AES CORP

Previous wording

On March 1, 2026, The AES Corporation (the “Company” or “AES”) entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Horizon Parent, L.P., a Delaware limited partnership (“Parent”), and Horizon Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”). Pursuant to the Merger Agreement, on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving corporation in the Merger. Parent is jointly controlled by investment vehicles affiliated with one or more funds, accounts or other entities managed or advised by Global Infrastructure Management, LLC and the EQT Infrastructure VI fund. For further details on this proposed transaction, see Item 1A.—Risk Factors and Note 1—Financial Statement Presentation included in Item 1.—Financial Statements of this Form 10-Q.

Current wording

On March 1, 2026, The AES Corporation (the “Company” or “AES”) entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Horizon Parent, L.P., a Delaware limited partnership (“Parent”), and Horizon Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”). Pursuant to the Merger Agreement, on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving corporation in the Merger. Parent is jointly controlled by investment vehicles affiliated with one or more funds, accounts or other entities managed or advised by Global Infrastructure Management, LLC and the EQT Infrastructure VI fund. For further details on this proposed transaction, see Note 1—Financial Statement Presentation included in Item 1.—Financial Statements of this Form 10-Q.

Previous wording

Adjusted EBITDA, a non-GAAP measure, increased $217 million, from $681 million to $898 million, driven by higher contributions from development services in the U.S., higher energy and capacity sales and prices in the spot market, the increase in ownership of Cochrane, and higher retail margin primarily at AES Ohio; partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria.

Current wording

Adjusted EBITDA, a non-GAAP measure, increased $260 million, from $830 million to $1,090 million, driven by higher energy and capacity sales and prices in the spot market, and higher retail rates and demand at our utilities; partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria.

Previous wording

Compared with last year, net income for the six months ended June 30, 2026 increased $885 million, from a net loss of $223 million to net income of $662 million. This increase is the result of higher contributions from development services and the favorable impact of energy derivatives in the U.S., higher retail margin and transmission and rider revenues at AES Ohio and AES Indiana, higher energy and capacity sales and prices in the spot market, losses on commencement of sales-type leases recognized in the prior year at AES Clean Energy Development, income tax benefit in the current year compared to income tax expense in the prior year, one-time costs in the prior year due to the Company’s restructuring program in February 2025, and a gain on sale of shares in Fluence; partially offset by the prior-year impact of derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used and lower contract sales volume and higher depreciation mainly due to the expiration of the Maritza PPA in Bulgaria.

Current wording

utilities, losses on commencement of sales-type leases recognized in the prior year at AES Clean Energy Development, a gain on sale of shares in Fluence, one-time costs in the prior year due to the Company’s restructuring program in February 2025, and the prior year impairment of the Uplight equity method investment and adjustments to the convertible notes; partially offset by the prior-year impact of derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used and lower contract sales volume and higher depreciation mainly due to the expiration of the Maritza PPA in Bulgaria.

Previous wording

Adjusted EBITDA, a non-GAAP measure, increased $453 million, from $1,272 million to $1,725 million for the six months ended June 30, 2026, driven by higher contributions from development services in the U.S., higher energy and capacity sales and prices in the spot market, the increase in ownership of Cochrane, and higher retail margin and transmission and rider revenues at AES Ohio and AES Indiana; partially offset by the impact of the AES Ohio and AGIC selldowns in the prior year and lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria.

Current wording

Adjusted EBITDA, a non-GAAP measure, increased $713 million, from $2,102 million to $2,815 million for the nine months ended September 30, 2026, driven by higher energy and capacity sales and prices in the spot market, higher contributions from development services in the U.S., higher retail rates and demand at our utilities, and the increase in ownership of Cochrane; partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria and the impact of the AES Ohio selldown in the prior year.

Previous wording

Consolidated Revenue — Revenue increased $567 million, or 20%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, driven by:

Current wording

Consolidated Revenue — Revenue increased $521 million, or 16%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, driven by:

Previous wording

•$295 million at Renewables mainly driven by a $76 million favorable impact from energy derivatives in the U.S., $67 million higher spot sales and prices in Colombia driven by El Niño, $63 million due to development services in the U.S., $53 million due to new projects placed in service in the U.S. and Chile, $27 million positive impact due to the appreciation of the Colombian peso, and $21 million higher revenues under our retail supply agreements; partially offset by $13 million lower contracted and spot sales in Chile;

Current wording

•$287 million at Renewables mainly driven by $182 million higher spot sales in Colombia, benefiting from elevated spot prices due to El Niño-related unfavorable hydrological conditions across the country and relatively favorable hydrology at the AES Chivor basin, $77 million positive impact due to the appreciation of the Colombian peso, $56 million due to new projects placed in service in the U.S. and Chile, $34 million due to development services in the U.S., and $21 million higher revenues under our retail supply agreements; partially offset by $61 million lower contracted and spot sales in Chile, and an $18 million unfavorable impact from energy derivatives in the U.S.;

Previous wording

•$64 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 $35 million due to higher transmission and rider revenues; partially offset by a $10 million decrease in wholesale revenues at AES Indiana driven by lower load requirements and unit availability; and

Current wording

•$151 million at Utilities mainly driven by $67 million due to higher retail demand mainly driven by weather, $48 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, and $43 million due to higher transmission and rider revenues; partially offset by a $13 million decrease in wholesale revenues at AES Indiana driven by lower load requirements and unit availability;

Previous wording

•$126 million at Energy Infrastructure mainly driven by $201 million higher energy and capacity sales and prices in the spot market mainly in Argentina, $61 million of higher spot sales in Mexico driven by the expiration of a PPA, $61 million higher LNG sales, and $14 million of prior year net derivative losses as part of our commercial hedging strategy; partially offset by $207 million lower contract sales volume mainly driven by the expiration of the Maritza PPA in Bulgaria; and

Current wording

•$53 million at Energy Infrastructure mainly driven by $254 million higher energy and capacity sales and prices in the spot market mainly in Argentina, $14 million of higher spot sales in Mexico driven by the expiration of a PPA, and $11 million of higher LNG sales; partially offset by $146 million lower contract sales volume mainly driven by the expiration of the Maritza PPA in Bulgaria, $74 million of prior year net derivative gains as part of our commercial hedging strategy, and $9 million driven by lower availability; and

Previous wording

•$18 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue.

Current wording

•$29 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue.

Previous wording

Consolidated Operating Margin — Operating margin increased $438 million, or 49%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, mainly due to higher margins at the Renewables SBU driven by contributions from development services in the U.S. and favorable impacts from energy derivatives, as well as higher retail rates at AES Ohio at the Utilities SBU, and higher energy and capacity sales and prices in the spot market at the Energy Infrastructure SBU. The increase in operating margin was partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria and higher depreciation.

Current wording

Consolidated Operating Margin — Operating margin increased $247 million, or 34%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, mainly due to higher margins at the Renewables SBU driven by higher spot sales and prices in Colombia driven by El Niño, as well as higher energy and capacity sales and prices in the spot market at the Energy Infrastructure SBU and higher retail rates and demand in the Utilities SBU. The increase in operating margin was partially offset by lower contract sales

Previous wording

Consolidated Revenue — Revenue increased $821 million, or 14%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, driven by:

Current wording

Consolidated Revenue — Revenue increased $1,342 million, or 15%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, driven by:

Previous wording

•$449 million at Renewables mainly driven by $126 million due to development services in the U.S., a $93 million favorable impact from energy derivatives in the U.S., $90 million due to new projects placed in service in the U.S. and Chile, $48 million higher spot sales and prices in Colombia, mainly driven by El Niño and partially offset by lower spot prices in the first quarter, $40 million positive impact due to the appreciation of the Colombian peso, and $40 million higher revenues under our retail supply agreements;

Current wording

•$736 million at Renewables mainly driven by $230 million higher spot sales in Colombia, benefiting from elevated spot prices due to El Niño-related unfavorable hydrological conditions across the country and relatively favorable hydrology at the AES Chivor basin and partially offset by lower spot prices in the first quarter, $160 million due to development services in the U.S., $146 million due to new projects placed in service in the U.S. and Chile, $116 million positive impact due to the appreciation of the Colombian peso, a $75 million favorable impact from energy derivatives in the U.S., and $60 million higher revenues under our retail supply agreements; partially offset by $59 million lower contracted and spot sales in Chile;

Previous wording

•$191 million at Utilities mainly driven by $92 million due to higher transmission and rider revenues, $84 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, and a $17 million increase in wholesale revenues at AES Indiana driven by higher load requirements and increased capacity from new renewables projects placed in service;

Current wording

•$342 million at Utilities mainly driven by $132 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, $122 million due to higher transmission and rider revenues, and $88 million due to higher retail demand mainly driven by weather;

Previous wording

•$190 million at Energy Infrastructure mainly driven by $188 million of higher energy and capacity sales and prices in the spot market in Argentina, $25 million of higher spot sales in Mexico driven by the expiration of a PPA, $24 million of higher LNG sales, and $23 million of net derivative gains as part of our commercial hedging strategy; partially offset by $72 million lower contract sales volume mainly driven by the expiration of the Maritza PPA in Bulgaria;

Current wording

•$179 million at Energy Infrastructure mainly driven by $455 million higher energy and capacity sales and prices in the spot market mainly in Argentina, $75 million of higher spot sales in Mexico driven by the expiration of a PPA, and $72 million of higher LNG sales; partially offset by $347 million lower contract sales volume mainly driven by the expiration of the Maritza PPA in Bulgaria, $62 million of prior year net derivative gains as part of our commercial hedging strategy, and $15 million driven by lower availability; and

Previous wording

•$55 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue, partially offset by lower charge-outs of IT and other costs to the businesses.

Current wording

•$84 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue.

Previous wording

Consolidated Operating Margin — Operating margin increased $239 million, or 53%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, mainly due to higher margins at the Renewables SBU driven by favorable impacts from energy derivatives and contributions from development services in the U.S., as well as higher energy and capacity sales and prices in the spot market at the Energy Infrastructure SBU. The increase in operating margin was partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria.

Current wording

sales and prices in Colombia driven by El Niño, as well as higher retail rates at AES Ohio at the Utilities SBU, and higher energy and capacity sales and prices in the spot market at the Energy Infrastructure SBU. The increase in operating margin was partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria and higher depreciation.

Previous wording

General and administrative expenses decreased $9 million, or 7%, to $117 million for the six months ended June 30, 2026, compared to $126 million for the six months ended June 30, 2025, primarily due to a $14 million decrease in business development costs and $9 million decrease in one-time costs, all driven by the Company's restructuring program in February 2025, as well as $6 million lower professional fees; partially offset by $22 million of costs related to the Merger.

Current wording

General and administrative expenses increased $13 million, or 8%, to $185 million for the nine months ended September 30, 2026, compared to $172 million for the nine months ended September 30, 2025, primarily due to $35 million of costs related to the Merger and $4 million increase primarily due to changes in the allocation of certain executive costs between Corporate general and administrative expenses and the Company’s segments under cost of sales following changes in the leadership structure; partially offset by a $12 million decrease in business development costs and $9 million decrease in one-time costs, all driven by the Company's restructuring program in February 2025, as well as $5 million lower professional fees.

Previous wording

Interest expense increased $16 million, or 5%, to $368 million for the three months ended June 30, 2026, compared to $352 million for the three months ended June 30, 2025. This increase is primarily due to higher debt balances and lower capitalized interest at the Renewables SBU due to fewer projects under construction, and higher interest expense at the Parent Company due to a higher weighted average interest rate and debt balance; partially offset by lower debt balances at the Energy Infrastructure SBU.

Current wording

Interest expense increased $13 million, or 4%, to $361 million for the three months ended September 30, 2026, compared to $348 million for the three months ended September 30, 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, and higher debt balances at the Utilities SBU; partially offset by lower debt balances at the Energy Infrastructure SBU.

Previous wording

Interest expense increased $27 million, or 4%, to $721 million for the six months ended June 30, 2026, compared to $694 million for the six months ended June 30, 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.

Current wording

Interest expense increased $40 million, or 4%, to $1,082 million for the nine months ended September 30, 2026, compared to $1,042 million for the nine months ended September 30, 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, lower capitalized interest at the Renewables SBU due to fewer projects under construction, and lower capitalized interest at the Utilities SBU due to a decrease in the allowance for borrowed funds used during construction; partially offset by lower debt balances at the Energy Infrastructure SBU.

Previous wording

Other expense decreased $268 million, or 91%, to $27 million for the three months ended June 30, 2026, compared to $295 million for the three months ended June 30, 2025, primarily driven by $199 million of prior year losses on commencement of sales-type leases at AES Clean Energy, and a prior year $48 million loss on remeasurement of our investment in 5B, accounted for using the measurement alternative.

Current wording

Other expense decreased $1 million, or 4%, to $25 million for the three months ended September 30, 2026, compared to $26 million for the three months ended September 30, 2025, primarily driven by $13 million of prior year losses on commencement of sales-type leases at AES Clean Energy, offset by a $12 million increase in losses on remeasurement of contingent consideration.

Previous wording

Other expense decreased $262 million, or 76%, to $85 million for the six months ended June 30, 2026, compared to $347 million for the six months ended June 30, 2025, primarily driven by a $164 million decrease in losses on commencement of sales-type leases at AES Clean Energy, a prior year $48 million loss on remeasurement of our investment in 5B, accounted for using the measurement alternative, and a $20 million decrease in losses on remeasurement of contingent consideration.

Current wording

Other expense decreased $263 million, or 71%, to $110 million for the nine months ended September 30, 2026, compared to $373 million for the nine months ended September 30, 2025, primarily driven by a $177 million decrease in losses on commencement of sales-type leases at AES Clean Energy, a prior year $48 million loss on

Previous wording

Gain on disposal and sale of business interests increased $139 million to $209 million for the three months ended June 30, 2026, compared to $70 million for the three months ended June 30, 2025, mainly due to a $186 million gain on sale of shares of Fluence and a $24 million gain resulting from the contribution of two of the JK Projects to a trust; partially offset by a $70 million gain on the sell-down of Dominican Republic Renewables in the prior year.

Current wording

Gain on disposal and sale of business interests increased $142 million to $212 million for the nine months ended September 30, 2026, compared to $70 million for the nine months ended September 30, 2025 mainly due to a $186 million gain on sale of shares of Fluence and a $24 million gain resulting from the contribution of two of the JK Projects to a trust; partially offset by a $70 million gain on the selldown of Dominican Republic Renewables in the prior year.

Previous wording

Asset impairment expense increased $147 million to $42 million for the six months ended June 30, 2026, compared to a $105 million reversal for the six months ended June 30, 2025. This increase was primarily the result of a $243 million increase in the carrying value of Mong Duong asset group in the prior year 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. This was partially offset by lower 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, mainly driven by $51 million in the prior year due to the right sizing of our development company as part of the restructuring program initiated in February 2025.

Current wording

Asset impairment expense increased $207 million to $133 million for the nine months ended September 30, 2026, compared to a $74 million reversal for the nine months ended September 30, 2025. This increase was primarily the result of a $243 million increase in the carrying value of Mong Duong asset group in the prior year 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. This was partially offset by lower impairment expense of $16 million and $4 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.

Previous wording

(1)Includes losses of $36 million and $12 million on foreign currency derivative contracts for the three months ended June 30, 2026 and 2025, respectively, and losses of $45 million and $14 million on foreign currency derivative contracts for the six months ended June 30, 2026 and 2025, respectively.

Current wording

(1)Includes losses of $10 million and $8 million on foreign currency derivative contracts for the three months ended September 30, 2026 and 2025, respectively, and losses of $55 million and $22 million on foreign currency derivative contracts for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

The Company recognized net foreign currency transaction losses of $41 million for the six months ended June 30, 2026, primarily driven by unrealized losses in Chile due to the appreciation of the Colombian peso, which negatively impacted foreign currency forwards, higher realized foreign currency losses related to settled forward contracts in Chile, and unrealized foreign currency derivative losses in Argentina.

Current wording

The Company recognized net foreign currency transaction losses of $55 million for the nine months ended September 30, 2026, primarily driven by unrealized foreign currency derivative losses in Argentina, unrealized losses in Chile due to the appreciation of the Colombian peso, which negatively impacted foreign currency forwards, and higher realized foreign currency losses related to settled forward contracts in Chile.

Previous wording

The Company recognized net foreign currency transaction losses of $52 million for the three months ended June 30, 2026, primarily driven by unrealized foreign currency derivative losses in Argentina, unrealized losses due to the depreciation of the Argentine peso, and unrealized losses in Chile due to the appreciation of the Chilean peso and the appreciation of the Colombian peso, which negatively impacted foreign currency forwards.

Current wording

The Company recognized net foreign currency transaction losses of $57 million for the nine 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, and the appreciation of the Chilean peso.

Previous wording

There were no other non-operating expenses during the three and six months ended June 30, 2026.

Current wording

There were no other non-operating expenses during the three and nine months ended September 30, 2026.

Previous wording

Other non-operating expense was $10 million for the three and six months ended June 30, 2025 due to an other-than-temporary impairment of convertible notes at 5B as a result of an observable price change from a transaction between 5B and a third-party.

Current wording

Other non-operating expense was $42 million for the nine months ended September 30, 2025 due to the $32 million impact from Uplight mentioned above and a $10 million other-than-temporary impairment of convertible notes at 5B as a result of an observable price change from a transaction between 5B and a third-party.

Previous wording

Income tax benefit was $13 million for the six months ended June 30, 2026, compared to income tax expense of $184 million for the six months ended June 30, 2025. The Company’s effective tax rates were (2)% and 1,082% for the six months ended June 30, 2026 and 2025, respectively. The 2026 effective tax rate was impacted by the benefits associated with ITCs and the Fluence sell-down transaction, partially offset by tax expense resulting from allocations of losses to tax equity investors on renewables projects.

Current wording

Income tax benefit decreased $19 million, or 45%, to $23 million for the nine months ended September 30, 2026, compared to $42 million for the nine months ended September 30, 2025. The Company’s effective tax rates were (2)% and (12)% for the nine months ended September 30, 2026 and 2025, respectively. The 2026 effective tax rate was impacted by the benefits associated with ITCs and the Bolero BESS project valuation allowance release, partially offset by tax expense resulting from allocations of losses to tax equity investors on renewables projects.

Previous wording

The 2025 effective tax rate was not meaningful due to pretax book income being near breakeven. This effective tax rate was largely impacted by the benefits associated with U.S. investment tax credits (“ITCs”), the prior year reclassification of Mong Duong from held-for-sale to held and used, and tax expense resulting from allocations of losses to tax equity investors on renewables projects.

Current wording

The 2025 effective tax rate was largely impacted by the benefits associated with ITCs and the prior year reclassification of Mong Duong from held-for-sale to held and used, partially offset by tax expense resulting from allocations of losses to tax equity investors on renewables projects.

Previous wording

Net equity in losses of affiliates

Current wording

Net equity in earnings (losses) of affiliates

Previous wording

Net equity in losses of affiliates increased $12 million, or 55%, to $34 million for the three months ended June 30, 2026, compared to $22 million for the three months ended June 30, 2025. This increase was primarily driven by a $22 million impact at Gatun due to current year debt extinguishment costs and higher losses of $11 million from Dominican Republic Renewables due to beginning equity method accounting in June 2025, partially offset by lower losses from Uplight of $5 million after equity method accounting was suspended in the fourth quarter of 2025 and from Fluence of $5 million driven by an increase in the volume of products fulfilled, as well as higher earnings from sPower of $7 million due to lower interest expense.

Current wording

Net equity in earnings of affiliates increased $11 million to $12 million for the three months ended September 30, 2026, compared to $1 million for the three months ended September 30, 2025. This increase was primarily driven by higher earnings from Gatun of $7 million due to higher generation and lower losses from Uplight of $5 million after equity method accounting was suspended in the fourth quarter of 2025, partially offset by higher losses from Fluence of $7 million driven by liquidated damages incurred due to project delays, increased costs related to the deployment of newer solution offerings, and an increase in battery prices.

Previous wording

Net equity in losses of affiliates decreased $14 million, or 25%, to $42 million for the six months ended June 30, 2026, compared to $56 million for the six months ended June 30, 2025. This decrease was primarily driven by lower losses from Uplight of $16 million after equity method accounting was suspended in the fourth quarter of 2025 and $10 million from sPower due to lower interest expense, as well as higher earnings from Fluence of $6 million driven by an increase in the volume of products fulfilled, partially offset by a $22 million impact at Gatun due to current year debt extinguishment costs.

Current wording

Net equity in losses of affiliates decreased $25 million, or 45%, to $30 million for the nine months ended September 30, 2026, compared to $55 million for the nine months ended September 30, 2025. This decrease was primarily driven by lower losses from Uplight of $21 million after equity method accounting was suspended in the fourth quarter of 2025 and $8 million from sPower due to contributions from new projects that came online.

Previous wording

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $16 million, or 29%, to $39 million for the three months ended June 30, 2026, compared to $55 million for the three months ended June 30, 2025. This decrease in net losses was primarily due to:

Current wording

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $96 million, or 79%, to $26 million for the three months ended September 30, 2026, compared to $122 million for the three months ended September 30, 2025. This decrease in net losses was primarily due to:

Previous wording

•Lower losses of $187 million at AES Clean Energy Development and AES Renewable Holdings due to prior-year losses on the commencement of sales-type leases and lower allocation of losses to tax equity investors on projects placed in service.

Current wording

•Lower losses of $68 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; and

Previous wording

•Higher losses of $14 million at AES Indiana primarily related to higher allocation of losses to tax equity investors for the Petersburg Energy Center; and

Current wording

•Higher losses of $15 million at AES Indiana primarily related to higher allocation of losses to tax equity investors for the Petersburg Energy Center.

Previous wording

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries increased $77 million, or 44%, to $251 million for the six months ended June 30, 2026, compared to $174 million for the six months ended June 30, 2025. This increase in net losses was primarily due to:

Current wording

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $19 million, or 6%, to $277 million for the nine months ended September 30, 2026, compared to $296 million for the nine months ended September 30, 2025. This decrease in net losses was primarily due to:

Previous wording

•Lower losses of $107 million at AES Renewable Holdings due to lower allocation of losses to tax equity investors on projects placed in service;

Current wording

•Lower losses of $118 million at AES Renewable Holdings primarily due to lower allocation of losses to tax equity investors on projects placed in service;

Previous wording

•Higher income of $14 million and $12 million due to the prior-year selldowns of AES Ohio and AGIC, respectively;

Current wording

•Higher income of $22 million and $11 million due to the prior-year selldowns of AES Ohio and AGIC, respectively;

Previous wording

•Higher income of $10 million at Merida due to higher spot sales; and

Current wording

•Higher income of $15 million at Merida due to higher spot sales.