American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q2 2025 Earnings Presentation
30 slides from American Electric Power's earnings presentation, Jul 30, 2025
Slide 1: AEP Second Quarter 2025 Earnings Presentation
AEP Second Quarter 2025 Earnings Presentation July 30, 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 – Attractive Footprint Across High-Growth Regions
AEP – Attractive Footprint Across High-Growth Regions ~10%-12% Total Shareholder Return ~60 GW of Peak Demand by End of the Decade; • Targeted long-term operating EPS growth of Among the Fastest Growing in the Industry 6%-8% • 24 GW2 of incremental load growth through 2029 • Dividend payout ratio of
Slide 5: Second Quarter Highlights
Second Quarter Highlights Achieving record second quarter results with continued positive momentum Q2 2025 OPERATING EPS2 ✓ Q2 2025 EPS GAAP $2.29 and Operating $1.43 ✓ YTD 2025 EPS GAAP $3.80 and Operating $2.98 ✓ Balance sheet strength supported by the closing of the $2.82B minority interest trans
Slide 6: Q2 2025 Legislative and Regulatory Successes
Q2 2025 Legislative and Regulatory Successes Reduce Regulatory Lag Finance Strategy ✓ May 2025: Ohio HB 15 establishes a new regulatory framework with ✓ June 2025: Closed on the $2.8B minority interest transmission multi-year, forward-looking test period with true-up provisions for rate transaction
Slide 7: Operating Earnings Segment Detail
Operating Earnings Segment Detail Key Drivers Q2 2025 vs. Q2 2024 0.05 (0.01) $1.43 Per Share 0.03 0.01 O&M $(0.01) 0.10 Distributed $(0.01) Income Taxes $0.02 Resources Invest Growth $0.07 Other $(0.02) Rate Changes $0.07 $1.25 Weather $(0.01) Other $(0.04) Retail Wholesale $0.02 $0.05 Per Share No
Slide 8: Load Growth with Financial Protection
Load Growth with Financial Protection Revenue Correlates with Load Growth Peak Demand Summary 2025-2029 37.6 GW Demand Approximately 190 GW Active $2.9 in Interconnection Queue Billion Revenue $2.7 33.5 Billion 24 GW1 of Incremental Load through GW Revenue Demand 2029 Backed by Signed Customer Finan
Slide 9: Liquidity and Credit Metrics
Liquidity and Credit Metrics LIQUIDITY SUMMARY 6/30/2025 CREDIT METRICS TRAILING 12 MONTHS 6/30/2025 Moody’s S&P Fitch ($ in millions) Amount Maturity Rating / Outlook Baa2 / Stable BBB / Stable BBB / Stable Revolving Credit Facility $ 5,000 March 2029 Credit Metric as FFO/Debt: 13.2% FFO/Debt: 14.8
Slide 10: Closing Remarks
Closing Remarks Guided to the upper half of the 2025 operating earnings 1 range of $5.75-$5.95 per share, reflects strong financial performance and confidence in execution for remainder of year Achieved positive legislative developments and solid 2 regulatory outcomes Strengthened balance sheet thro
Slide 11: Appendix 1: Regulatory, Financial Strength and Growth
APPENDIX 1 Regulatory, Financial Strength and Growth
Slide 12: Regulated Earned Returns
Regulated Earned Returns Regulated Earned ROE was 9.3% as of twelve months ended 6/30/2025, demonstrating continuous improvement Twelve Months Ended 6/30/2025 ROE by Company AEP Regulated ROE Trend (non-GAAP operating earnings, not weather normalized) 14% 12% 9.4% 11.3% 10.9% 10.8% 9.3% 10% 8.6% 9.0
Slide 13: Current Rate Case Activity
Current Rate Case Activity Achieve positive regulatory outcomes to advance affordability, system reliability, resiliency and security AEP Ohio APCo – West Virginia1 SWEPCO – Arkansas Docket # 25-392-EL-AIR Docket # 24-0854-E-42T Docket # 25-003-U Filing Date 5/30/2025 Filing Date 11/1/2024 Filing Da
Slide 14: 2025-2029 Financing Plan De-risked
2025-2029 Financing Plan De-risked ($ in billions) 21.2 (0.5) (13.4) Securitization Amortization $(54.4) 2.3 0.5 2.8 Dividends2 $41.5 Dividend Future Debt and Other Completed Reinvestment Issuances Net Investing3 Successfully All Anticipated of Debt Plan of Closed Equity Funding Maturities1 Up to $1
Slide 15: 2025-2029 Capital Forecast of $54B
2025-2029 Capital Forecast of $54B Regulated Other Generation Corporate The ability to quickly redeploy Environmental $1.4B • 3% $3.8B • 7% transmission and distribution investments ensures we Generation $0.3B • 0% 100% of capital allocated to Nuclear deliver on our EPS growth Generation regulated b
Slide 16: 2025-2029 Capital Forecast: Transmission
2025-2029 Capital Forecast: Transmission DRIVERS 2025-2029 Asset renewal investments based on condition, CAPEX ASSET performance and risk to reduce customer outages REPLACEMENT Strengthening the electric and interruption times transmission grid and New customer connections and system upgrades meetin
Slide 17: Transmission Delivering Significant Shareholder Value
Transmission Delivering Significant Shareholder Value Transmission Rate Base and Operating Earnings Per Share $4.09 $3.79 $50B $3.57 $3.40 $3.20 2025E transmission $2.99 $40B investment represents 55% of total AEP earnings, $25B $30B calculated using the 2025 $20B $22B $19B guidance midpoint of $5.8
Slide 18: 2025-2029 Capital Forecast: Distribution
2025-2029 Capital Forecast: Distribution 2025-2029 DRIVERS CAPEX RELIABILITY, Asset renewal and reliability investments including RESILIENCY & pole, conductor, cutout, station transformer and AUTOMATION breaker replacements and automated technology Modernizing the electric distribution system to GRO
Slide 19: 2025-2029 Capital Forecast: New Generation
2025-2029 Capital Forecast: New Generation 2025-2029 CAPEX RFPs IN PROGRESS1 APCo I&M KPCo PSO SWEPCO RFPs Issued May 2025 September 2024 November 2023 Wind Solar 800 MW 1,500 MW of SPP 4,000 MW Storage accredited capacity Diversifying electric Natural Gas - generation to support $ resource adequacy
Slide 20: Weather Normalized Billed Load Trends
Weather Normalized Billed Load Trends Commercial & Industrial Customers: Residential Customers: Total: ✓ Revenue protected by minimum demand requirements ✓ Steady customer growth across our operating footprint in signed customer financial agreements AEP Normalized Total GWh Sales ✓ Sales impacted by
Slide 21: Appendix 2: Second Quarter 2025 Performance
APPENDIX 2 Second Quarter 2025 Performance
Slide 22: Operating Earnings Segment Detail
Operating Earnings Segment Detail Key Drivers YTD 2025 vs. YTD 2024 $2.98 0.05 Per Share 0.07 0.07 O&M $(0.02) 0.09 Investment Gain $0.02 Distributed $(0.04) 0.18 Invest Growth $0.10 Resources Income Taxes $0.05 Retail $0.05 Income Taxes $(0.01) Wholesale $0.08 Rate Changes $0.15 $2.52 Weather $0.05
Slide 23: Second Quarter FFO to Total Debt
Second Quarter FFO to Total Debt Moody’s FFO to Debt as of 6/30/2025 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 6/30/2025 Ended 6/30/2025 Cash Flow from Operations (GAAP) $ 6,571 Total D
Slide 24: Second Quarter Reconciliation of GAAP to Operating Earnings
Second Quarter Reconciliation of GAAP to Operating Earnings Weighted Average number of share outstanding: 534M Q2 2025 and 529M Q2 2024 $ in millions Earnings Per Share Q2-24 Q2-25 Change Q2-24 Q2-25 Change Reported GAAP Earnings $ 340 $ 1,226 $ 886 $ 0.64 $ 2.29 $ 1.65 Non-Operating Items: FERC NOL
Slide 25: YTD Reconciliation of GAAP to Operating Earnings
YTD Reconciliation of GAAP to Operating Earnings Weighted Average number of share outstanding: 534M YTD 2025 and 528M YTD 2024 $ in millions Earnings Per Share YTD-24 YTD-25 Change YTD-24 YTD-25 Change Reported GAAP Earnings $ 1,343 $ 2,026 $ 683 $ 2.55 $ 3.80 $ 1.25 Non-Operating Items: FERC NOLC O
Slide 26: 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) Q2-25 vs. Q2-25 vs. Q2-25 vs. Q2-24 Q2-25 vs. Q2-24 Q2-24 Normal APCo3 $15 APCo3 $
Slide 27: 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 $34 APCo3 $35 $
Slide 28: 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) Q2-25 vs. Q2-25 vs. Q2-24 Normal Q2-25 vs. Q2-24 Q2-25 vs. Q2-24 AEP Ohio
Slide 29: 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 $22
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