AES CORP

Compared with last year, second quarter net income increased $537 million, from a net loss of $150 million to net income of $387 million. This increase is the result of the favorable impact from energy derivatives and higher contributions from development services in the U.S., higher energy and capacity sales and prices in the spot market, higher retail margin primarily at AES Ohio, losses on commencement of sales-type leases recognized in the prior year at AES Clean Energy Development, lower income tax expense, and a gain on sale of shares in Fluence; partially offset by the prior-year impact of derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used and lower contract sales volume and higher depreciation mainly due to the expiration of the Maritza PPA in Bulgaria.

Adjusted EBITDA, a non-GAAP measure, increased $217 million, from $681 million to $898 million, driven by higher contributions from development services in the U.S., higher energy and capacity sales and prices in the spot market, the increase in ownership of Cochrane, and higher retail margin primarily at AES Ohio; partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria.

48 | The AES Corporation | June 30, 2026 Form 10-Q

Compared with last year, net income for the six months ended June 30, 2026 increased $885 million, from a net loss of $223 million to net income of $662 million. This increase is the result of higher contributions from development services and the favorable impact of energy derivatives in the U.S., higher retail margin and transmission and rider revenues at AES Ohio and AES Indiana, higher energy and capacity sales and prices in the spot market, losses on commencement of sales-type leases recognized in the prior year at AES Clean Energy Development, income tax benefit in the current year compared to income tax expense in the prior year, one-time costs in the prior year due to the Company’s restructuring program in February 2025, and a gain on sale of shares in Fluence; partially offset by the prior-year impact of derecognition of a valuation allowance on the loan receivable upon reclassifying Mong Duong from held-for-sale to held and used and lower contract sales volume and higher depreciation mainly due to the expiration of the Maritza PPA in Bulgaria.

Adjusted EBITDA, a non-GAAP measure, increased $453 million, from $1,272 million to $1,725 million for the six months ended June 30, 2026, driven by higher contributions from development services in the U.S., higher energy and capacity sales and prices in the spot market, the increase in ownership of Cochrane, and higher retail margin and transmission and rider revenues at AES Ohio and AES Indiana; partially offset by the impact of the AES Ohio and AGIC selldowns in the prior year and lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria.

49 | The AES Corporation | June 30, 2026 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 2025.