American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q2 2026 Earnings Presentation
41 slides from American Electric Power's earnings presentation, Jul 30, 2026
Slide 1: Second Quarter 2026 Earnings
Second Quarter 2026 Earnings July 30, 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 actively meeting unprecedented customer demand. KEY GROWTH STATES: VISION Improve customers’ lives with reliable, affordable power INDIANA, OHIO, OKLAHO
Slide 5: Financial Guidance Overview
Financial Guidance Overview Significant infrastructure investment and operational excellence are driving strong financial results. 2026-2030 Outlook 2026 Guidance ~10%-13% Total Annual $6.25-$6.55 Raised 2026 Operating Expected Shareholder Return (TSR) EPS Guidance Range 7%-9% $13B Annual Operating
Slide 6: Key Themes and Highlights
Key Themes and Highlights Bill Fehrman Chairman, President and CEO
Slide 7: Key Themes
Key Themes Anchored by strong financial performance, enhanced affordability, outsized growth, and regulatory and operational excellence, we are delivering differential value for customers and shareholders. Enhancing Financial Performance Driving Customer Affordability Creating Differential Value Thr
Slide 8: Second Quarter Key Highlights
Second Quarter Key Highlights Execution is key to capture generational growth, reinforcing confidence in financial performance. ✓ Raised 2026 operating EPS guidance to $6.25-$6.55 per share, reflecting confidence in 2026 full-year performance ✓ Reaffirmed annual operating earnings growth rate of 7%-
Slide 9: Delivering Affordable and Reliable Power
Delivering Affordable and Reliable Power Residential rate impacts are mitigated through load growth, including 69 GW of contracted load by 2030 (up from 63 GW disclosed last quarter), as well as disciplined cost management and efficient financing. Large load growth supports affordability Disciplined
Slide 10: 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 establishing new revenue caps for the Distribution ✓ Order received in May 2026 approving PSO’s request to procure 1.3 GW of gener
Slide 11: Second Quarter 2026 Results and Financial Growth Outlook
Second Quarter 2026 Results and Financial Growth Outlook Trevor Mihalik CFO
Slide 12: Second Quarter Operating Earnings Drivers
Second Quarter Operating Earnings Drivers Results were impacted by the timing of the prior year Transmission minority interest sale and income taxes; Transmission Holdco earnings are expected to be favorable year-over-year by end of 2026, while income tax impacts are expected to reverse by the end o
Slide 13: YTD 2026 Operating Earnings Drivers
YTD 2026 Operating Earnings Drivers AEP’s first half performance plus expected results for the remainder of the year provide the confidence to increase our 2026 operating EPS guidance range to $6.25-$6.55 per share. 0.10 (0.06) 0.02 (0.23) 0.20 O&M $(0.03) Retail $(0.10) Rate Changes $0.09 Other Tax
Slide 14: 2026-2030 Load Growth
2026-2030 Load Growth Incremental contracted load of 69 GW by 2030 backed by fully executed ESAs and LOAs and further supported by ~195 GW of active projects in the interconnection queue. Cumulative Contracted Load Growth Summary – Load Additions 69 GW 69 GW of Contracted Load by 2030 6 100% Senate
Slide 15: ERCOT Batch Zero Submission
ERCOT Batch Zero Submission AEP Texas submitted 45 GW1,2 of projects through ERCOT’s Batch Zero process with 100% of the submitted load backed by nearly $2B in customer cash or collateral commitments. AEP Texas Batch Zero Submission Batch Zero Review Process Timeline ✓ June 2026: ERCOT formally appr
Slide 16: Closing Remarks
Closing Remarks ✓ Raised 2026 operating EPS guidance to $6.25-$6.55 per share Enhancing Financial ✓ Reaffirmed annual operating earnings growth rate of 7%-9% with expected CAGR of greater Performance than 9% through 20301 ✓ De-risked the current financing plan and positioned AEP to focus on accelera
Slide 17: Appendix: Forecasted Highlights
Appendix 1 Forecasted Highlights
Slide 18: 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. Data Centers Data Centers Granger, IN Columbus, OH Contracted customers must meet high credit standards through investment Data Centers grad
Slide 19: 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 20: 2026-2030 Annual Operating Earnings Growth Rate of 7%-9%
2026-2030 Annual Operating Earnings Growth Rate of 7%-9% Raised 2026 operating EPS guidance to $6.25-$6.55 per share reflecting confidence in 2026 performance; reaffirmed annual operating earnings growth rate of 7%-9% with an expected CAGR of greater than 9%1 through 2030 based on the 2025 guidance
Slide 21: 2026-2030 Investment Growth
2026-2030 Investment Growth Deep backlog of over $10B in incremental opportunities to be addressed in the annual capital update this fall. Incremental Projects Status Company/Segment In-Service Date Capex ($B) AEP expects to advance and commercialize the Expected to be in service Fuel Cells for the
Slide 22: 2026-2030 High-Growth Transmission
2026-2030 High-Growth Transmission Expected $55B transmission rate base in our existing plan through 2030 delivers significant shareholder value. Transmission Rate Base ($ in billions) $55 $49 $43 $38 $29 $34 $26 $32 $23 $20 $17 $18 $23 $26 $18 $20 $15 $16 2025A 2026E 2027E 2028E 2029E 2030E Rate ba
Slide 23: 2026-2030 Capital Forecast by Subsidiary
2026-2030 Capital Forecast by Subsidiary Capital plan is fueled by transmission buildout and generation project advancements. ($ 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 24: 2026-2030 Financing Plan
2026-2030 Financing Plan Successfully fulfilled the $3B marketed growth equity needed to support the $78B capital plan; AEP is well positioned to focus on accelerating growth supported by a de-risked financing plan. ($ in millions) 2026E 2027E 2028E-2030E Total Cash from Operations $ 7,800 $ 8,600 $
Slide 25: Demand Driving Generation Diversity
Demand Driving Generation Diversity Significant generation is required to meet new demand. AR – FEB WV – OCT VA VCEA – MAY Completed 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 Na
Slide 26: Appendix: Sales and Regulatory Progress
Appendix 2 Sales and Regulatory Progress
Slide 27: 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 Six Months Ended 6/30/2026 Six Months Ended
Slide 28: Regulated Earned Returns
Regulated Earned Returns Forecasted Regulated ROE is expected to improve to approximately 9.5% by 2030. Historical and Projected 9.2% earned ROE1,2 as of twelve months ended 6/30/2026 Regulated ROE Trend 14% 12.7% 12% 11.0%3 9.5% 10% 10.0% 9.4% 9.2% Earned ROE1,2 9.0% 8.4% 9.2% 8% 9.1% 9.05% 6.7% 6.
Slide 29: Current Rate Case Activity
Current Rate Case Activity Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security. APCo – Virginia PSO SWEPCO – Texas Docket # PUR-2026-00044 Docket # PUD 2025-000075 Docket # 58819 Filing Date 5/29/2026 Filing Date 1/2/2026 Filing Date 10/14/2025
Slide 30: Appendix: Second Quarter Financial Metrics
Appendix 3 Second Quarter Financial Metrics
Slide 31: Second Quarter Liquidity and Credit Metrics
Second Quarter Liquidity and Credit Metrics Liquidity Summary 6/30/2026 Credit Metrics Trailing 12 Months as of 6/30/2026 ($ in millions) Amount Maturity S&P Moody’s Fitch Revolving Credit Facility $ 6,500 April 2031 Rating / Outlook BBB / Stable Baa2 / Stable BBB / Stable Revolving Credit Facility
Slide 32: Second Quarter FFO to Total Debt – S&P
Second Quarter FFO to Total Debt – S&P S&P FFO to Debt as of 6/30/2026 was 14.6%. RECONCILIATION OF OPERATING RECONCILIATION OF TOTAL DEBT INCOME TO FFO TO ADJUSTED TOTAL DEBT 12 Months ($ in millions) ($ in millions) Ended 6/30/2026 As of 6/30/2026 Operating Income (GAAP) $5,244 Total Debt (incl. c
Slide 33: Second Quarter FFO to Total Debt – Moody's
Second Quarter FFO to Total Debt – Moody’s Moody’s FFO to Debt as of 6/30/2026 was 14.0%. RECONCILIATION OF CASH FLOW RECONCILIATION OF TOTAL DEBT FROM OPERATIONS TO FFO TO ADJUSTED TOTAL DEBT 12 Months ($ in millions) ($ in millions) As of 6/30/2026 Ended 6/30/2026 Cash Flow from Operations (GAAP)
Slide 34: Adjusted Average Equity
Adjusted Average Equity 13-Month Average Equity Ending 6/30/2026. RECONCILIATION OF AVERAGE EQUITY GAAP TO NON-GAAP ($ in millions) 13-Month Average Ending 6/30/2026 Average Equity (GAAP) $ 37,988 13-Month Average Paid In Capital Associated with the 2025 Midwest Transmission Holdings (1,790) Noncont
Slide 35: Second Quarter Earnings Reconciliation
Second Quarter Earnings Reconciliation Weighted average number of shares outstanding: 544M Q2 2026 and 534M Q2 2025. $ in millions Earnings Per Share Q2-25 Q2-26 Change Q2-25 Q2-26 Change Reported GAAP Earnings $1,226 $713 ($513) $2.29 $1.31 ($0.98) Non-Operating Items: Wholesale Customer Contract -
Slide 36: YTD Earnings Reconciliation
YTD Earnings Reconciliation Weighted average number of shares outstanding: 543M YTD 2026 and 534M YTD 2025. $ in millions Earnings Per Share YTD-25 YTD-26 Change YTD-25 YTD-26 Change Reported GAAP Earnings $2,026 $1,587 ($439) $3.80 $2.92 ($0.88) Non-Operating Items: Impact of the West Virginia Comm
Slide 37: Vertically Integrated Utilities Second Quarter Performance
Vertically Integrated Utilities Second Quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q2-26 vs. Q2-26 vs. Q2-26 vs. Q2-25 Q2-26 vs. Q2-25 Q2-25 Normal APCo2 $15 APCo2 (
Slide 38: Vertically Integrated Utilities YTD Performance
Vertically Integrated Utilities YTD Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) YTD-26 vs. YTD-26 vs. YTD-26 vs. YTD-25 YTD-26 vs. YTD-25 YTD-25 Normal APCo2 $41 APCo2 ($6)
Slide 39: Transmission and Distribution Utilities Second Quarter Performance
Transmission and Distribution Utilities Second Quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q2-26 vs. Q2-26 vs. Q2-26 vs. Q2-25 Q2-26 vs. Q2-25 Q2-25 Normal AEP Ohio
Slide 40: 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-26 vs. YTD-26 vs. YTD-26 vs. YTD-25 YTD-26 vs. YTD-25 YTD-25 Normal AEP Ohio ($19
Slide 41: American Electric Power
AMERICAN ELECTRIC POWER
American Electric Power Company — Q2 2026 Earnings Presentation on 6ix