AEP Reports Record Second-Quarter Operating Earnings, Guides to Upper Half of 2025 Guidance Range
- Second-quarter 2025 GAAP earnings of
$2.29 per share; operating earnings of$1.43 per share. - AEP guides to the upper half of its 2025 operating earnings guidance range of
$5.75 to$5.95 per share and reaffirms long-term growth rate of 6% to 8%. - AEP expects to announce a new, five-year capital plan of approximately
$70 billion . - Customer agreements are secured for 24 gigawatts of new load by end of decade, up from 21 gigawatts.
- Key legislative actions and regulatory approvals drove exceptional results for customers and stakeholders and provide clarity for the future.
With a strong second-quarter performance, a focus on customers, and confidence in its ability to execute, AEP is reaffirming its 2025 operating earnings guidance range of
"Our record second-quarter results reflect the strength of our customer-focused strategy and the dedication of our teams across the company," said
Customer-Centric Approach Drives Results
AEP's operating companies are focused on customer service, which supports safe, reliable and affordable energy systems aligned with the strategic goals of each state. Recent legislative advancements in Oklahoma,
"One of my first actions as CEO was to empower our operating companies to put the customer first, while deepening collaboration with our state and federal regulators, legislators and policymakers. This strategy is delivering meaningful results for all stakeholders," added Fehrman.
AEP's focused financing strategy has strengthened the balance sheet. In June, AEP completed the transaction for KKR and PSP Investments to jointly invest
AEP is successfully executing on its
AEP has secured customer agreements with firm financial commitments to add 24 gigawatts of incremental load by 2030, primarily in its
"AEP is strategically positioned for sustained growth as we transform the electric grid and invest in new resources to meet the generational load growth opportunity in front of us, benefitting our customers, communities and all other stakeholders," Fehrman concluded.
|
|||||||||
Preliminary, unaudited results |
|||||||||
|
Second Quarter
Ended |
|
Year-to-Date Ended |
||||||
|
2025 |
2024 |
Change |
|
2025 |
2024 |
Change |
||
Revenue ($ in millions): |
5,086.9 |
4,579.2 |
507.7 |
|
10,550.3 |
9,604.9 |
945.4 |
||
Earnings ($ in millions): |
|
|
|
|
|
|
|
||
|
GAAP |
1,225.8 |
340.3 |
885.5 |
|
2,026.0 |
1,343.4 |
682.6 |
|
|
Operating (non-GAAP) |
765.7 |
662.0 |
103.7 |
|
1,589.0 |
1,332.4 |
256.6 |
|
|
|
|
|
|
|
|
|
||
EPS ($): |
|
|
|
|
|
|
|
||
|
GAAP |
2.29 |
0.64 |
1.65 |
|
3.80 |
2.55 |
1.25 |
|
|
Operating (non-GAAP) |
1.43 |
1.25 |
0.18 |
|
2.98 |
2.52 |
0.46 |
|
|
|||||||||
EPS based on 534 million shares 2Q 2025, 529 million shares 2Q 2024. |
SUMMARY OF RESULTS BY SEGMENT |
||||||
$ in millions |
||||||
GAAP Earnings |
2Q 25 |
2Q 24 |
Change |
YTD 25 |
YTD 24 |
Change |
|
432.7 |
65.7 |
367.0 |
756.8 |
626.5 |
130.3 |
|
223.9 |
146.8 |
77.1 |
388.5 |
297.1 |
91.4 |
AEP Transmission Holdco (c) |
578.4 |
200.7 |
377.7 |
813.0 |
409.4 |
403.6 |
Generation & Marketing (d) |
62.1 |
(4.8) |
66.9 |
164.5 |
132.8 |
31.7 |
All Other |
(71.3) |
(68.1) |
(3.2) |
(96.8) |
(122.4) |
25.6 |
Total GAAP Earnings (Loss) |
1,225.8 |
340.3 |
885.5 |
2,026.0 |
1,343.4 |
682.6 |
|
|
|
|
|
|
|
Operating Earnings (non-GAAP) |
2Q 25 |
2Q 24 |
Change |
YTD 25 |
YTD 24 |
Change |
|
296.7 |
244.8 |
51.9 |
646.6 |
545.1 |
101.5 |
|
224.1 |
215.3 |
8.8 |
416.4 |
365.6 |
50.8 |
AEP Transmission Holdco (c) |
224.5 |
208.9 |
15.6 |
459.1 |
417.6 |
41.5 |
Generation & Marketing (d) |
91.7 |
61.0 |
30.7 |
168.0 |
126.4 |
41.6 |
All Other |
(71.3) |
(68.0) |
(3.3) |
(101.1) |
(122.3) |
21.2 |
Total Operating Earnings (non-GAAP) |
765.7 |
662.0 |
103.7 |
1,589.0 |
1,332.4 |
256.6 |
A full reconciliation of GAAP earnings with operating earnings is included in tables at the end of this news release. |
|
|
|
a. |
Includes |
b. |
Includes |
c. |
Includes transmission-only subsidiaries and transmission-only joint ventures |
d. |
Includes marketing, risk management and retail activities in |
EARNINGS GUIDANCE
AEP confirmed its 2025 operating earnings guidance range of
Reflecting certain items recorded through the second quarter, the estimated earnings per share on a GAAP basis would be
2025 EPS Guidance Reconciliation |
|||
|
|
|
|
Estimated EPS on a GAAP basis |
|
to |
|
|
|
|
|
Mark-to-market impact of commodity hedging activities |
|
0.01 |
|
|
|
|
|
Sale of |
|
0.02 |
|
|
|
|
|
Impact of Ohio Legislation |
|
0.05 |
|
|
|
|
|
FERC NOLC Order |
|
(0.90) |
|
|
|
|
|
Operating EPS Guidance |
|
to |
|
WEBCAST
AEP's quarterly discussion with financial analysts and investors will be broadcast live over the internet at
AEP's earnings are prepared in accordance with accounting principles generally accepted in
ABOUT AEP
Our team at
WEBSITE DISCLOSURE
AEP may use its website as a distribution channel for material company information. Financial and other important information regarding AEP is routinely posted on and accessible through AEP's website at https://www.aep.com/investors/. In addition, you may automatically receive email alerts and other information about AEP when you enroll your email address by visiting the "Email Alerts" section at https://www.aep.com/investors/.
This report made by the Registrants contains forward-looking statements, and for the Registrants other than Parent, this report contains forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Many forward-looking statements appear in "Part I – Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations" of this quarterly report, but there are others throughout this document which may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue" and similar expressions, and include statements reflecting future results or guidance and statements of outlook. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements in this document are presented as of the date of this document. Except to the extent required by applicable law, management undertakes no obligation to update or revise any forward-looking statement. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in economic conditions, electric market demand and demographic patterns in AEP service territories; the economic impact of increased global conflicts and trade tensions, and the adoption or expansion of economic sanctions, tariffs, trade restrictions or changes in trade policy; inflationary or deflationary interest rate trends; new legislation adopted in the states in which we operate that alters the regulatory framework or that prevents the timely recovery of costs and investments; volatility and disruptions in financial markets precipitated by any cause, including fiscal and monetary policy, turmoil related to federal budget or debt ceiling matters or instability in the banking industry; particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt; the availability and cost of funds to finance working capital and capital needs, particularly (a) if expected sources of capital such as proceeds from the sale of assets, subsidiaries and tax credits and anticipated securitizations do not materialize or do not materialize at the level anticipated, and (b) during periods when the time lag between incurring costs and recovery is long and the costs are material; changing demand for electricity, including large load contractual commitments for interconnection; the risks and uncertainties associated with wildfires, including damages caused by wildfires, the extent of each Registrant's liability in connection with wildfires, investigations and outcomes associated with legal proceedings, demands or similar actions, inability to recover wildfire costs through insurance or through rates and the impact on financial condition and the reputation of each Registrant; the impact of extreme weather conditions, natural disasters and catastrophic events such as storms, wildfires and drought conditions that pose significant risks including potential litigation and the inability to recover significant damages and restoration costs incurred; limitations or restrictions on the amounts and types of insurance available to cover losses that might arise in connection with natural disasters, wildfires or operations; the cost of fuel and its transportation, the creditworthiness and performance of parties who supply and transport fuel and the cost of storing and disposing of used fuel, including coal ash and spent nuclear fuel; the availability of fuel and necessary generation capacity and the performance of generation plants; the ability to recover fuel and other energy costs through regulated or competitive electric rates; the ability to build or acquire generation (including from renewable sources), transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) to meet the demand for electricity at acceptable prices and terms, including favorable tax treatment, cost caps imposed by regulators and other operational commitments to regulatory commissions and customers for generation projects, to recover all related costs and to earn a reasonable rate of return; the disruption of AEP's business operations due to impacts of economic or market conditions, costs of compliance with potential government regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers caused by pandemics, natural disasters or other events; new legislation, litigation or government regulation, including changes to tax laws and regulations, oversight of nuclear generation, energy commodity trading and new or modified requirements related to emissions of sulfur, nitrogen, mercury, carbon, soot or PM and other substances that could impact the continued operation, cost recovery and/or profitability of generation plants and related assets; the impact of tax legislation or associated
|
|||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
Financial Results for the Second Quarter of 2025 |
|||||||||||||||
Reconciliation of GAAP to Operating Earnings (non-GAAP) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
||||||||||||
|
|
|
Vertically |
|
Transmission |
|
AEP |
|
Generation |
|
Corporate |
|
Total |
|
EPS (a) |
|
|
|
($ in millions) |
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings (Loss) |
|
432.7 |
|
223.9 |
|
578.4 |
|
62.1 |
|
(71.3) |
|
1,225.8 |
|
$ 2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP Earnings |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact of |
(c) |
(9.6) |
|
— |
|
— |
|
29.6 |
|
— |
|
20.0 |
|
0.04 |
|
FERC NOLC Order |
(d) |
(126.4) |
|
0.2 |
|
(353.9) |
|
— |
|
— |
|
(480.1) |
|
(0.90) |
Total Adjustments |
|
(136.0) |
|
0.2 |
|
(353.9) |
|
29.6 |
|
— |
|
(460.1) |
|
$ (0.86) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings (Loss) |
|
296.7 |
|
224.1 |
|
224.5 |
|
91.7 |
|
(71.3) |
|
765.7 |
|
$ 1.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results for the Second Quarter of 2024 |
|||||||||||||||
Reconciliation of GAAP to Operating Earnings (non-GAAP) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
||||||||||||
|
|
|
Vertically |
|
Transmission |
|
AEP |
|
Generation |
|
Corporate |
|
Total |
|
EPS (a) |
|
|
|
($ in millions) |
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings (Loss) |
|
65.7 |
|
146.8 |
|
200.7 |
|
(4.8) |
|
(68.1) |
|
340.3 |
|
$ 0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP Earnings |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact of |
(c) |
(3.4) |
|
— |
|
— |
|
(3.8) |
|
— |
|
(7.2) |
|
(0.02) |
|
Remeasurement of Excess ADIT |
(e) |
(12.2) |
|
— |
|
— |
|
— |
|
— |
|
(12.2) |
|
(0.02) |
|
Provision for Refund - Turk Plant |
(f) |
126.4 |
|
— |
|
— |
|
— |
|
— |
|
126.4 |
|
0.24 |
|
Pending Sale of AEP OnSite |
(g) |
— |
|
— |
|
— |
|
10.4 |
|
— |
|
10.4 |
|
0.02 |
|
Severance Charges |
(h) |
57.7 |
|
27.2 |
|
8.2 |
|
0.4 |
|
0.1 |
|
93.6 |
|
0.18 |
|
Federal EPA Coal Combustion |
(i) |
10.6 |
|
41.3 |
|
— |
|
58.8 |
|
— |
|
110.7 |
|
0.21 |
Total Adjustments |
|
179.1 |
|
68.5 |
|
8.2 |
|
65.8 |
|
0.1 |
|
321.7 |
|
$ 0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings (Loss) |
|
244.8 |
|
215.3 |
|
208.9 |
|
61.0 |
|
(68.0) |
|
662.0 |
|
$ 1.25 |
(a) |
Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic |
(b) |
Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted |
(c) |
Represents the impact of mark-to-market economic hedging activities |
(d) |
Represents the impact of the FERC NOLC Order for years 2021-2024 |
(e) |
Represents the impact of the remeasurement of Excess ADIT in |
(f) |
Represents a provision for revenue refunds on certain capitalized costs associated with the Turk Plant |
(g) |
Represents the loss on the expected sale of |
(h) |
Represents employee severance charges |
(i) |
Represents the impact of the Federal EPA Revised Coal Combustion Residuals Rule |
|
||||||
Summary of Selected Sales Data |
||||||
Regulated Connected Load |
||||||
(Data based on preliminary, unaudited results) |
||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||
ENERGY & DELIVERY SUMMARY |
|
2025 |
|
2024 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
6,372 |
|
6,672 |
|
(4.5) % |
Commercial |
|
6,297 |
|
6,084 |
|
3.5 % |
Industrial |
|
8,595 |
|
8,749 |
|
(1.8) % |
Miscellaneous |
|
569 |
|
568 |
|
0.2 % |
Total Retail |
|
21,833 |
|
22,073 |
|
(1.1) % |
|
|
|
|
|
|
|
|
|
3,443 |
|
3,176 |
|
8.4 % |
|
|
|
|
|
|
|
Total KWHs |
|
25,276 |
|
25,249 |
|
0.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
6,299 |
|
6,593 |
|
(4.5) % |
Commercial |
|
11,042 |
|
9,209 |
|
19.9 % |
Industrial |
|
7,048 |
|
6,826 |
|
3.3 % |
Miscellaneous |
|
172 |
|
180 |
|
(4.4) % |
Total Retail (b) |
|
24,561 |
|
22,808 |
|
7.7 % |
|
|
|
|
|
|
|
|
|
464 |
|
253 |
|
83.4 % |
|
|
|
|
|
|
|
Total KWHs |
|
25,025 |
|
23,061 |
|
8.5 % |
(a) |
Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers |
(b) |
Represents energy delivered to distribution customers |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results for Year-to-Date 2025 |
|||||||||||||||
Reconciliation of GAAP to Operating Earnings (non-GAAP) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
||||||||||||
|
|
|
Vertically |
|
Transmission |
|
AEP |
|
Generation |
|
Corporate |
|
Total |
|
EPS (a) |
|
|
|
($ in millions) |
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings (Loss) |
|
756.8 |
|
388.5 |
|
813.0 |
|
164.5 |
|
(96.8) |
|
2,026.0 |
|
$ 3.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP Earnings |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact of |
(c) |
16.2 |
|
— |
|
— |
|
(10.2) |
|
— |
|
6.0 |
|
0.01 |
|
Sale of |
(d) |
— |
|
— |
|
— |
|
13.7 |
|
(4.3) |
|
9.4 |
|
0.02 |
|
Impact of Ohio Legislation |
(e) |
— |
|
27.7 |
|
— |
|
— |
|
— |
|
27.7 |
|
0.05 |
|
FERC NOLC Order |
(f) |
(126.4) |
|
0.2 |
|
(353.9) |
|
— |
|
— |
|
(480.1) |
|
(0.90) |
Total Adjustments |
|
(110.2) |
|
27.9 |
|
(353.9) |
|
3.5 |
|
(4.3) |
|
(437.0) |
|
$ (0.82) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings (Loss) |
|
646.6 |
|
416.4 |
|
459.1 |
|
168.0 |
|
(101.1) |
|
1,589.0 |
|
$ 2.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results for Year-to-Date 2024 |
|||||||||||||||
Reconciliation of GAAP to Operating Earnings (non-GAAP) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
||||||||||||
|
|
|
Vertically |
|
Transmission |
|
AEP |
|
Generation |
|
Corporate |
|
Total |
|
EPS (a) |
|
|
|
($ in millions) |
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings (Loss) |
|
626.5 |
|
297.1 |
|
409.4 |
|
132.8 |
|
(122.4) |
|
1,343.4 |
|
$ 2.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP Earnings |
(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market Impact of |
(c) |
17.0 |
|
— |
|
— |
|
(76.0) |
|
— |
|
(59.0) |
|
(0.11) |
|
Remeasurement of Excess ADIT |
(g) |
(44.6) |
|
— |
|
— |
|
— |
|
— |
|
(44.6) |
|
(0.09) |
|
Impact of NOLC on Retail |
(h) |
(259.6) |
|
— |
|
— |
|
— |
|
— |
|
(259.6) |
|
(0.50) |
|
Disallowance - |
(i) |
11.1 |
|
— |
|
— |
|
— |
|
— |
|
11.1 |
|
0.02 |
|
Provision for Refund - Turk Plant |
(j) |
126.4 |
|
— |
|
— |
|
— |
|
— |
|
126.4 |
|
0.24 |
|
Pending Sale of AEP OnSite |
(k) |
— |
|
— |
|
— |
|
10.4 |
|
— |
|
10.4 |
|
0.02 |
|
Severance Charges |
(l) |
57.7 |
|
27.2 |
|
8.2 |
|
0.4 |
|
0.1 |
|
93.6 |
|
0.18 |
|
Federal EPA Coal Combustion |
(m) |
10.6 |
|
41.3 |
|
— |
|
58.8 |
|
— |
|
110.7 |
|
0.21 |
Total Adjustments |
|
(81.4) |
|
68.5 |
|
8.2 |
|
(6.4) |
|
0.1 |
|
(11.0) |
|
$ (0.03) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings (Loss) |
|
545.1 |
|
365.6 |
|
417.6 |
|
126.4 |
|
(122.3) |
|
1,332.4 |
|
$ 2.52 |
(a) |
Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic |
(b) |
Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted |
(c) |
Represents the impact of mark-to-market economic hedging activities |
(d) |
Represents an adjustment to the estimated loss on the sale of |
(e) |
Represents the estimated reduction in regulatory assets for OVEC-related purchased power costs as a result of approved legislation in |
(f) |
Represents the impact of the FERC NOLC Order for years 2021-2024 |
(g) |
Represents the impact of the remeasurement of Excess ADIT in |
(h) |
Represents the impact of receiving |
(i) |
Represents the impact of a disallowance recorded at SWEPCo on the remaining net book value of the |
(j) |
Represents a provision for revenue refunds on certain capitalized costs associated with the Turk Plant |
(k) |
Represents the loss on the expected sale of |
(l) |
Represents employee severance charges |
(m) |
Represents the impact of the Federal EPA Revised Coal Combustion Residuals Rule |
|
||||||
Summary of Selected Sales Data |
||||||
Regulated Connected Load |
||||||
(Data based on preliminary, unaudited results) |
||||||
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||
ENERGY & DELIVERY SUMMARY |
|
2025 |
|
2024 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
15,776 |
|
15,232 |
|
3.6 % |
Commercial |
|
12,193 |
|
11,853 |
|
2.9 % |
Industrial |
|
16,696 |
|
17,001 |
|
(1.8) % |
Miscellaneous |
|
1,102 |
|
1,106 |
|
(0.4) % |
Total Retail |
|
45,767 |
|
45,192 |
|
1.3 % |
|
|
|
|
|
|
|
|
|
8,234 |
|
6,939 |
|
18.7 % |
|
|
|
|
|
|
|
Total KWHs |
|
54,001 |
|
52,131 |
|
3.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
13,310 |
|
12,873 |
|
3.4 % |
Commercial |
|
20,630 |
|
17,200 |
|
19.9 % |
Industrial |
|
13,804 |
|
13,638 |
|
1.2 % |
Miscellaneous |
|
344 |
|
360 |
|
(4.4) % |
Total Retail (b) |
|
48,088 |
|
44,071 |
|
9.1 % |
|
|
|
|
|
|
|
|
|
1,131 |
|
843 |
|
34.2 % |
|
|
|
|
|
|
|
Total KWHs |
|
49,219 |
|
44,914 |
|
9.6 % |
(a) |
Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers |
(b) |
Represents energy delivered to distribution customers |
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