Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.com
• Year-to-date, signed or awarded new long-term PPAs for 2.2 GW of renewables, including 1.6 GW with data centers
• Filed settlements at both AES Indiana and AES Ohio related to outstanding rate reviews
◦ Net Income Attributable to The AES Corporation of $639 million, compared to $504 million in Q3 2024
◦ Adjusted EBITDA with Tax Attributes 1,2 of $1,256 million, compared to $1,174 million in Q3 2024
◦ Reaffirming annualized growth target of 5% to 7% through 2027, off a base of 2023 guidance
◦ Reaffirming expectation for 2025 Adjusted EBITDA with Tax Attributes 1,2 of $3,950 to $4,350 million
◦ Reaffirming annualized growth target of 7% to 9% through 2025, off a base of 2020 and 7% to 9% through 2027, off a base of 2023 guidance
The AES Corporation (NYSE: AES) today reported financial results for the quarter ended September 30, 2025.
"I am very pleased with our performance year-to-date, which has us on track to achieve all of our financial and strategic objectives. We currently have an 11.1 GW backlog of signed Power Purchase Agreements, including 4 GW with hyperscaler customers, and the large majority of which will come online within the next three years," said Andrés Gluski, AES President and Chief Executive Officer. "With a strong established domestic supply chain, a proven construction track record, and a pipeline of safe harbored projects, we have clear line of sight to continued profitable growth through the end of the decade."
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.
"We are reaffirming our 2025 guidance and long-term growth rate targets through 2027," said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer. "Adjusted EBITDA from our Renewables SBU is up nearly 50% year-to-date primarily as a result of the 3 GW we brought online since third quarter 2024. We are also on track with our $1.4 billion 2025 capex plan at our US utilities, which will deliver important upgrades to our customers."
Third quarter 2025 Net Income was $517 million, an increase of $302 million compared to third quarter 2024, primarily due to higher income tax benefit mainly driven by tax credit transfers, higher margins from new projects in the Renewables Strategic Business Unit (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.
Third quarter 2025 Adjusted EBITDA 4 (a non-GAAP financial measure) was $830 million, an increase of $132 million compared to third quarter 2024, 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 sell-down of AES Ohio.
Third quarter 2025 Adjusted EBITDA with Tax Attributes 4,5 (a non-GAAP financial measure) was $1,256 million, an increase of $82 million compared to third quarter 2024, due to the drivers above, partially offset by lower realized tax attributes driven by timing of tax attribute recognition.
Third quarter 2025 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.94, an increase of $0.22 compared to third quarter 2024, mainly driven by higher income tax benefit, higher contributions from new projects in the Renewables SBU, and higher retail margin at the Utilities SBU, partially offset by lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition and lower other income, and lower interest income.
Third quarter 2025 Adjusted Earnings Per Share 6 (Adjusted EPS, a non-GAAP financial measure) was $0.75, an increase of $0.04 compared to third quarter 2024, 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, partially offset by lower realized tax attributes at the Renewables SBU due to timing of tax attribute recognition.
• The Company's 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, the Company:
◦ Completed the construction of 2.9 GW of solar, energy storage and wind, and is on track to add a total of 3.2 GW to its operating portfolio by year-end 2025; and
◦ AES Ohio reached a unanimous settlement resolving its distribution rate review;
◦ AES Indiana reached a partial settlement agreement for its current rate review; and
The Company is reaffirming its 2025 guidance for Adjusted EBITDA 4 of $2,650 to $2,850 million. Growth in 2025 is expected to be driven by contributions from new renewables projects, rate base growth at the Company's US
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.
utilities, and normalized results in Colombia and Mexico, partially offset by revenues from the monetization of the Warrior Run coal plant PPA in 2024 and asset sales.
The Company is reaffirming its expectation for annualized growth in Adjusted EBITDA 7 of 5% to 7% through 2027, from a base of its 2023 guidance of $2,600 to $2,900 million.
The Company is reaffirming its expectation that 2025 Adjusted EBITDA with Tax Attributes 7,8 of $3,950 to $4,350 million.
The Company is reaffirming its 2025 Adjusted EPS 9 guidance of $2.10 to $2.26. Growth in 2025 is expected to be primarily driven by contributions from new renewables projects, rate base growth at the Company's US utilities, and normalized results in Colombia and Mexico, partially offset by revenues from the monetization of the Warrior Run coal plant PPA in 2024, asset sales, higher Parent interest, and a higher adjusted tax rate.
The Company is reaffirming its annualized growth target for Adjusted EPS 9 of 7% to 9% through 2025, from a base year of 2020. The Company is also reaffirming its annualized growth target for Adjusted EPS 8 of 7% to 9% through 2027, from a base of its 2023 guidance of $1.65 to $1.75.
The Company's 2025 guidance is based on foreign currency and commodity forward curves as of September 30, 2025.
The Company expects to maintain its current quarterly dividend payment of $0.17595 going forward.
See Non-GAAP Measures for definitions of Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, Tax Attributes, Adjusted Earnings Per Share, and Adjusted Pre- Tax Contribution, as well as reconciliations to the most comparable GAAP financial measures.
Condensed Consolidated Statements of Operations, Segment Information, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows, Non-GAAP Financial Measures and Parent Financial Information.
AES will host a conference call on Wednesday, November 5, 2025 at 10:00 a.m. Eastern Time (ET). Interested parties may listen to the teleconference by dialing 1-833-470-1428 at least ten minutes before the start of the call. International callers should dial +1-646-844-6383. The Participant Access Code for this call is 696298. Internet access to the conference call and presentation materials will be available on the AES website at www.aes.com by selecting “Investors” and then “Presentations and Webcasts.”
A webcast replay will be accessible at www.aes.com beginning shortly after the completion of the call.
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.
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.
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward- looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward- looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A: “Risk Factors” and Item 7: "Management’s Discussion & Analysis" in AES’ 2024 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.
Any Stockholder who desires a copy of the Company’s 2024 Annual Report on Form 10-K filed March 11, 2025 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company’s website at www.aes.com.
AES uses its website, including its quarterly updates, as channels of distribution of Company information. The information AES posts through these channels may be deemed material. Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website. The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release.
December 31, September 30, 2025 2024 ────────────────────────────────────────────────────────────────────────────── -in millions, except share and per share data ASSETS CURRENT ASSETS Cash and cash $ 1,758 $ 1,524 equivalents Restricted cash 689 437 Accounts receivable, net of allowance of 1,790 1,646 $43 and $52, respectively Inventory 607 593 Prepaid expenses 162 157 Other current assets, net of allowance 1,781 1,612 of $2 and $0, respectively Current held-for-sale 33 862 assets Total current 6,820 6,831 assets NONCURRENT ASSETS Property, plant and equipment, net of accumulated depreciation of 36,511 33,166 $9,579 and $8,701, respectively Investments in and advances to 1,030 1,124 affiliates Debt service reserves and other 102 78 deposits Goodwill 345 345 Other intangible assets, net of accumulated 2,016 1,947 amortization of $480 and $426, respectively Deferred income 404 365 taxes Loan receivable, net of allowance of $19 781 — and $0, respectively Other noncurrent assets, net of allowance of $23 2,774 2,917 and $20, respectively Noncurrent held-for-sale — 633 assets Total noncurrent 43,963 40,575 assets 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 297 249 taxes Supplier financing 1,046 917 arrangements Accrued and other 1,362 1,246 liabilities Recourse debt 1,442 899 Non-recourse debt 2,944 2,688 Current held-for-sale — 662 liabilities Total current 9,434 8,571 liabilities NONCURRENT LIABILITIES Recourse debt 4,804 4,805 Non-recourse debt 21,659 20,626 Deferred income 1,885 1,490 taxes Other noncurrent 2,471 2,881 liabilities Noncurrent held-for-sale — 391 liabilities Total noncurrent 30,819 30,193 liabilities Commitments and Contingencies Redeemable stock of 2,122 938 subsidiaries 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 9 9 September 30, 2025 and 859,709,987 issued and 711,074,269 outstanding at December 31, 2024) Additional paid-in 5,912 5,913 capital Retained earnings 555 293 Accumulated other -817 -766 comprehensive loss Treasury stock, at cost (147,715,595 and 148,635,718 shares -1,794 -1,805 at September 30, 2025 and December 31, 2024, respectively) Total AES Corporation 3,865 3,644 stockholders’ equity NONCONTROLLING 4,543 4,060 INTERESTS Total equity 8,408 7,704 TOTAL LIABILITIES, REDEEMABLE STOCK OF $ 50,783 $ 47,406 SUBSIDIARIES, AND EQUITY
RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS We define EBITDA as earnings before interest income and expense, taxes, depreciation, amortization, and accretion of AROs. We define Adjusted EBITDA as EBITDA adjusted for the impact of NCI and interest, taxes, depreciation, amortization, and accretion of AROs of our equity affiliates, adding back interest income recognized under service concession arrangements, and excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring, and (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts. We define Adjusted EBITDA with Tax Attributes as Adjusted EBITDA, adding back the pre-tax effect of Production Tax Credits ("PTCs"), Investment Tax Credits ("ITCs"), 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.
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 assets and liabilities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests, retire debt, or implement restructuring initiatives, and the variability of allocations of earnings to tax equity investors, which affect results in a given period or periods. In addition, each of these metrics represents the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes should not be construed as alternatives to net income, which is determined in accordance with GAAP.
Reconci… of Adjusted EBITDA and Adjusted EBITDA Three Nine with Tax Months Months Attribu… Ended Ended (in September September million… 2025 30, 2024 2025 30, 2024 ────────────────────────────────────────────────────────────────────────────── Net $ 517 $ 215 $ 294 $ 646 income Income tax -226 103 -42 52 expense (benefi… Interest 348 379 1,042 1,125 expense Interest -76 -119 -215 -312 income Depreci… amortiz… and 365 312 1,056 945 accreti… of AROs EBITDA $ 928 $ 890 $ 2,135 $ 2,456 Less: Loss from disposal 37 7 37 7 of discont… busines… Less: Adjustm… for noncont… interes… -238 -233 -625 -579 and redeema… stock of subsidi… Less: Income tax expense (benefi… interest expense (income) and 39 31 120 93 depreci… amortiz… and accreti… of AROs from equity affilia… Interest income recogni… under 15 16 44 49 service concess… arrange… Unreali… derivat… equity securit… and financi… -20 -47 112 -185 assets and liabili… losses (gains) Unreali… foreign currency 2 7 -1 10 losses (gains) Disposi… losses 5 -11 172 8 (gains) Impairm… 61 37 7 86 losses Loss on extingu… of debt and 1 1 13 51 troubled debt restruc… Restruc… — — 88 — costs Adjusted $ 830 $ 698 $ 2,102 $ 1,996 EBITDA(… Tax 426 476 988 895 attribu… Adjusted EBITDA $ 1,256 $ 1,174 $ 3,090 $ 2,891 with Tax Attribu…
(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 ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS We define Adjusted PTC as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits, and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring; and (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities.
We define Adjusted EPS as diluted earnings per share from continuing operations excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring; and (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts.
The GAAP measure most comparable to Adjusted PTC is income from continuing operations attributable to AES. The GAAP measure most comparable to Adjusted EPS is diluted earnings per share from continuing operations. We believe that Adjusted PTC and Adjusted EPS better reflect the underlying business performance of the Company and are considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses pertaining to derivative transactions, equity securities, or financial assets and liabilities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, and strategic decisions to dispose of or acquire business interests, retire debt, or implement restructuring initiatives, which affect results in a given period or periods. In addition, for Adjusted PTC, earnings before tax represents the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Adjusted PTC and Adjusted EPS should not be construed as alternatives to income from continuing operations attributable to AES and diluted earnings per share from continuing operations, which are determined in accordance with GAAP.
The Company reported diluted earnings per share of $0.94 and $0.86 for the three and nine months ended September 30, 2025, respectively. For purposes of measuring earnings per share under U.S. GAAP, income available to AES common stockholders is reduced by increases in the carrying amount of redeemable stock of subsidiaries to redemption value and increased by decreases in the carrying amount to the extent they represent recoveries of amounts previously reflected in the computation of earnings per share. While the adjustments for the three and nine months ended September 30, 2025 decreased earnings per share, neither adjustment impacted Net income on the Condensed Consolidated Statement of Operations. For purposes of computing Adjusted EPS, the Company excluded the adjustment to redemption value from the numerator. The table below reconciles the income available to AES common stockholders used in GAAP diluted earnings per share to the income from continuing operations used in calculating the non- GAAP measure of Adjusted EPS.
(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 the convertible notes, 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 the convertible notes, 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.
(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.
Full text with the tables
Press Release
Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.com
Media Contact: Amy Ackerman 703-682-6399, amy.ackerman@aes.com
AES Reports Third Quarter 2025 Results
Reaffirms 2025 Guidance and Long-Term Growth Rate Targets
Strategic
Accomplishments
• On track to add 3.2 GW of new projects in operation in 2025
◦ 2.9 GW completed year-to-date
• Year-to-date, signed or awarded new long-term PPAs for 2.2 GW of renewables,
including 1.6 GW with data centers
◦ On track to sign a total of 14-17 GW for 2023 through 2025
• PPA backlog of 11.1 GW, including 5 GW under construction
• Filed settlements at both AES Indiana and AES Ohio related to outstanding rate
reviews
• Filed a 20-year Integrated Resource Plan (IRP) at AES Indiana
Q3 2025 Financial Highlights
• GAAP Financial Metrics
◦ Net Income of $517 million, compared to $215 million in Q3 2024
◦ Net Income Attributable to The AES Corporation of $639 million, compared to
$504 million in Q3 2024
◦ Diluted EPS of $0.94, compared to $0.72 in Q3 2024
• Non-GAAP Adjusted Financial Metrics
◦ Adjusted EBITDA 1 of $830 million, compared to $698 million in Q3 2024
◦ Adjusted EBITDA with Tax Attributes 1,2 of $1,256 million, compared to $1,174
million in Q3 2024
◦ Adjusted EPS 3 of $0.75, compared to $0.71 in Q3 2024
Financial Position and Outlook
• Reaffirming 2025 guidance for Adjusted EBITDA 1 of $2,650 to $2,850 million
◦ Reaffirming annualized growth target of 5% to 7% through 2027, off a base of
2023 guidance
◦ Reaffirming expectation for 2025 Adjusted EBITDA with Tax Attributes 1,2 of
$3,950 to $4,350 million
• Reaffirming 2025 guidance for Adjusted EPS 3 of $2.10 to $2.26
◦ Reaffirming annualized growth target of 7% to 9% through 2025, off a base of
2020 and 7% to 9% through 2027, off a base of 2023 guidance
ARLINGTON, Va., November 4, 2025 –
The AES Corporation (NYSE: AES) today reported financial results for the quarter
ended September 30, 2025.
"I am very pleased with our performance year-to-date, which has us on track to
achieve all of our financial and strategic objectives. We currently have an 11.1
GW backlog of signed Power Purchase Agreements, including 4 GW with hyperscaler
customers, and the large majority of which will come online within the next
three years," said Andrés Gluski, AES President and Chief Executive Officer.
"With a strong established domestic supply chain, a proven construction track
record, and a pipeline of safe harbored projects, we have clear line of sight to
continued profitable growth through the end of the decade."
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.
"We are reaffirming our 2025 guidance and long-term growth rate targets through
2027," said Stephen Coughlin, AES Executive Vice President and Chief Financial
Officer. "Adjusted EBITDA from our Renewables SBU is up nearly 50% year-to-date
primarily as a result of the 3 GW we brought online since third quarter 2024. We
are also on track with our $1.4 billion 2025 capex plan at our US utilities,
which will deliver important upgrades to our customers."
Q3 2025 Financial Results
Third quarter 2025 Net Income was $517 million, an increase of $302 million
compared to third quarter 2024, primarily due to higher income tax benefit
mainly driven by tax credit transfers, higher margins from new projects in the
Renewables Strategic Business Unit (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.
Third quarter 2025 Adjusted EBITDA 4 (a non-GAAP financial measure) was $830
million, an increase of $132 million compared to third quarter 2024, 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
sell-down of AES Ohio.
Third quarter 2025 Adjusted EBITDA with Tax Attributes 4,5 (a non-GAAP financial
measure) was $1,256 million, an increase of $82 million compared to third
quarter 2024, due to the drivers above, partially offset by lower realized tax
attributes driven by timing of tax attribute recognition.
Third quarter 2025 Diluted Earnings Per Share from Continuing Operations
(Diluted EPS) was $0.94, an increase of $0.22 compared to third quarter 2024,
mainly driven by higher income tax benefit, higher contributions from new
projects in the Renewables SBU, and higher retail margin at the Utilities SBU,
partially offset by lower realized tax attributes at the Renewables SBU due to
timing of tax attribute recognition and lower other income, and lower interest
income.
Third quarter 2025 Adjusted Earnings Per Share 6 (Adjusted EPS, a non-GAAP
financial measure) was $0.75, an increase of $0.04 compared to third quarter
2024, 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, partially offset by lower realized tax
attributes at the Renewables SBU due to timing of tax attribute recognition.
Strategic Accomplishments
• The Company's 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, the Company:
◦ Completed the construction of 2.9 GW of solar, energy storage and wind, and is
on track to add a total of 3.2 GW to its operating portfolio by year-end 2025;
and
◦ Signed or was awarded new long-term PPAs for 2.2 GW of renewables.
• The Company's US utilities made progress toward securing future growth:
◦ AES Ohio reached a unanimous settlement resolving its distribution rate
review;
◦ AES Indiana reached a partial settlement agreement for its current rate
review; and
◦ AES Indiana filed a 20-year IRP.
Guidance and Expectations
4,6
The Company is reaffirming its 2025 guidance for Adjusted EBITDA 4 of $2,650 to
$2,850 million. Growth in 2025 is expected to be driven by contributions from
new renewables projects, rate base growth at the Company's US
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.
utilities, and normalized results in Colombia and Mexico, partially offset by
revenues from the monetization of the Warrior Run coal plant PPA in 2024 and
asset sales.
The Company is reaffirming its expectation for annualized growth in Adjusted
EBITDA 7 of 5% to 7% through 2027, from a base of its 2023 guidance of $2,600 to
$2,900 million.
The Company is reaffirming its expectation that 2025 Adjusted EBITDA with Tax
Attributes 7,8 of $3,950 to $4,350 million.
The Company is reaffirming its 2025 Adjusted EPS 9 guidance of $2.10 to $2.26.
Growth in 2025 is expected to be primarily driven by contributions from new
renewables projects, rate base growth at the Company's US utilities, and
normalized results in Colombia and Mexico, partially offset by revenues from the
monetization of the Warrior Run coal plant PPA in 2024, asset sales, higher
Parent interest, and a higher adjusted tax rate.
The Company is reaffirming its annualized growth target for Adjusted EPS 9 of 7%
to 9% through 2025, from a base year of 2020. The Company is also reaffirming
its annualized growth target for Adjusted EPS 8 of 7% to 9% through 2027, from a
base of its 2023 guidance of $1.65 to $1.75.
The Company's 2025 guidance is based on foreign currency and commodity forward
curves as of September 30, 2025.
The Company expects to maintain its current quarterly dividend payment of
$0.17595 going forward.
Non-GAAP Financial Measures
See Non-GAAP Measures for definitions of Adjusted EBITDA, Adjusted EBITDA with
Tax Attributes, Tax Attributes, Adjusted Earnings Per Share, and Adjusted Pre-
Tax Contribution, as well as reconciliations to the most comparable GAAP
financial measures.
Attachments
Condensed Consolidated Statements of Operations, Segment Information, Condensed
Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows,
Non-GAAP Financial Measures and Parent Financial Information.
Conference Call Information
AES will host a conference call on Wednesday, November 5, 2025 at 10:00 a.m.
Eastern Time (ET). Interested parties may listen to the teleconference by
dialing 1-833-470-1428 at least ten minutes before the start of the call.
International callers should dial +1-646-844-6383. The Participant Access Code
for this call is 696298. Internet access to the conference call and presentation
materials will be available on the AES website at www.aes.com by selecting
“Investors” and then “Presentations and Webcasts.”
A webcast replay will be accessible at www.aes.com beginning shortly after the
completion of the call.
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company
accelerating the future of energy. Together with our many stakeholders, we're
improving lives by delivering the greener, smarter energy solutions the world
needs. Our diverse workforce is committed to continuous innovation and
operational excellence, while partnering with our customers on their strategic
energy transitions and continuing to meet their energy needs today. For more
information, visit www.aes.com.
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.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the
Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-
looking statements include, but are not limited to, those related to future
earnings, growth and financial and operating performance. Forward-looking
statements are not intended to be a guarantee of future results, but instead
constitute AES’ current expectations based on reasonable assumptions. Forecasted
financial information is based on certain material assumptions. These
assumptions include, but are not limited to, our expectations regarding accurate
projections of future interest rates, commodity price and foreign currency
pricing, continued normal levels of operating performance and electricity volume
at our distribution companies and operational performance at our generation
businesses consistent with historical levels, as well as the execution of PPAs,
conversion of our backlog and growth investments at normalized investment
levels, and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward-
looking statements due to risks, uncertainties and other factors. Important
factors that could affect actual results are discussed in AES’ filings with the
Securities and Exchange Commission (the “SEC”), including, but not limited to,
the risks discussed under Item 1A: “Risk Factors” and Item 7: "Management’s
Discussion & Analysis" in AES’ 2024 Annual Report on Form 10-K and in subsequent
reports filed with the SEC. Readers are encouraged to read AES’ filings to learn
more about the risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except where required by
law.
Any Stockholder who desires a copy of the Company’s 2024 Annual Report on Form
10-K filed March 11, 2025 with the SEC may obtain a copy (excluding the exhibits
thereto) without charge by addressing a request to the Office of the Corporate
Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia
22203. Exhibits also may be requested, but a charge equal to the reproduction
cost thereof will be made. A copy of the Annual Report on Form 10-K may be
obtained by visiting the Company’s website at www.aes.com.
Website Disclosure
AES uses its website, including its quarterly updates, as channels of
distribution of Company information. The information AES posts through these
channels may be deemed material. Accordingly, investors should monitor our
website, in addition to following AES' press releases, quarterly SEC filings and
public conference calls and webcasts. In addition, you may automatically receive
e-mail alerts and other information about AES when you enroll your e-mail
address by visiting the "Subscribe to Alerts" page of AES' Investors website.
The contents of AES' website, including its quarterly updates, are not, however,
incorporated by reference into this release.
THE AES CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
Three
Mont…
Ended
Sept…
30,
2025
(in
mill…
exce…
share Nine
and Mont…
per Ended
share Sept…
Rev… amou… 2024 30, 2025 2024
──────────────────────────────────────────────────────────────────────────────
Non… $ 2,269 $ 2,352 $ 6,132 $ 6,654
Reg… 1,082 937 3,000 2,662
Tot… 3,351 3,289 9,132 9,316
rev…
Cost
of
Sal…
Non… -1,7… -1,794 -4,998 -5,1…
Reg… -886 -773 -2,505 -2,2…
Tot…
cost -2,6… -2,567 -7,503 -7,4…
of
sal…
Ope… 735 722 1,629 1,894
mar…
Gen…
and -46 -57 -172 -198
adm…
exp…
Int… -348 -379 -1,042 -1,1…
exp…
Int… 76 119 215 312
inc…
Loss
on
ext… -2 -1 -15 -11
of
debt
Oth… -26 -31 -373 -153
exp…
Oth… 19 64 57 120
inc…
Gain
(lo…
on
dis…
and 1 -1 70 43
sale
of
bus…
int…
Ass…
imp… -31 -74 74 -158
rev…
(ex…
For…
cur…
tra… -19 -28 -57 2
gai…
(lo…
Oth…
non… -32 — -42 —
exp…
INC…
FROM
CON…
OPE…
BEF…
TAX… 327 334 344 726
AND
EQU…
IN
EAR…
OF
AFF…
Inc…
tax 226 -103 42 -52
ben…
(ex…
Net
equ…
in
ear… 1 -9 -55 -21
(lo…
of
aff…
INC…
FROM 554 222 331 653
CON…
OPE…
Loss
from
dis…
of
dis…
bus…
net
of
inc… -37 -7 -37 -7
tax
exp…
of
$0,
$7,
$0,
and
$7,
res…
NET 517 215 294 646
INC…
Les…
Net
loss
att…
to
non… 122 289 296 566
int…
and
red…
sto…
of
sub…
NET
INC…
ATT…
TO $ 639 $ 504 $ 590 $ 1,212
THE
AES
COR…
Inc…
in
red…
val…
of -5 — -15 —
red…
sto…
of
sub…
NET
INC…
AVA…
TO
THE $ 634 $ 504 $ 575 $ 1,212
AES
COR…
COM…
STO…
AMO…
AVA…
TO
THE
AES
COR…
COM…
STO…
Inc…
from
con…
ope…
ava…
to $ 671 $ 511 $ 612 $ 1,219
The
AES
Cor…
com…
sto…
Loss
from
dis…
ope…
ava…
to -37 -7 -37 -7
The
AES
Cor…
com…
sto…
NET
INC…
AVA…
TO
THE $ 634 $ 504 $ 575 $ 1,212
AES
COR…
COM…
STO…
BAS…
EAR…
PER
SHA…
Inc…
from
con…
ope…
ava…
to $ 0.94 $ 0.72 $ 0.86 $ 1.73
The
AES
Cor…
com…
sto…
Loss
from
dis…
ope…
ava…
to -0.05 -0.01 -0.05 -0.01
The
AES
Cor…
com…
sto…
NET
INC…
AVA…
TO
THE $ 0.89 $ 0.71 $ 0.81 $ 1.72
AES
COR…
COM…
STO…
DIL…
EAR…
PER
SHA…
Inc…
from
con…
ope…
ava…
to $ 0.94 $ 0.72 $ 0.86 $ 1.71
The
AES
Cor…
com…
sto…
Loss
from
dis…
ope…
ava…
to -0.05 -0.01 -0.05 -0.01
The
AES
Cor…
com…
sto…
NET
INC…
AVA…
TO
THE $ 0.89 $ 0.71 $ 0.81 $ 1.70
AES
COR…
COM…
STO…
DIL…
SHA… 714 713 714 713
OUT…
THE AES
CORPOR…
Strate…
Busine…
Unit
(SBU) Three Nine
Inform… Months Months
(Unaud… Ended Ended
(in September Septemb…
millio… 30, 30,
REVENUE 2025 2024 2025 2024
──────────────────────────────────────────────────────────────────────────────
Renewa… $ 817 $ 754 $ 2,127 $ 2,016
SBU
Utilit… 1,105 961 3,068 2,730
SBU
Energy
Infras… 1,483 1,614 4,109 4,685
SBU
New
Energy — 1 — 1
Techno…
SBU
Corpor…
and 32 33 111 106
Other
Elimin… -86 -74 -283 -222
Total $ 3,351 $ 3,289 $ 9,132 $ 9,316
Revenue
THE AES CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
December 31,
September 30, 2025 2024
──────────────────────────────────────────────────────────────────────────────
-in millions, except
share
and per share data
ASSETS
CURRENT ASSETS
Cash and cash $ 1,758 $ 1,524
equivalents
Restricted cash 689 437
Accounts
receivable, net of
allowance of 1,790 1,646
$43 and $52,
respectively
Inventory 607 593
Prepaid expenses 162 157
Other current
assets, net of
allowance 1,781 1,612
of $2 and $0,
respectively
Current
held-for-sale 33 862
assets
Total current 6,820 6,831
assets
NONCURRENT ASSETS
Property, plant and
equipment, net of
accumulated
depreciation of 36,511 33,166
$9,579 and
$8,701,
respectively
Investments in and
advances to 1,030 1,124
affiliates
Debt service
reserves and other 102 78
deposits
Goodwill 345 345
Other intangible
assets, net of
accumulated 2,016 1,947
amortization of
$480 and
$426, respectively
Deferred income 404 365
taxes
Loan receivable,
net of allowance of
$19 781 —
and $0,
respectively
Other noncurrent
assets, net of
allowance of $23 2,774 2,917
and $20,
respectively
Noncurrent
held-for-sale — 633
assets
Total noncurrent 43,963 40,575
assets
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 297 249
taxes
Supplier financing 1,046 917
arrangements
Accrued and other 1,362 1,246
liabilities
Recourse debt 1,442 899
Non-recourse debt 2,944 2,688
Current
held-for-sale — 662
liabilities
Total current 9,434 8,571
liabilities
NONCURRENT
LIABILITIES
Recourse debt 4,804 4,805
Non-recourse debt 21,659 20,626
Deferred income 1,885 1,490
taxes
Other noncurrent 2,471 2,881
liabilities
Noncurrent
held-for-sale — 391
liabilities
Total noncurrent 30,819 30,193
liabilities
Commitments and
Contingencies
Redeemable stock of 2,122 938
subsidiaries
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 9 9
September 30, 2025
and
859,709,987 issued
and 711,074,269
outstanding at
December 31, 2024)
Additional paid-in 5,912 5,913
capital
Retained earnings 555 293
Accumulated other -817 -766
comprehensive loss
Treasury stock, at
cost (147,715,595
and
148,635,718 shares -1,794 -1,805
at September 30,
2025
and December 31,
2024, respectively)
Total AES
Corporation 3,865 3,644
stockholders’
equity
NONCONTROLLING 4,543 4,060
INTERESTS
Total equity 8,408 7,704
TOTAL LIABILITIES,
REDEEMABLE STOCK OF $ 50,783 $ 47,406
SUBSIDIARIES, AND
EQUITY
THE AES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Nine
Months Months
Ended Ended
Septem… Septem…
30, 30,
2025 2025
OPERA… (in (in
ACTIV… millio… 2024 millio… 2024
──────────────────────────────────────────────────────────────────────────────
Net $ 517 $ 215 $ 294 $ 646
income
Adjus…
to net
incom…
Depre…
amort…
and 365 312 1,056 945
accre…
of
AROs
Emiss…
allow… 63 73 241 144
expen…
Loss
(gain)
on -22 -57 49 -194
reali…
deriv…
Loss
on
comme… 13 — 221 67
of
sales…
leases
Gain
on
dispo…
and -1 1 -70 -43
sale
of
busin…
inter…
Impai…
expen… 63 74 -32 158
(reve…
Loss
on
reali… 11 14 35 92
forei…
curre…
Defer…
income
tax
expen…
(bene…
net of 253 165 402 423
tax
credit
trans…
alloc…
to
AES
Tax
credit
trans…
alloc… 356 152 568 178
to
nonco…
inter…
Other 48 27 268 -183
Chang…
in
opera…
assets
and
liabi…
(Incr…
decre…
in -42 -337 -16 -576
accou…
recei…
(Incr…
decre… 39 27 10 58
in
inven…
(Incr…
decre…
in
prepa…
expen… -222 -13 -24 120
and
other
curre…
assets
(Incr…
decre…
in -12 130 63 177
other
assets
Incre…
(decr…
in
accou…
payab… 263 194 147 34
and
other
curre…
liabi…
Incre…
(decr…
in
income
tax
payab… -402 -50 -484 -514
net
and
other
tax
payab…
Incre…
(decr…
in 7 58 90 132
other
liabi…
Net
cash
provi… 1,297 985 2,818 1,664
by
opera…
activ…
INVES…
ACTIV…
Capit… -1,808 -1,832 -4,394 -5,665
expen…
Acqui…
of
busin…
inter…
net
of 8 -6 -104 -79
cash
and
restr…
cash
acqui…
Proce…
from
the
sale
of
busin…
inter… 100 — 105 11
net of
cash
and
restr…
cash
sold
Sale
of 18 197 70 731
short…
inves…
Purch…
of -21 -121 -57 -725
short…
inves…
Contr…
and
loans -1 -21 -2 -71
to
equity
affil…
Purch…
of -26 -66 -260 -157
emiss…
allow…
Other -6 -16 24 -134
inves…
Net
cash
used -1,736 -1,865 -4,618 -6,089
in
inves…
activ…
FINAN…
ACTIV…
Borro…
under
the 583 1,649 2,711 5,652
revol…
credit
facil…
Repay…
under
the -1,553 -1,469 -3,951 -4,051
revol…
credit
facil…
Comme…
paper
borro… 576 -79 643 611
(repa…
net
Issua…
of — — 800 950
recou…
debt
Repay…
of -124 — -898 —
recou…
debt
Issua…
of 2,065 1,401 4,397 5,199
non-r…
debt
Repay…
of -1,033 -585 -2,523 -3,311
non-r…
debt
Payme…
for -52 -13 -101 -88
finan…
fees
Purch…
under
suppl… 670 503 1,237 1,211
finan…
arran…
Repay…
of
oblig…
under -246 -357 -1,108 -1,412
suppl…
finan…
arran…
Distr…
to -185 -37 -523 -165
nonco…
inter…
Acqui…
of -143 — -143 —
nonco…
inter…
Contr…
from 63 40 337 137
nonco…
inter…
Sales
to 151 546 1,289 869
nonco…
inter…
Issua…
of
prefe… 76 — 528 —
shares
in
subsi…
Divid…
paid
on AES -126 -123 -376 -361
common
stock
Payme…
for
finan… -7 -10 -28 -29
capit…
expen…
Other 76 -38 -38 -25
finan…
Net
cash
provi… 791 1,428 2,253 5,187
by
finan…
activ…
Effect
of
excha…
rate
chang…
on -17 -4 -22 -47
cash,
cash
equiv…
and
restr…
cash
(Incr…
decre…
in
cash,
cash
equiv… 13 -133 79 -146
and
restr…
cash
of
held-…
busin…
Total
incre…
in
cash,
cash 348 411 510 569
equiv…
and
restr…
cash
Cash,
cash
equiv…
and 2,201 2,148 2,039 1,990
restr…
cash,
begin…
Cash,
cash
equiv…
and $ 2,549 $ 2,559 $ 2,549 $ 2,559
restr…
cash,
ending
SUPPL…
DISCL…
Cash
payme…
for
inter… $ 261 $ 338 $ 859 $ 1,103
net of
amoun…
capit…
Cash
payme…
for
income 58 61 192 270
taxes,
net of
refun…
SCHED…
OF
NONCA…
INVES…
AND
FINAN…
ACTIV…
Nonca…
contr…
from $ 356 $ 188 $ 610 $ 213
nonco…
inter…
Nonca…
distr…
to 193 — 193 —
nonco…
inter…
Nonca…
recog…
of new
opera… 77 60 155 240
and
finan…
leases
Initi…
recog…
of
conti… 8 — 19 14
consi…
for
acqui…
Conve…
of
Corpo…
Units
to — — — 838
shares
of
common
stock
Liabi…
derec…
upon
compl…
of
remai…
perfo… — — — 273
oblig…
for
sale
of
Warri…
Run
recei…
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS
We define EBITDA as earnings before interest income and expense, taxes,
depreciation, amortization, and accretion of AROs. We define Adjusted EBITDA as
EBITDA adjusted for the impact of NCI and interest, taxes, depreciation,
amortization, and accretion of AROs of our equity affiliates, adding back
interest income recognized under service concession arrangements, and excluding
gains or losses of both consolidated entities and entities accounted for under
the equity method due to (a) unrealized gains or losses pertaining to derivative
transactions, equity securities, and financial assets and liabilities measured
using the fair value option; (b) unrealized foreign currency gains or losses;
(c) gains, losses, benefits and costs associated with dispositions and
acquisitions of business interests, including early plant closures, and gains
and losses recognized at commencement of sales-type leases; (d) losses due to
impairments; (e) gains, losses, and costs due to the early retirement of debt or
troubled debt restructuring, and (f) costs directly associated with a major
restructuring program, including, but not limited to, workforce reduction
efforts. We define Adjusted EBITDA with Tax Attributes as Adjusted EBITDA,
adding back the pre-tax effect of Production Tax Credits ("PTCs"), Investment
Tax Credits ("ITCs"), 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.
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 assets and liabilities remeasurement, unrealized
foreign currency gains or losses, losses due to impairments, strategic decisions
to dispose of or acquire business interests, retire debt, or implement
restructuring initiatives, and the variability of allocations of earnings to tax
equity investors, which affect results in a given period or periods. In
addition, each of these metrics represents the business performance of the
Company before the application of statutory income tax rates and tax
adjustments, including the effects of tax planning, corresponding to the various
jurisdictions in which the Company operates. EBITDA, Adjusted EBITDA, and
Adjusted EBITDA with Tax Attributes should not be construed as alternatives to
net income, which is determined in accordance with GAAP.
Reconci…
of
Adjusted
EBITDA
and
Adjusted
EBITDA Three Nine
with Tax Months Months
Attribu… Ended Ended
(in September September
million… 2025 30, 2024 2025 30, 2024
──────────────────────────────────────────────────────────────────────────────
Net $ 517 $ 215 $ 294 $ 646
income
Income
tax -226 103 -42 52
expense
(benefi…
Interest 348 379 1,042 1,125
expense
Interest -76 -119 -215 -312
income
Depreci…
amortiz…
and 365 312 1,056 945
accreti…
of AROs
EBITDA $ 928 $ 890 $ 2,135 $ 2,456
Less:
Loss
from
disposal 37 7 37 7
of
discont…
busines…
Less:
Adjustm…
for
noncont…
interes… -238 -233 -625 -579
and
redeema…
stock of
subsidi…
Less:
Income
tax
expense
(benefi…
interest
expense
(income)
and 39 31 120 93
depreci…
amortiz…
and
accreti…
of AROs
from
equity
affilia…
Interest
income
recogni…
under 15 16 44 49
service
concess…
arrange…
Unreali…
derivat…
equity
securit…
and
financi… -20 -47 112 -185
assets
and
liabili…
losses
(gains)
Unreali…
foreign
currency 2 7 -1 10
losses
(gains)
Disposi…
losses 5 -11 172 8
(gains)
Impairm… 61 37 7 86
losses
Loss on
extingu…
of debt
and 1 1 13 51
troubled
debt
restruc…
Restruc… — — 88 —
costs
Adjusted $ 830 $ 698 $ 2,102 $ 1,996
EBITDA(…
Tax 426 476 988 895
attribu…
Adjusted
EBITDA $ 1,256 $ 1,174 $ 3,090 $ 2,891
with Tax
Attribu…
_______________________________
(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.
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS
We define Adjusted PTC as pre-tax income from continuing operations attributable
to The AES Corporation excluding gains or losses of the consolidated entity due
to (a) unrealized gains or losses pertaining to derivative transactions, equity
securities, and financial assets and liabilities measured using the fair value
option; (b) unrealized foreign currency gains or losses; (c) gains, losses,
benefits, and costs associated with dispositions and acquisitions of business
interests, including early plant closures, and gains and losses recognized at
commencement of sales-type leases; (d) losses due to impairments; (e) gains,
losses, and costs due to the early retirement of debt or troubled debt
restructuring; and (f) costs directly associated with a major restructuring
program, including, but not limited to, workforce reduction efforts. Adjusted
PTC also includes net equity in earnings of affiliates on an after-tax basis
adjusted for the same gains or losses excluded from consolidated entities.
We define Adjusted EPS as diluted earnings per share from continuing operations
excluding gains or losses of both consolidated entities and entities accounted
for under the equity method due to (a) unrealized gains or losses pertaining to
derivative transactions, equity securities, and financial assets and liabilities
measured using the fair value option; (b) unrealized foreign currency gains or
losses; (c) gains, losses, benefits and costs associated with dispositions and
acquisitions of business interests, including early plant closures, and the tax
impact from the repatriation of sales proceeds, and gains and losses recognized
at commencement of sales-type leases; (d) losses due to impairments; (e) gains,
losses, and costs due to the early retirement of debt or troubled debt
restructuring; and (f) costs directly associated with a major restructuring
program, including, but not limited to, workforce reduction efforts.
The GAAP measure most comparable to Adjusted PTC is income from continuing
operations attributable to AES. The GAAP measure most comparable to Adjusted EPS
is diluted earnings per share from continuing operations. We believe that
Adjusted PTC and Adjusted EPS better reflect the underlying business performance
of the Company and are considered in the Company’s internal evaluation of
financial performance. Factors in this determination include the variability due
to unrealized gains or losses pertaining to derivative transactions, equity
securities, or financial assets and liabilities remeasurement, unrealized
foreign currency gains or losses, losses due to impairments, and strategic
decisions to dispose of or acquire business interests, retire debt, or implement
restructuring initiatives, which affect results in a given period or periods. In
addition, for Adjusted PTC, earnings before tax represents the business
performance of the Company before the application of statutory income tax rates
and tax adjustments, including the effects of tax planning, corresponding to the
various jurisdictions in which the Company operates. Adjusted PTC and Adjusted
EPS should not be construed as alternatives to income from continuing operations
attributable to AES and diluted earnings per share from continuing operations,
which are determined in accordance with GAAP.
The Company reported diluted earnings per share of $0.94 and $0.86 for the three
and nine months ended September 30, 2025, respectively. For purposes of
measuring earnings per share under U.S. GAAP, income available to AES common
stockholders is reduced by increases in the carrying amount of redeemable stock
of subsidiaries to redemption value and increased by decreases in the carrying
amount to the extent they represent recoveries of amounts previously reflected
in the computation of earnings per share. While the adjustments for the three
and nine months ended September 30, 2025 decreased earnings per share, neither
adjustment impacted Net income on the Condensed Consolidated Statement of
Operations. For purposes of computing Adjusted EPS, the Company excluded the
adjustment to redemption value from the numerator. The table below reconciles
the income available to AES common stockholders used in GAAP diluted earnings
per share to the income from continuing operations used in calculating the non-
GAAP measure of Adjusted EPS.
Re…
of Th… Ni…
Nu… mo… mo…
Us… en… en…
for Se… Se…
Ad… 30, 30,
EPS 20… 20…
──────────────────────────────────────────────────────────────────────────────
(…
m… $ $
e… In… Sh… per In… Sh… per
p… Sh… Sh…
s…
d…
G…
D…
E…
P…
S…
I…
f…
c…
o…
a…
to $ 671 712 $ 0.… $ 612 712 $ 0…
T…
A…
C…
c…
s…
A…
b…
I…
in
r…
v… 5 — 0.… 15 — 0…
of
r…
s…
of
s…
N…
D…
E…
P…
S… $ 676 712 $ 0.… $ 627 712 $ 0…
B…
E…
OF
D…
S…
R…
s… — 2 — — 2 —
u…
N…
D…
E… $ 676 714 $ 0.… $ 627 714 $ 0…
P…
S…
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS
… …
… …
… …
… …
… …
… …
──────────────────────────────────────────────────────────────────────────────
…
… … …
… … …
… … …
…
…
… … $ … $ $
…
… $ $
… … … $ … $ $ …
7 … —
… … … …
… … … … …
3 — … …
— — …
… … … …
… … $ … $ $
_____________________________
(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 the convertible
notes, 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 the
convertible notes, 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
Corpo…
Parent
Finan…
Infor…
Parent
only
data:
last
four
quart…
(in
milli…
Total
subsi…
distr…
& 4
retur… Quarte…
of Ended
capit… Septem… June March
to 30, 30, 31, Decem…
Parent 2025 2025 2025 31,
Actual Actual Actual Actual 2024
──────────────────────────────────────────────────────────────────────────────
Subsi…
distr…
Parent $ 1,925 $ 1,706 $ 1,447 $ 1,603
&
QHCs
Retur…
of
capit…
distr… 275 75 32 30
to
Parent
& QHCs
Total
subsi…
distr…
&
retur… $ 2,200 $ 1,781 $ 1,479 $ 1,633
of
capit…
to
Parent
Parent
only
data:
quart…
(in Quarter
milli… Ended
Total
subsi…
distr…
& Septem… June March Decem…
retur… 30, 30, 31, 31,
of 2025 2025 2025 2024
capit…
to
Parent
Actual Actual Actual Actual
Subsi…
distr…
Parent $ 423 $ 557 $ 230 $ 715
&
QHCs
Retur…
of
capit…
distr… 200 44 3 28
to
Parent
& QHCs
Total
subsi…
distr…
&
retur… $ 623 $ 601 $ 233 $ 743
of
capit…
to
Parent
(in Balance
milli… at
Septem… June March Decem…
30, 30, 31, 31,
2025 2025 2025 2024
Parent
Compa… Actual Actual Actual Actual
Liqui…
Cash
at
Parent $ 31 $ 9 $ 151 $ 265
& Cash
at
QHCs(…
Avail…
under 1,619 2,185 1,526 1,782
credit
facil…
Ending $ 1,650 $ 2,194 $ 1,677 $ 2,047
liqui…
____________________________
(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.