-
Reporting third-quarter GAAP and operating earnings per share of $2.18 and $2.23, respectively
-
Forecasting 2026 operating earnings per share to be at or above high end of the $6.25 to $6.55 range
-
Announcing $100 billion five-year capital plan, with a 13%+ rate base CAGR through 2031
-
Introducing operating earnings annual growth rate of 9% to 11% from 2027 through 2031
-
Projecting operating earnings CAGR of 10%+ through 2031
-
Expecting up to $21 billion of fixed cost offsets for residential customers from large load contracts
COLUMBUS, Ohio, Oct. 28, 2026 /PRNewswire/ — American Electric Power (Nasdaq: AEP) today reported third-quarter 2026 GAAP earnings of $1,187 million or $2.18 per share, compared with GAAP earnings of $972 million or $1.82 per share in third-quarter 2025. Operating earnings for third-quarter 2026 were $1,216 million or $2.23 per share, compared with operating earnings of $963 million or $1.80 per share in third-quarter 2025. See the detailed GAAP-to-operating earnings reconciliation at the end of this news release. AEP expects full-year results to be at or above the high end of its 2026 operating earnings guidance range of $6.25 to $6.55 per share.
AEP is also announcing an expanded $100 billion five-year capital plan through 2031 and a new long-term operating earnings growth outlook as accelerating electricity demand creates significant investment opportunities across the company’s service territory. The updated capital plan is expected to support a robust 13% plus rate base compound annual growth rate (CAGR) through 2031.
AEP is further introducing an expected annual operating earnings per share growth rate of 9% to 11% from 2027 through 2031, with a greater than 10% CAGR through 2031 based off the original 2026 guidance midpoint of $6.30 per share. The company is also issuing operating earnings guidance ranges of $6.75 to $7.05 per share and $7.40 to $7.70 per share for 2027 and 2028, respectively.
“AEP is entering our next phase of growth from a position of strength,” said Bill Fehrman, AEP chairman, president and chief executive officer. “Our expanded capital plan and increased growth rate reflect the significant opportunities ahead and our ability to execute at scale to help meet rapidly growing energy needs while delivering long-term value to our customers, communities, shareholders and all other stakeholders.”
Growth Supports Customer Affordability
AEP’s growth strategy is designed to support both infrastructure investment and customer affordability. New manufacturers, hyperscalers and other large customers help spread fixed system costs across a broader customer base. Fully executed take-or-pay electric service agreements in AEP’s vertically integrated states are now expected to generate up to $21 billion in fixed cost offsets, increased from $16 billion, for existing residential customers over the life of the contracts. The second proposed rate reduction in Indiana is a clear example of this and demonstrates how responsibly managed load growth can benefit customers while supporting the investments needed for reliable service.
“As electricity demand accelerates, AEP is committed to having new large-load customers bear the incremental system costs they create and fund the investments required to serve them,” Fehrman said. “By pairing disciplined customer agreements with strategic investments in generation, transmission and distribution, we can strengthen reliability, drive affordability for customers and bring new economic opportunities to the communities we serve.”
Accelerating Demand Drives Diversified Capital Plan
With 15 gigawatts (GW) of new load commitments signed during the third quarter, AEP’s incremental contracted load is expected to grow to 84 GW by 2031. Projects are only included as incremental contracted load if backed by fully executed electric service agreements or letters of agreement.
AEP’s expanded five-year capital plan of $100 billion includes significant investment needs to strengthen reliability, modernize the grid and support growing customer demand. As a result, AEP’s rate base is expected to grow to $162 billion by 2031.
Building on its position as the nation’s largest owner and operator of transmission, the company plans to invest approximately $37 billion in transmission assets as part of the new capital plan. Accordingly, AEP’s transmission rate base is expected to nearly double and approach $70 billion by 2031.
AEP also plans to invest $36 billion in generation resources across its portfolio through 2031 to meet the increased demand, which is backed by long-term customer contracts. Approximately $22 billion of capital is planned for distribution, with investments focused on increasing the reliability and resiliency of the grid.
AMERICAN ELECTRIC POWER
Preliminary, unaudited results
Third Quarter Ended September 30
Year-to-Date Ended September 30
2025
2026
Variance
2025
2026
Variance
Revenue ($ in millions):
6,011
6,832
821
16,561
18,297
1,736
Earnings ($ in millions):
GAAP
972
1,187
215
2,998
2,774
(224)
Operating (non-GAAP)
963
1,216
253
2,552
2,849
297
EPS ($): (a)
GAAP
1.82
2.18
0.36
5.61
5.10
(0.51)
Operating (non-GAAP)
1.80
2.23
0.43
4.78
5.24
0.46
(a) EPS is calculated using the weighted average basic common shares outstanding of 535 million and 544 million for the quarters ended
September 30, 2025 and 2026, respectively
SUMMARY OF RESULTS BY SEGMENT
$ in millions, unaudited
GAAP Earnings
3Q 25
3Q 26
Variance
YTD 25
YTD 26
Variance
Vertically Integrated Utilities (a)
578
697
119
1,335
1,443
108
Transmission & Distribution Utilities (b)
267
284
17
656
743
87
AEP Transmission Holdco (c)
200
219
19
1,013
653
(360)
Generation & Marketing (d)
45
96
51
209
268
59
All Other
(118)
(109)
9
(215)
(333)
(118)
Total GAAP Earnings
972
1,187
215
2,998
2,774
(224)
Operating Earnings (non-GAAP)
3Q 25
3Q 26
Variance
YTD 25
YTD 26
Variance
Vertically Integrated Utilities (a)
573
721
148
1,220
1,487
267
Transmission & Distribution Utilities (b)
259
<p
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
