Total PPA backlog (GW)

PPA backlog under construction (GW)

Long-term PPAs for new renewables signed or awarded (GW)

Renewables capacity constructed (GW)

Renewables capacity to be added (GW)

Additional data center load growth at AES Ohio (MW)

Total data center load growth at AES Ohio year-to-date (GW)

U.S. renewables business pipeline (GW)

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In Q1 2024, AES’s cash and cash equivalents jumped from **$1,426 million** to **$1,994 million** due to several factors. Although the company experienced lower net cash provided by operating activities, a significant inflow of **$2,606 million** from financing activities—mainly driven by borrowings and non-recourse debt issuance—more than offset this decline. Additionally, despite higher cash outflows from investing activities and a minor negative impact from exchange rate changes, these factors collectively contributed to an overall increase of **$565 million** in cash, cash equivalents, and restricted cash during the quarter.  **[0000874761-24-000039_q12024earningsreleaseexs.htm:6]** **[0000874761-24-000038_aes-20240331.htm:4]** **[20240502PH04336:6]** 

Why did Cash and cash equivalents jump in Q1 2024?

The **dramatic drop** in Short-term investments in Q2 2024 was primarily due to **lower net short-term investment sales** at AES's Renewables Strategic Business Unit. This led the **Short-term investments** to decline from around **$395 million** at the end of 2023 to **$61 million** in Q2 2024.  **[0000874761-24-000056_q22024earningsreleaseexs.htm:6]** **[0000874761-24-000054_aes-20240630.htm:86]** 

What caused the dramatic drop in Short-term investments in Q2 2024?

The **sharp rise** in recourse debt in Q3 2024 was mainly driven by several factors. The company faced **maturities of recourse debt** with **$1.7 billion maturing within the next twelve months**, which significantly increased the current liabilities. This was exacerbated by the **commercial paper program**, where there were **$611 million in outstanding borrowings**. Additionally, some of the debt previously classified as noncurrent was **reclassified as current** given its upcoming maturity, further contributing to the increase.  **[0000874761-24-000070_aes-20240930.htm:87]** **[0000874761-24-000070_aes-20240930.htm:30]** 

What led to the sharp rise in recourse debt in Q3 2024?

The **Non-recourse debt classified as current liabilities** fell significantly in Q2 2024 due to several factors. First, there were **debt repayments and refinancing activities**, such as AES Andes issuing **$530 million in Junior Subordinated Notes** to settle its **7.125% notes due in 2079**, along with AES Indiana and IPALCO restructuring their debt through new bond issuances and note repayments.  **[0000874761-24-000054_aes-20240630.htm:26]**  Second, **reclassification of debt** played a role, as a portion of the non-recourse debt was shifted into current liabilities because maturities were occurring within the next 12 months, with **$2 billion** reclassified for this reason and **$166 million** recognized due to technical defaults.  **[0000874761-24-000054_aes-20240630.htm:81]** **[0000874761-24-000054_aes-20240630.htm:28]**  Lastly, **asset sales and restructuring**, including AES Puerto Rico's exchange of **$156 million of Series A Bond Loans** for senior secured bonds and preferred shares, further reduced the outstanding non-recourse debt.  **[0000874761-24-000054_aes-20240630.htm:26]** **[0000874761-24-000054_aes-20240630.htm:89]** 

Why did non-recourse debt fall significantly in Q2 2024?

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The **Operating Margin** in Q4 2023 was lower primarily due to mixed performance across different Strategic Business Units (SBUs). Specifically, the **Renewables SBU** suffered from **higher fixed costs** associated with an accelerated growth plan and **unrealized derivative losses**. The **Energy Infrastructure SBU** experienced a decline due to **reduced LNG transactions**, **lower contract energy sales** driven by decreased prices, and the absence of a one-time revenue benefit from the prior year, along with **higher fixed costs**. Additionally, the **New Energy Technologies SBU** saw a modest decrease, albeit without any major drivers. Even though the **Utilities SBU** and **Corporate and Other** segments posted improvements—thanks to factors like deferred power costs and increased transmission revenues—these gains were not enough to offset the declines in the other segments, leading to an overall reduction of **$44 million (-2%)** in Operating Margin compared to Q4 2022.  **[0000874761-24-000011_aes-20231231.htm:133]** **[0000874761-24-000011_aes-20231231.htm:123]** **[0000874761-24-000011_aes-20231231.htm:134]** **[0000874761-24-000011_aes-20231231.htm:122]** 

Why was Operating Margin so low in Q4 2023?

AES’s net income in Q4 2023 turned sharply negative mainly due to **higher unrealized foreign currency losses**, **increased long-lived asset impairments**, **lower contributions from LNG transactions**, and **higher interest expense** driven by increased rates and new debt issuance. These negative factors outweighed positive contributions such as lower goodwill impairments and asset sale gains, leading to a net income of **(643.00) USD millions** in Q4 2023.  **[0000874761-24-000011_aes-20231231.htm:127]** **[0000874761-24-000013_q42023earningsreleaseexs.htm:2]** 

What caused Net Income to turn sharply negative in Q4 2023?

AES's Q4 2023 EPS was brought down by several factors despite some improvements in other areas. The negative impact was primarily driven by **increased asset impairment expense**—which rose significantly to **$(715) million** (from **$(230) million** in the previous comparable period)—as well as **higher unrealized foreign currency losses** (increasing to **$(150) million)** and **increased interest expense** (up to **$(353) million**). These negative factors more than offset the benefits from **lower goodwill impairments** and **higher gains on disposal of business interests**, leading to the marked EPS drop to **$(0.14)** in Q4 2023.  **[0000874761-24-000013_q42023earningsreleaseexs.htm:7]** 

Why did EPS drop so markedly in Q4 2023?

The factors that dampened EPS growth in Q2 2024 were **losses on the commencement of sales-type leases at AES Renewable Holdings**, **higher outages at the Energy Infrastructure Strategic Business Unit**, and **lower interest income**. These elements partially offset the gains from other drivers, contributing to the overall earnings performance in Q2 2024.  **[0000874761-24-000054_aes-20240630.htm:58]** 

What factors drove EPS down in Q2 2024?

The **Total Revenue in Q2 2024** was notably lower because the **Energy Infrastructure SBU** experienced a **$185 million (-11%)** decline, which outweighed the modest gains in the **Renewables (+$55 million, +10%)** and **Utilities (+$44 million, +5%)** SBUs. This significant drop was mainly due to **higher outages and lower contributions from certain operations** in the Energy Infrastructure segment.  **[0000874761-24-000056_q22024earningsreleaseexs.htm:2]** **[0000874761-24-000054_aes-20240630.htm:53]** 

Why was Total Revenue notably lower in Q2 2024?

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Adjustments for Non-Cash Items (USD, Millions)

Stock-Based Compensation (USD, Millions)

Changes in Working Capital (USD, Millions)

Capital Expenditures (USD, Millions)

Proceeds from Debt (USD, Millions)

Repayments of Debt (USD, Millions)

Share Repurchases (USD, Millions)

Dividend Payments (USD, Millions)

Net Change in Cash (USD, Millions)

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AES Corp (AES)

Financials