavorable impacts were partially offset by increases of:
Previous wording
These unfavorable impacts were partially offset by an increase of $15 million at Utilities mainly driven by $83 million due to higher retail rates as a result of the 2024 Base Rate Order, higher transmission and rider revenues, and higher demand due to the impact of weather; partially offset by a $22 million increase in depreciation expense from additional assets placed in service, a $17 million impact of planned outages, $15 million higher credit losses,
Current wording
•$47 million at Utilities mainly driven by $126 million due to higher retail rates as a result of the 2024 Base Rate Order, higher transmission and rider revenues, and higher demand due to the impact of weather; partially offset by a $32 million increase in depreciation expense from additional assets placed in service, a $17 million impact of planned outages, a $16 million increase in fixed cost mainly driven by higher property taxes, and $15 million higher credit losses;
Previous wording
•$5 million at Renewables mainly driven by an $84 million impact from the sale of AES Brasil, a $43 million negative impact related to changes in mark-to-market of energy derivatives, a $19 million increase in fixed costs primarily related to an accelerated growth plan, and $17 million of one-time costs due to restructuring. These negative impacts were partially offset by a $67 million positive impact from new businesses, $36 million increase related to higher generation in Panama as a result of better hydrological conditions during the first quarter of 2025, $25 million increase in Colombia due to increased availability and lower spot prices on energy purchases, and $22 million impact of the results of AES Andes moving to Renewables in 2025, as described above.
Current wording
•$19 million at Renewables mainly driven by a $147 million impact from new businesses, $42 million impact of the results of AES Andes moving to Renewables in 2025, as described above, $36 million due to higher generation in Panama as a result of better hydrological conditions during the first quarter of 2025, and a $26 million increase in Colombia due to increased availability and lower spot prices on energy purchases in the second quarter of 2025. These positive impacts were partially offset by a $150 million negative impact from the sale of AES Brasil, a $46 million negative impact related to changes in mark-to-market of energy derivatives, a $33 million increase in fixed costs primarily related to an accelerated growth plan, and $17 million of one-time costs due to restructuring; and
Previous wording
General and administrative expenses decreased $17 million, or 26%, to $49 million for the three months ended June 30, 2025, compared to $66 million for the three months ended June 30, 2024, primarily reflecting a $21 million decrease in business development costs driven by the Company’s restructuring program, partially offset by $5 million in higher professional fees.
Current wording
General and administrative expenses decreased $11 million, or 19%, to $46 million for the three months ended September 30, 2025, compared to $57 million for the three months ended September 30, 2024, primarily reflecting a $7 million decrease in people costs driven by the Company’s restructuring program, and $1 million lower IT related costs.
Previous wording
General and administrative expenses decreased $15 million, or 11%, to $126 million for the six months ended June 30, 2025, compared to $141 million for the six months ended June 30, 2024, primarily reflecting a $22 million decrease in business development costs driven by the company’s restructuring program, partially offset by $9 million of one-time restructuring-related charges.
Current wording
General and administrative expenses decreased $26 million, or 13%, to $172 million for the nine months ended September 30, 2025, compared to $198 million for the nine months ended September 30, 2024, primarily reflecting a $25 million decrease in business development costs and $8 million decrease in people costs, both driven by the Company’s restructuring program, and $3 million lower IT related costs, partially offset by $14 million of one-time restructuring-related charges.
Previous wording
Interest expense decreased $37 million, or 10%, to $352 million for the three months ended June 30, 2025, compared to $389 million for the three months ended June 30, 2024. This decrease is primarily due to a $63 million impact from the sale of AES Brasil in October 2024; partially offset by lower capitalized interest at the Renewables SBU due to fewer projects under construction, and a higher weighted average interest rate and debt balance at the Parent Company.
Current wording
Interest expense decreased $31 million, or 8%, to $348 million for the three months ended September 30, 2025, compared to $379 million for the three months ended September 30, 2024. This decrease is primarily due to a $53 million impact from the sale of AES Brasil in October 2024; partially offset by lower capitalized interest at the Renewables SBU due to fewer projects under construction.
Previous wording
Interest expense decreased $52 million, or 7%, to $694 million for the six months ended June 30, 2025, compared to $746 million for the six months ended June 30, 2024. This decrease is primarily due to a $124 million impact from the sale of AES Brasil in October 2024 and lower debt balances at the Energy Infrastructure SBU; partially offset by lower capitalized interest at the Renewables SBU due to fewer projects under construction, and a higher weighted average interest rate and debt balance at the Parent Company.
Current wording
Interest expense decreased $83 million, or 7%, to $1,042 million for the nine months ended September 30, 2025, compared to $1,125 million for the nine months ended September 30, 2024. This decrease is primarily due to a $177 million impact from the sale of AES Brasil in October 2024 and lower debt balances at the Energy Infrastructure SBU; partially offset by lower capitalized interest at the Renewables SBU due to fewer projects under construction, and a higher weighted average interest rate and debt balance at the Parent Company.
Previous wording
Interest income decreased $54 million, or 28%, to $139 million for the six months ended June 30, 2025, compared to $193 million for the six months ended June 30, 2024, primarily due to a $28 million impact from the sale of AES Brasil in October 2024, and an $18 million decrease at Argentina due to lower short-term investments at lower rates.
Current wording
Interest income decreased $97 million, or 31%, to $215 million for the nine months ended September 30, 2025, compared to $312 million for the nine months ended September 30, 2024, primarily due to a $42 million impact from the sale of AES Brasil in October 2024, prior year interest recognized of $34 million on the Stabilization Fund receivables in Chile, and a $20 million decrease at Argentina due to lower short-term investments at lower rates.
Previous wording
Loss on extinguishment of debt increased $3 million, or 30%, to $13 million for the six months ended June 30, 2025, compared to $10 million for the six months ended June 30, 2024 primarily driven by a $5 million loss due to prepayment of senior notes at Mercury Chile and a $5 million loss related to a revolver amendment at AES Clean Energy, offset by an $8 million prior year loss due to prepayment at AES Andes.
Current wording
Loss on extinguishment of debt increased $4 million, or 36%, to $15 million for the nine months ended September 30, 2025, compared to $11 million for the nine months ended September 30, 2024 primarily driven by a $5 million loss due to prepayment of senior notes at Mercury Chile, a $5 million loss related to a revolver amendment at AES Clean Energy, and a $4 million loss related to a prepayment at AES Andes in the current year; partially offset by a prior year loss of $8 million due to a prepayment at AES Andes.
Previous wording
commencement of a sales-type lease on land, $5 million in insurance proceeds primarily related to property damage at AES Andes, and a $5 million gain on contract termination, as well as a $5 million decrease in AFUDC in the current year; partially offset by a $12 million increase in gains on remeasurement of contingent consideration at AES Clean Energy.
Current wording
Other income decreased $63 million, or 53%, to $57 million for the nine months ended September 30, 2025, compared to $120 million for the nine months ended September 30, 2024, mainly due to a $12 million impact from an indexation adjustment of Stabilization Fund receivables at AES Andes in prior year, a $7 million decrease in AFUDC at our U.S. utilities in the current year, and the prior year impacts of a $5 million gain on commencement of a sales-type lease on land, $5 million in insurance proceeds primarily related to property damage at AES Andes,
Previous wording
Other expense increased $225 million to $347 million for the six months ended June 30, 2025, compared to $122 million for the six months ended June 30, 2024, mainly due to an increase of $136 million in losses on commencement of sales-type leases at AES Clean Energy and AES Renewable Holdings, a $48 million loss on remeasurement of our investment in 5B, accounted for using the measurement alternative, and a $36 million increase in losses on remeasurement of contingent consideration primarily on projects acquired at AES Clean Energy; partially offset by a $20 million loss recognized in the prior year related to legal expenses and other direct costs associated with the troubled debt restructuring at AES Puerto Rico.
Current wording
Other expense increased $220 million to $373 million for the nine months ended September 30, 2025, compared to $153 million for the nine months ended September 30, 2024, mainly due to an increase of $149 million in losses on commencement of sales-type leases at AES Clean Energy and AES Renewable Holdings, a $48 million loss on remeasurement of our investment in 5B, accounted for using the measurement alternative, and a $20 million increase in losses on remeasurement of contingent consideration primarily on projects acquired at AES Clean Energy; partially offset by a $20 million loss recognized in the prior year related to legal expenses and other direct costs associated with the troubled debt restructuring at AES Puerto Rico.
Previous wording
Gain on disposal and sale of business interests increased $25 million, or 57%, to $69 million for the six months ended June 30, 2025 compared to $44 million for six months ended June 30, 2024. This was primarily due to a $70 million gain on the selldown of Dominican Republic Renewables and a $10 million loss in the prior year on the selldown of Amman East and IPP4 in Jordan, which are now accounted for as equity method investments. This was partially offset by a $52 million gain in the prior year on dilution of AES’ ownership interest in Uplight as a result of the AutoGrid acquisition.
Current wording
Gain on disposal and sale of business interests increased $27 million, or 63%, to $70 million for the nine months ended September 30, 2025 compared to $43 million for nine months ended September 30, 2024. This was primarily due to a $70 million gain on the selldown of Dominican Republic Renewables and a $10 million loss in the prior year on the selldown of Amman East and IPP4 in Jordan, which are now accounted for as equity method investments. This was partially offset by a $52 million gain in the prior year on dilution of AES’ ownership interest in Uplight as a result of the AutoGrid acquisition.
Previous wording
See Note 7—Investments in and Advances to Affiliates and Note 18—Held-for-Sale and Dispositionsfor further information.
Current wording
See Note 7—Investments in and Advances to Affiliates and Note 18—Held-for-Sale and Dispositions for further information.
Previous wording
Asset impairment expense decreased $192 million to a $154 million asset impairment reversal for the three months ended June 30, 2025, compared to a $38 million expense for the three months ended June 30, 2024. This decrease was primarily the result of a $243 million increase in the carrying value of the Mong Duong asset group due to the derecognition of a valuation allowance on the loan receivable accounted for under ASC 310 and the elimination of net estimated costs to sell upon reclassifying Mong Duong from held-for-sale to held and used; and prior year impairment expense of $25 million at AES Brasil associated with the held-for-sale classification. This was partially offset by higher impairment expense of $79 million at AES Clean Energy Development due to the write-off of project development intangibles and capitalized development costs for projects that were determined to be no longer viable, including $51 million in the current quarter due to the right sizing of our development company as part of the restructuring program initiated in February 2025.
Current wording
Asset impairment expense decreased $43 million, or 58%, to $31 million for the three months ended September 30, 2025, compared to $74 million for the three months ended September 30, 2024. This decrease was primarily the result of prior year impairment expense of $55 million and $11 million at AES Brasil and Mong Duong, respectively, associated with the held-for-sale classification. This was partially offset by higher impairment expense of $16 million and $8 million at AES Andes and AES Clean Energy Development, respectively, due to the write-off of project development intangibles and capitalized development costs for projects that were determined to be no longer viable.
Showing the first 40 of 158 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
classified as regulated and non-regulated, respectively, on the Condensed Consolidated Statements of Operations. Revenue also includes the gains or losses on derivatives associated with the sale of electricity.
Current report — wording carried from elsewhere
•$144 million at Utilities mainly driven by a $131 million increase in transmission, distribution, rider, and wholesale revenues mainly due to higher rates and $20 million due to higher net retail demand mainly driven by favorable weather; and
Current report — wording carried from elsewhere
•$14 million at Corporate, Other and Eliminations mainly driven by higher premiums earned by AGIC.
Current report — wording carried from elsewhere
See Note 7—Investments in and Advances to Affiliates included in Item 1.—Financial Statements of this Form 10-Q for further information.
Current report — wording carried from elsewhere
Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $167 million, or 58%, to $122 million for the three months ended September 30, 2025, compared to $289 million for the three months ended September 30, 2024. This decrease was primarily due to a decrease of $165 million at AES Clean Energy Development and AES Renewable Holdings primarily attributable to lower allocation of losses to tax equity investors on projects placed in service.
Current report — wording carried from elsewhere
These increases were partially offset by:
Current report — wording carried from elsewhere
The GAAP measure most comparable to EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes is Net income. We believe that EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes better reflect the underlying business performance of the Company. Adjusted EBITDA is the most relevant measure considered in the Company’s internal evaluation of the financial performance of its segments. Factors in this determination include the variability due to unrealized gains or losses pertaining to derivative transactions, equity securities, or financial
Current report — wording carried from elsewhere
ownership of Cochrane and higher equity earnings due to Gatun starting commercial operations.
Current report — wording carried from elsewhere
The enactment of the 2025 Act requires that substantial guidance be published by the U.S. Department of Treasury and other government agencies. While we have taken significant measures to protect against the impact of changes under the 2025 Act to the IRA, including by implementing a program designed to ensure our backlog of
Current report — wording carried from elsewhere
Regime for Large Investments, modifications to non-income tax measures, and the privatization of state-owned energy companies. Additionally, the Ministry of Energy issued Resolution 150/2024, repealing certain regulations from previous years that involved excessive state and CAMMESA intervention in the Wholesale Electricity Market (“MEM”).
Current report — wording carried from elsewhere
the shift towards renewables has caused certain customers to migrate to other low-carbon energy solutions and this trend may continue.
Current report — wording carried from elsewhere
Events or changes in circumstances that may necessitate recoverability tests and potential impairments of
Current report — wording carried from elsewhere
On June 17, 2025, the EPA published a proposed rule to repeal the May 9, 2024 final rules for new and existing EGUs in addition to 2015 greenhouse gas NSPSs for certain new EGUs. In this proposed rule, the EPA
Current report — wording carried from elsewhere
On September 8, 2023, the Agencies published final rule amendments in the Federal Register to amend the final “Revised Definition of ‘Waters of the United States’” rule. This final rule conforms the definition to the definition adopted in the Decision. The Agencies have amended key aspects of the regulatory text to conform the rule to the Decision.
Current report — wording carried from elsewhere
Given our long-term debt obligations, the Company is subject to interest rate risk on debt balances that accrue interest at variable rates. When possible, the Company will borrow funds at fixed interest rates or hedge its variable rate debt to fix its interest costs on such obligations. In addition, the Company has historically tried to maintain at least 70% of its consolidated long-term obligations at fixed interest rates, including fixing the interest rate through the use of interest rate swaps. These efforts apply to the notional amount of the swaps compared to the amount of
Current report — wording carried from elsewhere
credit agreement at the Parent Company includes events of default related to payment defaults and accelerations of outstanding debt of material subsidiaries.
Rearranged previous paragraphs (22)
Previous report — wording carried elsewhere
Cost of sales includes costs incurred directly by the businesses in the ordinary course of business. Examples
Previous report — wording carried elsewhere
Loss on extinguishment of debt decreased $4 million, or 44%, to $5 million for the three months ended June 30, 2025, compared to $9 million for the three months ended June 30, 2024, primarily due to a prior year loss of $8 million due to a prepayment at AES Andes, partially offset by a $5 million current year loss related to a revolver amendment at AES Clean Energy.
Previous report — wording carried elsewhere
Other expense increased $211 million to $295 million for the three months ended June 30, 2025, compared to $84 million for the three months ended June 30, 2024, mainly due to a $127 million increase in losses on commencement of sales-type leases at AES Clean Energy and AES Renewable Holdings, and a $48 million loss on remeasurement of our investment in 5B, accounted for using the measurement alternative.
Previous report — wording carried elsewhere
Gain on disposal and sale of business interests
Previous report — wording carried elsewhere
Gain on disposal and sale of business interests increased $69 million to $70 million for the three months ended June 30, 2025 compared to $1 million for the three months ended June 30, 2024. This was primarily due to a $70 million gain on the selldown of Dominican Republic Renewables, which is now accounted for as an equity method investment.
Previous report — wording carried elsewhere
•Higher day-one losses on the commencement of sales-type leases at AES Clean Energy Development of $149 million;
Previous report — wording carried elsewhere
During the first quarter of 2024, the Company updated the definitions of Adjusted EBITDA, Adjusted PTC, and Adjusted EPS add-back (a)unrealized gains or losses related to derivative transactions and equity securities to include financial assets and liabilities measured using the fair value option, and updated add-back (e)gains, losses, and costs due to the early retirement of debt to include troubled debt restructuring. We believe excluding these
Previous report — wording carried elsewhere
Amount primarily relates to unrealized gains on foreign currency derivatives at Corporate of $34 million, or $0.05 per share, and unrealized gains on cross currency swaps in Brazil of $25 million, or $0.03 per share.
Previous report — wording carried elsewhere
Amount primarily relates to day-one losses on commencement of sales-type leases at AES Clean Energy Development of $149 million, or $0.21 per share, partially offset by gain on sale of Dominican Republic Renewables of $45 million, or $0.06 per share.
Previous report — wording carried elsewhere
Amount primarily relates to day-one losses at commencement of sales-type leases at AES Renewable Holdings of $63 million, or $0.09 per share.
Previous report — wording carried elsewhere
Amount primarily relates to the derecognition of the valuation allowance on a loan receivable accounted for under ASC 310 and the elimination of estimated costs to sell at Mong Duong of $127 million, or $0.18 per share, after reclassification to held and used, partially offset by impairments at AES Clean Energy of $29 million, or $0.04 per share.
Previous report — wording carried elsewhere
Amount primarily relates to losses incurred at AES Andes due to early retirement of debt of $16 million, or $0.02 per share.
Previous report — wording carried elsewhere
Amount primarily relates to impairments at AES Clean Energy Development that were the result of the Company-wide restructuring program of $38 million, or $0.05 per share.
Previous report — wording carried elsewhere
losses at Integrated Energy of $18 million, or $0.03 per share.
Previous report — wording carried elsewhere
Adjusted EBITDA for the six months ended June 30, 2025 decreased $151 million, primarily due to the drivers above adjusted for NCI, unrealized derivatives, restructuring costs, and equity earnings due to Gatun starting commercial operations.
Previous report — wording carried elsewhere
Adjusted EBITDA for the six months ended June 30, 2025 decreased $11 million, primarily due to higher net losses at Fluence. The increased losses were mainly driven by a decline in sales, reflecting lower volumes fulfilled due to the timing of customer schedules.
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Operational Sensitivity to Dry Hydrological Conditions— Our hydroelectric generation facilities are sensitive to changes in the weather, particularly the level of water inflows into generation facilities. Dry hydrological conditions in Panama, Colombia, and Chile can present challenges for our businesses in these markets. Low
Previous report — wording carried elsewhere
The Netherlands, Bulgaria, and Vietnam adopted legislation to implement Pillar 2 effective as of January 1, 2024. In June 2025, the Group of Seven (“G7”) nations issued a statement that they will work together to modify the
Previous report — wording carried elsewhere
adjusting debt accumulated by the Puerto Rico government and, potentially, other territories (“Title III”). PROMESA also expedites the approval of key energy projects and other critical projects in Puerto Rico.
Previous report — wording carried elsewhere
On June 5, 2023, the EPA published a final Federal Implementation Plan ("FIP") to address air quality impacts
Previous report — wording carried elsewhere
Federal Plan if a state were to not submit an approvable plan). The May 2024 rule is subject to legal challenges. On October 16, 2024, the U.S. Supreme Court denied emergency stay applications.
Previous report — wording carried elsewhere
requirements at the Parent Company level are primarily to fund interest and principal repayments of debt, construction commitments, other equity commitments, acquisitions, taxes, Parent Company overhead and development costs, and dividends on common stock.