American Electric Power Company (AEP) Q2 2026 earnings summary

Executive summary

• Q2 2026 operating earnings were $742M ($1.36/share), down from $766M ($1.43/share) in Q2 2025, mainly due to the 2025 transmission minority interest sale, timing-related tax items, and the absence of a major FERC order benefit.

• Full-year 2026 operating earnings guidance was raised to $6.25–$6.55/share, reflecting strong business performance, robust load growth, and confidence in the growth trajectory.

• Affirmed 7%–9% annual operating earnings growth rate and expect operating EPS CAGR above 9% through 2030, supported by a $78B capital plan and over $10B in incremental investment opportunities.

• Achieved significant regulatory progress, including approvals for large load tariffs, rate reductions, and customer affordability measures in multiple states.

• Up to $16B in expected cost offsets and $1.4B in projected customer savings from federal loans and grants support affordability.

Financial highlights

• Q2 2026 operating earnings: $742M ($1.36/share), down from $766M ($1.43/share) in Q2 2025; year-to-date operating earnings: $1,633M ($3.01/share), up from $1,589M ($2.98/share) year-over-year.

• Q2 2026 revenues rose to $5.45B from $5.09B in Q2 2025; year-to-date revenue increased to $11.47B from $10.55B.

• Regulated earned ROE for the quarter was 9.2%, with a path to 9.5% by 2030.

• FFO to debt ratio was 14.6% (S&P) and 14.0% (Moody’s) as of 6/30/2026, within the targeted 14%–15% range.

• Debt-to-total capitalization increased to 61.4% at June 30, 2026.

Outlook and guidance

• 2026 operating earnings guidance increased to $6.25–$6.55/share; expected operating earnings CAGR above 9% through 2030.

• Five-year capital plan (2026–2030) totals $78B, with over $10B in incremental investment opportunities identified.

• 2026 capital investment planned at $13B; dividend yield expected at ~3%.

• Incremental contracted load forecasted to reach 69 GW by 2030, up 6 GW from Q1 2026.

• Estimated 2026 GAAP EPS guidance is $6.16–$6.46/share, with adjustments for non-recurring items.