AES Reports Second Quarter 2025 Results; On Track to Deliver on 2025 Guidance and Long-Term Targets

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 June 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 June 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

⁴

Losses recognized on the commencement of sales-type leases primarily relate to the exclusion of the value of Investment Tax Credits from the fair value of the renewable asset.

⁵

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 June 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

⁶

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.

⁷

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 June 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

⁸

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 June 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.

⁹

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.

¹⁰

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 June 30, 2025.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.

THE AES CORPORATION

Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

(in millions, except share and per share amounts)

Revenue:

Non-Regulated

$         1,922

$         2,070

$    3,863

$         4,302

Regulated

933

872

1,918

1,725

  Total revenue

2,855

2,942

5,781

6,027

Cost of Sales:

Non-Regulated

(1,607)

(1,671)

(3,268)

(3,404)

Regulated

(795)

(718)

(1,619)

(1,451)

  Total cost of sales

(2,402)

(2,389)

(4,887)

(4,855)

Operating margin

453

553

894

1,172

General and administrative expenses

(49)

(66)

(126)

(141)

Interest expense

(352)

(389)

(694)

(746)

Interest income

70

88

139

193

Loss on extinguishment of debt

(5)

(9)

(13)

(10)

Other expense

(295)

(84)

(347)

(122)

Other income

31

21

38

56

Gain on disposal and sale of business interests

70

1

69

44

Asset impairment reversals (expense)

154

(38)

105

(84)

Foreign currency transaction gains (losses)

(28)

38

(38)

30

Other non-operating expense

(10)

—

(10)

—

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

39

115

17

392

Income tax benefit (expense)

(167)

35

(184)

51

Net equity in earnings (losses) of affiliates

(22)

3

(56)

(12)

NET INCOME (LOSS)

(150)

153

(223)

431

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

55

123

174

277

NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION

$             (95)

$            276

$       (49)

$            708

  Decrease (increase) in redemption value of redeemable stock of subsidiaries

(10)

6

(10)

—

NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS

$           (105)

$            282

$       (59)

$            708

BASIC EARNINGS PER SHARE:

NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS

$          (0.15)

$           0.40

$    (0.08)

$           1.01

DILUTED EARNINGS PER SHARE:

NET INCOME (LOSS) AVAILABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS

$          (0.15)

$           0.39

$    (0.08)

$           0.99

DILUTED SHARES OUTSTANDING

712

713

712

713

THE AES CORPORATION

Strategic Business Unit (SBU) Information

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2025

2024

2025

2024

REVENUE

  Renewables SBU

$                  644

$                  619

$               1,310

$               1,262

  Utilities SBU

954

896

1,963

1,769

  Energy Infrastructure SBU

1,306

1,462

2,626

3,071

  New Energy Technologies SBU

—

—

—

—

  Corporate and Other

43

40

79

73

  Eliminations

(92)

(75)

(197)

(148)

  Total Revenue

$               2,855

$               2,942

$               5,781

$               6,027

THE AES CORPORATION

Condensed Consolidated Balance Sheets (Unaudited)

June 30, 2025

December 31,
2024

(in millions, except share

and per share data)

ASSETS

CURRENT ASSETS

  Cash and cash equivalents

$                 1,350

$                 1,524

  Restricted cash

763

437

  Accounts receivable, net of allowance of $54 and $52, respectively

1,865

1,646

  Inventory

647

593

  Prepaid expenses

132

157

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

1,532

1,612

  Current held-for-sale assets

31

862

Total current assets

6,320

6,831

NONCURRENT ASSETS

Property, plant and equipment, net of accumulated depreciation of $9,311 and $8,701, respectively

34,727

33,166

Investments in and advances to affiliates

1,091

1,124

Debt service reserves and other deposits

88

78

Goodwill

345

345

Other intangible assets, net of accumulated amortization of $472 and $426, respectively

2,050

1,947

Deferred income taxes

402

365

Loan receivable, net of allowance of $20 and $0,  respectively

800

—

Other noncurrent assets, net of allowance of $22 and $20, respectively

2,719

2,917

Noncurrent held-for-sale assets

—

633

Total noncurrent assets

42,222

40,575

TOTAL ASSETS

$               48,542

$               47,406

LIABILITIES, REDEEMABLE STOCK OF SUBSIDIARIES, AND EQUITY

CURRENT LIABILITIES

  Accounts payable

$                 1,663

$                 1,654

  Accrued interest

277

256

  Accrued non-income taxes

292

249

  Supplier financing arrangements

621

917

  Accrued and other liabilities

1,109

1,246

  Recourse debt

990

899

  Non-recourse debt

2,727

2,688

  Current held-for-sale liabilities

—

662

Total current liabilities

7,679

8,571

NONCURRENT LIABILITIES

Recourse debt

4,802

4,805

Non-recourse debt

21,752

20,626

Deferred income taxes

1,635

1,490

Other noncurrent liabilities

2,812

2,881

Noncurrent held-for-sale liabilities

—

391

Total noncurrent liabilities

31,001

30,193

Commitments and Contingencies

Redeemable stock of subsidiaries

2,179

938

EQUITY

THE AES CORPORATION STOCKHOLDERS' EQUITY

Common stock ($0.01 par value, 1,200,000,000 shares authorized; 859,711,007 issued and
711,922,815 outstanding at June 30, 2025 and 859,709,987 issued and 711,074,269 outstanding at
December 31, 2024)

9

9

Additional paid-in capital

6,070

5,913

Retained earnings (accumulated deficit)

(79)

293

Accumulated other comprehensive loss

(836)

(766)

Treasury stock, at cost (147,788,192 and 148,635,718 shares at June 30, 2025 and December 31,
2024, respectively)

(1,795)

(1,805)

Total AES Corporation stockholders' equity

3,369

3,644

NONCONTROLLING INTERESTS

4,314

4,060

Total equity

7,683

7,704

TOTAL LIABILITIES, REDEEMABLE STOCK OF SUBSIDIARIES, AND EQUITY

$               48,542

$               47,406

THE AES CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

(in millions)

(in millions)

OPERATING ACTIVITIES:

Net income (loss)

$                          (150)

$                            153

$                     (223)

$                       431

Adjustments to net income (loss):

  Depreciation, amortization, and accretion of AROs

354

315

691

633

  Emissions allowance expense

76

24

178

71

  Loss (gain) on realized/unrealized derivatives

86

(64)

71

(137)

  Loss on commencement of sales-type leases

199

72

208

67

  Gain on disposal and sale of business interests

(70)

(1)

(69)

(44)

  Impairment expense (reversals)

(144)

38

(95)

84

  Loss on realized/unrealized foreign currency

24

78

24

78

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

139

36

149

258

  Tax credit transfers allocated to noncontrolling interests

212

26

212

26

  Other

100

(313)

220

(210)

Changes in operating assets and liabilities:

  (Increase) decrease in accounts receivable

125

(7)

26

(239)

  (Increase) decrease in inventory

(1)

(41)

(29)

31

  (Increase) decrease in prepaid expenses and other current assets

29

94

198

133

  (Increase) decrease in other assets

57

138

75

47

  Increase (decrease) in accounts payable and other current liabilities

(119)

(75)

(116)

(160)

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

1

(137)

(82)

(464)

  Increase (decrease) in other liabilities

58

56

83

74

Net cash provided by operating activities

976

392

1,521

679

INVESTING ACTIVITIES:

Capital expenditures

(1,332)

(1,685)

(2,586)

(3,833)

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

(108)

(16)

(112)

(73)

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

—

—

5

11

Sale of short-term investments

19

393

52

534

Purchase of short-term investments

(18)

(460)

(36)

(604)

Contributions and loans to equity affiliates

—

(29)

(1)

(50)

Purchase of emissions allowances

(195)

(35)

(234)

(91)

Other investing

34

(6)

30

(118)

Net cash used in investing activities

(1,600)

(1,838)

(2,882)

(4,224)

FINANCING ACTIVITIES:

Borrowings under the revolving credit facilities

941

2,262

2,128

4,003

Repayments under the revolving credit facilities

(1,947)

(1,545)

(2,398)

(2,582)

Commercial paper borrowings (repayments), net

(188)

(29)

67

690

Issuance of recourse debt

—

950

800

950

Repayments of recourse debt

—

—

(774)

—

Issuance of non-recourse debt

1,039

1,667

2,332

3,798

Repayments of non-recourse debt

(731)

(1,811)

(1,490)

(2,726)

Payments for financing fees

(28)

(44)

(49)

(75)

Purchases under supplier financing arrangements

250

222

567

708

Repayments of obligations under supplier financing arrangements

(234)

(539)

(862)

(1,055)

Distributions to noncontrolling interests

(254)

(105)

(338)

(128)

Contributions from noncontrolling interests

201

71

274

97

Sales to noncontrolling interests

893

198

1,138

323

Issuance of preferred shares in subsidiaries

444

—

452

—

Dividends paid on AES common stock

(125)

(122)

(250)

(238)

Payments for financed capital expenditures

(14)

(12)

(21)

(19)

Other financing

(102)

(10)

(114)

13

Net cash provided by financing activities

145

1,153

1,462

3,759

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

(4)

(28)

(5)

(43)

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

118

(86)

66

(13)

Total increase in cash, cash equivalents and restricted cash

(365)

(407)

162

158

Cash, cash equivalents and restricted cash, beginning

2,566

1,980

2,039

1,990

Cash, cash equivalents and restricted cash, ending

$                        2,201

$                        1,573

$                   2,201

$                   2,148

SUPPLEMENTAL DISCLOSURES:

Cash payments for interest, net of amounts capitalized

$                            331

$                            411

$                       598

$                       765

Cash payments for income taxes, net of refunds

74

141

134

209

SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

Noncash contributions from noncontrolling interests

$                            212

$                              25

$                       254

$                         25

Receivable for proceeds from the sale of Dominican Republic Renewables

100

—

100

—

Noncash recognition of new operating and financing leases

18

56

78

180

Noncash distributions to noncontrolling interests

45

—

45

—

Initial recognition of contingent consideration for acquisitions

11

5

11

14

Conversion of Corporate Units to shares of common stock

—

—

—

838

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

—

273

—

273

Three Months Ended June 30,

Six Months Ended June 30,

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

2025

2024

2025

2024

Net income (loss)

$              (150)

$                153

$              (223)

$                431

Income tax expense (benefit)

167

(35)

184

(51)

Interest expense

352

389

694

746

Interest income

(70)

(88)

(139)

(193)

Depreciation, amortization, and accretion of AROs

354

315

691

633

EBITDA

$                653

$                734

$             1,207

$             1,566

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

(253)

(182)

(387)

(346)

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

45

28

81

62

Interest income recognized under service concession arrangements

14

16

29

33

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

133

(53)

132

(138)

Unrealized foreign currency losses (gains)

4

12

(3)

3

Disposition/acquisition losses

126

62

167

19

Impairment losses (reversals)

(87)

23

(54)

49

Loss on extinguishment of debt and troubled debt restructuring

4

18

12

50

Restructuring costs

42

—

88

—

Adjusted EBITDA ⁽¹⁾

$                681

$                658

$             1,272

$             1,298

Tax attributes

376

191

562

419

Adjusted EBITDA with Tax Attributes ⁽²⁾

$             1,057

$                849

$             1,834

$             1,717

⁽¹⁾

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

⁽²⁾

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

Reconciliation of Numerator Used for Adjusted EPS

Three months ended June 30, 2025

Six months ended June 30, 2025

(in millions, except per share data)

Loss

Shares

$ per Share

Loss

Shares

$ per Share

GAAP DILUTED LOSS PER SHARE

Loss available to The AES Corporation common stockholders

$     (105)

712

$    (0.15)

$       (59)

712

$    (0.08)

Add back: Adjustment to redemption value of redeemable stock of
subsidiaries

10

—

0.02

10

—

0.01

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

$       (95)

712

$    (0.13)

$       (49)

712

$    (0.07)

Restricted stock units

—

2

—

—

1

—

NON-GAAP DILUTED LOSS PER SHARE

$       (95)

714

$    (0.13)

$       (49)

713

$    (0.07)

Reconciliation of Numerator Used for Adjusted EPS

Three months ended June 30, 2024

Six months ended June 30, 2024

(in millions, except per share data)

Income

Shares

$ per Share

Income

Shares

$ per Share

GAAP DILUTED EARNINGS PER SHARE

Income available to The AES Corporation common stockholders

$       282

713

$      0.39

$       708

713

$      0.99

Add back: Adjustment to redemption value of redeemable stock of
subsidiaries

(6)

—

—

—

—

—

NON-GAAP DILUTED EARNINGS PER SHARE

$       276

713

$      0.39

$       708

713

$      0.99

Three Months
Ended June 30,
2025

Three Months
Ended June 30,
2024

Six Months
Ended June 30,
2025

Six Months
Ended June 30,
2024

Net of
NCI ⁽¹⁾

Per Share
(Diluted)
Net of NCI
⁽¹⁾

Net of
NCI ⁽¹⁾

Per Share
(Diluted)
Net of NCI
⁽¹⁾

Net of
NCI ⁽¹⁾

Per Share
(Diluted)
Net of NCI
⁽¹⁾

Net of
NCI ⁽¹⁾

Per Share
(Diluted)
Net of NCI
⁽¹⁾

(in millions, except per share amounts)

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

$  (95)

$  (0.13)

$  276

$   0.39

$  (49)

$  (0.07)

$  708

$   0.99

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

148

(67)

144

(86)

Pre-tax contribution

$    53

$  209

$    95

$  622

Adjustments

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

$  133

$   0.18

(2)

$  (53)

$  (0.07)

(3)

$  128

$   0.19

(4)

$  (138)

$  (0.19)

(5)

Unrealized foreign currency losses (gains)

4

—

12

0.01

(3)

—

3

—

Disposition/acquisition losses

125

0.18

(6)

62

0.08

(7)

167

0.23

(8)

19

0.03

(9)

Impairment losses (reversals)

(87)

(0.12)

(10)

23

0.03

(11)

(54)

(0.08)

(12)

49

0.08

(13)

Loss on extinguishment of debt and troubled debt
restructuring

6

0.01

20

0.03

(14)

16

0.02

54

0.07

(15)

Restructuring costs

42

0.06

(16)

—

—

88

0.12

(17)

—

—

Less: Net income tax expense (benefit)

0.33

(18)

(0.09)

(19)

0.37

(20)

(0.09)

(19)

Adjusted PTC and Adjusted EPS

$  276

$   0.51

$  273

$   0.38

$  437

$   0.78

$  609

$   0.89

⁽¹⁾

NCI is defined as Noncontrolling Interests.

⁽²⁾

Amount primarily relates to remeasurement of our investment in 5B of $48 million, or $0.07 per share, net unrealized derivative losses at the Energy Infrastructure SBU of $38 million, or $0.05 per share, and unrealized derivative losses on commodities at AES Clean Energy of $33 million, or $0.05 per share.

⁽³⁾

Amount primarily relates to unrealized gains on foreign currency derivatives at Corporate of $34 million, or $0.05 per share, and unrealized gains on cross currency swaps in Brazil of $25 million, or $0.03 per share.

⁽⁴⁾

Amount primarily relates to remeasurement of our investment in 5B of $48 million, or $0.07 per share, net unrealized derivative losses at the Energy Infrastructure SBU of $46 million, or $0.06 per share, and unrealized derivative losses on commodities at AES Clean Energy of $17 million, or $0.02 per share.

⁽⁵⁾

Amount primarily relates to net unrealized derivative gains at the Energy Infrastructure SBU of $59 million, or $0.08 per share, unrealized gains on foreign currency derivatives at Corporate of $37 million, or $0.05 per share, and unrealized gains on cross currency swaps in Brazil of $28 million, or $0.04 per share.

⁽⁶⁾

Amount primarily relates to day-one losses on commencement of sales-type leases at AES Clean Energy Development of $149 million, or $0.21 per share, partially offset by gain on sale of Dominican Republic Renewables of $45 million, or $0.06 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.

⁽⁸⁾

Amount primarily relates to day-one losses on commencement of sales-type leases at AES Clean Energy Development of $149 million, or $0.21 per share, and AES Renewable Holdings of $9 million, or $0.01 per share, and losses on remeasurement of contingent consideration at AES Clean Energy of $12 million, or $0.02 per share, partially offset by gain on sale of Dominican Republic Renewables of $45 million, or $0.06 per share.

⁽⁹⁾

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.

⁽¹⁰⁾

Amount primarily relates to 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, partially offset by impairments at AES Clean Energy of $29 million, or $0.04 per share.

⁽¹¹⁾

 Amount primarily relates to impairment at AES Brasil of $12 million, or $0.02 per share.

⁽¹²⁾

Amount primarily relates to 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, partially offset by impairments at AES Clean Energy of $54 million, or $0.08 per share, and at Mong Duong of $9 million, or $0.01 per share.

⁽¹³⁾

Amount primarily relates to impairment at Mong Duong of $22 million, or $0.03 per share, and impairment at AES Brasil of $12 million, or $0.02 per share.

⁽¹⁴⁾

Amount primarily relates to losses incurred at AES Andes due to early retirement of debt of $16 million, or $0.02 per share.

⁽¹⁵⁾

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.

⁽¹⁶⁾

Amount primarily relates to impairments at AES Clean Energy Development that were the result of the Company-wide restructuring program of $38 million, or $0.05 per share.

⁽¹⁷⁾

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.

⁽¹⁸⁾

Amount primarily relates to income tax expense associated with the day-one losses on commencement of sales-type leases at AES Clean Energy Development of $95 million, or $0.13 per share, impairments at AES Clean Energy Development of $50 million, or $0.07 per share, remeasurement and downward adjustment of our investment in 5B of $28 million, or $0.04 per share, the selldown of AES Ohio of $13 million, or $0.02 per share, and net unrealized derivative losses at Integrated Energy of $18 million, or $0.03 per share.

⁽¹⁹⁾

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, for the three and six months ended June 30, 2024.

⁽²⁰⁾

Amount primarily relates to income tax expense associated with the day-one losses on commencement of sales-type leases at AES Clean Energy Development of $95 million, or $0.13 per share, impairments at AES Clean Energy Development of $57 million, or $0.08 per share, severance costs related to the Company-wide restructuring program of $23 million, or $0.03 per share, remeasurement and downward adjustment of our investment in 5B of $28 million, or $0.04 per share, net unrealized derivative losses at Integrated Energy of $19 million, or $0.03 per share, and the selldown of AES Ohio of $13 million, or $0.02 per share.

The AES Corporation

Parent Financial Information

Parent only data: last four quarters

(in millions)

4 Quarters Ended

Total subsidiary distributions & returns of capital to Parent

June 30, 2025

March 31,
2025

December 31,
2024

September
30, 2024

Actual

Actual

Actual

Actual

Subsidiary distributions⁽¹⁾ to Parent & QHCs

$             1,706

$             1,447

$             1,603

$            1,424

Returns of capital distributions to Parent & QHCs

75

32

30

80

Total subsidiary distributions & returns of capital to Parent

$             1,781

$             1,479

$             1,633

$            1,504

Parent only data: quarterly

(in millions)

Quarter Ended

Total subsidiary distributions & returns of capital to Parent

June 30, 2025

March 31,
2025

December 31,
2024

September
30, 2024

Actual

Actual

Actual

Actual

Subsidiary distributions¹ to Parent & QHCs

$                557

$                230

$                715

$               204

Returns of capital distributions to Parent & QHCs

44

3

28

—

Total subsidiary distributions & returns of capital to Parent

$                601

$                233

$                743

$               204

(in millions)

Balance at

June 30, 2025

March 31,
2025

December 31,
2024

September
30, 2024

Parent Company Liquidity⁽²⁾

Actual

Actual

Actual

Actual

Cash at Parent & Cash at QHCs⁽³⁾

$                    9

$                151

$                265

$                   6

Availability under credit facilities

2,185

1,526

1,782

335

Ending liquidity

$             2,194

$             1,677

$             2,047

$               341

⁽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.