Key Highlights

  • Third quarter adjusted EBITDA, a non-GAAP measure, rose USD 260 million to USD 1,090 million from USD 830 million a year earlier, about 31% higher by simple arithmetic.
  • AES (NYSE:AES) reported third quarter Net Income of USD 527 million, up USD 10 million from USD 517 million, as higher spot prices offset the loss of the Maritza contract.
  • Nine-month net income jumped by USD 895 million to USD 1,189 million from USD 294 million, with nine-month adjusted EBITDA up USD 713 million to USD 2,815 million.
  • A Merger agreement signed on March 1, 2026 with Horizon Parent, an entity tied to Global Infrastructure Management and EQT Infrastructure VI, remains pending.

Higher Spot Prices Lift Adjusted EBITDA by USD 260 Million

AES (NYSE:AES) filed its Form 10-Q for the quarter ended September 30, 2026 on November 3, 2026. Adjusted EBITDA rose to USD 1,090 million, or about USD 1.09 billion, from USD 830 million. Management attributed the gain to higher energy and capacity sales and prices in the spot market and to higher retail rates and Demand at its utilities. Lower contract sales volume, mainly from the expiration of the Maritza power purchase agreement in Bulgaria, partly offset those gains. Net income rose only USD 10 million to USD 527 million, a much smaller increase than the EBITDA gain, because of a lower income tax benefit and higher Impairment expense.

What Moved the Nine-Month Profit From USD 294 Million to USD 1.19 Billion

For the nine months, net income rose to USD 1,189 million from USD 294 million. The filing lists higher spot sales, higher development services contributions in the United States, higher Utility rates and demand, a gain on the sale of Fluence shares and the absence of prior-year items. Those items include losses on sales-type leases at AES Clean Energy Development, restructuring costs from February 2025 and the Uplight impairment. A higher ownership stake in Cochrane also supported nine-month adjusted EBITDA, which reached USD 2,815 million from USD 2,102 million. The AES Ohio selldown in the prior year reduced the comparison base. The company groups its operations into Renewables, Utilities, Energy Infrastructure and New Energy Technologies.

Pending Take-Private Merger and the Risks Around It

The company agreed on March 1, 2026 that Horizon Merger Sub would merge into AES, leaving AES as the surviving corporation under the control of Horizon Parent. The extract reviewed does not state the per-share price or expected closing date, so those are not given here. Risks listed include unmet closing conditions, litigation, a possible termination fee, restrictions on pursuing other deals while the transaction is pending and retention of key staff. Operating risks include fuel and power price swings, hedging effectiveness, weather and hydrology, covenant compliance on recourse and non-recourse debt, and changes in government incentives for renewables. Contract expirations such as Maritza show how Volume can fall when long-term agreements end.

Where Things Stand

The jump came mainly from market pricing and utility tariffs, not from growth in contracted volume. AES (NYSE:AES) lifted adjusted EBITDA by about 31% (own arithmetic) on higher spot energy and capacity prices and higher retail rates, while net income barely moved because of taxes and impairments. Because the pending merger with Horizon Parent is the larger event, investors are likely to follow regulatory and closing updates ahead of operating trends. Adjusted EBITDA is a non-GAAP measure and does not capture interest, taxes or impairment charges, so the net income line is the cleaner profit comparison.