American Electric Power Company, Inc. (AEP) operates as a prominent electric utility holding company, with its core business encompassing the generation, transmission, ...
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$3.78 per share
Est. EPS $6.38 · Revenue $23.44B · 11 analysts
Est. EPS $6.86 · Revenue $24.82B · 13 analysts
Est. EPS $2.34 · Revenue $8.15B · 5 analysts
$3.78 per share
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $21.8B | +9.4% | -9.6% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $3.6B | +20.7% | -18.4% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +31.8% | -0.3% | +8.9% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +24.3% | +1.8% | +110.1% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +16.4% | +10.3% | -9.8% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $6.8B | +805.2% | +448.6% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +31.3% | +744.7% | +485.4% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 161.3% | -5.0% | +2.2% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 0.45x | +2.2% | -4.2% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $117.2B | +13.7% | +3.2% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 6.66 vs 5.91 | +12.6% | 1.30 vs 2.34 | -44.5% |
| Revenue Surprise | $21.8B vs $21.4B | +1.7% | $5.4B vs $8.2B | -33.2% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 1, 2026 | Fehrman William | director, officer: CEO and President | Resticted Stock Units | D | 6,283 | $128.32 |
| Aug 1, 2026 | Hall Greg B | officer: Executive Vice President | Resticted Stock Units | D | 1,741 | $128.32 |
| Jul 20, 2026 | Meyers Charles J | director | Common Stock | — | 0 | — |
| Jul 20, 2026 | Marriott David S | director: | — | — | 0 | — |
| Jun 30, 2026 | Tucker Sara Martinez | director | Phantom Stock Units | A | 0 | — |
Operator: Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the American Electric Power second quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Andy Gurgol, Vice President of Investor Relations. You may go ahead. Andy Gurgol: Good morning, and welcome to American Electric Power's second quarter 2026 earnings call. A live webcast of this teleconference and slide presentation are available on our website under the Events and Presentation section. Joining me today are Bill Fehrman, Chairman, President, and Chief Executive Officer, and Trevor Mihalik, Chief Financial Officer. In addition, we have other members of our management team in the room, including Kate Dixon, Senior Vice President, Controller, and Chief Accounting Officer, and Darcy Reese, Vice President, Investor Relations. We will be making forward-looking statements during the call. Actual results may differ materially from those projected in any forward-looking statement we make today. Factors that could cause our actual results to differ materially are discussed in the company's most recent SEC filings. Please refer to the presentation slides that accompany this call for reconciliation to GAAP measures. We will take your questions following opening remarks. Please start on slides four and five as I hand the call over to Bill. Bill Fehrman: Good morning, and thank you for joining us for our second quarter 2026 earnings call. As we close out the first half of 2026, in my first two years at AEP, I am very pleased with the progress we have made and the positive momentum we continue to build across the business. Four main themes are key to this progress, as shown on slide seven: enhancing our financial performance, driving affordability, capturing significant growth across our portfolio, and improving regulatory and operational outcomes. We are executing exceptionally well across each of these areas, strengthening our platform for outsized growth and long-term shareholder value creation. Turning to slide eight, I will start with our focus on enhancing AEP's financial performance. We delivered operating earnings of $1.36 per share or $742 million for the second quarter. I recognize our operating earnings are below last year at this stage due to the 2025 transmission minority interest sell and timing-related tax items, I am highly confident in our business performance. Much so that we are raising our 2026 full year guidance to a range of $6.25-$6.55 per share from our previous range of $6.15-$6.45 per share. I also remain committed to …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
William J. Fehrman | Chairman, President & Chief Executive Officer | USD 7,226,057 | Male | 1960 | Active |
Douglas A. Cannon | President of AEP Transmission | USD 2,607,091 | Male | 1976 | Active |
Trevor Ian Mihalik | Executive Vice President & Chief Financial Officer | USD 2,597,619 | Male | 1967 | Active |
Robert Berntsen | Executive Vice President, General Counsel & Secretary | USD 2,159,797 | Male | 1970 | Active |
Alicia R. Knapp | President of Nuclear Development | USD 1,619,143 | Female | 1979 | Active |
Johannes G. Eckert | Executive Vice President and Chief Information & Technology Officer | USD 1,257,305 | Male | 1968 | Active |
Andy Gurgol | Vice President of Investor Relations | — | Male | — | Active |
Janelle N. Coleman | VP of Community Engagement, Diversity & Inclusion and President of AEP Foundation | — | Female | 1972 | Active |
Jeffery D. LaFleur | Senior Vice President of Commercial Operations | — | Male | 1959 | Active |
Darcy Reese | Vice President of Investor Relations | — | Female | — | Active |
Chris Brathwaite | Vice President & Chief Communications Officer | — | Male | — | Active |
Phillip Ulrich | Executive Vice President & Chief Human Resources Officer | — | Male | 1971 | Active |
Quinton Lies | Executive Vice President of Nuclear Operations | — | Male | 1971 | Active |
Kate Dixon | Senior Vice President, Controller & Chief Accounting Officer | — | Female | 1985 | Active |
Three well-known dividend payers share a single deadline this week. SiriusXM (NASDAQ:SIRI | SIRI Price Prediction), American Electric Power (NASDAQ:AEP), and Timberland Bancorp (NASDAQ:TSBK) all go ex-dividend on Monday, August 10.
American Electric Power remains a buy, driven by 69 GW of contracted load and a $78B capital plan supporting robust rate-base growth. Management raised FY2026 operating EPS guidance to $6.25–$6.55, reaffirming 7%-9% annual growth and targeting >9% CAGR through 2030. Contracted demand, especially from data centers, is increasingly formalized with strong regulatory and collateral protections, minimizing counterparty risk.
American Electric Power missed Q2 EPS estimates, but I do not think it impacts the overall investment thesis and the growth story for the next 5 years. AEP's forward guidance reflects confidence in continued demand and operational stability. The stable dividends and predictable cash flows remain attractive, but the valuation indicates a significant growth premium.
American Electric Power highlights rising demand, a $78B capital plan and new generation capacity as it targets long-term infrastructure growth.
American Electric Power remains a buy, supported by robust fundamentals and exposure to surging AI-driven power demand. AEP raised its 2026 EPS guidance to $6.25–$6.55 and expanded contracted load to 69 GW, reinforcing growth momentum. Despite trading at a premium valuation (20.22x forward P/E), AEP's profitability and capital plan justify the multiple and support double-digit upside potential.
