Basic and diluted earnings per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted earnings per share, includes the effects of dilutive RSUs, stock options, and equity units. The effect of such potential common stock is computed using the treasury stock method for RSUs and stock options, and is computed using the if-converted method for equity units.

The following table is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computation for income from continuing operations for the three and six months ended June 30, 2025 and 2024, where income represents the numerator and weighted average shares represent the denominator.


Three Months Ended June 30,	2025					2024
(in millions, except per share data)	Loss		Shares	$ per Share		Income		Shares	$ per Share

BASIC EARNINGS PER SHARE
Income (loss) from continuing operations attributable to The AES Corporation	$	(95)	712	$	(0.13)	$	276	711	$	0.39
Decrease (increase) in redemption value of redeemable stock of subsidiaries	(10)		—	(0.02)		6		—	0.01
Income (loss) available to The AES Corporation common stockholders	$	(105)	712	$	(0.15)	$	282	711	$	0.40

EFFECT OF DILUTIVE SECURITIES


Restricted stock units	—		—	—		—		2	(0.01)
Equity units	—		—	—		—		—	—
DILUTED EARNINGS PER SHARE	$	(105)	712	$	(0.15)	$	282	713	$	0.39


Six Months Ended June 30,	2025					2024
(in millions, except per share data)	Loss		Shares	$ per Share		Income		Shares	$ per Share

BASIC EARNINGS PER SHARE
Income from continuing operations attributable to The AES Corporation common stockholders	$	(49)	712	$	(0.07)	$	708	700	$	1.01
Decrease (increase) in redemption value of redeemable stock of subsidiaries	(10)		—	(0.01)		—		—	—
Income (loss) available to The AES Corporation common stockholders	$	(59)	712	$	(0.08)	$	708	700	$	1.01

EFFECT OF DILUTIVE SECURITIES


Restricted stock units	—		—	—		—		2	—
Equity units	—		—	—		—		11	(0.02)
DILUTED EARNINGS PER SHARE	$	(59)	712	$	(0.08)	$	708	713	$	0.99

Adjustments to Redemption Value — For the three and six months ended June 30, 2025, income from continuing operations available to AES common stockholders included a $10 million adjustment related to the increase of the carrying value of redeemable stock of subsidiaries at the AGIC Companies, as discussed in Note 11—Redeemable Stock of Subsidiaries.

For the three months ended June 30, 2024, income from continuing operations available to AES common stockholders included a $6 million adjustment related to the decrease of the carrying value of redeemable stock of subsidiaries at AES Clean Energy Development, as a result of a non-fair value redemption feature. This adjustment is a recovery of the amount previously reflected in the computation of earnings per share in the first quarter of 2024.

The Company has elected to administer these entire non-fair value redemption adjustments consistent with the treatment of dividends in the earnings per share calculation. While the adjustments impacted net income available to AES common stockholders and earnings per share, they did not impact Net income in the Condensed Consolidated Statement of Operations.

Anti-Dilutive Securities — The calculation of diluted earnings per share excluded 6 million outstanding stock awards for the three and six months ended June 30, 2025 because their impact would be anti-dilutive given the loss from continuing operations. Had the Company generated income, potential shares of common stock of 2 million related to the stock awards would have been included in weighted-average shares outstanding for both the three and six months ended June 30, 2025. The calculation of diluted earnings per share excluded 2 million outstanding stock awards for the both the three and six months ended June 30, 2024, which would be anti-dilutive. These stock awards could potentially dilute basic earnings per share in the future.

AES Global Insurance — As described in Note 11—Redeemable Stock of Subsidiaries, on April 30, 2025, the Company sold noncontrolling interests in the AGIC Companies. It is required that either (i) the AGIC Companies achieve a minimum distribution target to the Class B Member ranging from $146 million to $199 million over pre-defined periods of time ranging from three to five years (the “distribution period”) or (ii) AGIC achieves an average cash basis quarterly net income threshold for the period comprising the relevant distribution period and the four quarters immediately prior to the start of such distribution period. AES can make disproportionate distributions to the Class B Member to meet the minimum distribution target for the distribution period. If, at the end of a distribution period, (1) such cash basis net income threshold is not met and (2) the minimum distribution target for such distribution period is not achieved, AES would be required to address the shortfall by issuing AES common stock (“Shortfall Stock”) to AGIC for the net difference between actual and targeted distributions. If AES is required to issue Shortfall Stock, the amount will be based upon the number of shares multiplied by the then current share price to equal the net difference between actual and targeted distributions. Distributions of cash from the sale of Shortfall Stock are subject to regulatory approval and at the discretion of AES.

As part of the quarterly diluted earnings per share calculation, AES evaluates whether (1) average cash basis quarterly net income in a given quarter exceeds the threshold or (2) aggregate distributions made to the investor for the related distribution period exceed such target distribution amount. If either condition is met, no Shortfall Stock will be included in the diluted earnings per share calculation. As of June 30, 2025, the average cash basis quarterly net income condition was met and, therefore, no shares are included in diluted EPS for the three and six months then ended.

Equity Units — As described in Note 12—Equity, the Company issued 10,430,500 Equity Units in March 2021 with a total notional value of $1,043 million. Each Equity Unit had a stated amount of $100 and was initially issued as a Corporate Unit, consisting of a 2024 Purchase Contract and a 10% undivided beneficial ownership interest in one share of Series A Preferred Stock. The conversion rate was initially 31.5428 shares of common stock per one share of Series A Preferred Stock, which was equivalent to an initial conversion price of approximately $31.70 per share of common stock. The Series A Preferred Stock and the 2024 Purchase Contracts were accounted for as one unit of account. In calculating diluted EPS, the Company has applied the if-converted method to determine the impact of the forward purchase feature and considered if there are incremental shares that should be included related to the Series A Preferred conversion value. On February 15, 2024, the Series A Preferred Stock was tendered to satisfy the 2024 Purchase Contract's settlement price and the Corporate Units were converted into shares of the Company's common stock at a settlement rate of 3.8859, equivalent to a reference price of $25.73. The Series A Preferred Stock was canceled upon conversion.