American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q4 2025 Earnings Presentation
43 slides from American Electric Power's earnings presentation, Feb 12, 2026
Slide 1: Fourth Quarter 2025 Earnings Presentation
Fourth Quarter 2025 Earnings Presentation February 12, 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 the reporting of financial information determined in accordance with GAAP with certain non-GAAP financial measures, including operati
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 and Accomplishments
Key Messages and Accomplishments Bill Fehrman Chairman, President and CEO
Slide 7: Key Messages
Key Messages Focused execution on conservative $72B capital plan to capture generational growth while prioritizing affordability. 2025 Financial Results ✓ Reporting Q4 2025 EPS GAAP of $1.09 and operating of $1.19; year-to-date 2025 EPS GAAP of $6.70 and YTD 2025 OPERATING EPS1 operating of $5.97; p
Slide 8: 2025 Accomplishments
2025 Accomplishments Delivered on priorities and accomplished our goals in 2025, driving value for our customers and investors. Growth Partnerships Customers ✓ Increased long-term operating earnings ✓ Advanced data center and large-load tariffs; ✓ Focused on affordability, limiting residential rate
Slide 9: Innovative Data Center and Large Load Tariffs Advancing Affordability
Innovative Data Center and Large Load Tariffs Advancing Affordability Collaborated with stakeholders and pioneered 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 Minimum Demand Minim
Slide 10: 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 Transmission Expertise and Infrastructure • AEP pioneered the modern 765 kV transmission system and West East brings over 60 years of exper
Slide 11: Affordability Levers Help Protect Customer Bills Amid Generational Growth
Affordability Levers Help Protect Customer Bills Amid Generational Growth Residential rate impacts are mitigated through load growth, including 56 GW of additional contracted load by 2030 (up from prior 28 GW), as well as rate design and O&M efficiency. Generational Affordability Residential Growth
Slide 12: Fourth Quarter 2025 Results and Financial Growth Outlook
Fourth Quarter 2025 Results and Financial Growth Outlook Trevor Mihalik EVP and CFO
Slide 13: YTD 2025 Operating Earnings Drivers
YTD 2025 Operating Earnings Drivers Earnings grew in 2025 and EPS exceeded the high end of the guidance range. 0.09 (0.04) $5.97 Per Share 0.10 0.00 O&M $0.02 Investment Distributed Income Taxes $(0.06) $0.09 $(0.13) 0.20 Growth Resources O&M $(0.02) Retail $0.07 Rate Changes $0.22 Income Taxes $(0.
Slide 14: Fourth Quarter Operating Earnings Drivers
Fourth Quarter Operating Earnings Drivers Q4 2025 results were driven by strong Generation and Marketing segment performance, offset by Corporate and Other. 0.10 (0.13) $1.24 0.03 (0.02) (0.03) $1.19 Per Share Per Share Rate Changes $0.03 Investment $0.01 Retail $0.04 Rate Changes $0.18 Growth Weath
Slide 15: Sales Trends and Revenue in 2025
Sales Trends and Revenue in 2025 2025 marks a transformative milestone as total system sales surpass 200 million MWh for the first time in AEP history. AEP Total GWh Sales Revenue supported by rising sales trends and % Change vs. Prior Year 9.9% further strengthened by minimum demand 7.5% charges in
Slide 16: 2026-2030 Load Growth
2026-2030 Load Growth Incremental contracted load of 56 GW by 2030 all backed by Electric Service Agreements (ESAs) and Letters of Agreement (LOAs) and further supported by approximately 180 GW of active projects in the interconnection queue. Cumulative Contracted Load Growth Summary of 56 GW Load A
Slide 17: ERCOT Load Growth
ERCOT Load Growth SB6 compliant load increased to 36 GW by 2030 all backed by LOAs; up 23 GW1 since fall 2025 and supported by nearly 70 GW of active ERCOT projects in the interconnection queue. 36 GW of ERCOT SB6 Compliant SB6 raises the bar for load seeking to connect to the ERCOT Contracted Load
Slide 18: 2026-2030 Investment Growth
2026-2030 Investment Growth Conservative $72B capital plan anchored in the 28 GW incremental demand outlook shared in fall 2025 with line of sight to incremental upside. Projects Estimated In Service Dates Status Incremental Projects Offtake arrangement is subject to certain conditions which Confirm
Slide 19: Closing Remarks
Closing Remarks Guidance Overview Delivered strong 2025 financial performance and 56 GW 1 exceeded high end of the operating EPS guidance range Incremental Contracted Load by 2030 Up from 28 GW Continued remarkable load growth story; 56 GW of +$5B-$8B 2 incremental contracted load by 2030 all backed
Slide 20: Appendix: Forecasted Highlights
Appendix 1 Forecasted Highlights We are strategically investing and well positioned to execute on high-growth opportunities that drive financial performance
Slide 21: 2026-2030 Long-Term Operating Earnings Growth Rate of 7%-9%
2026-2030 Long-Term Operating Earnings Growth Rate of 7%-9% Delivering 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 2026 and 2027 and at or above the high end of the range in 2028, 2029 and 2030. Accelera
Slide 22: 2026-2030 High-Growth Transmission
2026-2030 High-Growth Transmission More than $50B expected in transmission rate base in our existing plan through 2030 delivers significant shareholder value. Transmission Rate Base ($ in billions) $51 $47 $42 $38 $34 $27 $32 $25 $22 $20 $18 $17 $22 $24 $18 $20 $15 $16 2025A 2026E 2027E 2028E 2029E
Slide 23: 2026-2030 Capital Forecast by Subsidiary
2026-2030 Capital Forecast by Subsidiary Capital plan is fueled by transmission buildout and generation project advancements. 4% 9% ($ in millions, excludes AFUDC) 2026E 2027E 2028E 2029E 2030E Total 28% AEP Texas 11% AEP Ohio AEP Texas Inc. $2,351 $2,599 $3,738 $3,781 $4,333 $16,802 Distribution AP
Slide 24: 2026-2030 Financing Plan
2026-2030 Financing Plan Cash from operations improvement is expected to be driven by investment execution and positive legislative/ regulatory development; over 80% of growth equity is projected to be issued during the back half of the plan. ($ in millions) 2026E 2027E 2028E-2030E Total Cash from O
Slide 25: 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 26: Focused O&M Efficiency Helps with Customer Affordability
Focused O&M Efficiency Helps with Customer Affordability $6B Wires and Other Generation Disciplined cost management $5B with O&M increasing modestly while rate base grew at roughly Total Non-fuel O&M double the pace. $4B $3B $3.6B $3.8B $3.1B $3.1B $3.4B $62B $84B $2B 2022A 2026E Rate Base Rate Base
Slide 27: Appendix: 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: Legislative and Regulatory Progress
Legislative and Regulatory Progress Focused operational excellence results in improved legislative and regulatory outcomes. Reduc Reduced Regulatory Lag Infrastructure ✓ May 2025: Ohio HB 15 establishes a new regulatory framework with multi-year, ✓ April 2025: Approved AEP Texas ERCOT Permian Basin
Slide 29: Regulated Earned Returns
Regulated Earned Returns Forecasted Regulated ROE is expected to improve to approximately 9.5% by 2030. AEP Regulated ROE Trend Twelve Months Ended 12/31/2025 Earned ROE1 by Company 14% 12% 11.8%2 11.0% 9.5% 10% 9.1%2 Earned ROE 9.3% 9.0% 2 9.2% 8% 8.1% 9.1% 7.7% 7.3% 9.05% 6% 4% 4.0% 8.8% 2% Transm
Slide 30: 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 31: 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 32: Appendix: Fourth Quarter Financial Metrics
Appendix 3 Fourth Quarter Financial Metrics We delivered on 2025 financial commitments driving value for customers and investors
Slide 33: Fourth Quarter Liquidity and Credit Metrics
Fourth Quarter Liquidity and Credit Metrics Liquidity Summary 12/31/2025 Credit Metrics Trailing 12 Months 12/31/2025 ($ 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 1,00
Slide 34: Fourth Quarter FFO to Total Debt – S&P
Fourth Quarter FFO to Total Debt – S&P S&P FFO to Debt as of 12/31/2025 was 15.2%. RECONCILIATION OF EBITDA TO FFO RECONCILIATION OF TOTAL DEBT TO ADJUSTED TOTAL DEBT 12 Months ($ in millions) ($ in millions) As of 12/31/2025 Ended 12/31/2025 Earnings before Interest, Taxes and Depreciation Total De
Slide 35: Fourth Quarter FFO to Total Debt – Moody's
Fourth Quarter FFO to Total Debt – Moody’s Moody’s FFO to Debt as of 12/31/2025 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 12/31/2025 Ended 12/31/2025 Cash Flow from Operations (GAA
Slide 36: Adjusted Average Equity
Adjusted Average Equity 13-Month Average Equity Ending 12/31/2025. RECONCILIATION OF AVERAGE EQUITY GAAP TO NON-GAAP ($ in millions) 13-Month Average Ending 12/31/2025 Average Equity (GAAP) $ 36,049 13-Month Average Paid In Capital Associated with the 2025 Midwest Transmission Holdings (964) Noncont
Slide 37: Fourth Quarter Earnings Reconciliation
Fourth Quarter Earnings Reconciliation Weighted average number of shares outstanding: 536M Q4 2025 and 533M Q4 2024. $ in millions Earnings Per Share Q4-24 Q4-25 Change Q4-24 Q4-25 Change Reported GAAP Earnings $664 $582 ($82) $1.25 $1.09 ($0.16) Non-Operating Items: Impairment of Software Developme
Slide 38: YTD Earnings Reconciliation
YTD Earnings Reconciliation Weighted average number of shares outstanding: 535M YTD 2025 and 530M YTD 2024. $ in millions Earnings Per Share YTD-24 YTD-25 Change YTD-24 YTD-25 Change Reported GAAP Earnings $2,967 $3,580 $613 $5.60 $6.70 $1.10 Non-Operating Items: FERC NOLC Order1 - (480) (480) - (0.
Slide 39: Vertically Integrated Utilities Fourth Quarter Performance
Vertically Integrated Utilities Fourth Quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q4-25 vs. Q4-25 vs. Q4-25 vs. Q4-24 Q4-25 vs. Q4-24 Q4-24 Normal APCo3 $22 APCo3 $
Slide 40: 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 $64 APCo3 $31 $
Slide 41: Transmission and Distribution Utilities Fourth Quarter Performance
Transmission and Distribution Utilities Fourth Quarter Performance RATE CHANGES WEATHER IMPACT NORMALIZED SALES Rate Performance, Weather Impact Retail Load1 net of offsets ($ in millions) (weather normalized) ($ in millions) Q4-25 vs. Q4-25 vs. Q4-24 Normal Q4-25 vs. Q4-24 Q4-25 vs. Q4-24 AEP Ohio
Slide 42: 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 $26
Slide 43: American Electric Power
AMERICAN ELECTRIC POWER
American Electric Power Company — Q4 2025 Earnings Presentation on 6ix