AES · 10-Q · 2026Q2 · Full report

Other Income (Expense), Net

AES CORP · 2026-08-04 · Importance 63 · Surprise 64 · Matches filing data

Other expense decreased $268 million, or 91%, to $27 million in the second quarter and decreased $262 million, or 76%, to $85 million for the first six months of 2026. The quarterly decline primarily reflected the absence of $199 million of prior-year losses on sales-type lease commencements at AES Clean Energy and a prior-year $48 million loss on remeasurement of the 5B investment. The six-month decline also included a $20 million reduction in contingent-consideration remeasurement losses.

Key facts

• Asset impairment expense increased $184 million to $30 million for the three months ended June 30, 2026 compared to a $154 million reversal for the three months ended June 30, 2025, primarily due to a $243 million increase in the carrying value of the Mong Duong asset group in the prior year upon reclassification from held-for-sale to held and used. source
• Other expense decreased $268 million, or 91%, to $27 million for the three months ended June 30, 2026 compared to $295 million for the three months ended June 30, 2025, primarily driven by $199 million of prior year losses on commencement of sales-type leases at AES Clean Energy and a prior year $48 million loss on remeasurement of the investment in 5B. source
• The $900 million impact from distributions to noncontrolling interests was mainly due to $633 million of higher distributions of proceeds from the transfer of U.S. investment tax credits in the current year and a $220 million distribution at AES Puerto Rico Solar. source
• Net equity in losses of affiliates increased $12 million, or 55%, to $34 million for the three months ended June 30, 2026 compared to $22 million for the three months ended June 30, 2025, primarily driven by a $22 million impact at Gatun and higher losses of $11 million from Dominican Republic Renewables. source
• Net equity in losses of affiliates decreased $14 million, or 25%, to $42 million for the six months ended June 30, 2026 compared to $56 million for the six months ended June 30, 2025, primarily driven by lower losses from Uplight of $16 million and $10 million from sPower, and higher earnings from Fluence of $6 million; partially offset by a $22 million impact at Gatun. source
• Interest income in reconciliation is $(65) and $(70) (two amounts shown) source

Impact estimates