AMERICAN ELECTRIC POWER CO INC (AEP) Earnings History

AMERICAN ELECTRIC POWER CO INC - Q4 FY2025 Earnings

Filed at: Feb 12, 2026, 7:04 AM EST|Read from source

EXECUTIVE SUMMARY

American Electric Power reported strong full-year 2025 results with increased GAAP and operating earnings, driven by significant load growth and strategic infrastructure investments. The company reaffirmed its long-term growth outlook and highlighted opportunities for substantial incremental investment beyond its current capital plan.

POSITIVE HIGHLIGHTS

  • •

    Full-year GAAP earnings increased to $6.70 per share from $5.60 in the prior year.

    positive
  • •

    Full-year operating earnings increased to $5.97 per share from $5.62 in the prior year.

    positive
  • •

    Incremental load demand doubled to 56 GW by 2030, all backed by signed agreements.

    positive
  • •

    Identified opportunities for $5 billion to $8 billion of incremental investment beyond the five-year capital plan.

    positive
  • •

    Reaffirmed 2026 operating earnings guidance of $6.15 to $6.45 per share and long-term operating earnings growth rate of 7% to 9%.

    positive

CONCERNS & RISKS

  • •

    Fourth-quarter GAAP earnings decreased to $1.09 per share from $1.25 in the prior year.

    negative
  • •

    Fourth-quarter operating earnings decreased to $1.19 per share from $1.24 in the prior year.

    negative
  • •

    Total GAAP Earnings for Q4 2025 decreased by $82 million compared to Q4 2024.

    negative
  • •

    Total Operating Earnings for Q4 2025 decreased by $22 million compared to Q4 2024.

    negative
  • •

    AEP Transmission Holdco GAAP earnings decreased by $18 million in Q4 2025 compared to Q4 2024.

    negative
  • •

    Transmission & Distribution Utilities GAAP earnings decreased by $23 million in Q4 2025 compared to Q4 2024.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$5.31B
+13.2%
Prior year: $4.70B
Annual (YTD)
$21.88B
N/A
Prior year: $19.72B
Net Income
Quarterly
$582.00M
-12.3%
Prior year: $664.00M
Annual (YTD)
$3.58B
N/A
Prior year: $2.97B
EPS (Diluted)
Quarterly
$1.19
-4.0%
Prior year: $1.24
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
$1.09
-12.8%
Prior year: $1.25

MARGIN ANALYSIS

Net Margin
Current Quarter
10.9%
Prior Year
14.1%
YoY Change
-321 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Vertically Integrated Utilities
0.0%
N/A
Transmission & Distribution Utilities
0.0%
N/A
AEP Transmission Holdco
0.0%
N/A
Generation & Marketing
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Vertically Integrated Utilities
N/A———
Transmission & Distribution Utilities
N/A———
AEP Transmission Holdco
N/A———
Generation & Marketing
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

operating earnings
6.15—6.45
Mid-point: 6.3
"reaffirmed"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Impairment of in-process internal use software development costs
Adjusted from GAAP earnings.
+$52M
$0.10 per share
Q4 2024
Mark-to-Market Impact of Commodity Hedging Activities
Adjusted from GAAP earnings.
$33M
$0.06 per share
Q4 2024
Provision for Refund - Turk Plant
Adjusted from GAAP earnings.
$10M
$0.02 per share
Q4 2024
State Tax Law Changes
Adjusted from GAAP earnings.
+$11M
$0.02 per share
Q4 2024
Severance and Pension Settlement Charges
Adjusted from GAAP earnings.
+$28M
$0.05 per share
FY 2025
Mark-to-Market Impact of Commodity Hedging Activities
Adjusted from GAAP earnings.
+$9M
$0.01 per share
FY 2025
Sale of AEP OnSite Partners
Adjusted from GAAP earnings.
+$10M
$0.02 per share
FY 2025
Impact of Ohio Legislation
Adjusted from GAAP earnings.
+$19M
$0.04 per share
FY 2025
FERC NOLC Order
Adjusted from GAAP earnings.
$480M
$0.90 per share
FY 2025
Impairment of Software Development Costs
Adjusted from GAAP earnings.
+$52M
$0.10 per share
FY 2024
Mark-to-Market Impact of Commodity Hedging Activities
Adjusted from GAAP earnings.
$85M
$0.17 per share
FY 2024
Remeasurement of Excess ADIT Regulatory Liability
Adjusted from GAAP earnings.
$45M
$0.08 per share
FY 2024
Impact of NOLC on Retail Ratemaking
Adjusted from GAAP earnings.
$260M
$0.49 per share
FY 2024
Disallowance - Dolet Hills Power Station
Adjusted from GAAP earnings.
+$11M
$0.02 per share
FY 2024
Provision for Refund - Turk Plant
Adjusted from GAAP earnings.
+$117M
$0.22 per share
FY 2024
Sale of AEP OnSite Partners
Adjusted from GAAP earnings.
+$11M
$0.02 per share
FY 2024
Federal EPA Coal Combustion Residuals Rule
Adjusted from GAAP earnings.
+$111M
$0.21 per share
FY 2024
SEC Matter Loss Contingency
Adjusted from GAAP earnings.
+$19M
$0.04 per share
FY 2024
State Tax Law Changes
Adjusted from GAAP earnings.
+$11M
$0.02 per share
FY 2024
Severance and Pension Settlement Charges
Adjusted from GAAP earnings.
+$121M
$0.23 per share
Total Impact
$331M$-0.62 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

AEP is exceptionally well positioned for the future with the scale and discipline to execute large-scale infrastructure projects needed to meet unprecedented customer demand in some of the highest-growth regions in the country.

— AMERICAN ELECTRIC POWER CO INC, Q4 FY2025 2025 Earnings Call

We remain committed to making investments that deliver long-term value while helping keep rates affordable for our customers.

— AMERICAN ELECTRIC POWER CO INC, Q4 FY2025 2025 Earnings Call

AEP’s approach to large load customers is serving as a model for the industry.

— AMERICAN ELECTRIC POWER CO INC, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Transmission & Distribution Utilities Retail Electric KWh
26200.0M
+18.3% YoY
Prior year: 22153.0M
KWh
Transmission & Distribution Utilities Retail Electric KWh YTD
102372.0M
+12.4% YoY
Prior year: 91039.0M
KWh
Transmission & Distribution Utilities Total KWhs
26767.0M
+17.3% YoY
Prior year: 22820.0M
KWh
Transmission & Distribution Utilities Total KWhs YTD
104622.0M
+12.4% YoY
Prior year: 93053.0M
KWh
Transmission & Distribution Utilities Wholesale Electric KWh
567.0M
-15.0% YoY
Prior year: 667.0M
KWh
Transmission & Distribution Utilities Wholesale Electric KWh YTD
2250.0M
+11.7% YoY
Prior year: 2014.0M
KWh
Vertically Integrated Utilities Retail Electric KWh
22852.0M
+5.2% YoY
Prior year: 21721.0M
KWh
Vertically Integrated Utilities Retail Electric KWh YTD
31844.0M
+2.6% YoY
Prior year: 31025.0M
KWh
Vertically Integrated Utilities Total KWhs
26440.0M
+4.3% YoY
Prior year: 25357.0M
KWh
Vertically Integrated Utilities Total KWhs YTD
110006.0M
+3.3% YoY
Prior year: 106479.0M
KWh
Vertically Integrated Utilities Wholesale Electric KWh
3588.0M
-1.3% YoY
Prior year: 3636.0M
KWh
Vertically Integrated Utilities Wholesale Electric KWh YTD
16039.0M
+10.4% YoY
Prior year: 14523.0M
KWh

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.