AES Corp interim filing shows higher revenue and a loss-to-profit swing on net income and diluted EPS for both the quarter and the six-month year-to-date period, while capital and dividend outflows also stepped up.

Bottom line

The bottom-line outcome reported for both the three-month reporting period and the six-month year-to-date period flipped from a loss to a profit versus the prior-year comparatives, while top-line revenue grew on the same year-over-year basis. Specifically, Earnings Per Share, Diluted was $1.28 per diluted share USD/SHARES for the six months ended June 30, 2026, compared with -$0.08 per diluted share USD/SHARES for the six months ended June 30, 2025, and Net Income (Loss) Attributable to Parent was $913,000,000 USD for the six months ended June 30, 2026, compared with -$49,000,000 USD for the six months ended June 30, 2025. On a quarterly basis, Earnings Per Share, Diluted was $0.6 per diluted share USD/SHARES for the three months ended June 30, 2026, against -$0.15 per diluted share USD/SHARES for the three months ended June 30, 2025, with Net Income (Loss) Attributable to Parent of $426,000,000 USD for the three months ended June 30, 2026, against -$95,000,000 USD for the three months ended June 30, 2025. Revenues were $6,602,000,000 USD for the six months ended June 30, 2026 versus $5,781,000,000 USD for the six months ended June 30, 2025, and $3,422,000,000 USD for the three months ended June 30, 2026 versus $2,855,000,000 USD for the three months ended June 30, 2025.

The filing is presented by AES CORP (AES) under 10-Q for period-ended-2026-06-30, filed with the SEC under accession 0000874761-26-000144 (CIK 0000874761). Source scope for this analysis is limited to the condensed consolidated financial statements within Part I, Item (omitted) of that filing, together with the notes referenced in the body of those statements, including Note 8, Note 9, Note 7, Note 10, Note 11, Note 12, and Note 18. No exhibit, signature page, or schedule outside Part I was used.

The reported line items above are the audited headline numbers presented in the income statement section of the filing as originally filed.

Management's stated drivers of the reported comparatives are limited to two reclassification footnotes disclosed in Part I, Item (omitted): a reclassification related to the AES Indiana Pike County BESS tax equity partnership and certain tax equity partnerships at AES Clean Energy from Redeemable stock of subsidiaries to Noncontrolling interests, and an adjustment to record the redeemable stock of AES Global Insurance at redemption value. Management does not, in the cited Part I text, attribute the year-over-year revenue, net income, or earnings-per-share movements to any specific operating cause.

The filing evidence does not attribute this change to any single cause.

None presented in this filing; the prior-year comparatives stand as filed.

UNKNOWN: The filing evidence contains no peer or industry comparison.

Financial performance

- The interim filing covers the three-month reporting period and the six-month year-to-date period, both reported under Generally Accepted Accounting Principles in the United States. - Revenues for the three-month reporting period were higher than Revenues for the prior-year three-month reporting period. Revenues for the six-month year-to-date period were higher than Revenues for the prior-year six-month year-to-date period.

- Net Income (Loss) Attributable to Parent for the three-month reporting period was a profit, whereas Net Income (Loss) Attributable to Parent for the prior-year three-month reporting period was a loss. Net Income (Loss) Attributable to Parent for the six-month year-to-date period was a profit, whereas Net Income (Loss) Attributable to Parent for the prior-year six-month year-to-date period was a loss. - Earnings Per Share, Diluted for the three-month reporting period was a positive figure, compared with a negative figure for the prior-year three-month reporting period.

Earnings Per Share, Diluted for the six-month year-to-date period was a positive figure, compared with a negative figure for the prior-year six-month year-to-date period. - Investors comparing interim profitability patterns across peer reports can reference filings such as Heritage Financial Posts Higher Year-Over-Year Diluted EPS and Net Income on Both the Quarter and the Six-Month Year-to-Date Period for context on reporting cadence.

- The Company's condensed consolidated financial statements include The AES Corporation together with its controlled subsidiaries. Variable Interest Entities for which the Company is the primary beneficiary are consolidated, while investments in entities where the Company can exercise significant influence but not control are accounted for using the equity method. - Tax equity arrangements with third parties are structured to monetize certain tax credits associated with renewables facilities.

These tax equity partnerships meet the definition of a Variable Interest Entity because the holders of the membership interests, as a group, lack the characteristics of a controlling financial interest, including substantive kickout rights. The third-party investor's ownership interest is recorded as either Redeemable stock of subsidiaries or Noncontrolling interests in the Condensed Consolidated Balance Sheets based on applicable guidance, with further detail in the cited note on Redeemable Stock of Subsidiaries and the cited note on Equity.

- Determining whether the Company is the primary beneficiary of a Variable Interest Entity requires judgment, including an assessment of contractual rights, operational responsibilities, and exposure to variability in returns. Contributions to consolidated Variable Interest Entities are generally contingent upon the underlying asset achieving specific project milestones, and creditors of these Variable Interest Entities have no recourse to the Company beyond the Variable Interest Entity's assets. - The Company also has noncontrolling interests in unconsolidated Variable Interest Entities accounted for under the equity method, including renewable energy project joint ventures that have insufficient equity to finance their activities during development and construction without additional subordinated financial support, as discussed in the cited note covering unconsolidated Variable Interest Entities.

- A reclassification during the period moved the AES Indiana Pike County battery energy storage system tax equity partnership and certain tax equity partnerships at AES Clean Energy from Redeemable stock of subsidiaries to Noncontrolling interests, with the offsetting balance sheet mechanics tied to the cited note on Redeemable Stock of Subsidiaries. - The Company also recorded an adjustment to the redeemable stock of AES Global Insurance to reflect redemption value. - Reported facts - Revenues, Earnings Per Share Diluted, and Net Income (Loss) Attributable to Parent for the three-month reporting period and the six-month year-to-date period, alongside their prior-year comparatives.

- Management explanations - The consolidation and Variable Interest Entity accounting policies as described in the presentation of financial statements. - Analyst inference - The pivot from prior-period losses to current-period profitability across both the quarter and the year-to-date window lines up with the authorized year-over-year direction on each earnings measure. - Counter-evidence - None disclosed in the quoted presentation.

- Unknowns - The filing evidence does not attribute this change to any single cause. - Guidance expectations - The filing evidence contains no peer or industry comparison.

Operating drivers and segments

- Revenues for the three-month reporting period were $3,422,000,000 USD, compared with $2,855,000,000 USD for the prior-year comparative period — higher year over year per the reported direction. - Revenues for the six-month year-to-date period were $6,602,000,000 USD, compared with $5,781,000,000 USD for the prior-year comparative period — higher year over year per the reported direction. - The filing's glossary defines Adjusted EBITDA as a non-GAAP operating performance measure (earnings before interest, taxes, depreciation, amortization, and accretion of asset retirement obligations), and Adjusted EPS as a non-GAAP per-share measure, but the segment-level Adjusted EBITDA values and any segment margins are not surfaced in the quoted portion of the document available to this section. - The quoted narrative names several operating-business references — AES Indiana, AES Ohio, AES Andes, AES Clean Energy, AES Renewable Holdings, Fluence, and the captive insurer AGIC — and identifies BESS, LNG, MISO, CAISO, and PJM as operating acronyms, yet it provides no segment-level revenue, Adjusted EBITDA, or margin disclosures in the portion of the filing captured here. - The financial statement presentation paragraph describes the consolidated entity ("AES," "the Company," "us," or "we") as the parent together with its subsidiaries and affiliates, which is the framing the filing uses for reported revenue, Adjusted EBITDA, and Adjusted EPS. - The filing calls out specific equity-structure events in the cited notes: reclassification of the AES Indiana Pike County BESS tax equity partnership and certain AES Clean Energy tax equity partnerships from Redeemable stock of subsidiaries to Noncontrolling interests, and an adjustment to record redeemable stock of AES Global Insurance at redemption value — both of which touch the redeemable/noncontrolling-interest boundary rather than operating-segment drivers. - The glossary also clarifies that noncontrolling-interest balances at certain renewable energy joint ventures reflect insufficient equity to finance activities during development and construction without additional subordinated financial support, again a structural rather than an operating-margin detail. - Management does not, in the quoted text, attribute the higher Revenues line to any single operating driver — for example, dispatch, pricing, fuel mix, new capacity, or contract renewals are not surfaced in the excerpt. - The filing evidence does not attribute this change to any single cause. <prose> The earnings analysis for AES CORP (AES) under 10-Q for period-ended-2026-06-30 (accession 0000874761-26-000144) shows that Revenues moved higher year over year on both the three-month and six-month year-to-date bases, in line with the authorized comparisons. That is the only quantitative operating line surfaced in the portion of the filing captured for this section; segment-level revenue, Adjusted EBITDA, or margin breakdowns — which would normally let a reader isolate SBU contributions — are not present in the quoted text. The glossary names relevant operating acronyms such as BESS, LNG, MISO, CAISO, and PJM, and identifies SBUs and platforms including AES Indiana, AES Ohio, AES Andes, AES Clean Energy, AES Renewable Holdings, and Fluence, but the financial statements excerpted here do not pair those names with current-period operating figures.

Management's own framing centers on consolidation scope and on structural equity items discussed in the cited notes — most directly the referenced notes covering redeemable stock of subsidiaries and noncontrolling-interest reclassifications at AES Indiana's Pike County BESS partnership and at AES Clean Energy, and the redemption-value adjustment for AES Global Insurance. The glossary's discussion of unconsolidated VIEs and renewable joint ventures that lack sufficient equity during development further highlights a capital-structure focus rather than an operating-driver narrative. Neither management commentary nor the cited notes, in the quoted excerpt, attributes the higher Revenues line to any single operating cause — for instance dispatch volume, realized energy prices, fuel-cost pass-through, new capacity coming online, or contract repricing are not identified in the available text.

Independent cross-checks are limited by what the captured excerpt contains: the filing does not present segment-level Adjusted EBITDA or Adjusted EPS reconciliations, so a reader cannot independently verify operating-margin direction at the SBU level from the evidence in this section. The filing also does not provide any peer or industry comparison within the quoted text — The filing evidence contains no peer or industry comparison. — so any read on relative margin performance versus sector peers would be unsupported here.

Where the source text does support a structural read, it points to the redeemable/noncontrolling boundary and to tax-equity partnership reclassifications rather than to operating drivers, and the reader is left to treat the higher Revenues line as the headline operating signal pending access to the segment disclosures. For context on how comparable interim filings report segment-level operating performance, see NATIONAL HEALTHCARE CORP Posts Higher Year-Over-Year Revenue, Operating Income, Net Income, and Diluted EPS Across Both the Quarter and the Six-Month Year-to-Date Period and Ralph Lauren Reports Higher Year-Over-Year Revenue, Operating Income, Net Income, and Diluted EPS in Interim Filing, which illustrate segment-revenue framing that the present excerpt does not provide.

Cash flow and capital

Across the six-month year-to-date period presented in the filing, the three sections of the cash flow statement move in offsetting directions relative to the prior-year comparative. Net Cash Provided by (Used in) Operating Activities was $2,247,000,000 USD for the six months ended June 30, 2026, compared with $1,521,000,000 USD for the six months ended June 30, 2025, an authorized increase that lifts the operating side of the cash bridge above the prior-year level. The investing line moves in the opposite direction: Net Cash Provided by (Used in) Investing Activities was -$3,263,000,000 USD for the current six-month period, a smaller use of cash than the -$2,882,000,000 USD reported for the prior-year comparative (an authorized decrease in the magnitude of outflow). Financing activity also steps lower, with Net Cash Provided by (Used in) Financing Activities at $1,241,000,000 USD for the six months ended June 30, 2026 versus $1,462,000,000 USD in the prior-year comparative (an authorized decrease, with both periods showing positive financing cash flow).

Capital deployment within those lines is mixed. Payments to Acquire Property, Plant, and Equipment were $3,409,000,000 USD for the current six-month period, an authorized increase versus $2,586,000,000 USD in the prior-year comparative, signaling a higher pace of investment in the underlying utility and generation fleet. Payments of Ordinary Dividends, Common Stock were $251,000,000 USD for the six months ended June 30, 2026, also an authorized increase against the $250,000,000 USD reported for the six months ended June 30, 2025. Management does not, in the quoted narrative, single out a driver for either step-up. The narrative instead discusses variable interest entities, the proposed merger with vehicles affiliated with Global Infrastructure Management, LLC and the EQT Infrastructure VI fund, and the interim financial presentation, leaving the year-on-year shift in capex and dividend cash outflows without an attributed cause in the filing evidence. Where the filing does not assign a reason, the change is recorded as The filing evidence does not attribute this change to any single cause..

On the balance sheet, the as-of working-capital items disclosed alongside the cash flow statement sit at the levels captured for the balance sheet date of June 30, 2026. Cash and Cash Equivalents, at Carrying Value were $1,800,000,000 USD, Accounts Receivable, after Allowance for Credit Loss, Current were $1,934,000,000 USD, and Accounts Payable, Current were $2,170,000,000 USD. The quoted passage does not provide a reconciliation between these working-capital balances and the operating, investing, and financing flows above, nor does it quantify free cash flow or a coverage ratio. The filing also does not break out parent-only versus noncontrolling-interest cash, even though the narrative references redeemable stock of subsidiaries, noncontrolling interests, and tax-equity VIEs (see the cited note on Redeemable Stock of Subsidiaries and the cited note on Equity). Because the filing evidence carries no peer or industry benchmark for these line items, The filing evidence contains no peer or industry comparison. applies to any cross-company read on liquidity or capital intensity.

Several pieces of capital-allocation context are flagged but not quantified in the quoted material. The proposed Merger, the requirement to conduct business in the ordinary course, and the no-solicitation covenant all sit ahead of closing, so any post-close change in leverage, dividend policy, or capex mix is unknown. Interim reporting caveats, including the omission of footnote disclosures required for annual periods, also limit how much can be read into the half-year balances. Readers weighing the sustainability of the higher capex and dividend outflows against the larger operating cash inflow can compare this interim against a fuller period using patterns similar to those in NATIONAL HEALTHCARE CORP Posts Higher Year-Over-Year Revenue, Operating Income, Net Income, and Diluted EPS Across Both the Quarter and the Six-Month Year-to-Date Period, though the underlying businesses are not comparable.

Peer and historical context

Situationally, the period-over-period comparisons available in this filing are limited to the company's own prior-year comparatives rather than to outside peers or industry benchmarks, so the historical lens is the only one that can be drawn from the filing evidence. The filing's reporting identity is the AES Corporation under its interim form for the stated fiscal period, and the catalogued fact set gives us five mutually consistent year-over-year relationships to read against each other.

On the top line, both the three-month reporting period and the six-month year-to-date period show Revenues higher than the prior-year comparatives, with the current quarter and the current half-year each posting a positive result that exceeded the corresponding prior-year figure. The directional increase is authorised for both comparisons, so the higher reading is the only inference the catalog supports, and the size of the gap is not computable from the available keys.

On the bottom line, Net Income (Loss) Attributable to Parent also transitions from a loss in the prior-year quarter to a profit in the current quarter, and the same loss-to-profit transition is authorised for the six-month year-to-date period. The authorised direction is an increase for both windows, consistent with the earnings per share, diluted pattern that the filing also supports through the machine-authorised comparisons. The Earnings Per Share, Diluted line carries the same loss-to-profit transition for the quarter and the half-year, reinforcing the read that the earnings swing is broad-based across the two reporting windows rather than concentrated in a single period.

A useful cross-check is the cash flow column. Net Cash Provided by (Used in) Operating Activities is higher than the prior-year half-year comparative, with both periods posting a positive direction, while Net Cash Provided by (Used in) Investing Activities is lower than the prior-year comparative (both negative) and Net Cash Provided by (Used in) Financing Activities is also lower than the prior-year comparative (both positive). Payments to Acquire Property, Plant, and Equipment are higher than the prior-year half-year, and Payments of Ordinary Dividends, Common Stock are higher than the prior-year half-year. The simultaneous read is that the operating engine produced more cash, investment outflows were smaller, and the company paid out more in dividends and property additions than in the prior period — a profile that is consistent with the stronger top line and earnings but that the catalog does not tie together causally.

Outside the company's own comparatives, the filing evidence contains no peer or industry observation, so any cross-issuer contextualisation (for example, the read provided by Ameren Posts Higher Year-Over-Year Diluted EPS and Operating Income on Softer Revenue in Both Quarterly and Year-to-Date Interim Filing for a different utility filer) is not grounded in the catalog for this section: The filing evidence contains no peer or industry comparison.. Likewise, the construction of the quarter-over-quarter or half-year-over-half-year gap is intentionally not narrated here, so where the evidence does not attribute a movement to a cause, the section relies on The filing evidence does not attribute this change to any single cause. rather than inventing a driver such as margin pressure, mix shift, or one-off items.

The subsidiary disclosures sitting behind this filing are not used to support a comparator here. The redeemable stock of subsidiaries discussion Note 9, the related reclassification disclosure Note 11, the equity-method affiliates context Note 7, the variable interest entity framework Note 8 and Note 12, and the noncontrolling-interest cash flow notes Note 10 and Note 18 all relate to intercompany balances and the proposed merger, none of which the catalog ties to a peer or historical benchmark for this period.

Scenario analysis

- Reported net income for both the quarter and the six-month year-to-date period moved from a loss in the prior year to a profit in the current period, consistent with the authorized transition captured in the filing. - Revenues rose year over year across both the quarter and the half-year window, providing a stable top-line backdrop against which the net income swing can be read. - Reported operating cash flow for the six-month period increased versus the prior-year comparative, reinforcing the directional picture at the earnings line. - Investing cash outflow and financing cash inflow both declined in absolute size versus the prior-year six-month period; ordinary dividend payments and capital expenditure outflows each moved higher year over year.

- If the year-to-date net income trajectory continues to expand on top of already positive revenue growth, reported earnings per share, diluted could exceed the levels achieved in the base case for both the quarter and the half-year window. - Sustained strength in operating cash flow together with continued revenue growth would support higher absolute dividend payments and higher property, plant, and equipment outflows, both of which are already positive year over year in the filing evidence. - With the Proposed Merger disclosed in the same filing still subject to regulatory and stockholder approvals, an outcome that removes closing-condition uncertainty could be additive to a scenario in which revenue and operating cash flow continue to trend higher; readers can compare the directional pattern against the comparable period framing in Heritage Financial Posts Higher Year-Over-Year Diluted EPS and Net Income on Both the Quarter and the Six-Month Year-to-Date Period. - Conversely, any reduction in regulatory uncertainty that delays the closing date beyond the contractual outside date could compress near-term optionality.

- A reversal in revenue momentum at either the three-month or six-month level would weigh on a base case that already relies on rising top-line results, since revenue direction is positive in both comparative windows. - A cut-back in operating cash flow growth would similarly erode the base, given that this line is positive and rising in the year-to-date comparison. - An adverse outcome or extended review under the Merger regulatory conditions described in the filing — including the PUCO, the New York Public Service Commission, the FERC, the Committee on Foreign Investment in the United States, or the applicable foreign-jurisdiction approvals — could displace the optionality layered on top of the base case; the explicit termination-fee mechanisms noted for each side frame the financial exposure at a high level without quantifying either amount here. - The filing evidence does not attribute the year-over-year net income swing to any single cause. - The filing evidence contains no peer or industry comparison. - The filing evidence does not disclose segment-level detail for this dimension.

Risks and what to watch

- The pending Merger with a Parent controlled by investment vehicles advised by Global Infrastructure Management and the EQT Infrastructure VI fund is the dominant risk overhang for AES CORP AES. Consummation is conditioned on stockholder approval, the specified regulatory approvals from the PUCO, the New York Public Service Commission, FERC, CFIUS, and the HSR Act waiting period, and the absence of a Burdensome Condition. Closing is targeted by the long-stop date in the Merger Agreement, subject to up to two successive three-month extensions if regulatory approvals remain the only outstanding condition.

- The Merger Agreement carries reverse termination-fee mechanics. Parent owes a termination fee to the Company in specified circumstances, and the Company owes a Parent fee of approximately $426,000,000 $913,000,000 -$95,000,000 -$49,000,000 $3,422,000,000 $6,602,000,000 $2,855,000,000 $5,781,000,000 the three months ended June 30, 2026 the six months ended June 30, 2026 the three months ended June 30, 2025 the six months ended June 30, 2025 period-ended-2026-06-30 10-Q 0000874761 0000874761-26-000144 Note 7 Note 8 Note 9 Note 10 Note 11 Note 12 Note 18 The filing evidence does not attribute this change to any single cause.

The filing evidence contains no peer or industry comparison. The filing evidence does not disclose segment-level detail for this dimension. USD million in other specified circumstances, so a failed deal has a defined, asymmetric cost.

- The interim results frame the deal backdrop. For the three months ended June 30, 2026, Revenues was $3,422,000,000 USD and Net Income Attributable to Parent was $426,000,000 USD, against the prior-year Revenues of $2,855,000,000 USD and Net Income Attributable to Parent of -$95,000,000 USD; the authorized comparison is that both lines are higher year over year, with a transition from a loss to a profit on net income. For the six months ended June 30, 2026, Revenues was $6,602,000,000 USD and Net Income Attributable to Parent was $913,000,000 USD, against the prior-year Revenues of $5,781,000,000 USD and Net Income Attributable to Parent of -$49,000,000 USD; the authorized comparison is again that both lines are higher, with a loss-to-profit transition on net income.

- Counter-evidence and unknowns. The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison.

The filing evidence does not disclose segment-level detail for this dimension.. The filing evidence does not disclose which business lines, geographies, or one-off items drove the revenue and net-income uplift. The interim results also do not break out segment operating performance, so comparing the utilities, renewables, and new-energy platforms is not possible from this filing alone.

- Governance and structural risks include the redeemable stock of subsidiaries covered in Note 11 and the related equity mechanics discussed in Note 9, Note 12, and Note 18, together with the unconsolidated VIEs described in Note 8 and the investments in and advances to affiliates in Note 7, the cited note on unconsolidated VIEs and the cited note on investments in and advances to affiliates. Any change to noncontrolling-interest redemption features or sponsor economics could shift the consideration analysis in a future bidder's view.

- Metrics to watch next period include progress and timing of the remaining regulatory approvals, any amendment to the long-stop date, the size and circumstances of any termination fee becoming payable, segment-level revenue and operating income disclosures (if the deal extends into the next reporting cycle), and the continuation of the year-to-date cash-flow profile, in particular financing versus operating cash flows already characterized in the authorized year-over-year comparisons. - Comparable interim reporting patterns can be seen in peers such as NATIONAL HEALTHCARE CORP Posts Higher Year-Over-Year Revenue, Operating Income, Net Income, and Diluted EPS Across Both the Quarter and the Six-Month Year-to-Date Period, which uses a similar quarter plus six-month framing for the same authorized loss-to-profit transition on net income.