Cover and table of contents

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Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-12291

THE AES CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						54-1163725
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


4300 Wilson Boulevard
Arlington,	Virginia	22203
(Address of principal executive offices)		(Zip Code)


Registrant's telephone number, including area code:			(703)			522-1315


Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	AES	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer			☒			Accelerated filer			☐			Smaller reporting company			☐			Emerging growth company			☐			Non-accelerated filer			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of Registrant’s Common Stock, par value $0.01 per share, on October 31, 2025 was 712,120,944.

The AES Corporation

Form 10-Q for the Quarterly Period ended September 30, 2025

Table of Contents


Glossary of Terms		1

PART I: FINANCIAL INFORMATION		3

ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income (Loss)	5
	Condensed Consolidated Statements of Changes in Equity	6
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	10
	Note 1 - Financial Statement Presentation	10
	Note 2 - Inventory	12

	Note 3 - Fair Value	13
	Note 4 - Derivative Instruments and Hedging Activities	17
	Note 5 - Financing Receivables	18
	Note 6 - Allowance for Credit Losses	19
	Note 7 - Investments in and Advances to Affiliates	20
	Note 8 - Obligations	21
	Note 9 - Commitments and Contingencies	24
	Note 10 - Leases	26
	Note 11 - Redeemable Stock of Subsidiaries	27
	Note 12 - Equity	29
	Note 13 - Segments	32
	Note 14 - Revenue	39
	Note 15 - Other Income and Expense	40
	Note 16 - Asset Impairment Expense	41
	Note 17 - Income Taxes	42

	Note 18 - Held-for-Sale and Dispositions	43
	Note 19 - Acquisitions	44
	Note 20 - Earnings Per Share	44

	Note 21 - Restructuring	46
	Note 22 - Discontinued Operations	46


ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	47
	Executive Summary	48

	Review of Consolidated Results of Operations	50
	SBU Performance Analysis	59
	Key Trends and Uncertainties	67
	Capital Resources and Liquidity	79
	Critical Accounting Policies and Estimates	86

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	86

ITEM 4.	CONTROLS AND PROCEDURES	89

PART II: OTHER INFORMATION		90

ITEM 1.	LEGAL PROCEEDINGS	90

ITEM 1A.	RISK FACTORS	93

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	94

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	94

ITEM 4.	MINE SAFETY DISCLOSURES	94

ITEM 5.	OTHER INFORMATION	94

ITEM 6.	EXHIBITS	94

SIGNATURES		95

1 | The AES Corporation | September 30, 2025 Form 10-Q

Glossary of Terms

The following terms and acronyms appear in the text of this report and have the definitions indicated below:



2024 Base Rate Order			The order issued in April 2024 by the IURC authorizing AES Indiana to, among other things, increase its basic rates and charges by $71 million annually
Adjusted EBITDA			Adjusted earnings before interest income and expense, taxes, depreciation and amortization, a non-GAAP measure of operating performance
Adjusted EBITDA with Tax Attributes			Adjusted earnings before interest income and expense, taxes, depreciation and amortization, adding back the pre-tax effect of Production Tax Credits, Investment Tax Credits and depreciation tax deductions allocated to tax equity investors, a non-GAAP measure
Adjusted EPS			Adjusted Earnings Per Share, a non-GAAP measure
Adjusted PTC			Adjusted Pre-tax Contribution, a non-GAAP measure of operating performance
AES			The Parent Company and its subsidiaries and affiliates
AES Andes			AES Andes S.A., formerly AES Gener
AES Brasil			AES Brasil Operações S.A., formerly branded as AES Tietê
AES Clean Energy Development			AES Clean Energy Development, LLC
AES Indiana			Indianapolis Power & Light Company, formerly branded as IPL. AES Indiana is wholly-owned by IPALCO
AES Ohio			The Dayton Power & Light Company, formerly branded as DP&L. For the periods covered by this report, AES Ohio was wholly-owned by DPL. Beginning in April 2025, CDPQ owns an aggregate indirect equity interest in AES Ohio of approximately 30%.
AES Renewable Holdings			AES Renewable Holdings, LLC, formerly branded as AES Distributed Energy

AFUDC			Allowance for Funds Used During Construction



AGIC			AES Global Insurance Company, AES’ captive insurance company
AOCL			Accumulated Other Comprehensive Loss
ARO			Asset Retirement Obligations
ASC			Accounting Standards Codification
ASU			Accounting Standards Update


BESS			Battery Energy Storage System





CAA			United States Clean Air Act



CCR			Coal Combustion Residuals, which include bottom ash, fly ash, and air pollution control wastes generated at coal-fired generation plant sites
CDPQ			Caisse de dépôt et placement du Québec

CECL			Current Expected Credit Loss



CO2			Carbon Dioxide


CSAPR			Cross-State Air Pollution Rule

CWA			U.S. Clean Water Act
DG Comp			Directorate-General for Competition




DPL			DPL LLC and its consolidated subsidiaries. On April 3, 2025, DPL Inc. converted its form of business organization from an Ohio corporation to an Ohio limited liability company. Upon the conversion, DPL Inc. changed its name to DPL LLC. References to DPL are to DPL Inc. before April 3, 2025, and DPL LLC on and after April 3, 2025.


EBITDA			Earnings before interest income and expense, taxes, depreciation, amortization, and accretion of AROs, a non-GAAP measure of operating performance

ENSO			El Niño-Southern Oscillation
EPA			United States Environmental Protection Agency
EPC			Engineering, Procurement and Construction


ESP			Electric Security Plan
EU			European Union


FASB			Financial Accounting Standards Board

Fluence			Fluence Energy, Inc and its subsidiaries, including Fluence Energy, LLC, which was previously our joint venture with Siemens (NASDAQ: FLNC)
FONINVEMEM			Fund for the Investment Needed to Increase the Supply of Electricity in the Wholesale Market in Argentina


GAAP			Generally Accepted Accounting Principles in the United States
GHG			Greenhouse Gas
GILTI			Global Intangible Low Taxed Income
GW			Gigawatts
GWh			Gigawatt Hours
HLBV			Hypothetical Liquidation at Book Value


IPALCO			IPALCO Enterprises, Inc. CDPQ owns direct and indirect interests in IPALCO of approximately 30%.



ITC			Investment Tax Credit
IURC			Indiana Utility Regulatory Commission


LNG			Liquid Natural Gas

MISO			Midcontinent Independent System Operator

MMBtu			Million British Thermal Units


MW			Megawatts
MWh			Megawatt Hours
NAAQS			National Ambient Air Quality Standards
NCI			Noncontrolling Interest

NEK			Natsionalna Elektricheska Kompania (state-owned electricity public supplier in Bulgaria)

2 | The AES Corporation | September 30, 2025 Form 10-Q


NM			Not Meaningful
NOV			Notice of Violation
NOX			Nitrogen Oxide
NPDES			National Pollutant Discharge Elimination System






OVEC			Ohio Valley Electric Corporation, an electric generating company in which AES Ohio has a 4.9% interest
Parent Company			The AES Corporation


PJM			PJM Interconnection, LLC
PPA			Power Purchase Agreement
PREPA			Puerto Rico Electric Power Authority


PUCO			The Public Utilities Commission of Ohio


RSU			Restricted Stock Unit
RTO			Regional Transmission Organization

SBU			Strategic Business Unit

SEC			United States Securities and Exchange Commission




SEET			Significantly Excessive Earnings Test

SO2			Sulfur Dioxide




SOFR			Secured Overnight Financing Rate
SPP			Southwest Power Pool
TDSIC			Transmission, Distribution, and Storage System Improvement Charge

TEP			Termoeléctrica Peñoles, S. de R.L. de C.V.
U.S.			United States

USD			United States Dollar

VIE			Variable Interest Entity

3 | The AES Corporation | September 30, 2025 Form 10-Q

PART I: FINANCIAL INFORMATION

Next: Item 1. FINANCIAL STATEMENTS