American Electric Power Co Inc (AEP) Q3 2025 Earnings Call Highlights: Strong Growth …

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• Operating Earnings: $1.80 per share, or $963 million for Q3 2025.

• 2025 Full Year Operating Earnings Guidance: Reaffirmed at $5.75 to $5.95 per share, guiding to the upper half of this range.

• 2026 Operating Earnings Guidance: $6.15 to $6.45 per share, approximately 8% increase from 2025 midpoint.

• Year-to-Date Operating Earnings: $4.78 per share, up from $4.38 per share in 2024, a 9% increase year-over-year.

• Long-term Operating Earnings Growth Rate: Increased to 7% to 9% annually from 2026 to 2030, with an expected 9% CAGR over five years.

• Capital Plan: $72 billion over five years, with a focus on transmission and generation investments.

• Commercial and Industrial Load Growth: Nearly 8% on a rolling 12-month basis as of September 30, 2025.

• System Peak Demand Projection: 65 gigawatts by 2030, with 28 gigawatts of contracted load additions.

• Transmission Rate Base: Expected to exceed $50 billion by 2030.

• Residential Customer Rate Increase Forecast: Approximately 3.5% annually through 2030.

• Growth Equity Needs: $5.9 billion, with over 80% projected to be issued during the back half of the five-year plan.

Release Date: October 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• American Electric Power Co Inc (NASDAQ:AEP) announced an increased long-term operating earnings growth rate of 7% to 9% for 2026 to 2030, with an expected 9% compounded annual growth rate over the five-year period.

• AEP reported strong third-quarter 2025 operating earnings of $1.80 per share, or $963 million, and reaffirmed its 2025 full-year operating earnings range of $5.75 to $5.95 per share.

• The company has a substantial $72 billion capital plan over the next five years, focusing on transmission and generation to support exceptional load growth.

• AEP’s unmatched transmission scale and expertise, particularly in ultra-high voltage 765 kV lines, positions it as a leader in attracting large load customers.

• The company has secured commission approvals for data center tariffs and large load tariff modifications in several states, protecting other customers from bearing the cost of grid improvements.

• AEP’s operating earnings for the third quarter decreased from $1.85 per share in the same period last year, primarily due to the prior year’s sale of the on-site partners distributed resources business.

• Increased spending on system improvements, depreciation tied to higher capital investments, and interest expenses partially offset the company’s strong year-to-date performance.

• The company faces regulatory challenges, particularly in West Virginia, where recent regulatory orders have impacted ROEs, prompting AEP to file for reconsideration.

• AEP’s financing plan includes a significant amount of growth equity totaling $5.9 billion, with over 80% projected to be issued during the back half of the five-year plan.

• The company is navigating the complexities of balancing renewable and gas generation to meet the diverse energy policies and customer demands across its service territories.