AEP Q1 2025 Earnings Report
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.