Outlook
1Raises full-year 2026 operating earnings guidance to $6.25 to $6.55 per shareGuidance raised
2Supports affordability with up to $16 billion in expected cost offsets from load growth and $1.4 billion in expected customer savings from federal loan guarantees and grantsGuidance raised
3Expands new load additions to 69 gigawatts (GW) through 2030Guidance raised
Corporate events
Secures approximately 13 GW of gas-fired turbine capacity; additional 10 GW under evaluation to meet growing demand
Results
7COLUMBUS, Ohio, July 30, 2026 - American Electric Power (Nasdaq: AEP) today reported second-quarter 2026 GAAP earnings of $713 million or $1.31 per share, compared with GAAP earnings of $1,226 million or $2.29 per share in second-quarter 2025.Guidance raised
Operating earnings for second-quarter 2026 were $742 million or $1.36 per share, compared with operating earnings of $766 million or $1.43 per share in second-quarter 2025.
See the detailed GAAP to operating earnings reconciliation at the end of this press release.
Outlook
4AEP is raising its full-year 2026 operating earnings guidance to $6.25 to $6.55 per share from its previous guidance range of $6.15 to $6.45 per share to reflect strong performance through the first half of the year and expected results for the remainder of the year.Guidance raised
The company also reaffirmed its annual operating earnings growth rate of 7% to 9% through 2030, with an expected operating earnings compound annual growth rate (CAGR) of greater than 9%, based on the 2025 guidance midpoint and supported by AEP’s five-year, $78 billion capital plan.Guidance reaffirmed
8Additionally, AEP has line of sight to incremental capital investments of more than $10 billion, including the fuel cell project in Wyoming, the Piketon transmission opportunity in Ohio, and incremental generation in AEP’s footprint.Guidance raised
Management commentary
5“While I recognize our operating earnings are below last year at this stage due to the 2025 transmission minority interest sale and the timing of tax-related items, I am highly confident in our robust business performance – so much so that we are raising 2026 full-year guidance to $6.25 to $6.55 per share,” said Bill Fehrman, AEP chairman, president and chief executive officer.Guidance raised
Affordability and Regulatory ProgressGuidance raised
Affordability remains central to AEP’s customer-focused growth strategy.
As new large load customers come online, they can help spread the fixed costs across a broader customer base.
AEP has identified up to $16 billion in expected cost offsets for residential customers in its vertically integrated utilities that are supported by fully executed take-or-pay electric service agreements.
Corporate events
As an additional affordability measure, AEP continues to utilize grants and low-cost loans from the U.S. Department of Energy (DOE) to drive customer savings.
Most recently, AEP Texas secured a DOE loan for up to $3.3 billion to support nearly 100 transmission projects, which is expected to save customers $685 million in interest costs over the life of the loan.
With this financing, AEP has now secured approximately $5 billion in DOE loans across its portfolio, supporting nearly $1 billion in projected customer savings through lower interest costs.
Combined with almost $400 million in awarded DOE grants, this DOE funding is expected to deliver nearly $1.4 billion in estimated customer benefits over the life of the loans and grants.
AEP’s operating companies continued to deliver productive regulatory outcomes during the second quarter.
These included approval of a distribution base rate decrease for customers in Ohio, approval to add 1.3 GW of generation resources for Oklahoma customers, and completion of a $1.4 billion securitization that allowed Appalachian Power to file its lowest increase in a base rate request in Virginia in nearly 30 years.
Virginia also approved a large load tariff in the second quarter, bringing the total number of AEP’s states with approved large load tariffs to five, with three additional state filings pending approval.
Management commentary
"As electricity demand accelerates, we have seen firsthand how growth can lower costs and improve affordability for existing customers.
That is why we have led efforts to implement large load tariffs and structure contracts to ensure growth helps pay for growth,” said Fehrman.
“By leveraging our industry-leading transmission network, securing the resources needed to support reliability and future demand, and working with our regulators and policymakers to drive down costs for customers, we expect to strengthen our communities and create long-term value for all of our stakeholders.”
Accelerating Demand Drives Infrastructure Investment
AEP continues to see robust customer demand across its system and is making investments that support reliability, affordability and long-term value for customers, communities and shareholders.
The company added an incremental six GW of signed load agreements during the second quarter, primarily in Texas, bringing total contracted load growth through 2030 to 69 GW.
The agreements include a diverse set of customers, including hyperscalers, data centers and industrials.
Generation Strategy Advances to Support Growing Customer Base
Significant new generation is required to meet customer energy needs, and AEP has been an early mover to secure the resources needed to serve growing demand reliably.
During the second quarter, AEP secured three additional GW of gas-fired turbine capacity, bringing its total secured capacity to approximately 13 GW for potential deployment through 2031.
AEP is also evaluating opportunities to obtain up to 10 GW of additional turbine capacity through 2035.
This proactive approach provides greater visibility and flexibility in AEP’s generation planning and reinforces its ability to serve accelerating load growth across the footprint.
“AEP is demonstrating the value of our scale, industry expertise and disciplined focus on execution to benefit our customers,” said Fehrman.
“We are building partnerships and making strategic investments in generation and transmission that support reliability and affordability while helping customers and communities capture the benefits of generational energy demand growth.”
AMERICAN ELECTRIC POWER
Results
(a) EPS is calculated using the weighted average basic common shares outstanding of 534 million and 544 million for the quarters ended June 30, 2025 and 2026, respectively
SUMMARY OF RESULTS BY SEGMENT
$ in millions, unaudited
(b) Includes AEP Ohio and AEP Texas
Outlook
EARNINGS GUIDANCE
6AEP management raised its 2026 operating earnings guidance range to $6.25 to $6.55 per share.Guidance raised
Operating earnings, which could differ from earnings reported in accordance with GAAP, exclude certain gains and losses and other specified items that management believes are not indicative of AEP’s ongoing performance.
AEP management is not able to forecast if any of these items will occur or any amounts that may be reported for future periods.
Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance at this time.
Reflecting certain items recorded through the second quarter, the estimated earnings per share on a GAAP basis would be $6.16 to $6.46 per share.
See the table below for a full reconciliation of 2026 earnings guidance.
2026 EPS Guidance Reconciliation
Estimated GAAP EPS Guidance$6.16to$6.46
Mark-to-Market Impact of Commodity Hedging Activities0.03Guidance raised
Impact of WVPSC Order(0.07)Guidance lowered
Pirkey Plant Partial Disallowance0.06Guidance lowered
Unified Tracker Mechanism Partial Disallowance0.04Guidance lowered
Wholesale Customer Contract Agreements0.04Guidance raised
Income Tax Effect of Adjustments(0.01)Guidance lowered
Operating EPS Guidance$6.25to$6.55
Results
(e) Represents probable liability related to SWEPCo’s agreements with certain existing wholesale customers and current discussions with one remaining existing wholesale customer under generation supply contracts, which is expected to result in credits to these wholesale customers
Corporate events
(e) Represents an adjustment to the estimated loss on the sale of AEP OnSite Partners as a result of the contractual working capital true-up
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