American Electric Power Company (AEP) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 operating earnings of $1.43 per share ($766 million) and GAAP EPS of $2.29, up 14% year-over-year, driven by strong execution, disciplined management, and constructive regulatory outcomes.

• Raised 2025 operating earnings guidance to the upper half of the $5.75–$5.95 per share range, reaffirming a 6%–8% long-term operating earnings growth rate.

• Announced plans for a new five-year capital plan of approximately $70 billion, with 50%–55% allocated to transmission, 26%–40% to generation, and 10% to distribution.

• Secured 24 GW of incremental load growth through 2029–2030 backed by signed customer agreements, primarily from data centers and industrial customers, with over 190 GW in the interconnection queue.

• Achieved positive legislative and regulatory outcomes in key states, supporting infrastructure investment, cost recovery, and reducing regulatory lag.

Financial highlights

• Q2 2025 operating EPS: $1.43 (up from $1.25 in Q2 2024); GAAP EPS: $2.29; Q2 2025 operating earnings: $766M; GAAP earnings: $1,226M.

• YTD 2025 operating EPS: $2.98 (up from $2.52); GAAP EPS: $3.80 (up from $2.55); YTD operating earnings: $1,589M; GAAP earnings: $2,026M.

• Q2 2025 revenue: $5.09B, up $507.7M year-over-year; peak demand: 37.6 GW, up 12%.

• FERC affirmed treatment of NOLCs, resulting in a $480M ($0.90 per share) increase to GAAP earnings, excluded from operating earnings.

• S&P, Moody’s, and Fitch ratings: BBB/Baa2/BBB, all stable outlook; liquidity remains strong at over $5.6B.

Outlook and guidance

• 2025 operating EPS guidance reaffirmed at $5.75–$5.95, with expectations to finish in the upper half.

• Long-term operating EPS growth targeted at 6%–8% annually.

• Dividend payout ratio maintained at 55%–65% of operating earnings.

• FFO/Total Debt targeted at 14%–15%.

• New $70B five-year capital plan to be announced, reflecting transformative load growth and robust customer commitments.