Earnings Per Share

6 Months Ended

Jun. 30, 2026

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 and stock options. The effect of such potential common stock is computed using the treasury stock method.

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, 2026 and 2025, where income represents the numerator and weighted-average shares represent the denominator.


Three Months Ended June 30,	2026					2025
(in millions, except per share data)	Income		Shares	$ per Share		Loss		Shares	$ per Share

BASIC EARNINGS PER SHARE
Income (loss) from continuing operations attributable to The AES Corporation common stockholders	$	426	713	$	0.60	$	(95)	712	$	(0.13)
Increase in redemption value of redeemable stock of subsidiaries	—			—		(10)		—	(0.02)
Income (loss) available to The AES Corporation common stockholders	$	426	713	$	0.60	$	(105)	712	$	(0.15)

EFFECT OF DILUTIVE SECURITIES


Restricted stock units	—		2	—		—		—	—

DILUTED EARNINGS PER SHARE	$	426	715	$	0.60	$	(105)	712	$	(0.15)


Six Months Ended June 30,	2026					2025
(in millions, except per share data)	Income		Shares	$ per Share		Loss		Shares	$ per Share

BASIC EARNINGS PER SHARE
Income (loss) from continuing operations attributable to The AES Corporation common stockholders	$	913	713	$	1.28	$	(49)	712	$	(0.07)
Increase in redemption value of redeemable stock of subsidiaries	—			—		(10)		—	(0.01)
Income (loss) available to The AES Corporation common stockholders	$	913	713	$	1.28	$	(59)	712	$	(0.08)

EFFECT OF DILUTIVE SECURITIES


Restricted stock units	—		2	—		—		—	—

DILUTED EARNINGS PER SHARE	$	913	715	$	1.28	$	(59)	712	$	(0.08)

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.

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

Anti-Dilutive Securities — The calculation of diluted earnings per share excluded 3 million outstanding stock awards for both the three and six months ended June 30, 2026, which would be anti-dilutive. 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. 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, 2026, the average cash basis quarterly net income condition was met, and therefore, no shares are included in the calculation of diluted EPS.