American Electric Power Company (AEP) Q4 2025 earnings summary

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.