AES CORP

52 | The AES Corporation | September 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.

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

Consolidated Revenue and Operating Margin

Three Months Ended September 30, 2026

Revenue

Consolidated Revenue — Revenue increased $521 million, or 16%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, driven by:

•$287 million at Renewables mainly driven by $182 million higher spot sales in Colombia, benefiting from elevated spot prices due to El Niño-related unfavorable hydrological conditions across the country and relatively favorable hydrology at the AES Chivor basin, $77 million positive impact due to the appreciation of the Colombian peso, $56 million due to new projects placed in service in the U.S. and Chile, $34 million due to development services in the U.S., and $21 million higher revenues under our retail supply agreements; partially offset by $61 million lower contracted and spot sales in Chile, and an $18 million unfavorable impact from energy derivatives in the U.S.;

•$151 million at Utilities mainly driven by $67 million due to higher retail demand mainly driven by weather, $48 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, and $43 million due to higher transmission and rider revenues; partially offset by a $13 million decrease in wholesale revenues at AES Indiana driven by lower load requirements and unit availability;

•$53 million at Energy Infrastructure mainly driven by $254 million higher energy and capacity sales and prices in the spot market mainly in Argentina, $14 million of higher spot sales in Mexico driven by the expiration of a PPA, and $11 million of higher LNG sales; partially offset by $146 million lower contract sales volume mainly driven by the expiration of the Maritza PPA in Bulgaria, $74 million of prior year net derivative gains as part of our commercial hedging strategy, and $9 million driven by lower availability; and

•$29 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue.

Operating Margin

Consolidated Operating Margin — Operating margin increased $247 million, or 34%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, mainly due to higher margins at the Renewables SBU driven by higher spot sales and prices in Colombia driven by El Niño, as well as higher energy and capacity sales and prices in the spot market at the Energy Infrastructure SBU and higher retail rates and demand in the Utilities SBU. The increase in operating margin was partially offset by lower contract sales

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

volume mainly due to the expiration of the Maritza PPA in Bulgaria.

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.

Nine Months Ended September 30, 2026

Revenue

Consolidated Revenue — Revenue increased $1,342 million, or 15%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, driven by:

•$736 million at Renewables mainly driven by $230 million higher spot sales in Colombia, benefiting from elevated spot prices due to El Niño-related unfavorable hydrological conditions across the country and relatively favorable hydrology at the AES Chivor basin and partially offset by lower spot prices in the first quarter, $160 million due to development services in the U.S., $146 million due to new projects placed in service in the U.S. and Chile, $116 million positive impact due to the appreciation of the Colombian peso, a $75 million favorable impact from energy derivatives in the U.S., and $60 million higher revenues under our retail supply agreements; partially offset by $59 million lower contracted and spot sales in Chile;

•$342 million at Utilities mainly driven by $132 million due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement in November 2025, $122 million due to higher transmission and rider revenues, and $88 million due to higher retail demand mainly driven by weather;

•$179 million at Energy Infrastructure mainly driven by $455 million higher energy and capacity sales and prices in the spot market mainly in Argentina, $75 million of higher spot sales in Mexico driven by the expiration of a PPA, and $72 million of higher LNG sales; partially offset by $347 million lower contract sales volume mainly driven by the expiration of the Maritza PPA in Bulgaria, $62 million of prior year net derivative gains as part of our commercial hedging strategy, and $15 million driven by lower availability; and

•$84 million at Corporate, Other and Eliminations mainly driven by lower eliminations of inter-segment revenue.

Operating Margin

Consolidated Operating Margin — Operating margin increased $685 million, or 42%, for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, mainly due to higher margins at the Renewables SBU driven by contributions from development services in the U.S. and higher spot

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

sales and prices in Colombia driven by El Niño, 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.

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 $22 million, or 48%, to $68 million for the three months ended September 30, 2026, compared to $46 million for the three months ended September 30, 2025, primarily due to $12 million of costs related to the Merger, $4 million increase primarily due to changes in the allocation of certain executive costs between Corporate general and administrative expenses and the Company’s segments under cost of sales following changes in the leadership structure, and a $3 million increase in business development costs.

General and administrative expenses increased $13 million, or 8%, to $185 million for the nine months ended September 30, 2026, compared to $172 million for the nine months ended September 30, 2025, primarily due to $35 million of costs related to the Merger and $4 million increase primarily due to changes in the allocation of certain executive costs between Corporate general and administrative expenses and the Company’s segments under cost of sales following changes in the leadership structure; partially offset by a $12 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 $5 million lower professional fees.

Interest expense

Interest expense increased $13 million, or 4%, to $361 million for the three months ended September 30, 2026, compared to $348 million for the three months ended September 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, and higher debt balances at the Utilities SBU; partially offset by lower debt balances at the Energy Infrastructure SBU.

Interest expense increased $40 million, or 4%, to $1,082 million for the nine months ended September 30, 2026, compared to $1,042 million for the nine months ended September 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, lower capitalized interest at the Renewables SBU due to fewer projects under construction, and lower capitalized interest at the Utilities SBU due to a decrease in the allowance for borrowed funds used during construction; partially offset by lower debt balances at the Energy Infrastructure SBU.

Loss on extinguishment of debt

Loss on extinguishment of debt increased $11 million to $13 million for the three months ended September 30, 2026, compared to $2 million for the three months ended September 30, 2025. This increase is primarily driven by prepayment of debt at AES Clean Energy.

Loss on extinguishment of debt increased $12 million, or 80%, to $27 million for the nine months ended September 30, 2026, compared to $15 million for the nine months ended September 30, 2025, primarily due to the driver above.

See Note 8—Obligations included in Item 1.—Financial Statements of this Form 10-Q for further information.

Other expense

Other expense decreased $1 million, or 4%, to $25 million for the three months ended September 30, 2026, compared to $26 million for the three months ended September 30, 2025, primarily driven by $13 million of prior year losses on commencement of sales-type leases at AES Clean Energy, offset by a $12 million increase in losses on remeasurement of contingent consideration.

Other expense decreased $263 million, or 71%, to $110 million for the nine months ended September 30, 2026, compared to $373 million for the nine months ended September 30, 2025, primarily driven by a $177 million decrease in losses on commencement of sales-type leases at AES Clean Energy, a prior year $48 million loss on

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

remeasurement of our investment in 5B, accounted for using the measurement alternative, and an $8 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 $142 million to $212 million for the nine months ended September 30, 2026, compared to $70 million for the nine months ended September 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 selldown of Dominican Republic Renewables in the prior year.

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

Asset impairment reversals (expense)

Asset impairment expense increased $60 million to $91 million for the three months ended September 30, 2026, compared to $31 million for the three months ended September 30, 2025. This increase was driven by higher impairment expense of $75 million at AES Clean Energy Development primarily related to a review of project budgets and the strategic evaluation of certain development-stage assets, resulting in the writedown of projects that no longer meet our investment criteria; partially offset by prior year impairment expense of $16 million at AES Andes due to the write-off of project development intangibles and capitalized development costs for projects that were determined to be no longer viable.

Asset impairment expense increased $207 million to $133 million for the nine months ended September 30, 2026, compared to a $74 million reversal for the nine months ended September 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 $16 million and $4 million at AES Andes and AES Clean Energy Development, respectively, due to the write-off of project development intangibles and capitalized development costs for projects that were determined to be no longer viable.

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 $10 million and $8 million on foreign currency derivative contracts for the three months ended September 30, 2026 and 2025, respectively, and losses of $55 million and $22 million on foreign currency derivative contracts for the nine months ended September 30, 2026 and 2025, respectively.

The Company recognized net foreign currency transaction losses of $14 million for the three months ended September 30, 2026, primarily driven by unrealized foreign currency derivative losses in Argentina and unrealized losses due to the depreciation of the Argentine peso.

The Company recognized net foreign currency transaction losses of $55 million for the nine months ended September 30, 2026, primarily driven by unrealized foreign currency derivative losses in Argentina, unrealized losses in Chile due to the appreciation of the Colombian peso, which negatively impacted foreign currency forwards, and higher realized foreign currency losses related to settled forward contracts in Chile.

The Company recognized net foreign currency transaction losses of $19 million for the three months ended September 30, 2025, primarily driven by unrealized losses due to the depreciation of the Argentine peso and net unrealized losses in Chile due to the appreciation of the Colombian peso, which negatively impacted foreign currency forwards, partially offset by unrealized gains due to the depreciation of the Chilean peso.

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

The Company recognized net foreign currency transaction losses of $57 million for the nine months ended September 30, 2025, primarily driven by unrealized losses due to the depreciation of the Argentine peso and net unrealized losses in Chile due to the appreciation of the Colombian peso, which negatively impacted foreign currency forwards, and the appreciation of the Chilean peso.

Other non-operating expense

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

Other non-operating expense was $32 million for the three months ended September 30, 2025 due to an impairment of the Uplight equity method investment and adjustments to the convertible notes and related embedded derivative feature included within the convertible notes for Uplight as a result of observable market factors.

Other non-operating expense was $42 million for the nine months ended September 30, 2025 due to the $32 million impact from Uplight mentioned above and a $10 million 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

Income tax benefit decreased $216 million, or 96%, to $10 million for the three months ended September 30, 2026, compared to $226 million for the three months ended September 30, 2025. The Company’s effective tax rates were (2)% and (69)% for the three months ended September 30, 2026 and 2025, respectively. Both the current and prior year effective tax rates were impacted by the benefits associated with U.S. investment tax credits (“ITCs”), partially offset by tax expense resulting from allocations of losses to tax equity investors on renewables projects. The current quarter rate was further impacted by the benefit associated with the release of valuation allowance at the Bolero BESS project.

Income tax benefit decreased $19 million, or 45%, to $23 million for the nine months ended September 30, 2026, compared to $42 million for the nine months ended September 30, 2025. The Company’s effective tax rates were (2)% and (12)% for the nine months ended September 30, 2026 and 2025, respectively. The 2026 effective tax rate was impacted by the benefits associated with ITCs and the Bolero BESS project valuation allowance release, partially offset by tax expense resulting from allocations of losses to tax equity investors on renewables projects.

The 2025 effective tax rate was largely impacted by the benefits associated with ITCs and the prior year reclassification of Mong Duong from held-for-sale to held and used, partially offset by 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 earnings (losses) of affiliates

Net equity in earnings of affiliates increased $11 million to $12 million for the three months ended September 30, 2026, compared to $1 million for the three months ended September 30, 2025. This increase was primarily driven by higher earnings from Gatun of $7 million due to higher generation and lower losses from Uplight of $5 million after equity method accounting was suspended in the fourth quarter of 2025, partially offset by higher losses from Fluence of $7 million driven by liquidated damages incurred due to project delays, increased costs related to the deployment of newer solution offerings, and an increase in battery prices.

Net equity in losses of affiliates decreased $25 million, or 45%, to $30 million for the nine months ended September 30, 2026, compared to $55 million for the nine months ended September 30, 2025. This decrease was primarily driven by lower losses from Uplight of $21 million after equity method accounting was suspended in the fourth quarter of 2025 and $8 million from sPower due to contributions from new projects that came online.

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

Loss from disposal of discontinued businesses

There were no losses from disposal of discontinued businesses during the three and nine months ended September 30, 2026.

Net loss from disposal of discontinued businesses was $37 million for the three and nine months ended September 30, 2025, related to alleged damages plus interest, as well as potential future damages, under a dispute

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related to representations and warranties in the 2016 share purchase agreement for Sul.

See Note 22—Discontinued Operations 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 $96 million, or 79%, to $26 million for the three months ended September 30, 2026, compared to $122 million for the three months ended September 30, 2025. This decrease in net losses was primarily due to:

•Lower losses of $68 million at AES Clean Energy Development and AES Renewable Holdings primarily attributable to lower allocation of losses to tax equity investors on projects placed in service; and

•Higher income of $23 million at Chile Renovables driven by the recognition of a deferred tax benefit due to reversal of valuation allowance.

•Higher losses of $15 million at AES Indiana primarily related to higher allocation of losses to tax equity investors for the Petersburg Energy Center.

Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries decreased $19 million, or 6%, to $277 million for the nine months ended September 30, 2026, compared to $296 million for the nine months ended September 30, 2025. This decrease in net losses was primarily due to:

•Lower losses of $118 million at AES Renewable Holdings primarily due to lower allocation of losses to tax equity investors on projects placed in service;

•Higher income of $22 million and $11 million due to the prior-year selldowns of AES Ohio and AGIC, respectively;

•Higher income of $23 million at Chile Renovables driven by the recognition of a deferred tax benefit due to reversal of valuation allowance; and

•Higher income of $15 million at Merida due to higher spot sales.

•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 $15 million at AES Clean Energy Development primarily attributable to higher allocation of losses to tax equity investors on projects placed in service, partially offset by gains allocated to noncontrolling interest holders;

•Lower equity earnings of $15 million at Gatun primarily related to debt extinguishment costs; and

•Lower income of $14 million due to the acquisition of the remaining shares of Cochrane.

Net income attributable to The AES Corporation

Net income attributable to The AES Corporation decreased $86 million, or 13%, to $553 million for the three months ended September 30, 2026, compared to $639 million for the three months ended September 30, 2025. This decrease was primarily due to:

•Lower income tax benefit of $232 million due to a higher effective tax rate;

•Higher impairment expense at AES Clean Energy Development of $57 million partially offset by prior-year impairment expense of $16 million at AES Andes due to the write-off of project development intangibles and capitalized development costs for projects that were determined to be no longer viable; and

•Lower contributions from renewables projects placed in service of $40 million.

•Higher margins from the Renewables SBU of $143 million primarily due to higher spot sales in Colombia, benefiting from elevated spot prices due to El Niño-related below-average hydrological conditions across the country and relatively favorable hydrology at the AES Chivor basin, appreciation of the Colombian peso,

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and contributions from development services in the U.S.; partially offset by higher depreciation and an unfavorable impact from energy derivatives in the U.S.;

•Higher margins from the Utilities SBU of $53 million primarily due to higher retail rates as a result of AES Ohio’s 2024 DRC Settlement, net of certain riders now incorporated into base rates;

•Higher other non-operating expense of $32 million in the prior year due to an impairment of the Uplight equity method investment and adjustments to the convertible notes; and

•Higher margins from the Energy Infrastructure SBU of $11 million primarily due to higher energy and capacity sales and prices in the spot market and higher margin from LNG transactions, partially offset by lower contract sales volume due to the expiration of the Maritza PPA in Bulgaria, net derivative gains in the prior year, and lower availability.

Net income attributable to The AES Corporation increased $876 million to $1,466 million for the nine months ended September 30, 2026, compared to $590 million for the nine months ended September 30, 2025. This increase was primarily due to:

•Higher margins from the Renewables SBU of $323 million, excluding one-time restructuring costs in the prior year, primarily due to increases from development services in the U.S., higher spot sales in Colombia, benefiting from elevated spot prices due to El Niño-related below-average hydrological conditions across the country and relatively favorable hydrology at the AES Chivor basin, a favorable impact from energy derivatives in the U.S, and appreciation of the Colombian peso; partially offset by higher depreciation;

•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;

•Higher gain on disposal and sale of business interests of $166 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 margins from the Utilities SBU of $114 million, excluding one-time restructuring costs in the prior year, primarily due to AES Ohio’s 2024 DRC Settlement, net of certain riders now incorporated into base rates, and higher recovery of costs primarily associated with transmission, distribution, and renewable projects, and higher demand due to the impact of weather in El Salvador; partially offset by higher property taxes;

•Higher margins from the Energy Infrastructure SBU of $86 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 LNG sales, partially offset by lower contract sales volume mainly due to the expiration of the Maritza PPA in Bulgaria, higher depreciation at Maritza due to the useful life reassessment in the prior year, lower availability, and lower net derivative gains;

•Higher contributions from renewables projects placed in service of $73 million;

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

•Higher other non-operating expense of $42 million in the prior year primarily due to an impairment of the Uplight equity method investment and adjustments to the convertible notes; and

•Lower net equity in losses of affiliates of $25 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 tax benefit of $25 million due to a higher effective tax rate.