AES · 10-Q · 2026Q2 · Full report

Outstanding Indebtedness

AES CORP · 2026-08-04 · Importance 57 · Surprise 42 · In source text

AES reported $3.2 billion of non-recourse debt classified as current at June 30, 2026. Subsidiaries AES Ilumina and a project entity at AES Clean Energy Development accounted for $19 million of current debt associated with technical defaults. The defaults resulted from covenant or other condition violations rather than payment defaults, and none of the affected subsidiaries was material under the Parent Company’s debt agreements. As of June 30, 2026, the defaults had not triggered a cross-default under Parent Company recourse debt, and the affected non-recourse debt was not guaranteed by the Parent Company.

Key facts

• As of June 30, 2026, the Company had non-recourse aggregate principal amounts of debt outstanding of $25.2 billion and recourse aggregate principal amounts of debt outstanding of $6.1 billion. source
• Our total recourse debt was $6.1 billion as of June 30, 2026. source
• Our total recourse debt was $6 billion as of December 31, 2025. source
• The portion of current debt related to such defaults was $19 million at June 30, 2026, all of which was non-recourse debt related to two subsidiaries: AES Ilumina and a project entity at AES Clean Energy Development. source
• Of the $3.2 billion of current non-recourse debt, $3.1 billion was presented as due in the next twelve months and $19 million relates to debt considered in default (technical defaults). source
• The total non-recourse debt classified as current in the accompanying Condensed Consolidated Balance Sheets amounts to $3.2 billion. source
• These defaults are not payment defaults, but are instead technical defaults triggered by failure to comply with other covenants or other conditions contained in the non-recourse debt documents. source
• None of the defaults listed above resulted in a cross-default under the recourse debt of the Parent Company as of June 30, 2026. source

Impact estimates