AEP lifts 2025 guidance after record quarterly operating earnings

30th July 2025 16:45

(Alliance News) - American Electric Power Co Inc on Wednesday reported record second-quarter operating earnings and lifted its full-year guidance to the upper half of its target range, citing strong customer growth, regulatory wins and a solid financial foundation.

For the three months ended June 30, AEP reported operating earnings of USD765.7 million, up 16% from USD662.0 million a year earlier. Operating earnings per share rose to USD1.43 from USD1.25.

On a GAAP basis, earnings surged to USD1.23 billion or USD2.29 per share, from USD340.3 million or USD0.64 per share.

Revenue for the quarter climbed to USD5.09 billion from USD4.58 billion a year prior.

AEP affirmed its 2025 operating earnings guidance range of USD5.75 to USD5.95 per share, compared with USD5.62 in 2024, and now expects results in the upper half of that range. It also reiterated its long-term growth rate of 6% to 8%.

"Our record second-quarter results reflect the strength of our customer-focused strategy and the dedication of our teams across the company," said Chief Executive Officer Bill Fehrman. "Recent legislative advancements in Oklahoma, Ohio and Texas support growing infrastructure investment opportunities."

AEP said it now has customer commitments for 24 gigawatts of new load additions by 2030, up from 21 gigawatts previously, with strong momentum in high-growth states like Ohio, Texas and Indiana.

The company expects to unveil a new five-year capital plan of around USD70 billion this autumn, up from the current USD54 billion investment strategy.

Segment-wise, GAAP earnings from AEP's transmission unit more than doubled year-on-year to USD578 million. Vertically integrated utilities earned USD433 million, while generation and marketing swung to a USD62 million profit from a USD5 million loss.

Shares in AEP were up 3.4% at USD112.91 in New York on Wednesday morning.

By Eva Castanedo, Alliance News reporter

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