v3.26.1
Equity
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
EQUITY EQUITY
Equity Transactions with Noncontrolling Interests
Cochrane — In February 2026, AES Andes acquired all of the outstanding preferred shares in Cochrane for $29 million, increasing AES’ effective ownership in Cochrane to 99.6%. Cochrane is reported in the Energy Infrastructure SBU reportable segment.
AES Indiana Petersburg Energy Center — In February 2026, AES Indiana sold additional noncontrolling interests in the Petersburg Energy Center project to the tax equity investor, resulting in a $120 million increase to NCI. AES Indiana is reported in the Utilities SBU reportable segment.
AES Clean Energy Tax Equity Partnerships — The majority of solar projects in the U.S. have been financed with tax equity structures, in which tax equity investors receive a portion of the economic attributes of the facilities,
including tax attributes, which vary over the life of the projects. The substance of such arrangements is that of a preferred structure, whereby tax equity investors are granted preferential returns in the form of significant earnings and tax allocations from the partnership, until a specified internal rate of return is achieved.
During the three months ended March 31, 2025, AES Renewable Holdings sold a noncontrolling interest in the Rexford project company to a tax equity investor, resulting in an increase to NCI of $82 million. AES Renewable Holdings is reported in the Renewables SBU reportable segment.
AES Indiana Pike County BESS — In March 2025, as a result of the Pike County BESS project being placed in service, the noncontrolling ownership interest of $38 million was reclassified from Redeemable stock of subsidiaries to Noncontrolling interests on the Condensed Consolidated Balance Sheets. See Note 11—Redeemable Stock of Subsidiaries for further information. Subsequently, AES Indiana sold additional noncontrolling interests to the tax equity investor, resulting in a $150 million increase to NCI. AES Indiana is reported in the Utilities SBU reportable segment.
Chile Renovables — In December 2023, Chile Renovables issued $275 million of preferred shares to Global Infrastructure Management, LLC (“GIP”), the proceeds of which are being used to fund the development of an additional pipeline of renewables projects. Under the terms of the operating agreement, GIP receives an escalating specified internal rate of return up until the point the projects reach commercial operations. As each project reaches commercial operations, the preferred shares convert to common stock and GIP may make additional contributions to maintain its 49% ownership interest. In February 2025, the Andes Solar 2a BESS project reached commercial operations. The preferred shares were converted to common stock and GIP made additional contributions of $14 million, resulting in an increase to NCI of $17 million and a decrease to additional paid-in capital of $3 million.
As the Company maintained control after these transactions, Chile Renovables continues to be consolidated by the Company within the Renewables SBU reportable segment.
The following table summarizes the net income (loss) attributable to The AES Corporation and all transfers (to) from noncontrolling interests for the periods indicated (in millions):
Three Months Ended March 31,
20262025
Net income attributable to The AES Corporation
$487 $46 
Transfers (to) from noncontrolling interest:
Increase (decrease) in The AES Corporation's paid-in capital for sale of subsidiary shares(1)(15)
Increase (decrease) in The AES Corporation's paid-in capital for acquisition of subsidiary shares
(1)— 
Net transfers (to) from noncontrolling interest(2)(15)
Change from net income attributable to The AES Corporation and transfers (to) from noncontrolling interests
$485 $31 
Accumulated Other Comprehensive Loss — The following table summarizes the changes in AOCL by component, net of tax and NCI, for the three months ended March 31, 2026 (in millions):
Foreign currency translation adjustments, net
Change in fair value of derivatives, net
Pension adjustments, net
Change in fair value option liabilities, net
Total
Balance at the beginning of the period $(1,168)$483 $(16)$3 $(698)
Other comprehensive income before reclassifications2 3 — — 5 
Amount reclassified to earnings— (4)— — (4)
Other comprehensive income (loss)2 (1)— — 1 
Reclassification from NCI due to share repurchases
— 1 — — 1 
Balance at the end of the period$(1,166)$483 $(16)$3 $(696)
Reclassifications out of AOCL are presented in the following table. The Company’s accounting policy for releasing the income tax effects from AOCL occurs on a portfolio basis. Amounts for the periods indicated are in millions and those in parentheses indicate debits to the Condensed Consolidated Statements of Operations:
AOCL ComponentsThree Months Ended March 31,
20262025
Change in fair value of derivatives, net
Non-regulated revenue$1 $— 
Non-regulated cost of sales(2)1 
Interest expense(2)16 
Foreign currency transaction gains (losses)2 3 
Income (loss) from continuing operations before taxes and equity in earnings of affiliates(1)20 
Income tax benefit (expense)(1)(6)
Net income (loss)(2)14 
Less: Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries6 1 
Net income (loss) attributable to The AES Corporation$4 $15 
Common Stock Dividends — The Parent Company paid dividends of $0.17595 per outstanding share to its common stockholders during the first quarter of 2026 for dividends declared in December 2025.
On February 19, 2026, the Board of Directors declared a quarterly common stock dividend of $0.17595 per share payable on May 15, 2026 to shareholders of record at the close of business on May 1, 2026.