AES CORP

Compared with last year, second quarter net loss increased $20 million, from $19 million to $39 million. This increase is the result of losses at commencement of sales-type leases at the Renewables SBU, partially offset by favorable contributions at the Utilities and Energy Infrastructure SBUs and higher contributions from renewables projects placed in service in the current year.

Adjusted EBITDA, a non-GAAP measure, increased $83 million, from $569 million to $652 million, mainly driven by higher contributions at the Utilities SBU, higher revenues under a PPA termination agreement at the Energy Infrastructure SBU, and higher revenues from new projects at the Renewables SBU; partially offset by higher outages at the Energy Infrastructure SBU, and outages in Colombia at the Renewables SBU.

Adjusted EBITDA with Tax Attributes, a non-GAAP measure, increased $236 million, from $607 million to $843 million primarily due to higher realized tax attributes driven by more renewables projects placed in service, and the drivers above.

Compared with last year, second quarter diluted earnings per share from continuing operations increased

37 | The AES Corporation | June 30, 2024 Form 10-Q

$0.33, from a loss of $0.06 to earnings of $0.27. This increase is mainly driven by higher contributions from renewables projects placed in service in the current year, prior year unrealized foreign currency losses at the Energy Infrastructure SBU, and higher margins at the Utilities and Energy Infrastructure SBUs; partially offset by losses at commencement of sales-type leases at the Renewables SBU.

Adjusted EPS, a non-GAAP measure, increased $0.17 from $0.21 to $0.38, mainly driven by a lower adjusted tax rate, higher contributions from the Utilities SBU, and higher contributions from renewables projects placed in service in the current year.

Compared with last year, net income for the six months ended June 30, 2024 increased $69 million, from $170 million to $239 million. This increase is the result of favorable contributions at the Utilities, Energy Infrastructure, and New Energy Technologies SBUs and higher contributions from renewables projects placed in service in the current year; partially offset by losses at commencement of sales-type leases at the Renewables SBU.

Adjusted EBITDA, a non-GAAP measure, increased $90 million, from $1,197 million to $1,287 million, mainly driven by higher contributions at the Utilities SBU, higher revenues under a PPA termination agreement at the Energy Infrastructure SBU, higher revenues from new projects at the Renewables SBU, and lower losses from affiliates at the New Energy Technologies SBU; partially offset by higher outages at the Energy Infrastructure SBU, and higher fixed costs and outages in Colombia at the Renewables SBU.

Adjusted EBITDA with Tax Attributes, a non-GAAP measure, increased $458 million, from $1,248 million to $1,706 million, primarily due to higher realized tax attributes driven by more renewables projects placed in service, and the drivers above.

Compared with last year, diluted earnings per share from continuing operations for the six months ended June 30, 2024 increased $0.71, from $0.16 to $0.87. This increase is mainly driven by higher contributions from renewables projects placed in service in the current year, prior year unrealized foreign currency losses at the Energy Infrastructure SBU, higher margins at the Energy Infrastructure and Utilities SBUs, and lower income tax expense; partially offset by losses at commencement of sales-type leases at the Renewables SBU.

Adjusted EPS, a non-GAAP measure, increased $0.46 from $0.43 to $0.89, mainly driven by a lower adjusted tax rate, higher contributions from renewables projects placed in service in the current year, and higher contributions from the Utilities SBU.

38 | The AES Corporation | June 30, 2024 Form 10-Q

(1) Non-GAAP measure. See Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations—SBU Performance Analysis—Non-GAAP Measures for reconciliation and definition.

(2) GWh sold in 2023.

39 | The AES Corporation | June 30, 2024 Form 10-Q

Overview of Strategic Performance

AES is leading the industry's transition to clean energy by investing in renewables, utilities, and technology businesses.

•The Company has now signed 8.1 GW of agreements directly with technology customers, including through transmission and distribution, renewables PPAs, and retail supply. Since the Company's first quarter 2024 earnings call in May 2024, the Company signed 2.2 GW of agreements, including:

◦1.2 GW of new data center load at U.S. utilities, which should benefit rate base growth, but is not included in the Company’s PPA backlog;

◦15-year PPAs for 727 MW of wind and solar to serve data center growth in Texas; and

◦A 310 MW retail supply agreement to support data centers throughout Ohio, which is not included in the Company’s PPA backlog.

•The Company’s PPA backlog, which consists of projects with signed contracts, but which are not yet operational, is 12.6 GW, including 5.1 GW under construction. Since the Company’s first quarter 2024 earnings call in May 2024, the Company:

◦Signed 1 GW of long-term contracts for new renewables, including the acquisition of a 170 MW solar-plus-storage development project that will be added to AES Indiana’s rate base.

◦Completed the construction or acquisition of 976 MW of wind, solar, and energy storage and expects to add a total of 3.6 GW to its operating portfolio by year-end 2024.