American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q3 2025 Earnings Presentation
39 slides from American Electric Power's earnings presentation, Nov 5, 2025
Slide 1: AEP Third Quarter 2025 Earnings Presentation
AEP Third Quarter 2025 Earnings Presentation October 29, 2025 AEP CONFIDENTIAL
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward- Looking Statements This presentation contains forward-looking statements. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue” and similar expressions, including statements reflecting future re
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures AEP reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). AEP supplements the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including operati
Slide 4: AEP: Accelerating Growth and Driving Value
AEP: Accelerating Growth and Driving Value High-quality, pure-play electric utility strategically positioned in growth regions, rooted in innovation and ready to meet unprecedented customer demand. AEP SERVICE TERRITORY WITH KEY GROWTH STATES: VISION Improve customers’ lives with reliable, affordabl
Slide 5: Introduction and Strategic Overview
INTRODUCTION AND STRATEGIC OVERVIEW Bill Fehrman Chair, President and CEO
Slide 6: Financial Guidance Overview
Financial Guidance Overview Driving significant infrastructure investment, expected to deliver an attractive ~10%-13% TSR. 2026-2030 Outlook 2026 Guidance ~10%-13% Total $6.15-$6.45 2026 Operating EPS Guidance Expected Shareholder Return (TSR) Based off the 2025 Guidance Range Midpoint 7%-9% ~3% >$1
Slide 7: Third Quarter Strategy and Outlook
Key Messages Establishing a new long-term operating earnings growth rate of 7%-9% with an expected 9% CAGR through 2030, driven by ~65 GW of system peak demand projected by 2030 and a $72B, 5-year capital plan. ✓ Reporting Q3 2025 EPS GAAP of $1.82 and Operating of $1.80; year-to-date 2025 EPS 3Q 20
Slide 8: Unmatched Transmission Scale and Expertise
Unmatched Transmission Scale and Expertise AEP owns and operates the largest transmission network in the United States. AEP’s Current Transmission Network AEP’s 765 kV Expertise and Infrastructure • AEP pioneered the modern 765 kV transmission system West East in North America, the highest voltage u
Slide 9: Recent Legislative and Regulatory Progress
Recent Legislative and Regulatory Progress Focused operational excellence leads to improved legislative and regulatory outcomes. Reduc Reduced Regulatory Lag Infrastructure ✓ May 2025: Ohio HB 15 establishes a new regulatory framework with multi- ✓ April 2025: Approved AEP Texas ERCOT Permian Basin
Slide 10: Affordability Levers Help Protect Customer Bills Amid Generational Growth
Affordability Levers Help Protect Customer Bills Amid Generational Growth Residential rate impacts are mitigated through affordability levers including load growth, rate design and O&M efficiency. Generational Growth Affordability Levers Residential Customer Rate Impact 40% Increase 33% Increase ✓ I
Slide 11: Q3-25 Results and Financial Growth Outlook
Q3-25 RESULTS AND FINANCIAL GROWTH OUTLOOK Trevor Mihalik EVP and CFO
Slide 12: Q3-25 Operating Earnings Key Drivers
Q3-25 Operating Earnings Key Drivers Q3-25 results were primarily impacted by the prior year’s sale of the Onsite Partners Distributed Resources business within Generation & Marketing. $1.85 0.02 (0.03) Per Share (0.01) (0.10) $1.80 Rate Changes $0.13 Rate Changes $0.05 Invest Growth $0.01 0.07 Per
Slide 13: YTD 2025 Operating Earnings Key Drivers
YTD 2025 Operating Earnings Key Drivers YTD 2025 earnings grew 9% over YTD 2024 providing a solid foundation for full-year performance. $4.78 0.10 Per Share 0.04 (0.02) 0.11 Distributed O&M $0.02 Invest Growth $0.10 $(0.12) 0.17 Resources Income Taxes $0.03 Other $(0.06) Retail $0.03 Other $0.05 Rat
Slide 14: 2026-2030 New Long-Term Operating Earnings Growth Rate of 7%-9%
2026-2030 New Long-Term Operating Earnings Growth Rate of 7%-9% Delivering new 7%-9% long-term operating earnings growth rate with an expected 9% CAGR through 2030; growth is projected in the lower half of the range for the first two years and at or above the high end of the range in 2028, 2029 and
Slide 15: 2026-2030 Load Growth
2026-2030 Load Growth Projected 2030 system peak demand of ~65 GW includes 28 GW of incremental contracted load from 2025-2030 backed by ESAs and LOAs and further supported by the 190 GW active projects in the interconnection queue. System Peak Forecast Cumulative Contracted 21% Data Centers1 (Incre
Slide 16: 2026-2030 Investment Growth
2026-2030 Investment Growth $72B capital plan supports ~10% rate base CAGR through 2030 with nearly 90% of the investment expected to be recovered through reduced lag mechanisms. Capital Forecast of $72B Regulated Investments Rate Base of ~$128B in 2030 ($ in billions) 6% Corp $128 4% Other $118 Gen
Slide 17: 2026-2030 High-Growth Transmission
2026-2030 High-Growth Transmission More than $50B expected in transmission rate base through 2030 delivers significant shareholder value. Transmission Rate Base ($ in billions) $51 $47 $42 $38 $34 $27 $32 $25 $22 $20 $18 $17 $22 $24 $18 $20 $15 $16 2025E 2026E 2027E 2028E 2029E 2030E Rate base of tr
Slide 18: 2026-2030 Financing Plan
2026-2030 Financing Plan Cash from operations improvement is expected to be driven by investment execution and positive legislative/ regulatory development; over 80% of growth equity is projected to be issued during the back half of the plan. ($ in millions) 2026E 2027E 2028E-2030E Total Cash from O
Slide 19: Closing Remarks
Closing Remarks Guidance Overview 1 Delivered strong year-to-date financial performance, giving us confidence to guide to the upper half of the 2025 operating earnings range of $5.75-$5.95 ~65 GW System Peak Demand by 2030 2 Formalized $72B capital plan, driving a 10% five-year rate base CAGR, with
Slide 20: Appendix: Forecast Highlights Supporting Transformative Growth
APPENDIX 1 Forecast Highlights Supporting Transformative Growth
Slide 21: 2026 Operating Earnings Guidance Key Drivers
2026 Operating Earnings Guidance Key Drivers 0.05 (0.04) (0.10) 0.12 $6.30/sh 2026 EPS Midpoint 0.42 Investment/Rate $0.06 Retail $(0.09) Base Growth O&M $(0.02) Wholesale $0.07 Rate Changes $0.23 Financing $(0.01) Other $(0.02) Net Interest $(0.02) $5.85/sh Transmission $0.20 Income Taxes $(0.03) R
Slide 22: 2026 Assumptions and Key Sensitivities
2026 Assumptions and Key Sensitivities Assumptions Sensitivity Analysis Sensitivity EPS A $6.9M change in pretax earnings equals Earnings to EPS $0.01 per share Retail Sales VIU T&D Averages Shares 546.1M Residential 1.0% +/- $0.038 $0.012 Outstanding Commercial and Industrial 1.0% +/- $ 0.032 $ 0.0
Slide 23: Regulated Earned Returns
Regulated Earned Returns Forecasted Regulated ROE is expected to improve to approximately 9.5% by 2030 supported by investment execution and legislative and regulatory advancements. Twelve Months Ended 9/30/2025 ROE by Company; Regulated AEP Regulated ROE Trend Operations was 9.1% (non-GAAP operatin
Slide 24: Current Rate Case Activity
Current Rate Case Activity Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security. AEP Ohio APCo – West Virginia1 KPCo Docket # 25-392-EL-AIR Docket # 24-0854-E-42T Docket # 2025-00257 Filing Date 5/30/2025 Filing Date 11/1/2024 Filing Date 8/29/20
Slide 25: Current Rate Case Activity
Current Rate Case Activity Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security. SWEPCO – Arkansas SWEPCO – Texas Docket # 25-003-U Docket # 58819 Filing Date 3/28/2025 Filing Date 10/14/2025 Requested Rate Base $2.2B Requested Rate Base $2.4B Re
Slide 26: Focused O&M Efficiency Helps with Customer Affordability
Focused O&M Efficiency Helps with Customer Affordability Inflation ~4.2% Avg. 2022A – 2026E 2026E inflation gap of ~$0.7B $6B Wires and Other Generation Inflation Maintaining disciplined O&M $5B spending below average inflation levels despite rising Total Non-fuel O&M $4B costs and expanding rate ba
Slide 27: 2026-2030 Capital Forecast by Subsidiary
2026-2030 Capital Forecast by Subsidiary ($ in millions, excludes AFUDC) 2026E 2027E 2028E 2029E 2030E Total AEP Texas Company $2,351 $2,599 $3,738 $3,781 $4,333 $16,802 AEP Transmission Holdco 1,486 1,966 2,437 2,483 2,235 10,607 Appalachian Power Company1 1,608 1,282 3,027 1,722 1,840 9,479 Indian
Slide 28: Demand Driving Generation Diversity
Demand Driving Generation Diversity Significant generation is required to meet new demand. AR – FEB WV – OCT VA VCEA – MAY MI – 4Q Completed Completed IRP Filings 2025 | 2026 IN – MAR VA VCEA – MAY Completed Completed 2026-20351 Projected Resource Needs RFPs In Progress4 Nameplate MW2 Solar Wind Sto
Slide 29: Generation Diversity Update
UPDATE Generation APPENDIX 2 Diversity Third Quarter Results 59th EEI Financial Conference Hollywood, Florida November 10-12, 2024 29
Slide 30: Billed Sales Trends
Billed Sales Trends Realized significant commercial and industrial sales growth of nearly 8% compared to same periods prior year. Rolling Twelve Months, as of September 30, 2025 (GWh) Vertically Integrated Utilities Transmission and Distribution Total 1.9% 14.2% 7.9% 1.5% 10.6% 6.0% 1.3% 2.3% 2.7% R
Slide 31: Third Quarter Liquidity and Credit Metrics
Third Quarter Liquidity and Credit Metrics Liquidity Summary 9/30/2025 Credit Metrics Trailing 12 Months 9/30/2025 ($ in millions) Amount Maturity S&P Moody’s Fitch Revolving Credit Facility $ 5,000 March 2029 Rating / Outlook BBB / Stable Baa2 / Stable BBB / Stable Revolving Credit Facility 1,000 M
Slide 32: Third Quarter FFO to Total Debt
Third Quarter FFO to Total Debt Moody’s FFO to Debt as of 9/30/2025 was 13.2%. RECONCILIATION OF CASH FLOW RECONCILIATION OF TOTAL DEBT FROM OPERATIONS TO FFO TO ADJUSTED TOTAL DEBT 12 Months ($ in millions) ($ in millions) As of 9/30/2025 Ended 9/30/2025 Cash Flow from Operations (GAAP) $ 6,858 Tot
Slide 33: Third Quarter Earnings Reconciliation
Third Quarter Earnings Reconciliation Weighted average number of share outstanding: 535M Q3 2025 and 532M Q3 2024. $ in millions Earnings Per Share Q3-24 Q3-25 Change Q3-24 Q3-25 Change Reported GAAP Earnings $960 $972 $12 $1.80 $1.82 $0.02 Non-Operating Items: Impact of Ohio Legislation 1 - (8) (8)
Slide 34: YTD Earnings Reconciliation
YTD Earnings Reconciliation Weighted average number of share outstanding: 534M YTD 2025 and 529M YTD 2024. $ in millions Earnings Per Share YTD-24 YTD-25 Change YTD-24 YTD-25 Change Reported GAAP Earnings $2,303 $2,998 $695 $4.35 $5.61 $1.26 Non-Operating Items: FERC NOLC Order1 - (480) (480) - (0.9
Slide 35: Vertically Integrated Utilities Third Quarter Performance
Vertically Integrated Utilities Third quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q3-25 vs. Q3-25 vs. Q3-25 vs. Q3-24 Q3-25 vs. Q3-24 Q3-24 Normal APCo3 $1 APCo3 $(1
Slide 36: Vertically Integrated Utilities YTD Performance
Vertically Integrated Utilities YTD Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) YTD-25 vs. YTD-25 vs. YTD-25 vs. YTD-24 YTD-25 vs. YTD-24 YTD-24 Normal APCo3 $35 APCo3 $16 $
Slide 37: Transmission and Distribution Utilities Third Quarter Performance
Transmission and Distribution Utilities Third quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q3-25 vs. Q3-25 vs. Q3-24 Normal Q3-25 vs. Q3-24 Q3-25 vs. Q3-24 AEP Ohio $
Slide 38: Transmission and Distribution Utilities YTD Performance
Transmission and Distribution Utilities YTD Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) YTD-25 vs. YTD-25 vs. YTD-24 Normal YTD-25 vs. YTD-24 YTD-25 vs. YTD-24 AEP Ohio $13
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American Electric Power Company — Q3 2025 Earnings Presentation on 6ix