AES CORPAES
AES CORP Revenue Disclosure
REVENUE
The following table presents our revenue from contracts with customers and other revenue for the periods indicated (in millions):
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Renewables SBU | Utilities SBU | Energy Infrastructure SBU | New Energy Technologies SBU | Corporate, Other, and Eliminations | Total | ||||||||||||||||||||||||||||||
| Non-Regulated Revenue | |||||||||||||||||||||||||||||||||||
| Revenue from contracts with customers | $ | 2,757 | $ | 80 | $ | 4,961 | $ | — | $ | (205) | $ | 7,593 | |||||||||||||||||||||||
Other non-regulated revenue (1) | 156 | 4 | 441 | 1 | — | 602 | |||||||||||||||||||||||||||||
| Total non-regulated revenue | 2,913 | 84 | 5,402 | 1 | (205) | 8,195 | |||||||||||||||||||||||||||||
| Regulated Revenue | |||||||||||||||||||||||||||||||||||
| Revenue from contracts with customers | — | 4,007 | — | — | — | 4,007 | |||||||||||||||||||||||||||||
| Other regulated revenue | — | 31 | — | — | — | 31 | |||||||||||||||||||||||||||||
| Total regulated revenue | — | 4,038 | — | — | — | 4,038 | |||||||||||||||||||||||||||||
| Total revenue | $ | 2,913 | $ | 4,122 | $ | 5,402 | $ | 1 | $ | (205) | $ | 12,233 | |||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Renewables SBU | Utilities SBU | Energy Infrastructure SBU | New Energy Technologies SBU | Corporate, Other, and Eliminations | Total | ||||||||||||||||||||||||||||||
| Non-Regulated Revenue | |||||||||||||||||||||||||||||||||||
| Revenue from contracts with customers | $ | 2,401 | $ | 82 | $ | 5,512 | $ | 1 | $ | (154) | $ | 7,842 | |||||||||||||||||||||||
Other non-regulated revenue (1) | 216 | 4 | 695 | — | (1) | 914 | |||||||||||||||||||||||||||||
| Total non-regulated revenue | 2,617 | 86 | 6,207 | 1 | (155) | 8,756 | |||||||||||||||||||||||||||||
| Regulated Revenue | |||||||||||||||||||||||||||||||||||
| Revenue from contracts with customers | — | 3,496 | — | — | — | 3,496 | |||||||||||||||||||||||||||||
| Other regulated revenue | — | 26 | — | — | — | 26 | |||||||||||||||||||||||||||||
| Total regulated revenue | — | 3,522 | — | — | — | 3,522 | |||||||||||||||||||||||||||||
| Total revenue | $ | 2,617 | $ | 3,608 | $ | 6,207 | $ | 1 | $ | (155) | $ | 12,278 | |||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||
| Renewables SBU | Utilities SBU | Energy Infrastructure SBU | New Energy Technologies SBU | Corporate, Other, and Eliminations | Total | ||||||||||||||||||||||||||||||
| Non-Regulated Revenue | |||||||||||||||||||||||||||||||||||
| Revenue from contracts with customers | $ | 2,275 | $ | 68 | $ | 6,150 | $ | 75 | $ | (123) | $ | 8,445 | |||||||||||||||||||||||
Other non-regulated revenue (1) | 141 | 4 | 655 | 1 | (1) | 800 | |||||||||||||||||||||||||||||
| Total non-regulated revenue | 2,416 | 72 | 6,805 | 76 | (124) | 9,245 | |||||||||||||||||||||||||||||
| Regulated Revenue | |||||||||||||||||||||||||||||||||||
| Revenue from contracts with customers | — | 3,391 | — | — | — | 3,391 | |||||||||||||||||||||||||||||
| Other regulated revenue | — | 32 | — | — | — | 32 | |||||||||||||||||||||||||||||
| Total regulated revenue | — | 3,423 | — | — | — | 3,423 | |||||||||||||||||||||||||||||
| Total revenue | $ | 2,416 | $ | 3,495 | $ | 6,805 | $ | 76 | $ | (124) | $ | 12,668 | |||||||||||||||||||||||
_____________________________
(1)Other non-regulated revenue primarily includes lease and derivative activity not accounted for under ASC 606.
Contract Balances — The timing of revenue recognition, billings, and cash collections results in accounts receivable and contract liabilities. The contract liabilities from contracts with customers were $374 million and $237 million as of December 31, 2025 and December 31, 2024, respectively.
During the years ended December 31, 2025 and 2024, we recognized revenue of $52 million and $79 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods.
In July 2025, the Company entered into a development framework agreement ("DFA") with a customer to develop a private-use network structure to support the customer's planned data center in Texas. At December 31, 2025, the estimation of the transaction price was approximately $481 million using the expected value method, which incorporated management's best estimate of the consideration to be received without significant risk of revenue reversal. As the Company's performance does not create an asset with an alternative use and the Company has an enforceable right to payment for performance completed to date, revenue associated with the performance obligation is recognized over time on a time-elapsed method, which results in revenue being recognized on a straight-line basis throughout the performance period of approximately two years. During the year
ended December 31, 2025, the Company recognized $105 million in revenue. The contract liability balance as of December 31, 2025 related to this contract was $245 million.
In June 2023, the Company closed on an agreement to terminate the PPA for the Warrior Run coal-fired power plant for total consideration of $357 million, to be paid by the offtaker through the end of the previous contract term in January 2030. Under the termination agreement, the plant provided capacity through May 2024. The termination represented a contract modification under which the discounted termination payments, as well as a pre-existing contract liability, were recognized as revenue on a straight-line basis over the remaining performance obligation period for approximately $32 million per month. On February 1, 2024, the Company executed a receivable sale agreement to transfer all of its rights, title, and interest in the remaining future cash flows under this agreement. At the time of execution, the transaction was considered a sale of future revenue under U.S. GAAP, and as such, the net proceeds of $273 million were recorded as debt. Upon completion of the remaining performance obligation in May 2024, the corresponding receivable balance of $267 million, net of valuation allowance of $7 million, and the remaining debt balance of $260 million were derecognized upon accounting for the transaction as a sale of receivables.
A significant financing arrangement exists for our Mong Duong plant in Vietnam. The plant was constructed under a BOT contract and sold to the Vietnamese government, while we remain the operator for the duration of the 25-year PPA. The performance obligation to construct the facility was substantially completed in 2015. Contract consideration related to the construction, but not yet collected through the 25-year PPA, was reflected on the Consolidated Balance Sheet. As of December 31, 2024, Mong Duong met the held-for-sale criteria and the loan receivable balance of $963 million was classified in held-for-sale assets. At December 31, 2025, Mong Duong no longer met the held-for-sale criteria. Of the loan receivable balance of $862 million, $107 million was classified in Other current assets and $755 million was classified in Loan receivable on the Consolidated Balance Sheets. See Note 25—Held-for-Sale and Dispositions for further information.
Remaining Performance Obligations — The transaction price allocated to remaining performance obligations represents future revenue for unsatisfied (or partially unsatisfied) performance obligations at the end of the reporting period. As of December 31, 2025, the aggregate amount of transaction price allocated to remaining performance obligations was $396 million, primarily consisting of fixed consideration in development services contracts in the U.S., of which $247 million has been collected. We expect to recognize revenue of approximately $264 million in 2026, $127 million in 2027, and the remainder thereafter.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 27, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.