American Electric Power Raises Full-Year Earnings Guidance Amid Rising Load Commitments
American Electric Power (AEP) raised its full-year operating earnings guidance to a range of $6.25–$6.55 per share, up from the previous estimate of $6.15–$6.45 per share. This comes despite second-quarter earnings declining year-over-year to $1.36 per share due in part to one-time factors like tax items and a minority-interest sale. The company reported 69 gigawatts (GW) of contracted load additions through 2030, with Texas accounting for the largest portion at 45 GW. These commitments represent significant long-term investment opportunities beyond AEP’s current $78 billion capital plan. Management emphasized that these projects are supported by executed agreements and credit support totaling nearly $2 billion. AEP also highlighted its generation pipeline, including secured gas-turbine capacity of 13 GW and expected customer benefits from Department of Energy (DOE) financing. CFO Trevor Mihalik noted the potential for transmission earnings to improve year-over-year by end-2026 as infrastructure investments continue.
Tickers: $AEP
Topics: capital_expenditures earnings guidance_update regulatory_progress