AES (AES) risk factors, FY2024 10-K

AES's FY2024 10-K, filed Mar 11, 2025, lists 41 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
411 groups
Section length
14k wordsItem 1A

AES's biggest risks in the FY2024 10-K

  • The company faces significant exposure to regulatory uncertainty in U.S. renewable energy incentives and import tariffs.
  • Operations involve massive international reach, particularly in developing countries, alongside high commodity price volatility.
  • The capital structure relies heavily on approximately $29 billion of consolidated debt and subsidiary cash flows.

The risks most specific to AES

  • Our renewable energy projects and other initiatives face considerable uncertainties

    Our renewable energy projects, including wind, solar, hydrogen, and storage, depend heavily on favorable U.S. regulatory incentives.

  • In addition, new tariffs, duties or other assessments could be imposed on the imports of solar cells, modules, batteries or other equipment utilized in our renewable energy projects

    New tariffs or duties on imported solar cells, modules, or batteries could impede our U.S. renewables strategy and project returns.

  • We do a significant amount of business outside the U.S., including in developing countries

    Our substantial operations and expansion plans in developing countries expose us to economic, social, and political instability.

  • Several of our businesses are subject to potentially significant remediation expenses, enforcement initiatives, private party lawsuits and reputational risk associated with CCR

    We face potential remediation expenses, lawsuits, and reputational risks associated with coal combustion residuals from our current and former coal plants.

  • Concerns about GHG emissions and the potential risks associated with climate change have led to increased regulation and other actions that could impact our businesses

    Our subsidiaries reported direct CO2 emissions of approximately 28 million metric tonnes, exposing us to increasing climate change regulations.

  • Negative public perception of our GHG emissions could have an adverse effect on our relationships with third parties, our ability to attract additional customers, our business development opportunities, and our ability to access finance and insurance for our coal-fired generation assets

    Negative public perception of our GHG emissions could harm our relationships, customer acquisition, financing ability, and insurance access.

  • Risks Related to our Indebtedness and Financial Condition

    We have a significant amount of debt

    We carry approximately $29 billion of outstanding indebtedness on a consolidated basis, with most subsidiary debt secured by their assets.

  • Risks Related to our Indebtedness and Financial Condition

    The AES Corporation's ability to make payments on its outstanding indebtedness is dependent upon the receipt of funds from our subsidiaries

    As a holding company with no material assets other than stock, our ability to pay debt depends entirely on subsidiary cash flows.

  • Risks Related to our Indebtedness and Financial Condition

    A downgrade in the credit ratings of The AES Corporation or its subsidiaries could adversely affect our access to the capital markets, interest expense, liquidity or cash flow

    A credit rating downgrade for The AES Corporation or its subsidiaries could impair capital access and increase borrowing costs.

All 41 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The operation of power generation, distribution and transmission facilities involves significant risks
  2. 02Our renewable energy projects and other initiatives face considerable uncertainties
  3. 03In addition, new tariffs, duties or other assessments could be imposed on the imports of solar cells, modules, batteries or other equipment utilized in our renewable energy projects
  4. 04projects, abandoning the development of certain U.S. renewable energy projects, a loss of our investments in the projects, and/or reduced project returns
  5. 05Our development projects are subject to substantial uncertainties
  6. 06We do a significant amount of business outside the U.S., including in developing countries
  7. 07Our businesses may incur substantial costs and liabilities and be exposed to price volatility as a result of risks associated with the wholesale electricity markets
  8. 08Wholesale power prices may experience significant volatility in our markets which could impact our operations and opportunities for future growth
  9. 09Volatility in wholesale prices could have a material adverse impact on the financial performance of our existing generation assets to the extent they currently sell or buy power into the spot market to serve our contracts or will seek to sell power into the spot market once our contracts expire
  10. 10We may not have adequate risk mitigation or insurance coverage for liabilities
  11. 11We may not be able to enter into long-term contracts that reduce volatility in our results
  12. 12Our acquisitions may not perform as expected
  13. 13Competition is increasing and could adversely affect us
  14. 14Supplier and/or customer concentration may expose us to significant financial credit or performance risks
  15. 15We may incur significant expenditures to adapt our businesses to technological changes
  16. 16Cyber-attacks and data security breaches could harm our business
  17. 17Highly infectious or contagious diseases outbreaks could impact our business and operations
  18. 18Certain of our businesses are sensitive to variations in weather and hydrology
  19. 19Severe weather and natural disasters may present significant risks to our business
  20. 20We do not control certain aspects of our joint ventures or our equity method investments
  21. 21Fluctuations in currency exchange rates may impact our financial results and position
  22. 22We may not be adequately hedged against our exposure to changes in commodity prices or interest rates
  23. 23Our utilities businesses may experience slower growth in customers or in customer usage
  24. 24Some of our subsidiaries participate in defined benefit pension plans and their net pension plan obligations may require additional significant contributions
  25. 25Impairment of long-lived assets would negatively impact our consolidated results of operations and net worth
  26. 26Our operations are subject to significant government regulation and could be adversely affected by changes in the law or regulatory schemes
  27. 27Several of our businesses are subject to potentially significant remediation expenses, enforcement initiatives, private party lawsuits and reputational risk associated with CCR
  28. 28Some of our U.S. businesses are subject to the provisions of various laws and regulations administered by FERC, NERC and by state utility commissions that can have a material effect on our operations
  29. 29Our businesses are subject to stringent environmental laws, rules and regulations
  30. 30Concerns about GHG emissions and the potential risks associated with climate change have led to increased regulation and other actions that could impact our businesses
  31. 31Negative public perception of our GHG emissions could have an adverse effect on our relationships with third parties, our ability to attract additional customers, our business development opportunities, and our ability to access finance and insurance for our coal-fired generation assets
  32. 32Concerns about data privacy have led to increased regulation and other actions that could impact our businesses
  33. 33Tax legislation initiatives or challenges to our tax positions could adversely affect us

Risks Related to our Indebtedness and Financial Condition

  1. 34We have a significant amount of debt
  2. 35The AES Corporation's ability to make payments on its outstanding indebtedness is dependent upon the receipt of funds from our subsidiaries
  3. 36Existing and potential future defaults by subsidiaries or affiliates could adversely affect us
  4. 37The AES Corporation has significant cash requirements and limited sources of liquidity
  5. 38Our ability to grow our business depends on our ability to raise capital on favorable terms
  6. 39A downgrade in the credit ratings of The AES Corporation or its subsidiaries could adversely affect our access to the capital markets, interest expense, liquidity or cash flow
  7. 40Failure to maintain an effective system of internal control over financial reporting could result in material misstatements in our financial statements or may negatively impact investor confidence in our reported financial information
  8. 41The market price of our common stock may be volatile

Other AES 10-Ks

  • FY2025 10-K risk factors
    37 risks1 new5 dropped7 reworded

    H.R. 1 curtails favorable Inflation Reduction Act regimes supporting AES wind, solar, and storage projects.

    Filed Mar 02, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.