American Electric Power Company (AEP) Q4 2024 earnings summary

Executive summary

• 2024 operating earnings were $5.62 per share, a 7% increase year-over-year, with GAAP earnings at $5.60 per share and Q4 GAAP EPS at $1.25, driven by strong commercial and industrial load growth, especially in Indiana, Ohio, and Texas.

• A $54 billion five-year capital plan (2025–2029) is in place, with up to $10 billion in incremental investments under evaluation to meet robust demand, particularly from data centers.

• Announced a $2.82 billion minority interest transaction in the transmission business, expected to close in the second half of 2025, enhancing financial flexibility.

• Dividend increased from $0.88 to $0.93 per share in October 2024, reflecting a 6% rise.

• Retail load growth is forecasted at 8%–9% annually for 2025–2027, underpinned by signed customer obligations.

Financial highlights

• 2024 revenue was $19.72 billion, up from $18.98 billion in 2023; net income was $2.98 billion, up from $2.72 billion in 2023.

• Q4 2024 operating earnings were $660 million, compared to $647 million in Q4 2023.

• Vertically integrated utilities contributed $2.63 per share; transmission and distribution utilities $1.51 per share; AEP Transmission Holdco $1.51 per share; generation and marketing $0.48 per share.

• FFO to Total Debt was 14% at year-end, within the targeted 14%–15% range.

• Weighted average shares outstanding: 530 million for 2024.

Outlook and guidance

• 2025 operating earnings guidance reaffirmed at $5.75–$5.95 per share, with a long-term EPS growth rate of 6%–8%.

• FFO/Debt targeted at 14%–15%.

• Anticipates 8%–9% annual retail load growth through 2027, driven by data center and industrial demand.

• Nearly 5 GW of data processing load contracted for 2025 and over 20 GW through 2030.