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American Electric Power Company (AEP) investor relations material
American Electric Power Company Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record 2025 operating earnings of $5.97 per share and GAAP EPS of $6.70, exceeding guidance and delivering a 29% total shareholder return.
Retail sales grew 7.5% year-over-year, with commercial and industrial sales up nearly 10% and residential up 3%.
Announced a $72 billion five-year capital plan, targeting a 10% rate base CAGR and 7%-9% long-term earnings growth, with an expected 9% CAGR through 2030.
Secured 56 GW of incremental contracted load by 2030, double the prior outlook, all backed by signed customer agreements.
Focused on customer affordability, limiting residential rate increases to 3.5% annually and emphasizing operational excellence and regulatory engagement.
Financial highlights
Full-year 2025 operating earnings were $5.97 per share and GAAP EPS was $6.70, both up year-over-year; Q4 2025 operating EPS was $1.19.
Retail sales surpassed 200 million MWh for the first time, with total retail sales up 7.5% year-over-year.
Dividend increased to $0.95 per share in October 2025.
Generation and marketing segment outperformed expectations, driven by strong energy margins and contract optimization.
Year-end 2025 GAAP net income was $3.58 billion, up from $2.97 billion in 2024.
Outlook and guidance
Reaffirmed 2026 operating earnings guidance of $6.15-$6.45 per share, with a midpoint of $6.30.
Long-term operating earnings growth rate of 7%-9% through 2030, with an expected 9% CAGR.
$72 billion five-year capital plan, with $5-$8 billion of additional confirmed or endorsed projects.
Targeted FFO/Debt range of 14%-15% for 2026-2030.
Over 50% of 2026 operating earnings expected from high-growth transmission business.
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Frequently asked questions
One of America's Largest Electricity Companies
American Electric Power Company, or AEP for short, is one of the largest electrical companies in the US and its shares are listed on the NYSE. AEP is headquartered in Columbus, Ohio, and supplies electricity to over five million customers spread across 11 states. The company is one of the largest generators of electricity in the country, and its shares have historically primarily been owned by large institutional investors.
Over 100 Years of Electricity
AEP was incorporated in 1906 and was then called The American Gas and Electric Company. When the company was founded, the electricity industry was only around 20 years old, but innovation was rapid and demand was constantly growing. The company grew organically over time and also made several acquisitions throughout the decades, and slowly but surely became one of the largest generators and transmitters of electricity across the US. When looking at AEP’s peers, we find other large electric companies such as Nextera, Duke Energy, Exelon Corporation, and well as several others.
One of the Largest Generators of Electricity in the US
AEP owns around 38,000 megawatts of generating capacity in the US, which in turn makes it one of the largest in the nation. The company also owns a massive transmission system of nearly 40,000 miles of cables. AEP is split up into seven companies operating locally: AEP Texas, Appalachian Power, Indiana Michigan Power, Kentucky Power, Southwestern Electric Power Company, Public Service Company of Oklahoma, and AEP Ohio. Where these companies are located and operating is relatively self-explanatory, but the operations are centered around the midwest and southern states.
Moving Into Renewables
The world is slowly but surely starting to place a larger focus on renewable energy. AEP is, like many other energy companies, moving with the times in regard to green energy sources. The company generates power through both wind and solar which it then supplies to its customers, and AEP has continuously invested in various large-scale renewable energy projects such as wind and solar farms.
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