AES CORPAES
AES CORP Segments Disclosure
SEGMENTS AND GEOGRAPHIC INFORMATION
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. The Company is currently evaluating the impact, if any, these changes may have on its segment reporting structure in future periods; however, no changes in the Company's operating or reportable segments are reflected in the accompanying financial statements.
•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, and other new and innovative energy technology businesses.
Prior to the first quarter of 2025, our businesses in Chile (which had a mix of generation sources, including renewables, that were pooled to service our existing PPAs initially entered into for sale of the output of the coal plants) were reported in the Energy Infrastructure SBU. After the sale or disconnection of a significant portion of AES Andes’ coal plants and the expiration of its coal-indexed contracts with regulated customers at the end of 2024, the results of our businesses in Chile, excluding the two remaining coal plants, are now reported as part of the Renewables SBU in financial information regularly reviewed by the Chief Operating Decision Maker. The results of the two remaining coal plants in Chile, Angamos and Cochrane, remain within the Energy Infrastructure SBU. As the composition of the segments changed in the first quarter of 2025, the segment information for prior comparative periods has been retrospectively revised to reflect AES Andes’ renewables partnership with GIP, Chile Renovables, which is separable from the rest of the AES Andes portfolio, as part of the Renewables SBU. We determined that there was no separately identifiable financial information for the other renewables in the AES Andes portfolio as they were servicing the same coal-indexed PPAs as the coal facilities prior to 2025; therefore, the rest of the renewables portfolio at AES Andes is presented within the Energy Infrastructure SBU in the 2024 and 2023 segment information presented. Revenue and Adjusted EBITDA for AES Andes that are presented within the Energy Infrastructure SBU in historical periods and within the Renewables SBU in 2025 were $900 million and $68 million, respectively, during the year ended December 31, 2025.
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, transmit, distribute, 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; and (f)
costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts.
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):
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Renewables SBU | Utilities SBU | Energy Infrastructure SBU | New Energy Technologies SBU | Total | |||||||||||||||||||||||||
Revenue | $ | 2,913 | $ | 4,122 | $ | 5,402 | $ | 1 | $ | 12,438 | |||||||||||||||||||
Corporate and other | 149 | ||||||||||||||||||||||||||||
Eliminations | (354) | ||||||||||||||||||||||||||||
Total Revenue | $ | 12,233 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Total cost of sales excluding depreciation, amortization, and accretion of AROs (1) | 1,830 | 2,963 | 4,159 | 11 | |||||||||||||||||||||||||
Other segment items (2) | 151 | 296 | 113 | 25 | |||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 932 | $ | 863 | $ | 1,130 | $ | (35) | $ | 2,890 | |||||||||||||||||||
Reconciliation to income from continuing operations before taxes | |||||||||||||||||||||||||||||
Corporate and other | (29) | ||||||||||||||||||||||||||||
Eliminations | 10 | ||||||||||||||||||||||||||||
Interest expense | (1,407) | ||||||||||||||||||||||||||||
Interest income | 287 | ||||||||||||||||||||||||||||
Depreciation, amortization, and accretion of AROs | (1,457) | ||||||||||||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||
Noncontrolling interests and redeemable stock of subsidiaries | 824 | ||||||||||||||||||||||||||||
Income tax expense, interest expense, and depreciation, amortization, and accretion of AROs from equity affiliates | (171) | ||||||||||||||||||||||||||||
| Interest income recognized under service concession arrangements | (58) | ||||||||||||||||||||||||||||
Unrealized derivatives, equity securities, and financial assets and liabilities losses | (120) | ||||||||||||||||||||||||||||
Unrealized foreign currency losses | (26) | ||||||||||||||||||||||||||||
Disposition/acquisition losses | (244) | ||||||||||||||||||||||||||||
| Impairment losses | (369) | ||||||||||||||||||||||||||||
Loss on extinguishment of debt and troubled debt restructuring | (21) | ||||||||||||||||||||||||||||
Restructuring costs | (89) | ||||||||||||||||||||||||||||
Income from continuing operations before taxes | $ | 20 | |||||||||||||||||||||||||||
_____________________________
(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.
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Renewables SBU | Utilities SBU | Energy Infrastructure SBU | New Energy Technologies SBU | Total | |||||||||||||||||||||||||
Revenue | $ | 2,617 | $ | 3,608 | $ | 6,207 | $ | 1 | $ | 12,433 | |||||||||||||||||||
Corporate and other | 162 | ||||||||||||||||||||||||||||
Eliminations | (317) | ||||||||||||||||||||||||||||
Total Revenue | $ | 12,278 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Total cost of sales excluding depreciation, amortization, and accretion of AROs (1) | 1,772 | 2,607 | 4,624 | 8 | |||||||||||||||||||||||||
Other segment items (2) | 233 | 209 | 277 | 31 | |||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 612 | $ | 792 | $ | 1,306 | $ | (38) | $ | 2,672 | |||||||||||||||||||
Reconciliation to income from continuing operations before taxes | |||||||||||||||||||||||||||||
Corporate and other | 11 | ||||||||||||||||||||||||||||
Eliminations | (44) | ||||||||||||||||||||||||||||
Interest expense | (1,485) | ||||||||||||||||||||||||||||
Interest income | 381 | ||||||||||||||||||||||||||||
Depreciation, amortization, and accretion of AROs | (1,264) | ||||||||||||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||
Noncontrolling interests and redeemable stock of subsidiaries | 734 | ||||||||||||||||||||||||||||
Income tax expense, interest expense, and depreciation, amortization, and accretion of AROs from equity affiliates | (136) | ||||||||||||||||||||||||||||
| Interest income recognized under service concession arrangements | (65) | ||||||||||||||||||||||||||||
Unrealized derivatives, equity securities, and financial assets and liabilities gains | 94 | ||||||||||||||||||||||||||||
Unrealized foreign currency losses | (16) | ||||||||||||||||||||||||||||
Disposition/acquisition gains | 323 | ||||||||||||||||||||||||||||
| Impairment losses | (280) | ||||||||||||||||||||||||||||
Loss on extinguishment of debt and troubled debt restructuring | (57) | ||||||||||||||||||||||||||||
Income from continuing operations before taxes | $ | 868 | |||||||||||||||||||||||||||
_____________________________
(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 — earnings from equity affiliates, and miscellaneous gains and losses in Other income and Other expense.
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Renewables SBU | Utilities SBU | Energy Infrastructure SBU | New Energy Technologies SBU | Total | |||||||||||||||||||||||||
Revenue | $ | 2,416 | $ | 3,495 | $ | 6,805 | $ | 76 | $ | 12,792 | |||||||||||||||||||
Corporate and other | 138 | ||||||||||||||||||||||||||||
Eliminations | (262) | ||||||||||||||||||||||||||||
Total Revenue | $ | 12,668 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Total cost of sales excluding depreciation, amortization, and accretion of AROs (1) | 1,520 | 2,662 | 5,052 | 84 | |||||||||||||||||||||||||
Other segment items (2) | 199 | 155 | 258 | 54 | |||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 697 | $ | 678 | $ | 1,495 | $ | (62) | $ | 2,808 | |||||||||||||||||||
Reconciliation to income from continuing operations before taxes | |||||||||||||||||||||||||||||
Corporate and other | 22 | ||||||||||||||||||||||||||||
Eliminations | (2) | ||||||||||||||||||||||||||||
Interest expense | (1,319) | ||||||||||||||||||||||||||||
Interest income | 551 | ||||||||||||||||||||||||||||
Depreciation, amortization, and accretion of AROs | (1,147) | ||||||||||||||||||||||||||||
Adjusted for: | |||||||||||||||||||||||||||||
Noncontrolling interests and redeemable stock of subsidiaries | 556 | ||||||||||||||||||||||||||||
Income tax expense, interest expense, and depreciation, amortization, and accretion of AROs from equity affiliates | (131) | ||||||||||||||||||||||||||||
| Interest income recognized under service concession arrangements | (71) | ||||||||||||||||||||||||||||
Unrealized derivatives, equity securities, and financial assets and liabilities losses | (34) | ||||||||||||||||||||||||||||
Unrealized foreign currency losses | (301) | ||||||||||||||||||||||||||||
Disposition/acquisition gains | 79 | ||||||||||||||||||||||||||||
| Impairment losses | (877) | ||||||||||||||||||||||||||||
Loss on extinguishment of debt and troubled debt restructuring | (62) | ||||||||||||||||||||||||||||
Income from continuing operations before taxes | $ | 72 | |||||||||||||||||||||||||||
_____________________________
(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 — 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 includes amounts recorded in Property, plant, and equipment, net and right-of-use assets for operating leases recorded in Other noncurrent assets on the Consolidated Balance Sheets.
| Long-Lived Assets | |||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Renewables SBU | $ | 23,945 | $ | 19,151 | $ | 17,300 | |||||||||||
| Utilities SBU | 9,464 | 8,535 | 7,166 | ||||||||||||||
| Energy Infrastructure SBU | 4,726 | 5,805 | 5,848 | ||||||||||||||
| New Energy Technologies SBU | 23 | 22 | 14 | ||||||||||||||
| Corporate and Other | 29 | 25 | 10 | ||||||||||||||
| Long-Lived Assets | 38,187 | 33,538 | 30,338 | ||||||||||||||
| Current assets | 6,502 | 6,831 | 6,649 | ||||||||||||||
| Investments in and advances to affiliates | 1,004 | 1,124 | 941 | ||||||||||||||
| Debt service reserves and other deposits | 89 | 78 | 194 | ||||||||||||||
| Goodwill | 342 | 345 | 348 | ||||||||||||||
| Other intangible assets | 2,040 | 1,947 | 2,243 | ||||||||||||||
| Deferred income taxes | 397 | 365 | 396 | ||||||||||||||
| Loan receivable | 755 | — | — | ||||||||||||||
| Other noncurrent assets, excluding right-of-use assets for operating leases | 2,452 | 2,545 | 2,879 | ||||||||||||||
| Noncurrent held-for-sale assets | — | 633 | 811 | ||||||||||||||
| Total Assets | $ | 51,768 | $ | 47,406 | $ | 44,799 | |||||||||||
Depreciation, Amortization, and Accretion of AROs | Capital Expenditures | ||||||||||||||||||||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||
| Renewables SBU | $ | 584 | $ | 449 | $ | 374 | $ | 4,586 | $ | 5,481 | $ | 5,971 | |||||||||||||||||||||||
| Utilities SBU | 524 | 458 | 400 | 1,261 | 1,570 | 1,374 | |||||||||||||||||||||||||||||
| Energy Infrastructure SBU | 342 | 349 | 363 | 112 | 422 | 373 | |||||||||||||||||||||||||||||
| New Energy Technologies SBU | 2 | 1 | 1 | 7 | 11 | 5 | |||||||||||||||||||||||||||||
| Corporate and Other | 5 | 7 | 9 | 16 | 35 | 10 | |||||||||||||||||||||||||||||
| Total | $ | 1,457 | $ | 1,264 | $ | 1,147 | $ | 5,982 | $ | 7,519 | $ | 7,733 | |||||||||||||||||||||||
| Interest Income | Interest Expense | Net Equity in Earnings (Losses) of Affiliates | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Renewables SBU | $ | 94 | $ | 110 | $ | 183 | $ | 499 | $ | 394 | $ | 310 | $ | (14) | $ | 19 | $ | 41 | |||||||||||||||||||||||||||||||||||
| Utilities SBU | 9 | 12 | 12 | 300 | 294 | 243 | 8 | 4 | 5 | ||||||||||||||||||||||||||||||||||||||||||||
| Energy Infrastructure SBU | 160 | 232 | 335 | 305 | 503 | 550 | 9 | 10 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
| New Energy Technologies SBU | 7 | 7 | 2 | — | — | — | (41) | (20) | (84) | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | 17 | 20 | 19 | 303 | 294 | 216 | (17) | (39) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 287 | $ | 381 | $ | 551 | $ | 1,407 | $ | 1,485 | $ | 1,319 | $ | (55) | $ | (26) | $ | (32) | |||||||||||||||||||||||||||||||||||
The following table presents information, by country, about the Company's consolidated operations for each of the years ended December 31, 2025, 2024, and 2023, and as of December 31, 2025 and 2024 (in millions). Revenue is recorded in the country in which it is earned and assets are recorded in the country in which they are located.
| Total Revenue | Long-Lived Assets | ||||||||||||||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | 2025 | 2024 | ||||||||||||||||||||||||
United States (1) | $ | 5,056 | $ | 4,689 | $ | 4,439 | $ | 29,227 | $ | 25,261 | |||||||||||||||||||
| Non-U.S.: | |||||||||||||||||||||||||||||
| Chile | 1,516 | 1,534 | 1,932 | 4,411 | 3,563 | ||||||||||||||||||||||||
| Dominican Republic | 1,363 | 1,451 | 1,400 | 784 | 805 | ||||||||||||||||||||||||
| El Salvador | 1,086 | 1,036 | 935 | 511 | 472 | ||||||||||||||||||||||||
| Mexico | 760 | 462 | 536 | 267 | 275 | ||||||||||||||||||||||||
| Bulgaria | 687 | 478 | 528 | 186 | 421 | ||||||||||||||||||||||||
| Panama | 649 | 666 | 644 | 1,829 | 1,882 | ||||||||||||||||||||||||
| Colombia | 422 | 686 | 706 | 435 | 358 | ||||||||||||||||||||||||
Argentina | 366 | 318 | 407 | 475 | 437 | ||||||||||||||||||||||||
Vietnam (2) | 321 | 312 | 344 | — | — | ||||||||||||||||||||||||
| Jordan | 6 | 28 | 97 | 36 | 38 | ||||||||||||||||||||||||
| Brazil | — | 616 | 697 | — | — | ||||||||||||||||||||||||
| Other Non-U.S. | 1 | 2 | 3 | 26 | 26 | ||||||||||||||||||||||||
| Total Non-U.S. | 7,177 | 7,589 | 8,229 | 8,960 | 8,277 | ||||||||||||||||||||||||
| Total | $ | 12,233 | $ | 12,278 | $ | 12,668 | $ | 38,187 | $ | 33,538 | |||||||||||||||||||
_____________________________
(1) Includes Puerto Rico revenues of $404 million, $426 million, and $269 million for the years ended December 31, 2025, 2024, and 2023, respectively, and long-lived assets of $983 million and $572 million as of December 31, 2025 and 2024, respectively.
(2) The Mong Duong 2 power project is operated under a BOT contract. Future expected payments for the construction performance obligation are recognized in Loan receivable on the Consolidated Balance Sheets as of December 31, 2025. The Mong Duong assets were classified as held-for-sale as of December 31, 2024. See Note 21—Revenue and Note 25—Held-for-Sale and Dispositions for further information.
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 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.