AES Reports Third Quarter 2025 Results

______________________________

¹

Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter ended September 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

²

Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.

³

Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended September 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

⁴

Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended September 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

⁵

Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.

⁶

Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended September 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

⁷

Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended September 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

⁸

Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.

⁹

Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended September 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

THE AES CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025

2024

2025

2024

(in millions, except share and per share amounts)

Revenue:

  Non-Regulated

$      2,269

$      2,352

$      6,132

$      6,654

  Regulated

1,082

937

3,000

2,662

   Total revenue

3,351

3,289

9,132

9,316

Cost of Sales:

  Non-Regulated

(1,730)

(1,794)

(4,998)

(5,198)

  Regulated

(886)

(773)

(2,505)

(2,224)

    Total cost of sales

(2,616)

(2,567)

(7,503)

(7,422)

  Operating margin

735

722

1,629

1,894

  General and administrative expenses

(46)

(57)

(172)

(198)

  Interest expense

(348)

(379)

(1,042)

(1,125)

  Interest income

76

119

215

312

  Loss on extinguishment of debt

(2)

(1)

(15)

(11)

  Other expense

(26)

(31)

(373)

(153)

  Other income

19

64

57

120

  Gain (loss) on disposal and sale of business interests

1

(1)

70

43

  Asset impairment reversals (expense)

(31)

(74)

74

(158)

  Foreign currency transaction gains (losses)

(19)

(28)

(57)

2

  Other non-operating expense

(32)

—

(42)

—

    INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN
    EARNINGS OF AFFILIATES

327

334

344

726

 Income tax benefit (expense)

226

(103)

42

(52)

 Net equity in earnings (losses) of affiliates

1

(9)

(55)

(21)

 INCOME FROM CONTINUING OPERATIONS

554

222

331

653

  Loss from disposal of discontinued businesses, net of income tax expense of
  $0, $7, $0, and $7, respectively

(37)

(7)

(37)

(7)

 NET INCOME

517

215

294

646

    Less: Net loss attributable to noncontrolling interests and redeemable stock of
    subsidiaries

122

289

296

566

 NET INCOME ATTRIBUTABLE TO THE AES CORPORATION

$         639

$         504

$         590

$      1,212

   Increase in redemption value of redeemable stock of subsidiaries

(5)

—

(15)

—

 NET INCOME AVAILABLE TO THE AES CORPORATION COMMON
 STOCKHOLDERS

$         634

$         504

$         575

$      1,212

 AMOUNTS AVAILABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:

    Income from continuing operations available to The AES Corporation common
    stockholders

$         671

$         511

$         612

$      1,219

    Loss from discontinued operations available to The AES Corporation common
    stockholders

(37)

(7)

(37)

(7)

 NET INCOME AVAILABLE TO THE AES CORPORATION COMMON
 STOCKHOLDERS

$         634

$         504

$         575

$      1,212

BASIC EARNINGS PER SHARE:

    Income from continuing operations available to The AES Corporation common
    stockholders

$        0.94

$        0.72

$        0.86

$        1.73

   Loss from discontinued operations available to The AES Corporation common
    stockholders

(0.05)

(0.01)

(0.05)

(0.01)

 NET INCOME AVAILABLE TO THE AES CORPORATION COMMON
 STOCKHOLDERS

$        0.89

$        0.71

$        0.81

$        1.72

DILUTED EARNINGS PER SHARE:

    Income from continuing operations available to The AES Corporation common
    stockholders

$        0.94

$        0.72

$        0.86

$        1.71

    Loss from discontinued operations available to The AES Corporation common
    stockholders

(0.05)

(0.01)

(0.05)

(0.01)

 NET INCOME AVAILABLE TO THE AES CORPORATION COMMON
 STOCKHOLDERS

$        0.89

$        0.71

$        0.81

$        1.70

DILUTED SHARES OUTSTANDING

714

713

714

713

THE AES CORPORATION

Strategic Business Unit (SBU) Information

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions)

2025

2024

2025

2024

REVENUE

 Renewables SBU

$                  817

$                  754

$               2,127

$               2,016

 Utilities SBU

1,105

961

3,068

2,730

 Energy Infrastructure SBU

1,483

1,614

4,109

4,685

 New Energy Technologies SBU

—

1

—

1

 Corporate and Other

32

33

111

106

 Eliminations

(86)

(74)

(283)

(222)

 Total Revenue

$               3,351

$               3,289

$               9,132

$               9,316

THE AES CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)

September 30,
2025

December 31,
2024

(in millions, except share

and per share data)

ASSETS

CURRENT ASSETS

  Cash and cash equivalents

$                 1,758

$                 1,524

  Restricted cash

689

437

  Accounts receivable, net of allowance of $43 and $52, respectively

1,790

1,646

  Inventory

607

593

  Prepaid expenses

162

157

  Other current assets, net of allowance of $2 and $0, respectively

1,781

1,612

  Current held-for-sale assets

33

862

  Total current assets

6,820

6,831

NONCURRENT ASSETS

  Property, plant and equipment, net of accumulated depreciation of $9,579 and $8,701, respectively

36,511

33,166

  Investments in and advances to affiliates

1,030

1,124

  Debt service reserves and other deposits

102

78

  Goodwill

345

345

  Other intangible assets, net of accumulated amortization of $480 and $426, respectively

2,016

1,947

  Deferred income taxes

404

365

  Loan receivable, net of allowance of $19 and $0,  respectively

781

—

  Other noncurrent assets, net of allowance of $23 and $20, respectively

2,774

2,917

  Noncurrent held-for-sale assets

—

633

  Total noncurrent assets

43,963

40,575

 TOTAL ASSETS

$               50,783

$               47,406

LIABILITIES, REDEEMABLE STOCK OF SUBSIDIARIES, AND EQUITY

CURRENT LIABILITIES

  Accounts payable

$                 2,000

$                 1,654

  Accrued interest

343

256

  Accrued non-income taxes

297

249

  Supplier financing arrangements

1,046

917

  Accrued and other liabilities

1,362

1,246

  Recourse debt

1,442

899

  Non-recourse debt

2,944

2,688

  Current held-for-sale liabilities

—

662

  Total current liabilities

9,434

8,571

NONCURRENT LIABILITIES

  Recourse debt

4,804

4,805

  Non-recourse debt

21,659

20,626

  Deferred income taxes

1,885

1,490

  Other noncurrent liabilities

2,471

2,881

  Noncurrent held-for-sale liabilities

—

391

  Total noncurrent liabilities

30,819

30,193

Commitments and Contingencies

Redeemable stock of subsidiaries

2,122

938

EQUITY

THE AES CORPORATION STOCKHOLDERS' EQUITY

  Common stock ($0.01 par value, 1,200,000,000 shares authorized; 859,836,539 issued and
  712,120,944 outstanding at September 30, 2025 and 859,709,987 issued and 711,074,269
  outstanding at December 31, 2024)

9

9

  Additional paid-in capital

5,912

5,913

  Retained earnings

555

293

  Accumulated other comprehensive loss

(817)

(766)

  Treasury stock, at cost (147,715,595 and 148,635,718 shares at September 30, 2025 and
  December 31, 2024, respectively)

(1,794)

(1,805)

  Total AES Corporation stockholders' equity

3,865

3,644

NONCONTROLLING INTERESTS

4,543

4,060

  Total equity

8,408

7,704

TOTAL LIABILITIES, REDEEMABLE STOCK OF SUBSIDIARIES, AND EQUITY

$               50,783

$               47,406

THE AES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(in millions)

(in millions)

OPERATING ACTIVITIES:

Net income

$                            517

$                            215

$                       294

$                       646

Adjustments to net income:

  Depreciation, amortization, and accretion of AROs

365

312

1,056

945

  Emissions allowance expense

63

73

241

144

  Loss (gain) on realized/unrealized derivatives

(22)

(57)

49

(194)

  Loss on commencement of sales-type leases

13

—

221

67

  Gain on disposal and sale of business interests

(1)

1

(70)

(43)

  Impairment expense (reversals)

63

74

(32)

158

  Loss on realized/unrealized foreign currency

11

14

35

92

  Deferred income tax expense (benefit), net of tax credit transfers allocated to AES

253

165

402

423

  Tax credit transfers allocated to noncontrolling interests

356

152

568

178

  Other

48

27

268

(183)

Changes in operating assets and liabilities:

  (Increase) decrease in accounts receivable

(42)

(337)

(16)

(576)

  (Increase) decrease in inventory

39

27

10

58

  (Increase) decrease in prepaid expenses and other current assets

(222)

(13)

(24)

120

  (Increase) decrease in other assets

(12)

130

63

177

  Increase (decrease) in accounts payable and other current liabilities

263

194

147

34

  Increase (decrease) in income tax payables, net and other tax payables

(402)

(50)

(484)

(514)

  Increase (decrease) in other liabilities

7

58

90

132

Net cash provided by operating activities

1,297

985

2,818

1,664

INVESTING ACTIVITIES:

Capital expenditures

(1,808)

(1,832)

(4,394)

(5,665)

Acquisitions of business interests, net of cash and restricted cash acquired

8

(6)

(104)

(79)

Proceeds from the sale of business interests, net of cash and restricted cash sold

100

—

105

11

Sale of short-term investments

18

197

70

731

Purchase of short-term investments

(21)

(121)

(57)

(725)

Contributions and loans to equity affiliates

(1)

(21)

(2)

(71)

Purchase of emissions allowances

(26)

(66)

(260)

(157)

Other investing

(6)

(16)

24

(134)

Net cash used in investing activities

(1,736)

(1,865)

(4,618)

(6,089)

FINANCING ACTIVITIES:

Borrowings under the revolving credit facilities

583

1,649

2,711

5,652

Repayments under the revolving credit facilities

(1,553)

(1,469)

(3,951)

(4,051)

Commercial paper borrowings (repayments), net

576

(79)

643

611

Issuance of recourse debt

—

—

800

950

Repayments of recourse debt

(124)

—

(898)

—

Issuance of non-recourse debt

2,065

1,401

4,397

5,199

Repayments of non-recourse debt

(1,033)

(585)

(2,523)

(3,311)

Payments for financing fees

(52)

(13)

(101)

(88)

Purchases under supplier financing arrangements

670

503

1,237

1,211

Repayments of obligations under supplier financing arrangements

(246)

(357)

(1,108)

(1,412)

Distributions to noncontrolling interests

(185)

(37)

(523)

(165)

Acquisitions of noncontrolling interests

(143)

—

(143)

—

Contributions from noncontrolling interests

63

40

337

137

Sales to noncontrolling interests

151

546

1,289

869

Issuance of preferred shares in subsidiaries

76

—

528

—

Dividends paid on AES common stock

(126)

(123)

(376)

(361)

Payments for financed capital expenditures

(7)

(10)

(28)

(29)

Other financing

76

(38)

(38)

(25)

Net cash provided by financing activities

791

1,428

2,253

5,187

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(17)

(4)

(22)

(47)

(Increase) decrease in cash, cash equivalents and restricted cash of held-for-sale businesses

13

(133)

79

(146)

Total increase in cash, cash equivalents and restricted cash

348

411

510

569

Cash, cash equivalents and restricted cash, beginning

2,201

2,148

2,039

1,990

Cash, cash equivalents and restricted cash, ending

$                        2,549

$                        2,559

$                   2,549

$                   2,559

SUPPLEMENTAL DISCLOSURES:

Cash payments for interest, net of amounts capitalized

$                            261

$                            338

$                       859

$                   1,103

Cash payments for income taxes, net of refunds

58

61

192

270

SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

Noncash contributions from noncontrolling interests

$                            356

$                            188

$                       610

$                       213

Noncash distributions to noncontrolling interests

193

—

193

—

Noncash recognition of new operating and financing leases

77

60

155

240

Initial recognition of contingent consideration for acquisitions

8

—

19

14

Conversion of Corporate Units to shares of common stock

—

—

—

838

Liabilities derecognized upon completion of remaining performance obligation for sale of Warrior Run receivables

—

—

—

273

Three Months Ended September 30,

Nine Months Ended September 30,

Reconciliation of Adjusted EBITDA and Adjusted EBITDA with Tax Attributes
(in millions)

2025

2024

2025

2024

Net income

$                517

$                215

$                294

$                646

Income tax expense (benefit)

(226)

103

(42)

52

Interest expense

348

379

1,042

1,125

Interest income

(76)

(119)

(215)

(312)

Depreciation, amortization, and accretion of AROs

365

312

1,056

945

EBITDA

$                928

$                890

$             2,135

$             2,456

Less: Loss from disposal of discontinued businesses

37

7

37

7

Less: Adjustment for noncontrolling interests and redeemable stock of
subsidiaries ⁽¹⁾

(238)

(233)

(625)

(579)

Less: Income tax expense (benefit), interest expense (income) and
depreciation, amortization, and accretion of AROs from equity affiliates

39

31

120

93

Interest income recognized under service concession arrangements

15

16

44

49

Unrealized derivatives, equity securities, and financial assets and
liabilities losses (gains)

(20)

(47)

112

(185)

Unrealized foreign currency losses (gains)

2

7

(1)

10

Disposition/acquisition losses (gains)

5

(11)

172

8

Impairment losses

61

37

7

86

Loss on extinguishment of debt and troubled debt restructuring

1

1

13

51

Restructuring costs

—

—

88

—

Adjusted EBITDA⁽¹⁾

$                830

$                698

$             2,102

$             1,996

Tax attributes

426

476

988

895

Adjusted EBITDA with Tax Attributes ⁽²⁾

$             1,256

$             1,174

$             3,090

$             2,891

_______________________________

⁽¹⁾

The allocation of earnings and losses to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA. NCI also excludes amounts allocated to preferred shareholders during the construction phase before a project becomes operational, as this is akin to a financing arrangement.

⁽²⁾

Adjusted EBITDA with Tax Attributes includes the impact of the share of the ITCs, PTCs, and depreciation deductions allocated to tax equity investors under the HLBV accounting method and recognized as Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries on the Condensed Consolidated Statements of Operations. It also includes the tax benefit recorded from tax credits retained or transferred to third parties. The tax attributes are related to the Renewables and Utilities SBUs.

Reconciliation of Numerator Used for Adjusted EPS

Three months ended September 30,
2025

Nine months ended September 30,
2025

(in millions, except per share data)

Income

Shares

$ per Share

Income

Shares

$ per Share

GAAP DILUTED EARNINGS PER SHARE

Income from continuing operations available to The AES Corporation
common stockholders

$       671

712

$      0.94

$       612

712

$      0.86

Add back: Increase in redemption value of redeemable stock of
subsidiaries

5

—

0.01

15

—

0.02

NON-GAAP DILUTED EARNINGS PER SHARE BEFORE EFFECT
OF DILUTIVE SECURITIES

$       676

712

$      0.95

$       627

712

$      0.88

Restricted stock units

—

2

—

—

2

—

NON-GAAP DILUTED EARNINGS PER SHARE

$       676

714

$      0.95

$       627

714

$      0.88

Three Months
Ended
September 30,
2025

Three Months
Ended
September 30,
2024

Nine Months
Ended
September 30,
2025

Nine Months
Ended
September 30,
2024

Net of
NCI ⁽¹⁾

Per Share
(Diluted)
Net of NCI ⁽¹⁾

Net of
NCI ⁽¹⁾

Per Share
(Diluted)
Net of NCI ⁽¹⁾

Net of
NCI ⁽¹⁾

Per Share
(Diluted)
Net of NCI ⁽¹⁾

Net of
NCI ⁽¹⁾

Per Share
(Diluted)
Net of NCI ⁽¹⁾

(in millions, except per share amounts)

Income from continuing operations, net of tax,
attributable to AES and Diluted EPS

$  676

$   0.95

$  511

$   0.72

$  627

$   0.88

$          1,219

$   1.71

Add: Income tax expense (benefit) from continuing
operations attributable to AES

(253)

82

(109)

(4)

Pre-tax contribution

$  423

$  593

$  518

$          1,215

Adjustments

Unrealized derivatives, equity securities, and
financial assets and liabilities losses (gains)

$  (20)

$  (0.03)

(2)

$  (47)

$  (0.06)

(3)

$  108

$   0.16

(4)

$  (185)

$  (0.26)

(5)

Unrealized foreign currency losses (gains)

2

—

7

0.01

(1)

—

10

0.02

Disposition/acquisition losses (gains)

5

0.01

(11)

(0.02)

172

0.24

(6)

8

0.01

(7)

Impairment losses

61

0.09

(8)

37

0.05

(9)

7

0.01

(10)

86

0.12

(11)

Loss on extinguishment of debt and troubled debt
restructuring

4

0.01

3

—

20

0.03

57

0.08

(12)

Restructuring costs

—

—

—

—

88

0.12

(13)

—

—

Less: Net income tax expense (benefit)

(0.28)

(14)

0.01

0.09

(15)

(0.08)

(16)

Adjusted PTC and Adjusted EPS

$  475

$   0.75

$  582

$   0.71

$  912

$   1.53

$          1,191

$   1.60

_____________________________

⁽¹⁾

NCI is defined as Noncontrolling Interests.

⁽²⁾

Amount primarily relates to unrealized derivative gains on commodities at AES Clean Energy of $15 million, or $0.02 per share, and net unrealized derivative gains at the Energy Infrastructure SBU of $12 million, or $0.02 per share.

⁽³⁾

Amount primarily relates to net unrealized derivative gains at the Energy Infrastructure SBU of $50 million, or $0.07 per share, and unrealized gains on commodity derivatives at AES Clean Energy of $17 million, or $0.02 per share, partially offset by unrealized losses on foreign currency derivatives at Corporate of $17 million, or $0.02 per share.

⁽⁴⁾

Amount primarily relates to remeasurement of our investment in 5B of $48 million, or $0.07 per share, and net unrealized derivative losses at the Energy Infrastructure SBU of $34 million, or $0.05 per share.

⁽⁵⁾

Amount primarily relates to net unrealized derivative gains at the Energy Infrastructure SBU of $109 million, or $0.15 per share, unrealized gains on commodity derivatives at AES Clean Energy of $33 million, or $0.05 per share, unrealized gains on cross currency swaps in Brazil of $28 million, or $0.04 per share, and unrealized gains on foreign currency derivatives at Corporate of $20 million, or $0.03 per share.

⁽⁶⁾

Amount primarily relates to day-one losses on commencement of sales-type leases at AES Clean Energy Development of $153 million, or $0.21 per share, and AES Renewable Holdings of $11 million, or $0.02 per share, and losses on remeasurement of contingent consideration at AES Clean Energy of $15 million, or $0.02 per share, partially offset by gain on sale of Dominican Republic Renewables of $45 million, or $0.06 per share, and write-off of contingent consideration for a renewables development project at AES Andes of $10 million, or $0.01 per share.

⁽⁷⁾

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, and the loss on partial sale of our ownership interest in Amman East and IPP4 in Jordan of $10 million, or $0.01 per share, partially offset by a gain on dilution of ownership in Uplight due to its acquisition of AutoGrid of $52 million, or $0.07 per share.

⁽⁸⁾

Amount primarily relates to $32 million, or $0.05, at Uplight related to an impairment of the equity method investment and adjustments to the convertible notes and related embedded derivative feature included within convertible notes, and impairments at a renewables development project at AES Andes of $16 million, or $0.02 per share, and AES Clean Energy Development projects of $11 million, or $0.02 per share.

⁽⁹⁾

Amount primarily relates to impairment of AES Brasil of $26 million, or $0.04 per share, and impairment at Mong Duong of $6 million, or $0.01 per share.

⁽¹⁰⁾

Amount primarily relates to impairments at AES Clean Energy Development projects of $61 million, or $0.09 per share, $32 million, or $0.05, at Uplight related to an impairment of the equity method investment and adjustments to the convertible notes and related embedded derivative feature included within convertible notes, and impairments at a renewables development project at AES Andes of $16 million, or $0.02 per share, and Mong Duong of $9 million, or $0.01 per share, partially offset by 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.

⁽¹¹⁾

Amount primarily relates to impairment of AES Brasil of $38 million, or $0.05 per share, and impairment at Mong Duong of $28 million, or $0.04 per share.

⁽¹²⁾

Amount primarily relates to losses incurred at AES Andes due to early retirement of debt $29 million, or $0.04 per share, and costs incurred due to troubled debt restructuring at Puerto Rico of $20 million, or $0.03 per share.

⁽¹³⁾

Amount primarily relates to severance costs associated with the Company-wide restructuring program of $50 million, or $0.07 per share, and impairments at AES Clean Energy Development that were the result of the Company's restructuring program of $38 million, or $0.05 per share.

⁽¹⁴⁾

Amount primarily relates to income tax benefit associated with day-one losses on commencement of sales-type leases at AES Clean Energy Development of $78 million, or $0.11 per share, impairments at AES Clean Energy Development projects of $44 million, or $0.06 per share, severance costs related to the Company-wide restructuring program of $19 million, or $0.03 per share, remeasurement of our investment in 5B of $18 million, or $0.03 per share, and net unrealized derivative losses at Integrated Energy of $18 million, or $0.02 per share.

⁽¹⁵⁾

Amount primarily relates to income tax expense associated with the AES Ohio selldown of $13 million, or $0.02 per share, day-one losses on commencement of sales-type leases at AES Clean Energy Development of $17 million, or $0.02 per share, impairments at AES Clean Energy Development projects of $11 million, or $0.02 per share, remeasurement of our investment in 5B of $9 million, or $0.01 per share, and severance costs related to the Company-wide restructuring program of $4 million, or $0.01 per share.

⁽¹⁶⁾

Amount primarily relates to income tax benefits associated with the tax over book investment basis differences related to the AES Brasil held-for-sale classification of $59 million, or $0.08 per share.

The AES Corporation

Parent Financial Information

Parent only data: last four quarters

(in millions)

4 Quarters Ended

Total subsidiary distributions & returns of capital to Parent

September
30, 2025

June 30, 2025

March 31,
2025

December 31,
2024

Actual

Actual

Actual

Actual

Subsidiary distributions⁽¹⁾ to Parent & QHCs

$             1,925

$             1,706

$             1,447

$            1,603

Returns of capital distributions to Parent & QHCs

275

75

32

30

Total subsidiary distributions & returns of capital to Parent

$             2,200

$             1,781

$             1,479

$            1,633

Parent only data: quarterly

(in millions)

Quarter Ended

Total subsidiary distributions & returns of capital to Parent

September
30, 2025

June 30, 2025

March 31,
2025

December 31,
2024

Actual

Actual

Actual

Actual

Subsidiary distributions¹ to Parent & QHCs

$                423

$                557

$                230

$               715

Returns of capital distributions to Parent & QHCs

200

44

3

28

Total subsidiary distributions & returns of capital to Parent

$                623

$                601

$                233

$               743

(in millions)

Balance at

September
30, 2025

June 30, 2025

March 31,
2025

December 31,
2024

Parent Company Liquidity⁽²⁾

Actual

Actual

Actual

Actual

Cash at Parent & Cash at QHCs⁽³⁾

$                  31

$                    9

$                151

$               265

Availability under credit facilities

1,619

2,185

1,526

1,782

Ending liquidity

$             1,650

$             2,194

$             1,677

$            2,047

^{_____________________________}

⁽¹⁾

Subsidiary distributions received by Qualified Holding Companies ("QHCs") excluded from Schedule 1. Subsidiary Distributions should not be construed as an alternative to Consolidated Net Cash Provided by Operating Activities, which is determined in accordance with US GAAP. Subsidiary Distributions are important to the Parent Company because the Parent Company is a holding company that does not derive any significant direct revenues from its own activities but instead relies on its subsidiaries' business activities and the resultant distributions to fund the debt service, investment and other cash needs of the holding company. The reconciliation of the difference between the Subsidiary Distributions and Consolidated Net Cash Provided by Operating Activities consists of cash generated from operating activities that is retained at the subsidiaries for a variety of reasons which are both discretionary and non-discretionary in nature. These factors include, but are not limited to, retention of cash to fund capital expenditures at the subsidiary, cash retention associated with non-recourse debt covenant restrictions and related debt service requirements at the subsidiaries, retention of cash related to sufficiency of local GAAP statutory retained earnings at the subsidiaries, retention of cash for working capital needs at the subsidiaries, and other similar timing differences between when the cash is generated at the subsidiaries and when it reaches the Parent Company and related holding companies.

⁽²⁾

Parent Company Liquidity is defined as cash available to the Parent Company, including cash at qualified holding companies (QHCs), plus available borrowings under our existing credit facility. AES believes that unconsolidated Parent Company liquidity is important to the liquidity position of AES as a Parent Company because of the non-recourse nature of most of AES' indebtedness.

⁽³⁾

The cash held at QHCs represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries have no contractual restrictions on their ability to send cash to AES, the Parent Company. Cash at those subsidiaries was used for investment and related activities outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the US. Since the cash held by these QHCs is available to the Parent, AES uses the combined measure of subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs.