The AES Corporation
01/16/2026 | Press release | Distributed by Public on 01/16/2026 15:13
Material Impairments (Form 8-K)
Item 2.06 Material Impairments
The AES Corporation's ("AES") Maritza power plant in Bulgaria is operating under a Power Purchase Agreement ("PPA") that expires in May 2026. Although negotiations are underway for a new PPA and other alternatives to realize additional value are being considered, no agreements have been reached. Further, in the fourth quarter of 2025, the Company made the decision not to invest in a conversion of the plant to an alternative fuel source. The Company has determined that collectively, these events represent an impairment indicator during the fourth quarter of 2025. An analysis was performed and as a result, a reduction in the Maritza assets' useful life was deemed appropriate, and it was determined that the carrying value was not recoverable. In connection with these developments, on January 13, 2026, the Company concluded that a pre-tax impairment charge in the range of $250 million to $325 million is required to be recognized as of December 31, 2025, in accordance with U.S. generally accepted accounting principles ("GAAP") related to the accounting for property, plant and equipment. The impairment charge is primarily related to limiting the future use of the asset after the expiration of the current PPA; it is not expected to impact Maritza's ability to perform its obligations or its cash flows or cash balances under its current PPA through May 2026.
Management expects to conclude its assessment and finalize the impairment charges along with the assessment of the potential impact to income tax expense with the submission of its Form 10-K for the year ending on December 31, 2025.
The AES Corporation published this content on January 16, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on January 16, 2026 at 21:13 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]