American Electric Power Co. Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 5 raised, 7 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• GAAP earnings rose, operating earnings fell: Third-quarter GAAP earnings were $972 million or $1.82 per share, against $960 million or $1.80 a year earlier. Operating earnings were $963 million or $1.80 per share, against $985 million or $1.85. Source
• 28 GW of load backed by agreements: Load additions by 2030 total 28 GW, up 4 GW since July 2025. They are backed by Electric Service Agreements or Letters of Agreement. Source
• Five-year capital plan of $72B: The new five-year plan is $72 billion, supported by 28 GW of new load backed by customer agreements. Rate base reaches $128 billion by 2030. Source
• Large-load tariffs require financial commitments: AEP is implementing tariff structures in its states that require large-power customers to make financial commitments based on their load forecasts. Source
• 2025 operating EPS guidance reaffirmed: The 2025 operating EPS range of $5.75 to $5.95 was reaffirmed, with results expected in the upper half of the range. Source
• 2026 operating EPS guidance set: 2026 operating EPS guidance of $6.15 to $6.45 per share was given, tied to accelerating load growth. Source
• Long-term growth rate raised to 7-9%: The long-term operating earnings growth rate is 7-9% over five years, up from 6-8% previously. Source

“As one of the largest utilities in the nation, we are using our scale to ensure we can deliver the power our customers need.”

Bill Fehrman, AEP chairman, president and chief executive officer

Guidance

What changed from last quarter

• Guidance raised: Long-term operating EPS growth rate raised to 7-9% over five years, from 6-8%. Source
• Guidance raised: Capital plan raised to $72 billion from approximately $70 billion. Source
• Guidance raised: Load additions by 2030 raised to 28 GW from 24 GW. Source
• Guidance raised: Estimated 2025 GAAP EPS raised by one cent at each end of the range. Source
• New guidance: 2026 operating EPS guidance of $6.15 to $6.45 per share was issued. Source
• New: Rate base growth target of 10% a year to $128 billion by 2030 was introduced. Source

Quarterly results and earnings

• GAAP earnings rose, operating earnings fell: Third-quarter GAAP earnings were $972 million or $1.82 per share, against $960 million or $1.80 a year earlier. Operating earnings were $963 million or $1.80 per share, against $985 million or $1.85. Source
• Operating earnings higher year to date: Year-to-date operating earnings were $2,551.9 million, against $2,317.8 million a year earlier, and GAAP earnings were $2,998.0 million, against $2,303.0 million. Source
• Revenue rose on higher sales: Third-quarter revenue was $6,010.4 million, against $5,420.1 million a year earlier. Nine-month revenue was $16,560.7 million, against $15,025.0 million. Source
• Share count increased: Quarterly EPS was based on 535 million shares in the third quarter of 2025, against 532 million shares in the third quarter of 2024. Source

Segment earnings

• Vertically integrated utilities slightly higher: Vertically integrated utilities reported operating earnings of $573.5 million, against $572.4 million a year earlier. Source
• Transmission and distribution utilities higher: Operating earnings were $259.1 million, against $245.2 million. GAAP earnings excluded an $8.5 million Ohio legislation adjustment. Source
• Transmission holdco earnings lower: AEP Transmission Holdco operating earnings were $199.9 million, against $214.7 million a year earlier. Source
• Generation and marketing earnings fell: Operating earnings were $48.4 million, against $99.2 million a year earlier. GAAP earnings included a $4.1 million mark-to-market adjustment. Source
• Corporate and other loss narrowed: The All Other operating loss was $118.0 million, against $146.1 million a year earlier. Source

“I am encouraged by the progress we have made this year and look forward to working together as we develop solutions to meet the needs of our customers”

Bill Fehrman, AEP chairman, president and chief executive officer

Load growth and customer demand

• 28 GW of load backed by agreements: Load additions by 2030 total 28 GW, up 4 GW since July 2025. They are backed by Electric Service Agreements or Letters of Agreement. Source
• Further 190 GW of requests pending: An additional 190 GW of load requests are at various stages of development. Source
• Peak demand to reach 65 GW: Peak system demand is expected to rise from a current 37 GW to 65 GW by 2030. Source
• Commercial deliveries in T&D rose: In the third quarter, transmission and distribution retail commercial deliveries rose 30.4% to 12,610 million kWh, and residential rose 0.6%. Source
• Vertically integrated wholesale sales up: Vertically integrated wholesale volume rose 18.5% to 4,217 million kWh, and total vertically integrated kWh rose 3.4% to 29,565 million. Source

Capital plan and infrastructure

• Five-year capital plan of $72B: The new five-year plan is $72 billion, supported by 28 GW of new load backed by customer agreements. Rate base reaches $128 billion by 2030. Source
• Transmission receives $30B: The plan allocates $30 billion to transmission assets, the largest category in the plan. Source
• Generation receives over $20B: More than $20 billion is planned for generation resources across the service territory over five years, to serve customers in fast-growing regions. Source
• Distribution receives $17B: Nearly a quarter of the plan, $17 billion, is for the distribution network as system enhancement programs continue. Source
• 765-kV network cited for customer wins: Management credited its transmission work, including the largest 765-kilovolt network, with securing customers that need reliable delivery of large load power. Source

Rates, tariffs and affordability

• Large-load tariffs require financial commitments: AEP is implementing tariff structures in its states that require large-power customers to make financial commitments based on their load forecasts. Source
• Affordability named as key priority: Operating companies have taken steps so that costs of serving large loads are allocated fairly and the right investments are made. Source
• Securitization and cost management used: Management said AEP is using securitization, cost management and efficient capital allocation to support continued growth. Source
• Ohio legislation reduced regulatory assets: Operating earnings exclude an $8.5 million true-up for reduced regulatory assets for OVEC purchased power costs through August 2025. Source

Earnings guidance and growth

• 2025 operating EPS guidance reaffirmed: The 2025 operating EPS range of $5.75 to $5.95 was reaffirmed, with results expected in the upper half of the range. Source
• 2026 operating EPS guidance set: 2026 operating EPS guidance of $6.15 to $6.45 per share was given, tied to accelerating load growth. Source
• Long-term growth rate raised to 7-9%: The long-term operating earnings growth rate is 7-9% over five years, up from 6-8% previously. Source
• Early years in lower half: Growth is anticipated in the lower half of the range during the first two years of the plan, and at or above the high end in 2028-2030. Source
• GAAP EPS estimate lifted slightly: The estimated 2025 GAAP EPS range is $6.58 to $6.78, from $6.57 to $6.77 previously, reflecting items recorded through the third quarter. Source

Regulatory and legislative relations

• Listening credited for regulatory progress: Management credited listening to regulators, policymakers and customers with improving regulatory and legislative outcomes. Source

Scale of network and customers

• Largest transmission network and customer base: AEP operates the nation's largest electric transmission system, with 40,000 line miles and more than 252,000 miles of distribution lines, serving 5.6 million customers in 11 states. Source

Coming up, as management said on 29 October 2025

• Earnings growth tied to projects in service: As projects enter service to meet customer demand, operating EPS is expected to grow at 9% compounded annually over the five-year plan. Source

Figures management reported

Risks management discussed

• Regulatory: Management names affordability as a key priority while new large-load tariffs are implemented across its states. Source
• Demand: Only 28 GW of load is backed by customer agreements, while a further 190 GW of requests are at various stages of development. Source
• Regulatory: A $0.90 per share FERC NOLC Order item sits in the reconciliation from GAAP to operating EPS guidance for 2025. Source

Earlier plans management reported on

• Not stated: Management reaffirmed the 2025 operating EPS guidance range and said it expects results in its upper half. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.