AES CORP

39 | The AES Corporation | March 31, 2026 Form 10-Q

Review of Consolidated Results of Operations (Unaudited)

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.

Cost of sales includes costs incurred directly by the businesses in the ordinary course of business. Examples include electricity and fuel purchases, O&M 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 (including embedded derivatives other than foreign currency embedded derivatives) associated with the purchase of electricity or fuel.

Operating margin is defined as revenue less cost of sales.

40 | The AES Corporation | March 31, 2026 Form 10-Q

Consolidated Revenue and Operating Margin

Three Months Ended March 31, 2026

Revenue

Consolidated Revenue — Revenue increased $254 million, or 9%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, driven by:

•$154 million at Renewables mainly driven by $63 million due to development services in the U.S., $37 million due to new projects placed in service mainly in the U.S, $19 million higher revenues under our retail supply agreements, a $17 million favorable impact from changes in mark-to-market of energy derivatives in the U.S., and $16 million due to higher contracted and spot sales in Chile;

•$127 million at Utilities mainly driven by $63 million due to higher transmission and rider revenues, $46 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, and a $19 million increase in wholesale revenues at AES Indiana driven by higher load requirements and increased capacity from new renewables projects placed in service; and

•$37 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue.

These favorable impacts were partially offset by a decrease of $64 million at Energy Infrastructure mainly driven by $146 million lower contracted sales volume and prices, and $8 million of prior year net derivative gains as part of our commercial hedging strategy; partially offset by $56 million of higher energy and capacity sales and prices in the spot market, and $34 million of higher LNG sales.

Operating Margin

Consolidated Operating Margin — Operating margin increased $199 million, or 45%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, driven by:

•$90 million at Renewables mainly driven by $55 million due to development services in the U.S., $29 million of higher contracted margin in Chile and Colombia, a $17 million favorable impact from changes in mark-to-market of energy derivatives in the U.S., and $16 million due to one-time restructuring costs incurred in the prior year; partially offset by a $17 million impact from lower spot prices in Colombia;

•$78 million at Utilities mainly driven by $38 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, and a $37 million increase due to higher transmission and rider

41 | The AES Corporation | March 31, 2026 Form 10-Q

revenues;

•$22 million at Corporate, Other and Eliminations mainly driven by lower reinsurance program costs and lower reserve for losses at AGIC, and lower allocation of IT and other costs to the businesses; and

•$12 million at Energy Infrastructure mainly driven by $29 million higher energy and capacity sales and prices in the spot market, $14 million lower fixed costs mainly due to the 2025 restructuring, $4 million due to higher net unrealized derivative gains, $3 million driven by higher LNG sales; partially offset by $24 million higher depreciation at Maritza due to the useful life reassessment in the prior year, and $13 million driven by lower contracted capacity and contract prices.

Consolidated Results of Operations — Other

General and administrative expenses

General and administrative expenses decreased $22 million, or 29%, to $55 million for the three months ended March 31, 2026, compared to $77 million for the three months ended March 31, 2025, primarily due to a $20 million decrease in business development costs, $8 million of one-time costs, and $4 million lower people costs, all driven by the Company's restructuring program in February 2025; partially offset by $11 million of costs related to the Merger.

Interest expense

Interest expense increased $11 million, or 3%, to $353 million for the three months ended March 31, 2026, compared to $342 million for the three months ended March 31, 2025. This increase is primarily due to higher interest expense at the Parent Company due to a higher weighted average interest rate and debt balance as well as the impact of a prior year realized gain on a de-designated interest rate swap, and lower capitalized interest at the Renewables SBU due to fewer projects under construction; partially offset by lower debt balances at the Energy Infrastructure SBU and Renewables SBU.

Asset impairment expense

Asset impairment expense decreased $37 million, or 76%, to $12 million for the three months ended March 31, 2026, compared to $49 million for the three months ended March 31, 2025. The decrease was due to lower impairment expense of $25 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 and a prior year impairment of $17 million at Mong Duong associated with the held-for-sale classification due to the carrying amount of the Mong Duong disposal group exceeding the expected sales proceeds.

See Note 16—Asset Impairment Expense included in Item 1.—Financial Statements of this Form 10-Q for further information.

Foreign currency transaction gains (losses)

(1)Includes losses of $9 million and $3 million on foreign currency derivative contracts for the three months ended March 31, 2026 and 2025, respectively.

The Company recognized net foreign currency transaction gains of $11 million for the three months ended March 31, 2026, primarily driven by unrealized gains due to the appreciation of the Argentine peso.

The Company recognized net foreign currency transaction losses of $10 million for the three months ended March 31, 2025, primarily driven by unrealized losses due to the depreciation of the Chilean peso.

42 | The AES Corporation | March 31, 2026 Form 10-Q

Income tax benefit (expense)

Income tax benefit was $41 million for the three months ended March 31, 2026, compared to income tax expense of $17 million for the three months ended March 31, 2025. The Company’s effective tax rates were (17)% and (77)% for the three months ended March 31, 2026 and 2025, respectively. The current quarter effective tax rate was impacted by the benefit associated with ITCs, partially offset by tax expense resulting from allocations of losses to tax equity investors on renewables projects.

The prior year effective tax rate was impacted by tax expense resulting from allocations of losses to tax equity investors on renewables projects, as well as the impacts associated with ITCs.

Our effective tax rate reflects the tax effect of significant operations outside the U.S., which are generally taxed at rates different than the U.S. statutory rate of 21%. Furthermore, our foreign earnings may be subjected to incremental U.S. taxation under the NCTI rules. A future proportionate change in the composition of income before income taxes from foreign and domestic tax jurisdictions could impact our periodic effective tax rate.

Net equity in losses of affiliates

Net equity in losses of affiliates decreased $26 million, or 76%, to $8 million for the three months ended March 31, 2026, compared to $34 million for the three months ended March 31, 2025. This decrease was primarily driven by higher earnings from Enadom, as well as lower losses from Uplight after equity method accounting was suspended in the fourth quarter of 2025.

See Note 7—Investments in and Advances to Affiliates included in Item 1.—Financial Statements of this Form 10-Q for further information.

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries increased $93 million to $212 million for the three months ended March 31, 2026, compared to $119 million for the three months ended March 31, 2025. This increase was primarily due to an increase of $153 million at AES Clean Energy primarily attributable to higher allocation of losses to tax equity investors on projects placed in service and a $9 million impact due to the acquisition of the remaining shares of Cochrane, partially offset by a decrease of $23 million at AES Indiana primarily related to higher allocation of losses to tax equity investors for the Pike County BESS project in the prior year, and impacts of $13 million from the AES Ohio selldown, $9 million from the AGIC selldown, and $7 million at Mong Duong primarily due to a prior-year impairment.

Net income attributable to The AES Corporation

Net income attributable to The AES Corporation increased $441 million to $487 million for the three months ended March 31, 2026, compared to $46 million for the three months ended March 31, 2025. This increase was primarily due to:

•Higher contributions from renewables projects placed in service of $182 million;

•Higher income tax benefit of $66 million due to a lower effective tax rate;

•Higher margins from the Renewables SBU of $53 million, excluding one-time restructuring costs in the prior year, primarily due to increases from development services in the U.S., higher contracted margin in Chile and Colombia, and net favorable impact from changes in mark-to-market of energy derivatives in the U.S., partially offset by lower spot prices in Colombia;

•One-time restructuring costs of $46 million in the prior year;

•Higher margins from the Utilities SBU of $44 million, excluding one-time restructuring costs in the prior year, primarily due to the 2024 DRC Settlement and higher transmission revenues at AES Ohio and higher rider revenues at AES Indiana;

•Lower long-lived asset impairments in the current year of $23 million;

•Lower net equity in losses of affiliates of $23 million primarily related to the suspension of equity method accounting at Uplight in the fourth quarter of 2025 and higher earnings at Enadom;

•Higher margins from the Energy Infrastructure SBU of $12 million, excluding one-time restructuring costs in the prior year, primarily due to higher energy and capacity sales and prices in the spot market, higher net derivative gains, and higher LNG sales, partially offset by higher depreciation at Maritza due to the useful life reassessment in the prior year and lower contracted capacity and contract prices; and

43 | The AES Corporation | March 31, 2026 Form 10-Q

•Foreign currency gains of $12 million compared to prior year losses of $9 million primarily related to unrealized gains due to the appreciation of the Argentine peso in the current year and the depreciation of the Chilean peso in the prior year.

These drivers were partially offset by:

•Lower income of $20 million due to allocations of earnings to noncontrolling interest holders under profit-sharing arrangements based on stated internal rates of return.