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Mar 31
AEP Q1 2025 Earnings Report
AEP reported solid results in Q1 2025, with strong operating earnings and robust commercial load growth.
Key Takeaways
American Electric Power posted strong operating earnings in Q1 2025, driven by a 12.3% surge in commercial load and strategic equity funding initiatives. The company reaffirmed its full-year guidance and remains focused on executing its $54 billion capital investment plan.
Commercial load rose 12.3% year-over-year, reflecting continued demand from large-load customers.
GAAP net income was $800,200,000 and operating earnings reached $823,300,000.
EPS came in at $1.50 (GAAP) and $1.54 (non-GAAP), up from $1.27 non-GAAP EPS a year earlier.
AEP secured full equity funding for its $54B capital plan through a forward equity offering and transmission company transaction.
AEP
AEP
Forward Guidance
AEP reaffirmed its 2025 operating earnings guidance of $5.75 to $5.95 per share and its long-term 6%–8% earnings growth target.
Positive Outlook
- Confirmed 2025 operating EPS guidance of $5.75–$5.95.
- Affirmed long-term growth rate of 6% to 8%.
- Secured full equity funding for capital plan.
- Low direct tariff exposure on capital plan (0.3%).
- Strong demand outlook with 20 GW of new power demand expected by decade-end.
Challenges Ahead
- GAAP net income down from $1.003B in Q1 2024 to $800.2M in Q1 2025.
- EPS declined from $1.91 (GAAP) in Q1 2024 to $1.50 in Q1 2025.
- Vertically integrated utilities segment saw earnings fall by $236.7M YoY.
- Ongoing regulatory proceedings in Ohio yet to be resolved.
- Industrial load declined YoY in both utility segments.