AES · 10-Q · 2026Q2 · Full report
Liquidity and Debt Position
AES CORP · 2026-08-04 · Importance 41 · Surprise 14 · In source text
Total recourse debt increased to $6.1 billion as of June 30, 2026, from $6.0 billion at December 31, 2025. AES stated that liquidity should be adequate for the foreseeable future, supported by its revolving credit facility and commercial paper program, but depends on capital-market access, subsidiary performance, currency exchange rates, power-market pool prices, and subsidiary dividend distributions. Non-recourse debt classified as current totaled $3.2 billion, including $19 million related to technical covenant defaults at AES Ilumina and an AES Clean Energy Development project entity. The defaults were not payment defaults and had not caused a Parent Company cross-default as of June 30, 2026, although future asset dispositions, asset-value reductions, or other changes could make a subsidiary material and trigger acceleration of Parent Company debt.
Key facts
- Distributions to noncontrolling interests were $(1,238) million for the six months ended June 30, 2026 and $(338) million for the six months ended June 30, 2025. source
- Borrowings under the revolving credit facilities were $2,826 million for the six months ended June 30, 2026 and $2,128 million for the six months ended June 30, 2025. source
- Issuance of non-recourse debt cash sources were $1,424 million for the six months ended June 30, 2026 and $2,332 million for the six months ended June 30, 2025. source
- As of June 30, 2026, the Company had unrestricted cash and cash equivalents of $1.8 billion, of which $43 million was held at the Parent Company and qualified holding companies. source
- As of June 30, 2026, the Company had restricted cash and debt service reserves of $583 million. source
- As of June 30, 2026, the Company had $826 million outstanding related to supplier financing arrangements. source
- We have $684 million due under supplier financing arrangements that have a guarantee, of which $103 million is guaranteed by the Parent Company and $581 million is guaranteed by subsidiaries (as of June 30, 2026). source
- As of June 30, 2026, the Parent Company had provided outstanding financial and performance-related guarantees or other credit support commitments of approximately $4.4 billion in aggregate. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | committed | -6.9% | As of June 30, 2026, the Parent Company had provided outstanding financial and performance-related guarantees or other credit support… |
| cash | negative | realized | -1.7% | Distributions to noncontrolling interests were $(1,238) million for the six months ended June 30, 2026 and $(338) million for the six… |
| liability | negative | realized | -1.3% | Borrowings under the revolving credit facilities were $2,826 million for the six months ended June 30, 2026 and $2,128 million for the six… |
| liability | negative | committed | -0.9% | We have $684 million due under supplier financing arrangements that have a guarantee, of which $103 million is guaranteed by the Parent… |
| liability | negative | contingent | -0.8% | As of June 30, 2026, the consolidated maximum undiscounted potential exposure to guarantees, letters of credit, and surety bonds issued by… |
| liability | negative | committed | -0.2% | We have $684 million due under supplier financing arrangements that have a guarantee, of which $103 million is guaranteed by the Parent… |
| cash | positive | realized | — | As of June 30, 2026, the Company had unrestricted cash and cash equivalents of $1.8 billion, of which $43 million was held at the Parent… |
| assets | positive | realized | — | As of June 30, 2026, the Company had restricted cash and debt service reserves of $583 million. |
| liability | negative | realized | — | As of June 30, 2026, the Company had $826 million outstanding related to supplier financing arrangements. |