American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q1 2026 Earnings Presentation
39 slides from American Electric Power's earnings presentation, May 5, 2026
Slide 1: First Quarter 2026 Earnings Presentation
First Quarter 2026 Earnings Presentation May 5, 2026
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 its reporting of financial information with certain non-GAAP financial measures, including operating earnings (non-GAAP), operating E
Slide 4: Accelerating Growth and Driving Value
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. KEY GROWTH STATES: VISION Improve customers’ lives with reliable, affordable power INDIANA, OHIO, OKLAHOMA
Slide 5: Financial Guidance Overview
Financial Guidance Overview Driving significant infrastructure investment, expected to deliver an attractive ~10%-13% annual TSR. 2026-2030 Outlook 2026 Guidance ~10%-13% Total Annual $6.15-$6.45 2026 Operating EPS Guidance Expected Shareholder Return (TSR) Based off the 2025 guidance range midpoint
Slide 6: Key Messages
Key Messages Bill Fehrman Chairman, President and CEO Cook Nuclear Plant
Slide 7: Highlights: Key Messages
Key Messages Focused execution on updated $78B capital plan to capture generational growth while prioritizing affordability. ✓ Reporting Q1 2026 EPS GAAP of $1.61 and Operating of $1.64 Q1 2026 OPERATING EPS1 Q1 2026 Financial ✓ Regulated earned ROE increased to 9.3% for the 12 months ended 3/31/202
Slide 8: Diverse Commercial and Industrial Footprint
Diverse Commercial and Industrial Footprint 1 Diverse customer base provides a foundation for long-term infrastructure partnerships and drives economic growth. Contracted customers must meet high credit Data Centers Data Centers standards through investment grade credit Granger, IN Columbus, OH qual
Slide 9: 2026-2030 Significant Transmission Growth
2026-2030 Significant Transmission Growth Expanded transmission capital forecast that now totals $33B reflecting AEP’s continued momentum in strengthening the nation’s electricity backbone and further solidifying our industry-leading position. $3.5B increase to transmission MISO Award SPP (Wisconsin
Slide 10: 2026-2030 New Generation Resources
2026-2030 New Generation Resources Expanded generation forecast now $24B; AEP is well positioned to advance generation solutions to meet customer demand. $2.5B increase to generation capital forecast, raising the forecast to $24B for 2026-2030 Our current plan reflects a diverse generation mix • Inc
Slide 11: Delivering Affordable and Reliable Power
Delivering Affordable and Reliable Power Residential rate impacts are mitigated through load growth, including 63 GW of contracted load by 2030 (up from 56 GW disclosed last quarter) as well as disciplined cost management and efficient financing. Large load growth supports affordability with residen
Slide 12: Innovative Data Center and Large Load Tariffs Advancing Affordability
Innovative Data Center and Large Load Tariffs Advancing Affordability Collaborated with stakeholders and pioneered data center and large load tariff solutions to support customer and system needs, including our key growth states of Indiana, Ohio, Oklahoma and Texas. Operating Long-term Contract Mini
Slide 13: Recent Regulatory Progress
Recent Regulatory Progress Focused operational excellence results in improved regulatory outcomes. ✓ Order received in April 2026 for the AEP Ohio distribution base case, including an affordability ✓ Filed the base rate case and large-load tariff in measure resulting in a rate decrease for customers
Slide 14: First Quarter 2026 Results and Financial Growth Outlook
First Quarter 2026 Results and Financial Growth Outlook Trevor Mihalik EVP and CFO
Slide 15: First Quarter Operating Earnings Drivers
First Quarter Operating Earnings Drivers Solid first quarter financial performance provides momentum and strong foundation for full-year results. 0.08 (0.05) 0.03 (0.16) 0.20 $1.64 O&M $(0.02) Retail $(0.04) Per Share Rate Changes $0.03 Other Taxes $(0.02) Wholesale $0.02 $1.54 Weather $(0.04) Other
Slide 16: 2026-2030 Load Growth
2026-2030 Load Growth Incremental contracted load of 63 GW by 2030 backed by Electric Service Agreements (ESAs) and Letters of Agreement (LOAs) and further supported by approximately 190 GW of active projects in the interconnection queue. Cumulative Contracted Load Growth Summary of 63 GW Load Addit
Slide 17: ERCOT Load Growth
ERCOT Load Growth SB6-compliant load rises to 41 GW1 by 2030 with roughly 60 GW in the interconnection queue; AEP Texas is proactively collaborating with ERCOT to advance solutions to meet significant demand. AEP Texas Load SB6 Criteria AEP Texas SB6 Compliant Contracted Load Additions 1. Show finan
Slide 18: 2026-2030 Investment Growth
2026-2030 Investment Growth $78B updated capital plan with line of sight to over $10B of additional capital projects. 5% Other Capital Plan of $78B $4B Supports Nearly 11% $3B Corp 1 Other 22% Distribution $134 Gen $123 Rate Base CAGR $17B $110 Distribution through 2030 $13B New $95 $68 Generation $
Slide 19: 2026-2030 Financing Plan
2026-2030 Financing Plan Growth equity increased $1.1B relative to the plan shared last fall representing 18% of the $6B increase to the capital plan. ($ in millions) 2026E 2027E 2028E-2030E Total Cash from Operations $ 7,800 $ 8,600 $ 30,700 $ 47,100 Capital and JV Equity Contribution (12,900) (14,
Slide 20: Closing Remarks
Closing Remarks Guidance Overview Delivered strong Q1 2026 financial performance; positive 63 GW 1 regulatory progress with a focus on affordability Incremental Contracted Load by 2030 Up from 56 GW Continued load growth story driven by 63 GW of incremental $78B + Over $10B 2 contracted load by 2030
Slide 21: Appendix 1: Forecasted Highlights
Appendix 1 Forecasted Highlights We are strategically investing and well positioned to execute on high-growth opportunities that drive financial performance
Slide 22: C&I Sales Trends and Revenues in 2026
C&I Sales Trends and Revenues in 2026 Financial performance supported by rising Commercial and Industrial (C&I) sales trends and further strengthened by minimum demand charges in data center and large load customer agreements. C&I GWh Sales1 C&I Revenues2 Three Months Ended 3/31/2026 Three Months En
Slide 23: 2026-2030 Annual Operating Earnings Growth Rate of 7%-9%
2026-2030 Annual Operating Earnings Growth Rate of 7%-9% Delivering 7%-9% annual operating earnings growth rate with an expected CAGR of now greater than 9%1 through 2030; growth is projected in the lower half of the range for 2026 and 2027 and above the high end of the range in 2028, 2029 and 2030.
Slide 24: 2026-2030 High-Growth Transmission
2026-2030 High-Growth Transmission Expected $55B transmission rate base in our existing plan through 2030 delivers significant holder value. Transmission Rate Base ($ in billions) $55 $49 $43 $38 $29 $34 $26 $32 $23 $20 $17 $18 $23 $26 $18 $20 $15 $16 2025A 2026E 2027E 2028E 2029E 2030E Rate base of
Slide 25: 2026-2030 Capital Forecast by Subsidiary
2026-2030 Capital Forecast by Subsidiary Capital plan is fueled by transmission buildout and generation project advancements. ($ in millions, excludes AFUDC) 2026E 2027E 2028E 2029E 2030E Total 4% 9% AEP Texas 28% AEP Ohio AEP Texas Inc. $2,351 $2,599 $3,738 $3,781 $4,333 $16,802 11% APCo1 Distribut
Slide 26: 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 2,208,753 2026-20351 Projected Resource Needs RFPs In Progress4 Nameplate MW2 Nat.
Slide 27: Appendix 2: Legislative and Regulatory Progress
Appendix 2 Legislative and Regulatory Progress We are deepening relationships with regulators, policymakers, customers and suppliers to a d v a n c e a ff o r d a b i l i t y, r e l i a b i l i t y and resiliency
Slide 28: Regulated Earned Returns
Regulated Earned Returns Forecasted Regulated ROE is expected to improve to approximately 9.5% by 2030. Historical and Projected 9.3% earned ROE1,2 as of twelve months ended 3/31/2026 Regulated ROE Trend 14% 12.6% 12% 9.5% 10% 10.0% 9.5% 9.2% 9.3% Earned ROE1,2 9.2% 8% 7.9% 9.1% 7.2% 7.2% 9.05% 6% 4
Slide 29: Current Rate Case Activity
Current Rate Case Activity Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security. AEP Ohio APCo – West Virginia2 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 30: Current Rate Case Activity
Current Rate Case Activity Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security. PSO SWEPCO – Arkansas SWEPCO – Texas Docket # PUD 2025-000075 Docket # 25-003-U Docket # 58819 Filing Date 1/2/2026 Filing Date 3/28/2025 Filing Date 10/14/2025 Requ
Slide 31: Appendix 3: First Quarter Financial Metrics
Appendix 3 First Quarter Financial Metrics We delivered on 1Q 2026 financial commitments driving value for customers and investors
Slide 32: First Quarter Liquidity and Credit Metrics
First Quarter Liquidity and Credit Metrics Liquidity Summary 3/31/2026 Credit Metrics Trailing 12 Months as of 3/31/2026 ($ in millions) Amount Maturity S&P Moody’s Fitch Revolving Credit Facility1 $ 5,000 March 2029 Rating / Outlook BBB / Stable Baa2 / Stable BBB / Stable Revolving Credit Facility1
Slide 33: First Quarter FFO to Total Debt – S&P
First Quarter FFO to Total Debt – S&P S&P FFO to Debt as of 3/31/2026 was 14.7%. RECONCILIATION OF OPERATING RECONCILIATION OF TOTAL DEBT INCOME TO FFO TO ADJUSTED TOTAL DEBT 12 Months ($ in millions) ($ in millions) Ended 3/31/2026 As of 3/31/2026 Operating Income (GAAP) $5,396 Total Debt (incl. cu
Slide 34: First Quarter FFO to Total Debt – Moody's
First Quarter FFO to Total Debt – Moody’s Moody’s FFO to Debt as of 3/31/2026 was 13.9%. RECONCILIATION OF CASH FLOW RECONCILIATION OF TOTAL DEBT FROM OPERATIONS TO FFO TO ADJUSTED TOTAL DEBT 12 Months ($ in millions) ($ in millions) As of 3/31/2026 Ended 3/31/2026 Cash Flow from Operations (GAAP) $
Slide 35: Adjusted Average Equity
Adjusted Average Equity 13-Month Average Equity Ending 3/31/2026. RECONCILIATION OF AVERAGE EQUITY GAAP TO NON-GAAP ($ in millions) 13-Month Average Ending 3/31/2026 Average Equity (GAAP) $ 37,081 13-Month Average Paid In Capital Associated with the 2025 Midwest Transmission Holdings (1,377) Noncont
Slide 36: First Quarter Earnings Reconciliation
First Quarter Earnings Reconciliation Weighted average number of shares outstanding: 542M Q1 2026 and 533M Q1 2025. $ in millions Earnings Per Share Q1-25 Q1-26 Change Q1-25 Q1-26 Change Reported GAAP Earnings $800 $874 $74 $1.50 $1.61 $0.11 Non-Operating Items: Impact of the West Virgina - (28) (28
Slide 37: Vertically Integrated Utilities First Quarter Performance
Vertically Integrated Utilities First Quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q1-26 vs. Q1-26 vs. Q1-26 vs. Q1-25 Q1-26 vs. Q1-25 Q1-25 Normal APCo2 $26 APCo2 ($
Slide 38: Transmission and Distribution Utilities First Quarter Performance
Transmission and Distribution Utilities First Quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q1-26 vs. Q1-26 vs. Q1-26 vs. Q1-25 Q1-26 vs. Q1-25 Q1-25 Normal AEP Ohio (
Slide 39: American Electric Power
AMERICAN ELECTRIC POWER
American Electric Power Company — Q1 2026 Earnings Presentation on 6ix