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Wall Street expects a year-over-year increase in earnings on higher revenues when American Electric Power (AEP - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis utility is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of +4.2%.

Revenues are expected to be $5.34 billion, up 5.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for AEP?For AEP, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.27%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that AEP will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that AEP would post earnings of $1.55 per share when it actually produced earnings of $1.64, delivering a surprise of +5.81%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

AEP doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Marriott International Chairman David Marriott adds customer-focused operations experience to support execution at scale

Former Equinix CEO Charles Meyers brings digital infrastructure expertise
aligned with AEP's next phase of growth

, /PRNewswire/ -- American Electric Power (Nasdaq: AEP) today announced that David Marriott, Chairman of the Board of Marriott International, and Charles Meyers, Executive Chairman and former President and Chief Executive Officer of Equinix, have been elected to AEP's Board of Directors (the "Board"), effective July 20.

David Marriott brings extensive experience leading large-scale, customer-focused operations for one of the world's most recognized hospitality companies. Meyers brings deep digital infrastructure expertise from his leadership of Equinix, one of the world's leading global digital infrastructure companies. Together, their perspectives will provide valuable insight as AEP invests to meet unprecedented energy demand while maintaining its focus on reliability and affordability.

"Charles and David are proven leaders whose experience aligns directly with AEP's strategy and complements the strong mix of skills already represented on our Board," said Bill Fehrman, AEP Chairman, President and Chief Executive Officer. "David has spent his career leading complex operations at one of the world's most recognized service companies, where consistency, execution and customer trust are critical. Charles has led one of the world's most important digital infrastructure platforms through a period of extraordinary growth, giving him direct insight into the customers and technologies driving this new era of electric demand. We look forward to benefiting from their expertise and leadership as we execute our strategy to meet growing demand, deliver reliable, affordable power for customers and create long-term value for shareholders."

David Marriott is Chairman of the Board of Marriott International, where he has served as a director since 2021 and as Chairman since 2022. Since joining Marriott in 1999, he has held senior operational, sales and leadership roles across the company, including President, U.S. Full Service Managed by Marriott, where he oversaw more than 330 hotels operating under 14 brands across 34 states and French Polynesia. He also served as Chief Operations Officer, The Americas Eastern Region, where he held an integral role in hotel operations and helped oversee the U.S. integration of Marriott's acquisition of Starwood Hotels & Resorts.

"AEP serves millions of customers who depend on the company every day," said David Marriott. "Delivering consistently across a large footprint requires operational discipline, strong teams, trusted relationships and an unwavering commitment to service. I look forward to working with the Board and management team as AEP continues to serve customers and communities across some of the country's most dynamic regions."

Meyers was appointed Executive Chairman of Equinix in June 2024 after serving as President and CEO from 2018 to 2024. As CEO, he further strengthened Equinix's position as a leading global digital infrastructure company, doubling its global data center footprint, strengthening its ecosystem of leading enterprise customers and quadrupling revenues during his tenure. He previously held several senior leadership roles at Equinix, including Chief Operating Officer, President of Strategy, Services and Innovation, and President of the Americas region.

"The digital economy depends on reliable electric infrastructure, and AEP has the footprint, transmission expertise and operating discipline to help meet those needs," said Meyers. "I am excited to join the Board at such an important time for AEP and contribute to the company's work building the critical infrastructure needed for the future."

With these appointments, AEP's Board will comprise 12 directors, 11 of whom are independent.

ABOUT AEP

American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 32,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

SOURCE American Electric Power

Project will not impact I&M's plans to reduce rates for customers

, /PRNewswire/ -- Indiana Michigan Power (I&M) is taking the next step to ensure its customers have reliable power for decades to come, while positioning Rockport, Indiana, for long-term economic success. I&M has requested approval from the Indiana Utility Regulatory Commission (IURC) to build a 1,520 megawatt (MW) natural gas combined cycle generation facility at its Rockport site, to increase its generation capacity and meet the projected energy demand across Indiana. 

The project does not impact I&M's plans to reduce rates for customers. The investment is already contemplated within I&M's upcoming rate reduction filing and non-fuel rate freeze, reflecting a commitment to meeting future energy needs while maintaining a disciplined approach to customer costs. 

Power demand in I&M's Indiana service area is expected to more than double by the early 2030s, and Rockport's history and location uniquely position it to play a vital role in answering the call. The Rockport energy site has been powering homes and businesses and providing high-quality skilled jobs for more than 40 years. It offers existing infrastructure, available space and a skilled workforce, along with opportunities for multiple sources of generation.

As the Rockport coal units prepare to retire and the site evolves for other forms of generation, I&M is focused on creating opportunities for current employees and future generations of employees from the Rockport community.

"The new combined cycle facility will deliver dependable baseload energy, allowing us to serve our existing and future customers efficiently and provide electricity at an affordable cost," said Maryam S. Brown, I&M president and chief operating officer.

"We are pleased that I&M is seeking to build and locate new forms of generation at the Rockport site in the years ahead," said the members of the Spencer County Board of Commissioners. "Through the years I&M has been a tremendous community partner, and we are excited about our continued collaboration and the benefits we will see for many more decades to come. We are excited that Spencer County is taking the lead in the future growth of our State as I&M takes this important step towards its future energy vision and the benefits it provides our community."

The new 1,520 MW facility, known as the Rockport Energy Center, is one of the largest utility construction undertakings in Indiana, expected to bring roughly 1,200 construction jobs and 30 to 40 ongoing operational roles. The facility is expected to reduce reliance on market purchases, limiting exposure to price volatility and supporting long-term cost stability for the company and customers. 

I&M's filing for a certificate of public convenience and necessity (CPCN) for the Rockport Energy Center details the anticipated construction timeline, allocation of construction and operational costs, regional transmission capacity and environmental factors, among other project components.

I&M anticipates a decision from the IURC on the Rockport Energy Center CPCN in early 2027. Under this timeline, construction for the project would begin in 2027, and the plant is expected to be operational in the summer of 2030.

Developing the Rockport Energy Center is part of a broader, disciplined generation strategy, as articulated in I&M's Future Ready plan, which details the resources needed to provide customers with dependable energy and maintain a variety of energy resources.

Indiana Michigan Power (I&M) is headquartered in Fort Wayne, and its approximately 2,000 employees serve more than 600,000 customers. More than 85% of its energy delivered in 2024 was emission-free. I&M has at its availability various sources of generation including 2,278 MW of nuclear generation in Michigan, 450 MW of purchased wind generation from Indiana, more than 22 MW of hydro generation in both states and approximately 35 MW of large-scale solar generation in both states. The company's generation portfolio also includes 1,497 MW of coal-fueled generation.

American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 32,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

SOURCE Indiana Michigan Power

Nvidia is still leading the AI revolution. But it may not be the best way to invest in it anymore.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? American Electric Power (AEP - Free Report) , which belongs to the Zacks Utility - Electric Power industry, could be a great candidate to consider.

This utility has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.64%.

For the most recent quarter, AEP was expected to post earnings of $1.55 per share, but it reported $1.64 per share instead, representing a surprise of 5.81%. For the previous quarter, the consensus estimate was $1.15 per share, while it actually produced $1.19 per share, a surprise of 3.48%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for AEP. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

AEP currently has an Earnings ESP of +0.07%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 30, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

American Electric Power invests in grid modernization and renewable energy as rising demand drives long-term infrastructure expansion.

AI stocks are the hot trade in 2026 and may continue to dominate markets. However, knowing which AI stock will experience the next pop or drop is tricky, driving the need for diversification. Diversification protects portfolios from unnecessary volatility and risk, providing stable, albeit slower, returns while waiting for those higher-risk tech stocks to appreciate. Defensive stocks share some qualities, including stable demand, reliable dividend payments and lower-than-average beta.

Beta is a widely misunderstood metric. It measures a stock’s volatility relative to a benchmark, typically the S&P 500, rather than the expected volatility of the underlying issue. Low-beta stocks are not immune to volatility, but they have historically been less sensitive to broad market moves. The difference is that their price action is less tied to macroeconomic swings than the average stock because of income stability and capital returns.

Get UnitedHealth Group alerts:

UnitedHealth Is Set Up for Sustainable Price RecoveryUnitedHealth Group Dividend PaymentsDividend Yield2.32%

Annual Dividend$9.28

Dividend Increase Track Record15 Years

Annualized 5-Year Dividend Growth12.57%

Dividend Payout Ratio70.09%

Next Dividend PaymentJun. 23

UNH Dividend History

UnitedHealth NYSE: UNH has struggled the past year with an executive shakeup, legal woes, and margin pressure. However, the company has navigated its headwinds well, setting itself up to resume growth in upcoming quarters, accelerate it, and drive improving profitability. This underpins a healthy capital return outlook, which includes dividends and share buybacks. The dividend yields more than 2.25% annualized as of mid-June and is expected to grow over time.

UNH is on track to be included in the Dividend Champions index, has increased its distribution at a double-digit compound annual growth rate over the past few years, and pays approximately 50% of its earnings. Share buybacks are also substantial, having reduced the count by an average of nearly 1% as of Q1 2026.

UNH’s beta is very low at 0.64 over the trailing three years. Factors contributing to the low beta include the company's predictable cash flow, visible catalysts, and capital returns—its owners include a high percentage of long-term, buy-and-hold investors.

Despite recent woes, analysts have maintained a Moderate Buy consensus for UNH stock. The story in mid-2026 is that price targets are rising again, signaling a reversal in this market. Institutional activity is also robust, with them owning approximately 88% of the shares and accumulating for seven consecutive quarters.

Brookfield Corporation: The Crown Jewel of Real Asset InvestingBrookfield Dividend PaymentsDividend Yield0.63%

Annual Dividend$0.28

Dividend Increase Track Record2 Years

Annualized 5-Year Dividend Growth-17.81%

Dividend Payout Ratio54.90%

Next Dividend PaymentJun. 30

BN Dividend History

Brookfield Corporation NYSE: BN is the crown jewel of real asset investing as it is the world’s largest alternative investment corporation. Real assets are tangibles like commodities, natural resources, real estate, and infrastructure. They are an asset class in their own right, attractive for their intrinsic value, inflation-resistance, and cash-generating qualities. The company operates in three segments, providing exposure to wealth management, insurance services, and direct asset ownership.

Among Brookfield’s attractions are its cash-generating qualities and capital returns. The dividend is barely more than a token at a 0.6% yield, but it's compounded by share buybacks. The latest authorization is worth up to 10% of the share count, with trailing-12-month activity reducing the count approximately 0.65% as of Q1.

Brookfield is not a low-beta stock, as it is exposed to commodity price swings and geopolitical risks. However, it is viewed as a safe haven because of its tangible assets, inflation-linked cash flow, and substantial fee-based management business. The combination provides steady, predictable cash flow, enabling business growth, financial strength, and capital return.

American Electric Power: Monopolizing Cash Flow and Capital Return SafetyAmerican Electric Power Dividend PaymentsDividend Yield2.97%

Annual Dividend$3.80

Dividend Increase Track Record15 Years

Annualized 5-Year Dividend Growth5.66%

Dividend Payout Ratio55.80%

Recent Dividend PaymentJun. 10

AEP Dividend History

Utility companies are traditional safe-haven plays with heavily regulated, entrenched businesses. Operators like American Electric Power NYSE: AEP provide stable, steady income, reliable yields, and growth opportunities. Not only is the U.S. power grid old and ailing, in need of updating, but demand is growing and expected to remain strong in the upcoming years. Data centers are only part of the story, as growth in the household and business sectors is also at play.

American Electric Power provides a strong dividend, yielding nearly 3% as of late Q2 2026. The payout ratio is a bit high, over 60%, but only when compared to average companies. Utilities such as AEP, with highly visible and relatively unimpeded cash flows, tend to sustainably pay out a larger portion of earnings. Regulation means rising costs can be offset by higher prices, which is a catalyst in the industry today.

AEP’s stock beta is approximately 0.53, reflecting price action only half as volatile as the average stock. Fundamentally, AEP is in an uptrend, supported by rising demand and plans to expand capacity, which have analysts buzzing. In their view, datacenter demand changes the story from humdrum utility to a high-growth story with legs.

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With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.

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Key Takeaways AEP's Q1 operating EPS $1.64 beat estimates; revenues rose 10% Y/Y to $6.02B.American Electric signed seven GW of new load agreements in Q1, mostly in Ohio and Texas, on demand growth.AEP sees contracted load growing to 63 GW by 2030 and guides 2026 EPS at $6.15-$6.45. American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2026 operating earnings of $1.64 per share, which beat the Zacks Consensus Estimate of $1.55 by 5.8%. Operating earnings increased 6.5% from $1.54 in the year-ago quarter.

On a GAAP basis, AEP posted earnings of $1.61 per share, up from $1.50 a year ago.

American Electric Total RevenuesAEP generated total revenues of $6.02 billion, up 10.2% from $5.46 billion in the prior-year quarter. The top line also came in ahead of the Zacks Consensus Estimate of $5.68 billion by 6.0%.

The company’s quarter reflected continued demand growth across its service territory, with management pointing to seven gigawatts of new load agreements signed during the first quarter, largely in Ohio and Texas. AEP also highlighted that its incremental contracted load is expected to expand to 63 gigawatts by 2030, supported by signed agreements with large-load customers.

AEP’s Segmental PerformanceVertically Integrated Utilities: Operating earnings increased to $464 million from $350 million in the year-ago quarter, supported by stronger underlying utility performance. This segment remained AEP’s largest profit contributor for the period.

Transmission & Distribution Utilities: Operating earnings came in at $237 million, up from $192 million a year ago. The improvement reflected stronger results in the distribution-focused utilities compared with the prior-year base.

AEP Transmission Holdco: Operating earnings totaled $209 million, down from $235 million in first-quarter 2025. Despite its strategic importance, this segment was the primary drag on year-over-year operating earnings growth.

Generation & Marketing: Operating earnings rose to $90 million from $76 million a year earlier. The improvement indicated better performance in the company’s marketing, risk management and related market activities compared with the year-ago quarter.

Corporate and Other: The segment reported an operating loss of $109 million, wider than the $30 million loss posted in the prior-year period. The larger loss meaningfully offset gains elsewhere across the portfolio.

AEP’s 2026 GuidanceAmerican Electric expects to generate earnings in the band of $6.15-$6.45 per share. The Zacks Consensus Estimate for earnings is pegged at $6.33 per share, which lies above the midpoint of the company’s projected range.

AEP’s Zacks RankAmerican Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility ReleasesCenterPoint Energy, Inc. (CNP - Free Report) reported first-quarter 2026 adjusted earnings of 56 cents per share, which missed the Zacks Consensus Estimate of 58 cents by 3.8%. However, the bottom line increased 5.7% from 53 cents in the year-ago quarter.

CNP generated revenues of $2.98 billion, which missed the Zacks Consensus Estimate of $3.04 billion by 1.4%. However, the top line improved 2% from the year-ago reported figure of $2.92 billion.

CMS Energy Corporation (CMS - Free Report) reported first-quarter 2026 earnings of $1.13 per share, which beat the Zacks Consensus Estimate of $1.11 by 1.8%. The bottom line also increased 10.8% from $1.02 in the prior-year quarter.

CMS’ operating revenues totaled $2.73 billion, which topped the Zacks Consensus Estimate of $2.53 billion by 8.1%. The top line also increased 11.6% from $2.45 billion in the prior-year quarter.

Edison International (EIX - Free Report) came out with quarterly earnings of $1.42 per share, which beat the Zacks Consensus Estimate of $1.32 per share by 7.6%. The bottom line also increased 3.7% from $1.37 in the year-ago quarter.

Edison International's first-quarter operating revenues totaled $4.1 billion, which beat the Zacks Consensus Estimate of $3.99 billion by 2.8%. The top line also increased 7.6% from the year-ago quarter’s figure of $3.81 billion.

Triple-net lease with high-investment-grade tenant valued at up to $25.1 billion if all renewal options are exercised

Transaction expands Hut 8's total contracted AI data center capacity to 597 MW with aggregate base-term contract value of approximately $16.8 billion

Hut 8 to deliver a 352 MW AI factory designed to NVIDIA's DSX reference architecture for gigawatt-scale AI infrastructure

Executed under Hut 8's repeatable delivery model with Tier 1 counterparties: American Electric Power (Nasdaq: AEP), Vertiv Holdings Co (NYSE: VRT), and Jacobs (NYSE: J)

, /PRNewswire/ -- Hut 8 Corp. (Nasdaq, TSX: HUT) ("Hut 8" or the "Company"), an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies, today announced the commercialization of the first phase of its Beacon Point data center campus in Nueces County, Texas through a 15-year, $9.8 billion lease (the "Agreement") for 352 megawatts (MW) of IT capacity (the "Transaction"). The tenant, a high-investment-grade company, will deploy dedicated compute infrastructure at the campus to support AI training and inference workloads at hyperscale.

Rendering of Hut 8's Beacon Point data center campus in Nueces County, Texas Beacon Point is the second AI data center campus commercialized under the Company's power-first, greenfield development model following River Bend. Hut 8 has executed an interconnection agreement for 1,000 MW of utility capacity, with initial energization expected in Q1 2027. As with River Bend, Hut 8 identified and secured the site through its power-first approach and subsequently commercialized it through a hyperscale AI lease. The Beacon Point transaction brings Hut 8's total contracted AI data center capacity to 597 MW of IT capacity with aggregate base-term contract value of approximately $16.8 billion and aggregate average annual NOI to approximately $1.1 billion.

Transaction Highlights

Lease Structure: Triple net (NNN) lease. Tenant Profile: Confidential, high-investment-grade company. Compute Architecture: Hut 8 to deliver a 352 MW AI factory designed to NVIDIA's DSX reference architecture for gigawatt-scale AI infrastructure. Base-Term Contract Value: Total contract value of $9.8 billion over a 15-year base lease term, inclusive of a 3.0% annual base rent escalator. NOI Contribution: Expected cumulative NOI contribution of $9.8 billion over the base lease term, translating to an expected average annual NOI contribution of $655 million upon stabilization. Upside Economics: Three 5-year renewal options increase potential contract value to approximately $25.1 billion assuming all three options are exercised. Delivery Timeline: Initial data hall delivery expected in Q3 2027. Project-level Financing: Hut 8 intends to support the development of Beacon Point with project-level financing that aims to optimize cost of capital at the asset level while maintaining disciplined long-term leverage metrics at the corporate level. Campus Scalability: 1,000 MW of utility capacity with initial energization expected in Q1 2027. Commercial Potential: The lease for 352 MW of IT capacity, requiring approximately 500 MW of utility capacity, represents the first phase of commercialization at a campus designed to support up to 1,000 MW of utility capacity, providing significant runway for potential campus expansion and revenue growth. Power-First Underwriting and the First Phase of Value Creation

Beacon Point exemplifies Hut 8's power-first development model and the value creation it enables across the asset lifecycle. Originally underwritten on a speed-to-power thesis to serve Hut 8's affiliated customer, American Bitcoin Corp. ("ABTC"), the site was repositioned to AI infrastructure as power demand accelerated and customer requirements broadened. Hut 8 transitioned Beacon Point from its original commercialization pathway with ABTC to deliver an AI data center campus with contracted, investment-grade cash flows, marking the first phase of asset-level value creation at the campus.

Asher Genoot, CEO of Hut 8, said: "Beacon Point underscores why we start with power and maintain flexibility across end markets. Operating across multiple applications lets us underwrite assets that single-use-case developers cannot, then redirect them toward higher-value commercialization pathways as demand evolves. This flexibility is intentional, and it is embedded in how we underwrite, develop, and commercialize infrastructure."

First-Principles Engineering and the Second Phase of Value Creation

Beacon Point also exemplifies Hut 8's first-principles engineering approach and the value creation it enables as technology applications evolve. Following the repositioning of the campus to AI, the first data hall was scoped for 224 MW of IT capacity, sized to the chip architectures commercially deployed at the time. As NVIDIA's DSX reference architecture advanced toward commercial deployment with materially higher rack-level power densities, Hut 8 redesigned the data hall to support a 352 MW AI factory, a 57% increase over the initial design, within the same land and utility footprint.

Scalable, Partnership-Driven Execution Model

Hut 8 is developing Beacon Point through a partnership-driven execution model first implemented at its River Bend campus. The model is structured to mitigate risk across the project lifecycle by aligning Tier 1 partners to defined roles across technology, engineering and construction, and critical systems delivery.

Asher Genoot, CEO of Hut 8, said: "This transaction commercializes the first building of our newest gigawatt-scale campus and marks our second AI data center lease. More importantly, it demonstrates that our development model, which pairs power-first underwriting with disciplined commercialization and institutional execution, is repeatable and extendable across our broader pipeline."

NVIDIA is engaged as technology partner, with Phase 1 of the campus engineered to NVIDIA's DSX reference architecture for gigawatt-scale AI factories. Jacobs, a global scienced-based consulting and advisory firm, is retained as EPCM (Engineering, Procurement and Construction Management) lead, working alongside Vertiv in its role supporting critical digital infrastructure systems.

Bob Pragada, Chair and CEO of Jacobs, said: "Beacon Point underscores the strength of our partnership with Hut 8 and the discipline required to deliver AI infrastructure with speed, safety, and certainty. Building on our work together at River Bend, we are applying our EPCM leadership and advanced digital twin technology to set the benchmark for AI infrastructure deployment, optimization, and resiliency."

Giordano Albertazzi, CEO of Vertiv, said: "Next generation AI infrastructure will be defined by how quickly power can be converted into AI capacity. Partnering with Hut 8 aligns with Vertiv's systems-level approach to converged physical infrastructure —  bringing power, cooling, and deployment execution at scale. At Beacon Point, we are applying Vertiv's global manufacturing depth, supply chain discipline, engineering expertise, and critical digital infrastructure portfolio to help deliver AI capacity with speed, reliability, and long-term performance."

Utility and Regional Partnerships

Hut 8 is developing the Beacon Point campus in collaboration with key Texas stakeholders, including AEP Texas, a subsidiary of American Electric Power (AEP), and the Corpus Christi Regional Economic Development Corporation (CCREDC). Hut 8 and AEP Texas have executed an interconnection agreement for 1,000 MW of utility capacity for the campus, with initial energization expected in Q1 2027.

Hut 8 brings a long operating history in Texas and extensive experience working within ERCOT across large-load applications. This experience has enabled the Company to advance complex infrastructure projects by navigating market dynamics, interconnection processes, and transmission and system upgrade requirements while maintaining disciplined development and execution timelines.

Aaron Bowman, CEO of CCREDC, said: "Beacon Point reflects the type of long-term investment that supports durable growth in the Coastal Bend economy. Hut 8's focus on power infrastructure and disciplined execution aligns with the region's assets and workforce capabilities, and we are pleased to support the advancement of this campus in Nueces County."

Development Pipeline Update

The Transaction advances 500 MW of utility capacity from Energy Capacity Under Development to Energy Capacity Under Construction. An additional 500 MW of utility capacity from Beacon Point remains within Energy Capacity Under Development.  

Hut 8 continues to advance opportunities across a broader pipeline spanning 7,545 MW of Energy Capacity Under Diligence, Exclusivity, and Development, applying the same power-first underwriting framework and institutional execution model demonstrated at River Bend and Beacon Point.

Stage

Description

Utility Capacity   
As of May 6,
2026

Energy Capacity Under
Diligence

Sites identified for large-load use cases such as AI, HPC, ASIC compute, industrial applications such as
next generation manufacturing, and other energy-intensive technologies. At this stage, Hut 8 assesses site
potential by engaging with utilities, landowners, and other stakeholders to evaluate critical factors, including
power availability, infrastructure readiness, fiber connectivity, and overall commercial viability.

 5,315 MW

Energy Capacity Under
Exclusivity

Sites where Hut 8 has secured a clear path to ownership through either: (i) an exclusivity agreement that prevents
the sale of designated land and power capacity to another party or (ii) a tendered interconnection agreement,
confirming a viable path to securing power and infrastructure for deployment.

1,680 MW1

Energy Capacity Under
Development

Sites where Hut 8 is actively investing in development and commercialization by executing definitive land and/or 
power agreements, advancing site design and infrastructure buildout, and engaging with prospective customers.

550 MW

Energy Capacity Under
Construction

 Sites where Hut 8 has executed a definitive offtake agreement and commenced construction activities.

830 MW

Total

All sites under diligence, exclusivity, development, commercialization, and construction.

8,375 MW1

Note: (1) Excludes 1,000 MW of potential IT expansion capacity at River Bend, for which Fluidstack holds a ROFO under the River Bend lease.

Non-GAAP Financial Measures

This press release includes a non-GAAP financial measure, expected net operating income (NOI) contribution, which the Company defines as expected lease revenue for a particular lease less any non-reimbursable operating expenses attributable to the leased property. The Company's management team uses expected NOI contribution to measure the expected operating performance of a particular lease. Operating income is the GAAP measure most directly comparable to expected NOI contribution. In evaluating expected NOI contribution, you should be aware that in the future the Company may incur non-reimbursable lease operating expenses that are not currently known. The Company's presentation of expected NOI contribution should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. Expected NOI contribution has important limitations as an analytical tool and you should not consider expected NOI contribution in isolation or as a substitute for analysis of results as reported under GAAP. For example, expected NOI contribution excludes the impact of selling, general and administrative expenses and depreciation and amortization, which have real economic effect and could materially impact the Company's consolidated financial results. Other companies, including Real Estate Investment Trusts, may calculate expected NOI contribution differently than the Company does and, accordingly, the Company's expected NOI contribution may not be comparable to similar measures published by such companies. No reconciliation of expected NOI contribution is included in this press release because the Company is unable to quantify certain amounts that would be required to be included in operating income without unreasonable efforts as such quantification would imply a degree of precision that would be confusing or misleading to investors.

Additional Transaction Information and Upcoming Communications

Hut 8 has made available on its website an investor presentation with further details regarding the Transaction.

For important news and information regarding the Company, including investor presentations and timing of future investor conferences, visit the Investor Relations section of the Company's website, hut8.com/investors, and its social media accounts, including on X and LinkedIn. The Company uses its website and social media accounts as primary channels for disclosing key information to its investors, some of which may contain material and previously non-public information.

About Hut 8

Hut 8 is an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies such as AI, high-performance computing, and ASIC compute. The Company develops, commercializes, and operates industrial-scale energy and data center infrastructure through a power-first, innovation-driven approach. For more information, visit hut8.com.

Cautionary Note Regarding Forward-Looking Information

This press release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, "forward-looking information"). All information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to the terms, value, and expected benefits of the Transaction and the Agreement, including expected contract value, NOI contribution, and potential value from renewal options, the timing of development, construction, energization, and delivery of the Beacon Point campus, the Company's plans with respect to project-level financing, the expected capacity, scalability, and potential future expansion of the campus, the Company's development pipeline, and the Company's future business strategy, competitive strengths, expansion, and growth of the business and operations more generally, and other such matters is forward-looking information. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "allow", "believe", "estimate", "expect", "predict", "can", "might", "potential", "is designed to", "likely," or similar expressions.

Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, risks relating to the construction of new data centers, including cost overruns, delays, supply chain issues, permitting or regulatory hurdles, unexpected technical challenges, and dependency on contractors; risks relating to the financing of new data centers, including the potential dilutive impact of equity issuances (if any), access to capital markets, timing and cost of financing, and market conditions such as increases in interest rates, declining equity valuations, volatility in credit markets, or tightening lending standards; risks impacting our ability to expand the power capacity at the River Bend campus, such as limitations of transmission and/or generation resources; failure of critical systems; geopolitical, social, economic, and other events and circumstances; competition from current and future competitors; risks related to power requirements; cybersecurity threats and breaches; hazards and operational risks; changes in leasing arrangements; Internet-related disruptions; dependence on key personnel; having a limited operating history; attracting and retaining customers; entering into new offerings or lines of business; price fluctuations and rapidly changing technologies; predicting facility requirements; strategic alliances or joint ventures; operating and expanding internationally; failing to grow hashrate; purchasing miners; relying on third-party mining pool service providers; uncertainty in the development and acceptance of the Bitcoin network; Bitcoin halving events; competition from other methods of investing in Bitcoin; concentration of Bitcoin holdings; hedging transactions; potential liquidity constraints; legal, regulatory, governmental, and technological uncertainties; physical risks related to climate change; involvement in legal proceedings; trading volatility; and other risks described from time to time in Company's filings with the U.S. Securities and Exchange Commission. In particular, see the Company's recent and upcoming annual and quarterly reports and other continuous disclosure documents, which are available under the Company's EDGAR profile at sec.gov and SEDAR+ profile at sedarplus.ca.

SOURCE Hut 8 Corp.

Darcy Reese to Retire at End of Year

, /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has named Andy Gurgol vice president of Investor Relations, effective May 9. He will succeed Darcy Reese, who will retire at the end of the year. Gurgol will report to Trevor Mihalik, executive vice president and chief financial officer.

"I am thrilled that Andy joined the AEP team this year, bringing his experience in corporate development and strategy to the finance organization," Mihalik said. "This is an exciting time for AEP as we work to seize the extraordinary growth opportunities ahead of us, and I believe Andy will excel at communicating our vision for the future to the investor community." 

Gurgol joined AEP in January 2026 as managing director, Corporate Strategy and Development. Prior to joining AEP, he spent nearly 14 years working in the utility and energy infrastructure sectors. Gurgol worked at Sempra for nearly a decade, where he held progressive leadership roles, including director, Corporate Development and Strategy. In this role, he was responsible for M&A and strategy development across the enterprise. Earlier in his career, Gurgol worked at NextEra Energy, leading economic and strategic analyses for over $1.5 billion in renewable energy investments. He began his career with FirstEnergy in its financial forecasting and analytics department.

In addition to his time working in the utility sector, Gurgol worked at the World Resources Institute, where he served as senior manager of Conservation Finance. In this role, he led initiatives in partnership with utilities, private sector companies, and federal and state agencies to deploy investments in environmental restoration projects that mitigate catastrophic wildfire risk, strengthen infrastructure and community resilience, and generate attractive financial returns.

Gurgol holds a finance degree from the University of Toledo.

"Communicating AEP's strategy to execute and deliver on the tremendous growth plans ahead will be critical as we invest $78 billion in our system through 2030," Gurgol said. "I look forward to meeting our investors and analysts over the next several months to begin building our relationships."

Since 2020, Reese has led AEP's investor relations team, overseeing shareholder engagement, guiding the quarterly earnings narrative, and directing the company's annual meeting of shareholders.

After more than 35 years in finance and accounting, Reese plans to retire at the end of 2026. She will continue to lead AEP's investor relations efforts until that time.

"Darcy has been an outstanding advocate for AEP with our investor community," Mihalik added. "She has been an integral member of our finance team, and her contributions to AEP have helped us grow into the company we are today. We wish Darcy and her family the best when she embarks on her next chapter at the end of the year."

ABOUT AEP

American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 32,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

SOURCE American Electric Power

, /PRNewswire/ -- American Electric Power (Nasdaq: AEP) today announced the pricing of a registered underwritten offering of 20,472,442 shares of its common stock at a price to the public of $127.00 per share. Subject to certain conditions, all shares are expected to be borrowed by the forward counterparties (as defined below) (or their respective affiliates) from third parties and sold to the underwriters and offered in connection with the forward sale agreements described below. BofA Securities, Goldman Sachs & Co. LLC and Morgan Stanley are acting as lead book-running managers for this offering. Barclays, Citigroup, J.P. Morgan, Mizuho, MUFG, Scotiabank and Wells Fargo Securities are also acting as joint book-running managers and Guggenheim Securities, KeyBanc Capital Markets, RBC Capital Markets, TD Securities and Truist Securities are acting as co-managers for this offering.

In connection with the offering, AEP entered into forward sale agreements with each of Bank of America, N.A, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC (the "forward counterparties") under which AEP agreed to issue and sell to the forward counterparties an aggregate of 20,472,442 shares of its common stock. In addition, the underwriters of the offering have been granted a 30-day option to purchase up to an additional 3,070,866 shares of AEP's common stock upon the same terms. If the underwriters exercise their option to purchase additional shares, AEP expects to enter into additional forward sale agreements with the forward counterparties with respect to the additional shares.

Settlement of the forward sale agreements is expected to occur on or prior to May 31, 2028. AEP may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.

If AEP elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include capital contributions to its utility subsidiaries, acquisitions and/or repayment of debt.

The offering is made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction. The offer may be made only by means of a prospectus and the related prospectus supplement. Copies of these documents may be obtained by contacting:

BofA Securities by email at [email protected], or by mail at NC1-022-02-25, 201 North Tryon Street, Charlotte, NC  28255-0001, Attention: Prospectus Department; Goldman Sachs & Co. LLC by telephone at (866) 471-2526, by email at [email protected], or by mail at Attention: Prospectus Department, 200 West Street, New York, New York 10282; or Morgan Stanley & Co. LLC by mail at Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 ABOUT AEP
American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We plan to invest $78 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 18,000 employees operate and maintain the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 32,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

This report made by the Registrants contains forward-looking statements, and for the Registrants other than Parent, this report contains forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements in this document are presented as of the date of this document. Except to the extent required by applicable law, management undertakes no obligation to update or revise any forward-looking statement. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in economic conditions, electric market demand and demographic patterns in AEP's service territory; the economic impact of increased global conflicts and trade tensions, and the adoption or expansion of economic sanctions, tariffs, trade restrictions or changes in trade policy; inflationary or deflationary interest rate trends; new legislation or regulations adopted in the states in which we operate or federal legislation or regulations adopted that alters the regulatory framework or that prevents the timely recovery of costs and investments; volatility and disruptions in financial markets precipitated by any cause, including fiscal and monetary policy or instability in the banking industry; particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt; the availability and cost of funds to finance working capital and capital needs, particularly (a) if expected sources of capital such as proceeds from the sale of tax credits and anticipated securitizations do not materialize or do not materialize at the level anticipated, and (b) during periods when the time lag between incurring costs and recovery is long and the costs are material; changing demand for electricity, including large load contractual commitments; the risks and uncertainties associated with wildfires, including damages caused by wildfires, the extent of each Registrant's liability in connection with wildfires, investigations and outcomes associated with legal proceedings, demands or similar actions, inability to recover wildfire costs through insurance or through rates and the impact on financial condition and the reputation of each Registrant; the impact of extreme weather conditions, natural disasters and catastrophic events such as storms, hurricanes, wildfires and drought conditions that pose significant risks including potential litigation and the inability to recover significant damages and restoration costs incurred; limitations or restrictions on the amounts and types of insurance available to cover losses that might arise in connection with natural disasters, wildfires or operations; the cost of fuel and its transportation, the creditworthiness and performance of parties who supply and transport fuel and the cost of storing and disposing of used fuel, including coal ash and SNF; the availability of fuel and necessary generation capacity and the performance of generation plants; the ability to recover fuel and other energy costs through regulated or competitive electric rates; the ability to plan for, develop, construct, acquire, or integrate a broad range of generation and energy storage resources, as well as related transmission and distribution infrastructure, including obtaining necessary regulatory approvals, permits, and incentives; complying with cost caps and other regulatory or contractual requirements; and recovering associated costs and earning an appropriate return while meeting reliability, affordability, environmental, and customer–service obligations; the disruption of AEP's business operations due to impacts of economic or market conditions, costs of compliance with potential government regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers caused by natural disasters or other events; construction and development risks associated with the completion of the 2026-2030 capital investment plan, including shortages or delays in labor, materials, equipment or parts; prolonged or recurring U.S. federal government shutdowns could adversely affect AEP's operations, regulatory approvals, financial performance and could cause volatility in the capital markets which may interrupt our access to capital; new legislation, litigation or government regulation, including changes to tax laws and regulations, oversight of nuclear generation, evolving environmental standards, energy commodity trading and new or modified requirements related to emissions of sulfur, nitrogen, mercury, carbon, soot or PM and other substances that could impact the continued operation, cost recovery and/or profitability of generation plants and related assets; the impact of tax legislation or associated Department of Treasury guidance, including potential changes to existing tax incentives, on capital plans, results of operations, financial condition, cash flows or credit ratings; the risks before, during and after generation of electricity associated with the fuels used or the by-products and wastes of such fuels, including coal ash and SNF; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance; resolution of litigation or regulatory proceedings or investigations; the ability to efficiently manage and recover operation, maintenance and development project costs; prices and demand for power generated and sold in wholesale markets; changes in technology, including new, developing, alternative or distributed sources of generation and energy storage; the ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives; volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas; the impact of changing expectations and demands of customers, regulators, investors and stakeholders, including development, adoption, and use of AI by us, our customers and our third party vendors and evolving expectations related to sustainability; customer affordability considerations may impact regulatory recovery outcomes and future rate design; changes in utility regulation, policies, methodologies for evaluating and approving load interconnection, and the allocation of costs within RTOs including ERCOT, PJM and SPP and the impacts of potential market changes within those RTOs; changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in ratings impacting the cost of debt; geopolitical developments continue to create uncertainty in global energy markets and have contributed to increased volatility in fuel supply and pricing.  Shifts in global market conditions and broader supply-chain pressures may influence natural gas prices, power-generation economics and customer demand patterns; the impact of volatility in the capital markets on the value of the investments held by the pension, OPEB and nuclear decommissioning trust funds and a captive insurance entity and the impact of such volatility on future funding requirements; accounting standards periodically issued by accounting standard-setting bodies; the ability to successfully defend against cybersecurity threats; other risks and unforeseen events, including wars and military conflicts, the effects of terrorism (including increased security costs), embargoes, labor strikes impacting material supply chains, global information technology disruptions and other catastrophic events; the ability to attract and retain the requisite work force and key personnel, including senior management.  

SOURCE American Electric Power

Atlas Engineered Products Ltd. (AEP:CA) Q1 2026 Earnings Call Transcript

A month has gone by since the last earnings report for American Electric Power (AEP - Free Report) . Shares have lost about 4.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AEP due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for American Electric Power Company, Inc. before we dive into how investors and analysts have reacted as of late.

American Electric's Q1 Earnings Beat Estimates, Revenues Increase Y/Y

American Electric Power Company, Inc. reported first-quarter 2026 operating earnings of $1.64 per share, which beat the Zacks Consensus Estimate of $1.55 by 5.8%. Operating earnings increased 6.5% from $1.54 in the year-ago quarter.

On a GAAP basis, AEP posted earnings of $1.61 per share, up from $1.50 a year ago.

American Electric Total RevenuesAEP generated total revenues of $6.02 billion, up 10.2% from $5.46 billion in the prior-year quarter. The top line also came in ahead of the Zacks Consensus Estimate of $5.68 billion by 6.0%.

The company’s quarter reflected continued demand growth across its service territory, with management pointing to seven gigawatts of new load agreements signed during the first quarter, largely in Ohio and Texas. AEP also highlighted that its incremental contracted load is expected to expand to 63 gigawatts by 2030, supported by signed agreements with large-load customers.

AEP’s Segmental PerformanceVertically Integrated Utilities: Operating earnings increased to $464 million from $350 million in the year-ago quarter, supported by stronger underlying utility performance. This segment remained AEP’s largest profit contributor for the period.

Transmission & Distribution Utilities: Operating earnings came in at $237 million, up from $192 million a year ago. The improvement reflected stronger results in the distribution-focused utilities compared with the prior-year base.

AEP Transmission Holdco: Operating earnings totaled $209 million, down from $235 million in first-quarter 2025. Despite its strategic importance, this segment was the primary drag on year-over-year operating earnings growth.

Generation & Marketing: Operating earnings rose to $90 million from $76 million a year earlier. The improvement indicated better performance in the company’s marketing, risk management and related market activities compared with the year-ago quarter.

Corporate and Other: The segment reported an operating loss of $109 million, wider than the $30 million loss posted in the prior-year period. The larger loss meaningfully offset gains elsewhere across the portfolio.

AEP’s 2026 GuidanceAmerican Electric expects to generate earnings in the band of $6.15-$6.45 per share. The Zacks Consensus Estimate for earnings is pegged at $6.33 per share, which lies above the midpoint of the company’s projected range.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM ScoresAt this time, AEP has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, AEP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Dan Dreyfus, founder of Borneite Capital, warned on the All-In Podcast that America’s grid is in such poor shape that blackouts, when power is completely lost, and brownouts, when voltage is reduced, and electricity becomes less reliable, are coming from ordinary electrification alone. AI data centers are layering onto an existing problem.

A Grid Frozen in Time Dreyfus explained the central reason why he believes we have this problem today: “We have not invested in upgrading and modernizing and hardening the electric grid since post-World War II. We just let it go.” A transmission and distribution network designed for mid-century load patterns is being asked to handle heat pumps, EV charging, electric appliances, and reshored manufacturing simultaneously.

His point is that the shortfall is already baked in before accounting for AI demand, and that electrifying existing buildings and increasing EV penetration will cause blackouts and brownouts on its own. American Electric Power (NASDAQ:AEP | AEP Price Prediction) recently expanded its five-year capital plan to $78 billion, with an additional $10 billion in potential projects primarily tied to contracted load growth. PJM Interconnection, the largest U.S. grid operator and a private company, has projected its peak summer demand growing from 161,000MW to 241,000MW over the next 15 years, a 50% increase.

The Real Bottleneck Is Craft Labor One of Dreyfus’s most unexpected points was that the single biggest bottleneck to solving the energy crisis is craft labor, not money or materials. Linemen, electricians, and skilled tradespeople who physically build and maintain the grid are in short supply. He lamented the cultural trend, asking, “What did we tell all our kids to do in the last 10 or 15 years? Liberalist degrees in the Northeast.”

The labor backdrop supports the squeeze. Average hourly earnings across the private sector rose to $37.53 in May 2026, up from $36.28 a year earlier. Construction value added, the backbone of any grid buildout, has stalled at 0.0% growth in Q4 2025 after running closer to 1% earlier in the year, signaling tight capacity even as utility capex commitments balloon.

Where the Costs Are Really Rising The AI Multiplier and the Limits of Routing Around the Grid Layer AI on top of existing supply problems, and the math becomes even more vivid. Dreyfus argued that a 1-gigawatt AI data center powered entirely by solar would require 5 gigawatts of solar capacity, covering 35,000 acres, an area larger than San Francisco. That explains why hyperscaler demand keeps returning to firm grid power. According to the Lawrence Berkeley National Laboratory, data centers are projected to account for between 6.7-12% of total annual U.S. electricity consumption by 2028.

Can households route around the issue? Dreyfus noted that half of the live audience had already installed solar and Powerwalls, but he pushed back, arguing industrial users will always need the grid at scale. Factories and data centers cannot run on rooftop systems. The workaround economy is forming at the edges: General Motors (NYSE:GM) is entering sodium-ion grid-scale battery storage via a partnership with Peak Energy, and mobile charging firms are pitching DC fast charging without needing permanent grid upgrades.

Key Investor Takeaways Dreyfus believes copper prices will “easily double” from current levels, tying the grid thesis to a materials thesis. For investors, the binding constraints sit in transmission, distribution, and skilled labor, with copper as the connective tissue. These are long-cycle, policy-dependent trends. The clearest signal from BEA industry data and utility capex announcements is that grid modernization is shaping up as a multi-decade necessity, with the bottlenecks Dreyfus names likely to dictate where pressure and pricing power end up.