AES CORP

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

Review of Consolidated Results of Operations (Unaudited)

Components of Revenue, Cost of Sales, and Operating Margin —Revenue includes revenue earned from the sale of energy from our utilities and the production and sale of energy from our generation plants, which are classified as regulated and non-regulated, respectively, on the Condensed Consolidated Statements of Operations. Revenue also includes the gains or losses on derivatives associated with the sale of electricity.

Cost of sales includes costs incurred directly by the businesses in the ordinary course of business. Examples include electricity and fuel purchases, O&M costs, depreciation and amortization expenses, bad debt expense and recoveries, and general administrative and support costs (including employee-related costs directly associated with the operations of the business). Cost of sales also includes the gains or losses on derivatives (including embedded derivatives other than foreign currency embedded derivatives) associated with the purchase of electricity or fuel.

Operating margin is defined as revenue less cost of sales.

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

Consolidated Revenue and Operating Margin

Three Months Ended June 30, 2026

Revenue

Consolidated Revenue — Revenue increased $567 million, or 20%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, driven by:

•$295 million at Renewables mainly driven by a $76 million favorable impact from energy derivatives in the U.S., $67 million higher spot sales and prices in Colombia driven by El Niño, $63 million due to development services in the U.S., $53 million due to new projects placed in service in the U.S. and Chile, $27 million positive impact due to the appreciation of the Colombian peso, and $21 million higher revenues under our retail supply agreements; partially offset by $13 million lower contracted and spot sales in Chile;

•$190 million at Energy Infrastructure mainly driven by $188 million of higher energy and capacity sales and prices in the spot market in Argentina, $25 million of higher spot sales in Mexico driven by the expiration of a PPA, $24 million of higher LNG sales, and $23 million of net derivative gains as part of our commercial hedging strategy; partially offset by $72 million lower contract sales volume mainly driven by the expiration of the Maritza PPA in Bulgaria;

•$64 million at Utilities mainly driven by $38 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, and $35 million due to higher transmission and rider revenues; partially offset by a $10 million decrease in wholesale revenues at AES Indiana driven by lower load requirements and unit availability; and

•$18 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue.

Operating Margin

Consolidated Operating Margin — Operating margin increased $239 million, or 53%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, mainly due to higher margins at the Renewables SBU driven by favorable impacts from energy derivatives and contributions from development services in the U.S., as well as higher energy and capacity sales and prices in the spot market at the Energy Infrastructure SBU. The increase in operating margin was partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria.

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

See Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations—SBU Performance Analysis of this Form 10-Q for additional discussion and analysis of operating results for each SBU.

Six Months Ended June 30, 2026

Revenue

Consolidated Revenue — Revenue increased $821 million, or 14%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, driven by:

•$449 million at Renewables mainly driven by $126 million due to development services in the U.S., a $93 million favorable impact from energy derivatives in the U.S., $90 million due to new projects placed in service in the U.S. and Chile, $48 million higher spot sales and prices in Colombia, mainly driven by El Niño and partially offset by lower spot prices in the first quarter, $40 million positive impact due to the appreciation of the Colombian peso, and $40 million higher revenues under our retail supply agreements;

•$191 million at Utilities mainly driven by $92 million due to higher transmission and rider revenues, $84 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, and a $17 million increase in wholesale revenues at AES Indiana driven by higher load requirements and increased capacity from new renewables projects placed in service;

•$126 million at Energy Infrastructure mainly driven by $201 million higher energy and capacity sales and prices in the spot market mainly in Argentina, $61 million of higher spot sales in Mexico driven by the expiration of a PPA, $61 million higher LNG sales, and $14 million of prior year net derivative losses as part of our commercial hedging strategy; partially offset by $207 million lower contract sales volume mainly driven by the expiration of the Maritza PPA in Bulgaria; and

•$55 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue, partially offset by lower charge-outs of IT and other costs to the businesses.

Operating Margin

Consolidated Operating Margin — Operating margin increased $438 million, or 49%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, mainly due to higher margins at the Renewables SBU driven by contributions from development services in the U.S. and favorable impacts from energy derivatives, as well as higher retail rates at AES Ohio at the Utilities SBU, and higher energy and capacity sales and prices in the spot market at the Energy Infrastructure SBU. The increase in operating margin was partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria and higher depreciation.

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

See Item 2.—Management’s Discussion and Analysis of Financial Condition and Results of Operations—SBU Performance Analysis of this Form 10-Q for additional discussion and analysis of operating results for each SBU.

Consolidated Results of Operations — Other

General and administrative expenses

General and administrative expenses increased $13 million, or 27%, to $62 million for the three months ended June 30, 2026, compared to $49 million for the three months ended June 30, 2025, primarily due to $11 million of costs related to the Merger and a $5 million increase in business development costs, partially offset by $3 million lower professional fees.

General and administrative expenses decreased $9 million, or 7%, to $117 million for the six months ended June 30, 2026, compared to $126 million for the six months ended June 30, 2025, primarily due to a $14 million decrease in business development costs and $9 million decrease in one-time costs, all driven by the Company's restructuring program in February 2025, as well as $6 million lower professional fees; partially offset by $22 million of costs related to the Merger.

Interest expense

Interest expense increased $16 million, or 5%, to $368 million for the three months ended June 30, 2026, compared to $352 million for the three months ended June 30, 2025. This increase is primarily due to higher debt balances and lower capitalized interest at the Renewables SBU due to fewer projects under construction, and higher interest expense at the Parent Company due to a higher weighted average interest rate and debt balance; partially offset by lower debt balances at the Energy Infrastructure SBU.

Interest expense increased $27 million, or 4%, to $721 million for the six months ended June 30, 2026, compared to $694 million for the six months ended June 30, 2025. This increase is primarily due to higher interest expense at the Parent Company due to a higher weighted average interest rate and debt balance as well as the impact of a prior year realized gain on a de-designated interest rate swap, and lower capitalized interest at the Renewables SBU due to fewer projects under construction; partially offset by lower debt balances at the Energy Infrastructure SBU.

Other expense

Other expense decreased $268 million, or 91%, to $27 million for the three months ended June 30, 2026, compared to $295 million for the three months ended June 30, 2025, primarily driven by $199 million of prior year losses on commencement of sales-type leases at AES Clean Energy, and a prior year $48 million loss on remeasurement of our investment in 5B, accounted for using the measurement alternative.

Other expense decreased $262 million, or 76%, to $85 million for the six months ended June 30, 2026, compared to $347 million for the six months ended June 30, 2025, primarily driven by a $164 million decrease in losses on commencement of sales-type leases at AES Clean Energy, a prior year $48 million loss on remeasurement of our investment in 5B, accounted for using the measurement alternative, and a $20 million decrease in losses on remeasurement of contingent consideration.

See Note 15—Other Income and Expense included in Item 1.—Financial Statements of this Form 10-Q for further information.

Gain on disposal and sale of business interests

Gain on disposal and sale of business interests increased $139 million to $209 million for the three months ended June 30, 2026, compared to $70 million for the three months ended June 30, 2025, mainly due to a $186 million gain on sale of shares of Fluence and a $24 million gain resulting from the contribution of two of the JK Projects to a trust; partially offset by a $70 million gain on the sell-down of Dominican Republic Renewables in the prior year.

Gain on disposal and sale of business interests increased $140 million to $209 million for the six months ended June 30, 2026, compared to $69 million for the six months ended June 30, 2025 due to the drivers above.

See Note 7—Investments in and Advances to Affiliates and Note 18—Held-for-Sale and Dispositionsfor further information.

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

Asset impairment reversals (expense)

Asset impairment expense increased $184 million to $30 million for the three months ended June 30, 2026, compared to a $154 million reversal for the three months ended June 30, 2025. This increase was primarily the result of a $243 million increase in the carrying value of the Mong Duong asset group in the prior year due to the derecognition of a valuation allowance on the loan receivable accounted for under ASC 310 and the elimination of net estimated costs to sell upon reclassifying Mong Duong from held-for-sale to held and used. This was partially offset by lower impairment expense of $54 million at AES Clean Energy Development due to the write-off of project development intangibles and capitalized development costs for projects that were determined to be no longer viable, mainly driven by $51 million in the prior year due to the right sizing of our development company as part of the restructuring program initiated in February 2025.

Asset impairment expense increased $147 million to $42 million for the six months ended June 30, 2026, compared to a $105 million reversal for the six months ended June 30, 2025. This increase was primarily the result of a $243 million increase in the carrying value of Mong Duong asset group in the prior year due to the derecognition of a valuation allowance on the loan receivable accounted for under ASC 310 and the elimination of net estimated costs to sell upon reclassifying Mong Duong from held-for-sale to held and used. This was partially offset by lower impairment expense of $79 million at AES Clean Energy Development due to the write-off of project development intangibles and capitalized development costs for projects that were determined to be no longer viable, mainly driven by $51 million in the prior year due to the right sizing of our development company as part of the restructuring program initiated in February 2025.

See Note 16—Asset Impairment Expense included in Item 1.—Financial Statements of this Form 10-Q for further information.

Foreign currency transaction losses

(1)Includes losses of $36 million and $12 million on foreign currency derivative contracts for the three months ended June 30, 2026 and 2025, respectively, and losses of $45 million and $14 million on foreign currency derivative contracts for the six months ended June 30, 2026 and 2025, respectively.

The Company recognized net foreign currency transaction losses of $52 million for the three months ended June 30, 2026, primarily driven by unrealized foreign currency derivative losses in Argentina, unrealized losses due to the depreciation of the Argentine peso, and unrealized losses in Chile due to the appreciation of the Chilean peso and the appreciation of the Colombian peso, which negatively impacted foreign currency forwards.

The Company recognized net foreign currency transaction losses of $41 million for the six months ended June 30, 2026, primarily driven by unrealized losses in Chile due to the appreciation of the Colombian peso, which negatively impacted foreign currency forwards, higher realized foreign currency losses related to settled forward contracts in Chile, and unrealized foreign currency derivative losses in Argentina.

The Company recognized net foreign currency transaction losses of $28 million and $38 million for the three and six months ended June 30, 2025, respectively, primarily driven by unrealized losses due to the appreciation of the Chilean peso and unrealized losses on forwards and options in Euros.

Other non-operating expense

There were no other non-operating expenses during the three and six months ended June 30, 2026.

Other non-operating expense was $10 million for the three and six months ended June 30, 2025 due to an other-than-temporary impairment of convertible notes at 5B as a result of an observable price change from a transaction between 5B and a third-party.

Income tax benefit (expense)

Income tax expense decreased $139 million, or 83%, to $28 million for the three months ended June 30, 2026, compared to $167 million for the three months ended June 30, 2025. The Company’s effective tax rates were 6% and 428% for the three months ended June 30, 2026 and 2025, respectively. The current quarter effective tax rate

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

was impacted by the benefit associated with ITCs, as well as the benefit associated with the Fluence sell-down transaction due to release of valuation allowance on U.S. capital losses. These impacts were partially offset by tax expense resulting from allocations of losses to tax equity investors on renewables projects. See Note 7—Investments in and Advances to Affiliates included in Item 1.—Financial Statements of this Form 10-Q for additional information regarding the Fluence sell-down.

Income tax benefit was $13 million for the six months ended June 30, 2026, compared to income tax expense of $184 million for the six months ended June 30, 2025. The Company’s effective tax rates were (2)% and 1,082% for the six months ended June 30, 2026 and 2025, respectively. The 2026 effective tax rate was impacted by the benefits associated with ITCs and the Fluence sell-down transaction, partially offset by tax expense resulting from allocations of losses to tax equity investors on renewables projects.

The 2025 effective tax rate was not meaningful due to pretax book income being near breakeven. This effective tax rate was largely impacted by the benefits associated with U.S. investment tax credits (“ITCs”), the prior year reclassification of Mong Duong from held-for-sale to held and used, and tax expense resulting from allocations of losses to tax equity investors on renewables projects.

Our effective tax rate reflects the tax effect of significant operations outside the U.S., which are generally taxed at rates different than the U.S. statutory rate of 21%. Furthermore, our foreign earnings may be subjected to incremental U.S. taxation under the NCTI rules. A future proportionate change in the composition of income before income taxes from foreign and domestic tax jurisdictions could impact our periodic effective tax rate.

Net equity in losses of affiliates

Net equity in losses of affiliates increased $12 million, or 55%, to $34 million for the three months ended June 30, 2026, compared to $22 million for the three months ended June 30, 2025. This increase was primarily driven by a $22 million impact at Gatun due to current year debt extinguishment costs and higher losses of $11 million from Dominican Republic Renewables due to beginning equity method accounting in June 2025, partially offset by lower losses from Uplight of $5 million after equity method accounting was suspended in the fourth quarter of 2025 and from Fluence of $5 million driven by an increase in the volume of products fulfilled, as well as higher earnings from sPower of $7 million due to lower interest expense.

Net equity in losses of affiliates decreased $14 million, or 25%, to $42 million for the six months ended June 30, 2026, compared to $56 million for the six months ended June 30, 2025. This decrease was primarily driven by lower losses from Uplight of $16 million after equity method accounting was suspended in the fourth quarter of 2025 and $10 million from sPower due to lower interest expense, as well as higher earnings from Fluence of $6 million driven by an increase in the volume of products fulfilled, partially offset by a $22 million impact at Gatun due to current year debt extinguishment costs.

See Note 7—Investments in and Advances to Affiliates included in Item 1.—Financial Statements of this Form 10-Q for further information.

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $16 million, or 29%, to $39 million for the three months ended June 30, 2026, compared to $55 million for the three months ended June 30, 2025. This decrease in net losses was primarily due to:

•Lower losses of $187 million at AES Clean Energy Development and AES Renewable Holdings due to prior-year losses on the commencement of sales-type leases and lower allocation of losses to tax equity investors on projects placed in service.

This driver was partially offset by:

•Lower income of $119 million at Mong Duong primarily due to the prior-year derecognition of a valuation allowance on the loan receivable accounted for under ASC 310 upon reclassifying Mong Duong from held-for-sale to held and used;

•Lower income of $25 million due to the prior-year deconsolidation of Dominican Republic Renewables;

•Higher losses of $14 million at AES Indiana primarily related to higher allocation of losses to tax equity investors for the Petersburg Energy Center; and

•Higher losses of $10 million in Panama primarily related to debt extinguishment costs.

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

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries increased $77 million, or 44%, to $251 million for the six months ended June 30, 2026, compared to $174 million for the six months ended June 30, 2025. This increase in net losses was primarily due to:

•Lower income of $112 million at Mong Duong primarily due to the prior-year derecognition of a valuation allowance on the loan receivable accounted for under ASC 310 upon reclassifying Mong Duong from held-for-sale to held and used;

•Higher losses of $72 million at AES Clean Energy Development primarily attributable to higher allocation of losses to tax equity investors on projects placed in service;

•Lower income of $27 million due to the prior-year deconsolidation of Dominican Republic Renewables;

•Lower income of $13 million due to the acquisition of the remaining shares of Cochrane; and

•Higher losses of $12 million in Panama primarily related to debt extinguishment costs.

•Lower losses of $107 million at AES Renewable Holdings due to lower allocation of losses to tax equity investors on projects placed in service;

•Higher income of $14 million and $12 million due to the prior-year selldowns of AES Ohio and AGIC, respectively;

•Higher income of $10 million at Merida due to higher spot sales; and

•Lower losses of $9 million at AES Indiana primarily related to higher allocation of losses to tax equity investors for the Pike County BESS project in the prior year.

Net income attributable to The AES Corporation

Net income attributable to The AES Corporation increased $521 million to $426 million for the three months ended June 30, 2026, compared to a $95 million loss for the three months ended June 30, 2025. This increase was primarily due to:

•Lower other expense of $220 million primarily due to lower losses on commencement of sales-type leases and a prior-year loss on remeasurement of our investment in 5B, accounted for using the measurement alternative;

•Higher gain on disposal and sale of business interests of $165 million due to a gain on sale of shares in Fluence and the contribution of JK1 and JK2 to a trust, partially offset by a prior-year gain on the sell-down of Dominican Republic Renewables;

•Lower income tax expense of $140 million due to a lower effective tax rate;

•Higher margins from the Renewables SBU of $126 million, excluding one-time restructuring costs in the prior year, primarily due to net favorable impact from energy derivatives in the U.S., increases from development services in the U.S., higher spot sales and prices driven by El Niño partially offset by lower contracted energy margin in Colombia, and appreciation of the Colombian peso; partially offset by higher depreciation;

•Higher margins from the Energy Infrastructure SBU of $64 million, excluding one-time restructuring costs in the prior year, primarily due to higher energy and capacity sales and prices in the spot market and higher net derivative gains, partially offset by lower contract sales volume at Maritza due to the PPA expiration and higher depreciation at Maritza due to the useful life reassessment in the prior year; and

•Higher margins from the Utilities SBU of $18 million primarily due to the 2024 DRC Settlement at AES Ohio, partially offset by higher property taxes.

•Prior-year $127 million increase in the carrying value of the Mong Duong asset group primarily due to the derecognition of a valuation allowance on the loan receivable accounted for under ASC 310 upon reclassifying Mong Duong from held-for-sale to held and used;

•Lower contributions from renewables projects placed in service of $70 million; and

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

•Higher foreign currency losses of $25 million primarily related to unrealized foreign currency derivative losses in Argentina and unrealized losses in Chile due to the appreciation of the Chilean peso and the appreciation of the Colombian peso, which negatively impacted foreign currency forwards.

Net income attributable to The AES Corporation increased $962 million to $913 million for the six months ended June 30, 2026, compared to a $49 million loss for the six months ended June 30, 2025. This increase was primarily due to:

•Lower other expense of $213 million primarily due to lower losses on commencement of sales-type leases and a prior-year loss on remeasurement of our investment in 5B, accounted for using the measurement alternative;

•Income tax benefit of $63 million compared to prior year income tax expense of $143 due to a lower effective tax rate;

•Higher margins from the Renewables SBU of $180 million, excluding one-time restructuring costs in the prior year, primarily due to increases from development services in the U.S., net favorable impact from changes in energy derivatives in the U.S, higher spot sales and prices driven by El Niño partially offset by lower contracted energy margin in Colombia, and appreciation of the Colombian peso; partially offset by higher depreciation;

•Higher gain on disposal and sale of business interests of $164 million due to a gain on sale of shares in Fluence and the contribution of JK1 and JK2 to a trust, partially offset by a prior-year gain on the sell-down of Dominican Republic Renewables;

•Higher contributions from renewables projects placed in service of $113 million;

•Higher margins from the Energy Infrastructure SBU of $75 million, excluding one-time restructuring costs in the prior year, primarily due to higher energy and capacity sales and prices in the spot market, higher net derivative gains, and higher LNG sales, partially offset by lower contract sales volume at Maritza due to the PPA expiration and higher depreciation at Maritza due to the useful life reassessment in the prior year;

•Higher margins from the Utilities SBU of $62 million, excluding one-time restructuring costs in the prior year, primarily due to the 2024 DRC Settlement and higher transmission revenues at AES Ohio and higher rider revenues at AES Indiana; partially offset by higher property taxes;

•One-time restructuring costs of $50 million in the prior year; and

•Lower net equity in losses of affiliates of $18 million primarily related to the suspension of equity method accounting at Uplight in the fourth quarter of 2025.

•Prior-year $127 million increase in the carrying value of the Mong Duong asset group primarily due to the derecognition of a valuation allowance on the loan receivable accounted for under ASC 310 upon reclassifying Mong Duong from held-for-sale to held and used; and

•Lower income of $30 million due to allocations of earnings to noncontrolling interest holders under profit-sharing arrangements based on stated internal rates of return.