AES Corporation 8-K

Summary

Maritza power plant impairment. AES concluded the Bulgarian plant’s carrying value was not recoverable after deciding not to convert it to another fuel source; negotiations for a new power purchase agreement (PPA) and other value options are ongoing, with no agreement reached. The current PPA expires in May 2026.

Key Figures

• Pre-tax GAAP impairment charge: $250M–$325M, to be recognized as of 12/31/2025. The charge primarily reflects limiting future use of the asset after the PPA expires; it is not expected to affect Maritza’s performance or cash flows and balances under the current PPA through May 2026.
• AES expects to finalize the charge and assess any income tax expense impact with its FY2025 Form 10-K.

Investor Takeaways

• Watch for a new PPA or another value-realization agreement before the current PPA expires in May 2026.
• AES’s FY2025 Form 10-K will provide the finalized impairment charge and assessment of the potential income tax expense impact.