AES · 10-Q · 2026Q3 · Full report

Liquidity and Debt Position

AES CORP · 2026-11-03 · Importance 43 · Surprise 6 · In source text

At September 30, 2026, AES had $2.0 billion of unrestricted cash and cash equivalents, including $26 million at the Parent Company and qualified holding companies, plus $715 million of restricted cash and debt service reserves. Aggregate principal debt was $32.4 billion: $26 billion non-recourse and $6.4 billion recourse; $3 billion of current non-recourse debt included $18 million in technical default, not payment default. Consolidated gross debt was $32.7 billion, of which $10.4 billion bore variable rates, with $8.3 billion of hedges protecting current and expected variable-rate exposure. AES also had $461 million outstanding under supplier financing arrangements, $5.1 billion of Parent Company guarantees and credit support, and $6.1 billion of subsidiary-level maximum potential exposure to guarantees, letters of credit, and surety bonds.

Key facts

• Non-recourse debt classified as current totaled $3 billion; $18 million of current debt related to defaults at September 30, 2026, all of it non-recourse debt related to AES Ilumina. source
• As of September 30, 2026, AES had $26 billion of non-recourse debt and $6.4 billion of recourse debt outstanding; $3 billion of non-recourse debt was current, including $18 million in technical default rather than payment default. source
• AES subsidiaries had maximum undiscounted potential exposure of $6.1 billion from guarantees, letters of credit, and surety bonds as of September 30, 2026, comprising $4 billion of guarantees and commitments, $2.1 billion of letters of credit, and $86 million of surety bonds. source
• AES’s total recourse debt was $6.4 billion at September 30, 2026, compared with $6 billion at December 31, 2025. source
• The Parent Company had approximately $5.1 billion of outstanding financial and performance-related guarantees or other credit-support commitments for AES businesses as of September 30, 2026. source
• AES Ilumina’s $18 million non-recourse debt remains in technical default and was classified as current as of September 30, 2026, following PREPA’s 2017 bankruptcy filing. source
• The AES Ilumina default was a technical default triggered by failure to comply with covenants or other conditions, not a payment default. source
• As of September 30, 2026, AES had $2 billion of unrestricted cash, including $26 million at the Parent Company and qualified holding companies, and $715 million of restricted cash and debt-service reserves. source

Impact estimates