AES CORP
For the period ended Dec 31, 2025. Filed Mar 2, 2026.
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FY2025 · Filed Mar 2, 2026
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Schedule I—Condensed Financial Information of Registrant
S-2 | 2025 Annual Report
BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
| December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (in millions) | ||
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $11 | $265 |
| Accounts and notes receivable from subsidiaries | 266 | 446 |
| Prepaid expenses and other current assets | 81 | 95 |
| Total current assets | 358 | 806 |
| Investment in and advances to subsidiaries and affiliates | 11,520 | 9,786 |
| Office Equipment: | ||
| Cost | 14 | 14 |
| Accumulated depreciation | (14) | (13) |
| Construction in progress | 7 | — |
| Office equipment, net | 7 | 1 |
| Other Assets: | ||
| Deferred financing costs, net of accumulated amortization of $14 and $12, respectively | 3 | 5 |
| Other assets | 29 | 47 |
| Total other assets | 32 | 52 |
| Total assets | $11,917 | $10,645 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $9 | $20 |
| Accounts and notes payable to subsidiaries | 208 | 190 |
| Accrued and other liabilities | 339 | 312 |
| Debt—current portion | 879 | 899 |
| Total current liabilities | 1,435 | 1,421 |
| Long-term Liabilities: | ||
| Debt | 5,105 | 4,805 |
| Accounts and notes payable to subsidiaries | 754 | 307 |
| Other long-term liabilities | 560 | 468 |
| Total long-term liabilities | 6,419 | 5,580 |
| Stockholders' equity: | ||
| Common stock | 9 | 9 |
| Additional paid-in capital | 5,904 | 5,913 |
| Retained earnings | 641 | 293 |
| Accumulated other comprehensive loss | (698) | (766) |
| Treasury stock | (1,793) | (1,805) |
| Total stockholders' equity | 4,063 | 3,644 |
| Total liabilities and equity | $11,917 | $10,645 |
S-3 | 2025 Annual Report
STATEMENTS OF OPERATIONS
| For the Years Ended December 31, | 2025 | 2024 | 2023 |
|---|---|---|---|
| (in millions) | |||
| Revenue from subsidiaries and affiliates | $23 | $23 | $31 |
| Equity in earnings of subsidiaries and affiliates | 675 | 1,641 | 598 |
| Interest income | 146 | 150 | 44 |
| General and administrative expenses | (135) | (137) | (129) |
| Other income | 17 | 41 | 11 |
| Other expense | (6) | (16) | — |
| Loss on extinguishment of debt | 1 | — | — |
| Interest expense | (331) | (307) | (230) |
| Income before income taxes | 390 | 1,395 | 325 |
| Income tax benefit (expense) | 520 | 284 | (76) |
| Net income | $910 | $1,679 | $249 |
S-4 | 2025 Annual Report
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| (in millions) | |||
| NET INCOME (LOSS) | $910 | $1,679 | $249 |
| Foreign currency translation activity: | |||
| Foreign currency translation adjustments, net of income tax expense of $1, $0, and $0, respectively | 114 | (159) | 136 |
| Reclassification to earnings, net of $0 income tax for all periods | — | 71 | — |
| Total foreign currency translation adjustments | 114 | (88) | 136 |
| Derivative activity: | |||
| Change in fair value of derivatives, net of income tax benefit (expense) of $2, $(93), and $(7), respectively | (35) | 315 | 55 |
| Reclassification to earnings, net of income tax benefit (expense) of $12, $(8), and $9, respectively | (2) | 18 | (52) |
| Total change in fair value of derivatives | (37) | 333 | 3 |
| Pension activity: | |||
| Change in pension adjustments due to prior service cost, net of $0 income tax for all periods | 1 | — | 1 |
| Change in pension adjustments due to net actuarial gain (loss) for the period, net of income tax benefit of $0, $2, and $1, respectively | (2) | (5) | (4) |
| Reclassification of earnings, net of income tax expense of $0, $1, and $0, respectively | 1 | 7 | — |
| Total pension adjustments | — | 2 | (3) |
| Fair value option liabilities activity: | |||
| Change in fair value option liabilities due to instrument-specific credit risk, net of $0 income tax for all periods | — | 3 | — |
| Total change in fair value option liabilities | — | 3 | — |
| OTHER COMPREHENSIVE INCOME | 77 | 250 | 136 |
| COMPREHENSIVE INCOME | $987 | $1,929 | $385 |
S-5 | 2025 Annual Report
STATEMENTS OF CASH FLOWS
| For the Years Ended December 31, | 2025 | 2024 | 2023 |
|---|---|---|---|
| (in millions) | |||
| Net cash provided by operating activities | $820 | $731 | $608 |
| Investing Activities: | |||
| Proceeds from the sale of business interests, net of expenses | — | 566 | 474 |
| Investment in and net advances to subsidiaries | (2,080) | (2,508) | (2,187) |
| Return of capital | 970 | 786 | 1,185 |
| Additions to property, plant, and equipment | (7) | (11) | (9) |
| Net cash used in investing activities | (1,117) | (1,167) | (537) |
| Financing Activities: | |||
| Borrowings (repayments) under the revolver, net | 379 | — | (325) |
| Borrowings of notes payable and other coupon bearing securities | 800 | 1,450 | 900 |
| Repayments of notes payable and other coupon bearing securities | (898) | (200) | — |
| Repayments to subsidiaries, net | (151) | (76) | (177) |
| Issuance of preferred shares in subsidiaries | 436 | — | — |
| Proceeds from issuance of common stock | — | 3 | 1 |
| Common stock dividends paid | (501) | (483) | (444) |
| Payments for deferred financing costs | (8) | (21) | (14) |
| Other financing | (14) | (5) | (3) |
| Net cash provided by (used in) financing activities | 43 | 668 | (62) |
| (Decrease) increase in cash and cash equivalents | (254) | 232 | 9 |
| Cash and cash equivalents, beginning | 265 | 33 | 24 |
| Cash and cash equivalents, ending | $11 | $265 | $33 |
| Supplemental Disclosures: | |||
| Cash payments for interest, net of amounts capitalized | $292 | $202 | $178 |
| Cash payments for income taxes, net of refunds | 11 | 44 | 9 |
S-6 | 2025 Annual Report
SCHEDULE I
NOTES TO SCHEDULE I
- Application of Significant Accounting Principles
The Schedule I Condensed Financial Information of the Parent includes the accounts of The AES Corporation (the “Parent Company”) and certain holding companies.
ACCOUNTING FOR SUBSIDIARIES AND AFFILIATES— The Parent Company has accounted for the earnings of its subsidiaries on the equity method in the financial information.
INCOME TAXES— Positions taken on the Parent Company's income tax return which satisfy a more-likely-than-not threshold will be recognized in the financial statements. The income tax expense or benefit computed for the Parent Company reflects the tax assets and liabilities on a stand-alone basis and the effect of filing a consolidated U.S. income tax return with certain other affiliated companies.
ACCOUNTS AND NOTES RECEIVABLE FROM SUBSIDIARIES— Amounts have been shown in current or long-term assets based on terms in agreements with subsidiaries, but payment is dependent upon meeting conditions precedent in the subsidiary loan agreements.
- Debt
Senior and Unsecured Notes and Loans Payable ($ in millions)
| December 31, | ||||
|---|---|---|---|---|
| Interest Rate | Maturity | 2025 | 2024 | |
| Senior Unsecured Note | 3.30% | 2025 | $— | $900 |
| Commercial paper outstanding borrowings | 2026 | 79 | — | |
| Senior Unsecured Note | 1.375% | 2026 | 800 | 800 |
| Drawings on revolving credit facility | SOFR + 1.80% | 2027 | 300 | — |
| Senior Unsecured Note | 5.45% | 2028 | 900 | 900 |
| Senior Unsecured Note | 3.95% | 2030 | 700 | 700 |
| Senior Unsecured Note | 2.45% | 2031 | 1,000 | 1,000 |
| Senior Unsecured Note | 5.80% | 2032 | 800 | — |
| Junior Unsecured Note | 7.60% | 2055 | 950 | 950 |
| Junior Unsecured Note | 6.95% | 2055 | 500 | 500 |
| Unamortized (discounts)/premiums & debt issuance (costs) | (45) | (46) | ||
| Subtotal | $5,984 | $5,704 | ||
| Less: Current maturities | (879) | (899) | ||
| Noncurrent maturities | $5,105 | $4,805 | ||
FUTURE MATURITIES OF RECOURSE DEBT—As of December 31, 2025 scheduled maturities are presented in the following table (in millions):
| December 31, | Annual Maturities |
|---|---|
| 2026 | $879 |
| 2027 | 300 |
| 2028 | 900 |
| 2029 | — |
| 2030 | 700 |
| Thereafter | 3,250 |
| Unamortized (discount)/premium & debt issuance (costs), net | (45) |
| Total debt | $5,984 |
- Dividends from Subsidiaries and Affiliates
Cash dividends received from consolidated subsidiaries were $1.4 billion, $1.6 billion, and $1.4 billion for the years ended December 31, 2025, 2024, and 2023, respectively. For the years ended December 31, 2024 and 2023, $574 million, and $474 million, respectively, of the dividends paid to the Parent Company are derived from the sale of business interests and are classified as an investing activity for cash flow purposes. There were no dividends derived from the sale of business interests for the year ended December 31, 2025. All other dividends are classified as operating activities. There were no cash dividends received from affiliates accounted for by the equity method for the years ended December 31, 2025, 2024, and 2023.
S-7 | 2025 Annual Report
- Guarantees, Letters of Credit, and Surety Bonds
GUARANTEES— In connection with certain project financings (including tax equity transactions), acquisitions and dispositions, power purchases, EPC contracts, tax credit transfers, 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. These obligations and commitments, excluding those collateralized by letters of credit and other obligations discussed below, were limited as of December 31, 2025 by the terms of the agreements, to an aggregate of approximately $6.7 billion, representing 102 agreements with individual exposures ranging up to $1.1 billion. These amounts exclude normal and customary representations and warranties in agreements for the sale of assets (including ownership in associated legal entities) where the associated risk is considered to be nominal.
LETTERS OF CREDIT AND SURETY BONDS— At December 31, 2025, the Parent Company had $220 million in letters of credit outstanding under bilateral agreements, representing 8 agreements with individual exposures ranging up to $92 million; $117 million in letters of credit outstanding under the unsecured credit facilities, representing 7 agreements with individual exposures ranging up to $60 million; and $50 million in letters of credit outstanding under the revolving credit facilities, representing 17 agreements with individual exposures up to $38 million. In addition, at December 31, 2025, the Parent Company had a $36 million surety bond outstanding.
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