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Sep 30
AEP Q3 2025 Earnings Report
AEP posted higher GAAP earnings but slightly lower operating earnings in Q3 2025 compared to the prior year.
Key Takeaways
American Electric Power delivered solid Q3 2025 results with increased GAAP earnings and strong revenue growth, although operating income and non-GAAP earnings slightly declined year-over-year. The company reaffirmed its full-year guidance and unveiled an ambitious $72 billion capital plan to meet surging demand from large customers.
Q3 2025 GAAP net income rose to $972 million, up from $960 million in Q3 2024.
Operating earnings decreased slightly to $963 million versus $985 million in the prior-year quarter.
Revenue increased to $6.01 billion, a rise of $590 million year-over-year.
AEP announced a $72 billion five-year capital plan to support 28 GW of new load backed by customer agreements.
AEP
AEP
AEP Revenue by Segment
Revenue by Segment
Vertically Integrated Utilities Revenue
CapyFin.comTransmission & Distribution Revenue
CapyFin.comAEP Transmission Holdco Revenue
CapyFin.comGeneration & Marketing Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
AEP reaffirmed its 2025 operating earnings guidance in the upper half of the $5.75–$5.95 per share range and introduced a long-term 7–9% annual EPS growth rate through 2030.
Positive Outlook
- Raised long-term operating EPS growth target to 7–9% through 2030
- Capital plan increased to $72 billion, with customer-backed demand
- 2025 operating earnings expected in upper half of guidance
- Infrastructure investments in transmission, generation, and distribution
- Strong customer commitments driving higher load projections
Challenges Ahead
- Operating earnings decreased YoY despite higher revenue
- Transmission Holdco and Generation segments reported lower earnings
- Ongoing regulatory uncertainties may affect cost recovery
- Significant capital needs require efficient funding execution
- Potential risks from inflation, weather, and commodity markets