Financial Analysis

COMMITMENTS AND CONTINGENCIES Parent Guarantees, Letters of Credit, and Commitments In connection with certain project financings (including tax equity transactions), acquisitions and dispositions, power purchases, EPC contracts, and other agreements, the Parent Company has expressly undertaken limited obligations and commitments, most of which will only be effective or will be terminated upon the occurrence of future events. In the normal course of business, the Parent Company has entered into various agreements, mainly guarantees and letters of credit, to provide financial or performance assurance to third parties on behalf of AES businesses. It is unlikely that the Parent Company would be required to perform or otherwise incur any material losses associated with guarantees of its subsidiaries obligations. These agreements are entered into primarily to support or enhance the creditworthiness otherwise achieved by a business on a stand-alone basis, thereby facilitating the availability of sufficient credit to accomplish their intended business purposes. Most of the contingent obligations relate to future performance commitments which the Company or its businesses expect to fulfill within the normal course of business. Our tax equity and tax credit transfer guarantees typically consist of standard indemnifications of tax equity partners or tax credit purchasers in the event that an adverse determination arises due to a recapture event, tax controversy, or any breach by the AE …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Recourse Debt Recourse debt represents debt that the Parent Company has an obligation to settle. This can be debt issued directly by the Parent Company or debt issued by a subsidiary under which the Parent Company has explicit commitments such as guarantees, indemnities, letters of credit, or agreements to settle if the subsidiary defaults. Senior Unsecured Term Loan due June 2026 In June 2025, the Company executed a $500 million senior unsecured term loan agreement, maturing in June 2026. As of September 30, 2025, AES had no outstanding drawings under the facility. Senior Notes due 2032 In March 2025, the Company issued $800 million aggregate principal of 5.80% senior notes due in 2032. The Company used the proceeds from this issuance to purchase via tender offer a portion of its 3.30% senior notes due in 2025. As a result of the latter transaction, the Company recognized a gain on extinguishment of debt of $2 million. Subordinated Notes due 2055 In May 2024, the Company issued $950 million aggregate principal of 7.60% fixed-to-fixed reset rate subordinated notes due in January 2055. AES allocates the net proceeds from this offering to one or more eligible green projects, which may include the development or redevelopment of such projects. Pending such allocation, the net proceeds from the offering are used for general corporate purposes. Commercial Paper Program In March 2023, the Company established a commercial paper program under which the Company may issue unsecured com …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenue from contracts with customers and other revenue for the periods indicated (in millions): Three Months Ended September 30, 2025 Renewables SBU Utilities SBU Energy Infrastructure SBU New Energy Technologies SBU Corporate, Other and Eliminations Total Non-Regulated Revenue Revenue from contracts with customers $ 756 $ 22 $ 1,312 $ $ (54) $ 2,036 Other non-regulated revenue (1) 61 1 171 233 Total non-regulated revenue 817 23 1,483 (54) 2,269 Regulated Revenue Revenue from contracts with customers 1,075 1,075 Other regulated revenue 7 7 Total regulated revenue 1,082 1,082 Total revenue $ 817 $ 1,105 $ 1,483 $ $ (54) $ 3,351 Three Months Ended September 30, 2024 Renewables SBU Utilities SBU Energy Infrastructure SBU New Energy Technologies SBU Corporate, Other and Eliminations Total Non-Regulated Revenue Revenue from contracts with customers $ 676 $ 23 $ 1,422 $ 1 $ (41) $ 2,081 Other non-regulated revenue (1) 78 1 192 271 Total non-regulated revenue 754 24 1,614 1 (41) 2,352 Regulated Revenue Revenue from contracts with customers 929 929 Other regulated revenue 8 8 Total regulated revenue 937 937 Total revenue $ 754 $ 961 $ 1,614 $ 1 $ (41) $ 3,289 Nine Months Ended September 30, 2025 Renewables SBU Utilities SBU Energy Infrastructure SBU New Energy Technologies SBU Corporate, Other and Eliminations Total Non-Regulated Revenue Revenue from contracts with customers $ 2,014 $ 65 $ 3,770 $ $ (172) $ 5,677 Other non-regulated revenue (1) 113 3 …

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FAIR VALUE The fair value of current financial assets and liabilities, debt service reserves, and other deposits approximate their reported carrying amounts. The estimated fair values of the Companys assets and liabilities have been determined using available market information. Because these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 5 Fair Value in Item 8. Financial Statements and Supplementary Data of our 2024 Form 10-K. Recurring Measurements The following table presents, by level within the fair value hierarchy, the Companys financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Companys investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities: September 30, 2025 December 31, 2024 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets DEBT SECURITIES: Available-for-sale: Certificates of deposit $ $ 2 $ $ 2 $ $ 4 $ $ 4 Government debt securities 4 4 Total debt securities 2 2 8 8 EQUITY SECURITIES: Mutual funds 56 56 51 51 Common stock 4 4 Total …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES

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REVENUE The following table presents our revenue from contracts with customers and other revenue for the periods indicated (in millions): Three Months Ended September 30, 2025 Renewables SBU Utilities SBU Energy Infrastructure SBU New Energy Technologies SBU Corporate, Other and Eliminations Total Non-Regulated Revenue Revenue from contracts with customers $ 756 $ 22 $ 1,312 $ $ (54) $ 2,036 Other non-regulated revenue (1) 61 1 171 233 Total non-regulated revenue 817 23 1,483 (54) 2,269 Regulated Revenue Revenue from contracts with customers 1,075 1,075 Other regulated revenue 7 7 Total regulated revenue 1,082 1,082 Total revenue $ 817 $ 1,105 $ 1,483 $ $ (54) $ 3,351 Three Months Ended September 30, 2024 Renewables SBU Utilities SBU Energy Infrastructure SBU New Energy Technologies SBU Corporate, Other and Eliminations Total Non-Regulated Revenue Revenue from contracts with customers $ 676 $ 23 $ 1,422 $ 1 $ (41) $ 2,081 Other non-regulated revenue (1) 78 1 192 271 Total non-regulated revenue 754 24 1,614 1 (41) 2,352 Regulated Revenue Revenue from contracts with customers 929 929 Other regulated revenue 8 8 Total regulated revenue 937 937 Total revenue $ 754 $ 961 $ 1,614 $ 1 $ (41) $ 3,289 Nine Months Ended September 30, 2025 Renewables SBU Utilities SBU Energy Infrastructure SBU New Energy Technologies SBU Corporate, Other and Eliminations Total Non-Regulated Revenue Revenue from contracts with customers $ 2,014 $ 65 $ 3,770 $ $ (172) $ 5,677 Other non-regulated revenue ( …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENTS The segment reporting structure uses the Companys management reporting structure as its foundation to reflect how the Company manages the businesses internally. The management reporting structure is composed of four SBUs, mainly organized by technology, led by our President and Chief Executive Officer, who is our Chief Operating Decision Maker. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. Renewables Solar, wind, energy storage, and hydro generation facilities; Utilities AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities; Energy Infrastructure Natural gas, LNG, coal, pet coke, diesel, and oil generation facilities; and New Energy Technologies Investments in Fluence, Uplight, Maximo, and other new and innovative energy technology businesses. Prior to the first quarter of 2025, our businesses in Chile (which had a mix of generation sources, including renewables, that were pooled to service our existing PPAs initially entered into for sale of the output of the coal plants) were reported in the Energy Infrastructure SBU. After the sale or disconnection of a significant portion of AES Andes coal plants and the expiration of its coal-indexed contracts with regulated customers at the end of 2024, the results of our businesses in Chile, excluding the two remaining coal plants, are now reported as pa …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"EQUITY Equity Units In March 2021, the Company issued 10,430,500 Equity Units with a total notional value of $1,043 million. Each Equity Unit had a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a forward stock purchase contract (2024 Purchase Contracts) and a 10% undivided beneficial ownership interest in one share of 0% Series A Cumulative Perpetual Convertible Preferred Stock, issued without par and with a liquidation preference of $1,000 per share (Series A Preferred Stock). The Company concluded that the Equity Units should be accounted for as one unit of account based on the economic linkage between the 2024 Purchase Contracts and the Series A Preferred Stock, as well as the Company's assessment of the applicable accounting guidance relating to combining freestanding instruments. The Equity Units represent mandatorily convertible preferred stock. Accordingly, the shares associated with the combined instrument were reflected in diluted earnings per share using the if-converted method. In conjunction with the issuance of the Equity Units, the Company received approximately $1 billion in proceeds, net of underwriting costs and commissions, before offering expenses. The proceeds for the issuance of 1,043,050 shares were attributed to the Series A Preferred Stock for $838 million and $205 million for the present value of the quarterly payments due to holders of the 2024 Purchase Contracts (""Contract Adjustment Payments""). The proceeds we …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing