American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q3 2026 Earnings Presentation
40 slides from American Electric Power's earnings presentation, Oct 28, 2026
Slide 1: Third Quarter 2026 Earnings
Third Quarter 2026 Earnings October 28, 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 res
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: Key Themes and Updated Strategic Outlook
Key Themes and Updated Strategic Outlook Bill Fehrman Chairman, President and CEO
Slide 5: Executive Summary
Executive Summary Updated Strategic Growth Outlook • Launching $100B five-year capital plan, driven by AEP’s differentiated growth platform in transmission and generation • Announcing 2027 and 2028 operating earnings guidance ranges of $6.75-$7.05 and $7.40-$7.70 per share, respectively • Introducin
Slide 6: AEP's Superior Growth Platform
AEP’s Superior Growth Platform AEP’s size, diversification, and broad participation across the electric utility value chain provide multiple pathways to deliver sustained long-term growth. Forecasted Investment Highlights $100B 13%+ 9%-11% Capital Plan Rate Base CAGR Annual Operating EPS 2027-2031 T
Slide 7: Scale, Diversification and Constructive Markets
Scale, Diversification and Constructive Markets AEP’s 11-state footprint provides a differentiated advantage through its scale, favorable economic and business fundamentals, and constructive regulatory jurisdictions. >25% of U.S. GDP Generated by States Served by AEP’s Regulated Utilities in 20251 6
Slide 8: Largest Transmission Network
Largest Transmission Network AEP owns and operates the nation’s largest transmission network, enabling the company to provide unique customer solutions and drive significant expected growth. Transmission Assets in Operation Nation’s largest transmission owner with ~40,000 miles of lines, representin
Slide 9: Driving Customer Affordability
Driving Customer Affordability AEP’s ability to secure new large loads translates directly into customer affordability benefits. Large Load Growth AEP Customer Affordability Highlights Higher volume in C&I classes as a percentage of total sales $21B of expected fixed cost offsets for residential cus
Slide 10: A Leading Value Proposition
A Leading Value Proposition AEP’s scale, diversification, presence in high-growth markets, and disciplined execution position the company to deliver differential value for our customers and shareholders. Capital Plan Increase Significant scale as one of the nation’s largest utility holding companies
Slide 11: Third Quarter 2026 Results and Financial Growth Outlook
Third Quarter 2026 Results and Financial Growth Outlook Trevor Mihalik CFO 11 • AEP ANALYST DAY 2022
Slide 12: Q3 2026 Operating Earnings Drivers
Q3 2026 Operating Earnings Drivers AEP’s strong third quarter performance reflects disciplined execution, constructive regulatory outcomes, growing customer demand, and continued investment across the business. $0.10 $0.01 $2.23 $0.04 $0.03 $0.25 Wholesale and Income Taxes $0.12 Investment Growth $0
Slide 13: YTD 2026 Operating Earnings Drivers
YTD 2026 Operating Earnings Drivers AEP’s YTD performance provides confidence in delivering full-year 2026 operating earnings at or above the high end of our $6.25 to $6.55 per share guidance range. $0.11 ($0.22) $0.14 ($0.03) $0.46 Wholesale and $5.24 O&M $(0.01) $0.19 Other Transmission Other $(0.
Slide 14: Long-term EPS Growth
Long-term EPS Growth Projecting an expected annual operating EPS growth rate of 9-11% with a CAGR of 10%+ through 2031. Operating EPS Growth 9%-11% 10%+ CAGR Annual operating EPS growth rate Through 2031 through 2031 10%+ $7.40-$7.70 Operating EPS CAGR through 2031 based on original 2026 $6.75-$7.05
Slide 15: 2027-2031 Capital Plan and Rate Base Growth
2027-2031 Capital Plan and Rate Base Growth AEP’s updated five-year capital plan supports a robust expected rate base CAGR of 13%+ through 2031. Capital Plan by Year ($B) Rate Base Growth ($B) $24 $1 $1 $21 $162 13%+ Rate $20 $1 Base CAGR $151 $1 $5 $18 $138 $3 $4 $1 $17 $1 $121 $83 $5 $102 $78 $4 $
Slide 16: Diversified Capital Plan with Strong Recovery
Diversified Capital Plan with Strong Recovery AEP's large, diversified capital plan and timely recovery mechanisms support long-term earnings and cash flow visibility. 2027-2031 Capital Plan ($B) Timely Recovery of Utility Capital 5% Corp & Other $51 12% 22% $19 Distribution 37% $22 Transmission 7%
Slide 17: 2027-2031 Capital Forecast by Subsidiary
2027-2031 Capital Forecast by Subsidiary Significant investments in transmission and generation expected to drive robust rate base growth through 2031. 6% ($B, excludes AFUDC) 2027E 2028E 2029E 2030E 2031E Total 4% 4% AEP Transmission Holdco 10% AEP Texas AEP Transmission Holdco $3.0 $3.9 $3.5 $4.1
Slide 18: Contracted Load Growth
Contracted Load Growth AEP’s contracted load increased from 69 GW to 84 GW, driven by additional firm take-or-pay ESAs. In total, 35 GW of signed ESAs are facilitating significant transmission and generation growth in the new capital plan. Drivers of Contracted Load Since Q2 2026 Incremental Contrac
Slide 19: Financing Plan
Financing Plan AEP’s updated financial plan is supported by robust operating cash flows and a disciplined financing approach, resulting in incremental equity of ~24% for the $22B of additional capital while targeting 14% to 15% FFO-debt in the forecast period. Financing Plan ($B) 55% 2027E - 2028E 2
Slide 20: Conclusion
Conclusion Key Takeaways Forecasted Investment Highlights Projecting to be at or above high end of the full-year 2026 operating EPS guidance range of $6.25-$6.55 $100B 13%+ 9%-11% Capital Plan Rate Base CAGR Annual Operating EPS 2027-2031 Through 2031 Growth Rate Through 2031 Updated $100B five-year
Slide 21: Appendix
Appendix
Slide 22: 2027 Operating Earnings Guidance
2027 Operating Earnings Guidance Projecting ~9.5% year-over-year growth based on EPS guidance midpoints. $0.26 ($0.21) $0.17 $6.90 $0.23 $0.15 $6.30 AEP’s 2027 operating earnings guidance is supported by multiple drivers, including: ✓ Continued growth across regulated utility operations supported by
Slide 23: AEP Infrastructure Overview
AEP Infrastructure Overview Going forward, we expect AEP Infrastructure to be largely focused on projects backed by high-quality, long- term contracts. AEP Infrastructure | Primary Assets and Operations • Energy infrastructure projects supported by long-term agreements with high-quality counterparti
Slide 24: Transmission Growth
Transmission Growth AEP’s leading transmission business is expected to continue to be a key growth driver in the updated five- year capital plan, with transmission rate base to nearly double by 2031. Transmission Capital Plan ($B) Transmission Rate Base Growth ($B) $69 13%+ Rate $63 Base CAGR $9 $55
Slide 25: Regulated Gas Generation Growth
Regulated Gas Generation Growth AEP is advancing a significant gas-fired generation buildout program to meet growing load in the VIUs, leveraging the company’s secured turbine slots and strategic partnerships with blue-chip EPCs. Select Gas-Fired Generation Included in Capital Plan Key Relationships
Slide 26: Capital Recovery Mechanisms
Capital Recovery Mechanisms Through successful regulatory execution over the last two and a half years, AEP has significantly improved recovery of capital investments across its portfolio, further de-risking the $100B capital plan. ✓ FERC formula rates that are cost-based with approved ✓ Generation
Slide 27: 2027-2031 Load Growth
2027-2031 Load Growth Incremental contracted load of 84 GW by 2031 is backed by fully executed ESAs and LOAs. Cumulative Contracted Load Additions (GW) 4% 84 ESA 1 ERCOT 76 7 42% Texas LOA1 Contract 6 Breakdown Other LOA PJM 54% SPP 59 31 4 25 8% 17 37 Industry Data Centers2 2 Breakdown Industrials
Slide 28: Current Rate Case Activity
Current Rate Case Activity Achieving positive regulatory outcomes to advance affordability, system reliability, resiliency and security. APCo – Virginia I&M – Indiana PSO SWEPCO – Texas Docket # PUR-2026-00044 Docket # 46454 Docket # PUD 2025-000075 Docket # 58819 Filing Date 5/29/2026 Filing Date 8
Slide 29: Regulated Earned Returns
Regulated Earned Returns Forecasted regulated ROE is expected to be 9.5% in 2030 and beyond, only 20 basis points from the blended authorized ROE of 9.7%. Historical and Projected 9.5% earned ROE1,2 as of twelve months ended 9/30/2026 Regulated ROE Trend 14% 12% 11.7% 9.5% 9.5% 10.3%3 10% 10.0% 9.5%
Slide 30: Supplemental Financial Information
Supplemental Financial Information 30 • AEP ANALYST DAY 2022
Slide 31: Third Quarter Liquidity and Credit Metrics
Third Quarter Liquidity and Credit Metrics Liquidity Summary 9/30/2026 ($M) Credit Metrics Trailing 12 Months as of 9/30/2026 ($ in millions) Amount Maturity S&P Moody’s Fitch Revolving Credit Facility $6,500 April 2031 Rating / Outlook BBB / Stable Baa2 / Stable BBB / Stable Revolving Credit Facili
Slide 32: Third Quarter FFO to Total Debt – S&P
Third Quarter FFO to Total Debt – S&P S&P FFO to Debt as of 9/30/2026 was 14.7%. Reconciliation of Operating Income to FFO ($M) Reconciliation of Total Debt to Adjusted Total Debt ($M) 12 Months ($ in millions) As of 9/30/2026 Ended 9/30/2026 Operating Income (GAAP) $5,534 Total Debt (incl. current
Slide 33: Third Quarter FFO to Total Debt – Moody's
Third Quarter FFO to Total Debt – Moody’s Moody’s FFO to Debt as of 9/30/2026 was 14.8%.1 Reconciliation of Cash Flow from Operations to FFO ($M) Reconciliation of Total Debt to Adjusted Total Debt ($M) 12 Months As of 9/30/2026 Ended 9/30/2026 Cash Flow from Operations (GAAP) $7,582 Total Debt (inc
Slide 34: Third Quarter FFO Leverage – Fitch
Third Quarter FFO Leverage – Fitch Fitch’s FFO Leverage as of 9/30/2026 was 5.1x. Reconciliation of Cash Flow from Operations to FFO ($M) Reconciliation of Total Debt to Adjusted Total Debt ($M) 12 Months As of 9/30/2026 Ended 9/30/2026 Cash Flow from Operations (GAAP) $7,582 Total Debt (incl. curre
Slide 35: Third Quarter Earnings Reconciliation
Third Quarter Earnings Reconciliation Weighted average number of shares outstanding: 544M Q3 2026 and 535M Q3 2025. $M Earnings Per Share Q3-25 Q3-26 Change Q3-25 Q3-26 Change Reported GAAP Earnings $972 $1,187 $215 $1.82 $2.18 $0.36 Non-Operating Items: Wholesale Customer Contract - 18 18 - 0.03 0.
Slide 36: YTD Earnings Reconciliation
YTD Earnings Reconciliation Weighted average number of shares outstanding: 544M YTD 2026 and 534M YTD 2025. $ in millions Earnings Per Share YTD-25 YTD-26 Change YTD-25 YTD-26 Change Reported GAAP Earnings $2,998 $ 2,774 ($224) $5.61 $5.10 ($0.51) Non-Operating Items: Wholesale Customer Contract Agr
Slide 37: VIUs Third Quarter Performance
VIUs Third Quarter Performance Rate Changes Weather Impact Normalized Sales Rate Performance, Weather Impact ($M) Retail Load1 Net of Offsets ($M) (Weather Normalized) Q3-26 vs. Q3-26 vs. Q3-26 vs. Q3-25 Q3-25 Normal Q3-26 vs. Q3-25 APCo2 $22 APCo2 $21 $13 APCo2 (1.0%) I&M $1 I&M $1 $6 I&M 15.9% KPC
Slide 38: VIUs YTD Performance
VIUs YTD Performance Rate Changes Weather Impact Normalized Sales Rate Performance, Weather Impact ($M) Retail Load1 Net of Offsets ($M) (weather normalized) YTD-26 vs. YTD-26 vs. YTD-26 vs. YTD-25 YTD-25 Normal YTD-26 vs. YTD-25 APCo2 $63 APCo2 $15 $17 APCo2 (1.0%) I&M $8 I&M ($8) ($6) I&M 18.7% KP
Slide 39: T&D Utilities Third Quarter Performance
T&D Utilities Third Quarter Performance Rate Changes Weather Impact Normalized Sales Rate Performance, Weather Impact ($M) Retail Load1 Net of Offsets ($M) (weather normalized) Q3-26 vs. Q3-26 vs. Q3-26 vs. Q3-25 Q3-25 Normal Q3-26 vs. Q3-25 AEP Texas $16 AEP Texas $14 $16 AEP Texas 10.8% Ohio Power
Slide 40: T&D Utilities YTD Performance
T&D Utilities YTD Performance Rate Changes Weather Impact Normalized Sales Rate Performance, Weather Impact ($M) Retail Load1 Net of Offsets ($M) (weather normalized) YTD-26 vs. YTD-26 vs. YTD-26 vs. YTD-25 YTD-25 Normal YTD-26 vs. YTD-25 AEP Texas $40 AEP Texas ($6) $15 AEP Texas 10.5% Ohio Power O
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