v3.26.1
Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally. The management reporting structure is composed of four SBUs, mainly organized by technology, led by our Chief Executive Officer, who is our Chief Operating Decision Maker. Using the accounting guidance on segment reporting, the Company determined that its four operating segments are aligned with its four reportable segments corresponding to its SBUs. In March 2026, the Company announced changes in its internal management structure, including a change in its President. These changes did not result in a change to our Chief Operating Decision Maker or to the Company’s operating or reportable segments.
•Renewables — Solar, wind, energy storage, and hydro generation facilities;
•Utilities — AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities;
•Energy Infrastructure — Natural gas, LNG, coal, pet coke, diesel, and oil generation facilities; and
•New Energy Technologies — Investments in Fluence, Maximo, the AI Fund, and other new and innovative energy technology businesses.
Our Renewables, Utilities, and Energy Infrastructure SBUs participate in our generation business line, in which we own and/or operate power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. Our Utilities SBU participates in our utilities business line, in which we own and/or operate utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors within a defined service area. In certain circumstances, our utilities also generate and sell electricity on the wholesale market. Our New Energy Technologies SBU includes investments in new and innovative technologies to support leading-edge greener energy solutions.
Included in “Corporate and Other” are the results of AES Global Insurance Company, LLC ("AGIC"), AES' captive insurance company, corporate overhead costs which are not directly associated with the operations of our four reportable segments, and certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation.
The Company uses Adjusted EBITDA as its primary segment performance measure. Adjusted EBITDA, a non-GAAP measure, is defined by the Company as earnings before interest income and expense, taxes, depreciation, amortization, and accretion of AROs, adjusted for the impact of NCI and interest, taxes, depreciation, amortization, and accretion of AROs of our equity affiliates, and adding back interest income recognized under service concession arrangements; excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses;
(c) gains, losses, benefits, and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring; (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts; and (g) costs directly associated with the Merger, including, but not limited to, advisory, legal, and employee-related costs.
The Company has concluded Adjusted EBITDA better reflects the underlying business performance of the Company and is the most relevant measure considered in the Company's internal evaluation of the financial performance of its segments. Additionally, given its large number of businesses and overall complexity, the Company concluded that Adjusted EBITDA is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the Company's results. The Chief Operating Decision Maker uses Adjusted EBITDA to allocate resources and capital for each segment in the annual budget and forecasting process, including making decisions on where to reinvest profits to support segment growth. On a monthly basis, the Chief Operating Decision Maker reviews variances in budget versus actual Adjusted EBITDA and monitors changes in forecasted Adjusted EBITDA to assess the underlying operating performance and analyze risks and opportunities at each segment.
Revenue and Adjusted EBITDA are presented before inter-segment eliminations, which includes the effect of intercompany transactions with other segments except for charges for certain management fees and the write-off of intercompany balances, as applicable. All intra-segment activity has been eliminated within the segment. Inter-segment activity has been eliminated within the total consolidated results.
The following tables present financial information by segment for the periods indicated (in millions):
Three Months Ended March 31, 2026
Renewables SBUUtilities SBUEnergy Infrastructure SBUNew Energy Technologies SBUTotal
Revenue$820 $1,136 $1,256 $— $3,212 
Corporate and other29 
Eliminations(61)
Total Revenue$3,180 
Less:
Total cost of sales excluding depreciation, amortization, and accretion of AROs (1)
477 766 943 3 
Other segment items (2)
74 101 7 18 
Segment Adjusted EBITDA$269 $269 $306 $(21)$823 
Reconciliation to income from continuing operations before taxes:
Corporate and other(1)
Eliminations5 
Interest expense(353)
Interest income65 
Depreciation, amortization, and accretion of AROs(433)
Adjusted for:
Noncontrolling interests and redeemable stock of subsidiaries232 
Income tax expense (benefit), interest expense (income), and depreciation, amortization, and accretion of AROs from equity affiliates
(33)
Interest income recognized under service concession arrangements(13)
Unrealized derivatives, equity securities, and financial assets and liabilities gains
7 
Unrealized foreign currency gains
20 
Disposition/acquisition losses(53)
Impairment losses
(10)
Loss on extinguishment of debt and troubled debt restructuring(8)
Merger costs
(14)
Income from continuing operations before taxes$234 
_____________________________
(1)Segment-level total cost of sales excluding depreciation, amortization, and accretion of AROs is considered regularly provided to the Chief Operating Decision Maker. Total cost of sales excluding depreciation, amortization, and accretion of AROs includes items such as fuel cost, electricity purchases, transmission charges, supplies, salaries and wages, consulting costs, IT costs, market fees, insurance, and lease expense.
(2)Other segment items for each reportable segment includes:
Renewables SBU — business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Utilities SBU — miscellaneous gains and losses in Other income and Other expense, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Energy Infrastructure SBU — service concession interest income, business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
New Energy Technologies SBU — business development costs, earnings from equity affiliates, and miscellaneous gains and losses in Other income and Other expense.
Three Months Ended March 31, 2025
Renewables SBUUtilities SBUEnergy Infrastructure SBUNew Energy Technologies SBUTotal
Revenue
$666 $1,009 $1,320 $— $2,995 
Corporate and other
36 
Eliminations
(105)
Total Revenue
$2,926 
Less:
Total cost of sales excluding depreciation, amortization, and accretion of AROs (1)
466 730 1,050 (1)
Other segment items (2)
39 56 16 26 
Segment Adjusted EBITDA
$161 $223 $254 $(25)$613 
Reconciliation to income from continuing operations before taxes:
Corporate and other
(24)
Eliminations
2 
Interest expense
(342)
Interest income
69 
Depreciation, amortization, and accretion of AROs
(337)
Adjusted for:
Noncontrolling interests and redeemable stock of subsidiaries
134 
Income tax expense (benefit), interest expense (income), and depreciation, amortization, and accretion of AROs from equity affiliates
(36)
Interest income recognized under service concession arrangements(15)
Unrealized derivatives, equity securities, and financial assets and liabilities gains
1 
Unrealized foreign currency losses
7 
Disposition/acquisition losses
(41)
Impairment losses(33)
Loss on extinguishment of debt and troubled debt restructuring
(8)
Restructuring costs(46)
Loss from continuing operations before taxes
$(56)
_____________________________
(1)Segment-level total cost of sales excluding depreciation, amortization, and accretion of AROs is considered regularly provided to the Chief Operating Decision Maker. Total cost of sales excluding depreciation, amortization, and accretion of AROs includes items such as fuel cost, electricity purchases, transmission charges, supplies, salaries and wages, consulting costs, IT costs, market fees, insurance, and lease expense.
(2)Other segment items for each reportable segment includes:
Renewables SBU — business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Utilities SBU — miscellaneous gains and losses in Other income and Other expense, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
Energy Infrastructure SBU — service concession interest income, business development costs, miscellaneous gains and losses in Other income and Other expense, realized foreign currency gains and losses, earnings from equity affiliates, and adjustment for noncontrolling interest expense.
New Energy Technologies SBU — business development costs, earnings from equity affiliates, and miscellaneous gains and losses in Other income and Other expense.
The Company uses long-lived assets as its measure of segment assets. Long-lived assets include amounts recorded in Property, plant, and equipment, net and right-of-use assets for operating leases recorded in Other noncurrent assets on the Condensed Consolidated Balance Sheets.
Long-Lived AssetsMarch 31, 2026December 31, 2025
Renewables SBU$25,353 $23,945 
Utilities SBU9,652 9,464 
Energy Infrastructure SBU4,638 4,726 
New Energy Technologies SBU25 23 
Corporate and Other34 29 
Long-Lived Assets39,702 38,187 
Current assets6,110 6,502 
Investments in and advances to affiliates1,006 1,004 
Debt service reserves and other deposits120 89 
Goodwill342 342 
Other intangible assets2,019 2,040 
Deferred income taxes425 397 
Loan receivable730 755 
Other noncurrent assets, excluding right-of-use assets for operating leases2,365 2,452 
Total Assets$52,819 $51,768 

Depreciation, Amortization, and Accretion of AROs
Capital Expenditures
Three Months Ended March 31,
20262025
2026
2025
Renewables SBU$181 $129 $1,411 $970 
Utilities SBU136 124 366 260 
Energy Infrastructure SBU112 81 28 28 
New Energy Technologies SBU1 — 1 1 
Corporate and Other3 3 4 2 
Total$433 $337 $1,810 $1,261 

Interest Income
Interest Expense
Net Equity in Earnings (Losses) of Affiliates
Three Months Ended March 31,
2026
2025
2026
2025
2026
2025
Renewables SBU$25 $21 $125 $131 $(7)$(9)
Utilities SBU2 2 77 77 2 2 
Energy Infrastructure SBU35 41 65 74 15 4 
New Energy Technologies SBU— 2 — — (17)(27)
Corporate and Other3 3 86 60 (1)(4)
Total$65 $69 $353 $342 $(8)$(34)