American Electric Power(US:AEP)2025-05-06 11:04Financial Performance - AEP reported first-quarter 2025 GAAP earnings of $800 million or $1.50 per share, down from $1,003 million or $1.91 per share in the same quarter of 2024[3][16] - Operating earnings for the first quarter of 2025 were $823 million or $1.54 per share, compared to $670 million or $1.27 per share in the first quarter of 2024, reflecting a 22.8% increase[3][16] - AEP's estimated GAAP earnings per share for 2025 is projected to be between $5.71 and $5.91, with adjustments for various impacts[26][28] - GAAP earnings for Q1 2025 were $800.2 million, translating to an EPS of $1.50, compared to $1.91 in Q1 2024[38] - Adjustments to GAAP earnings in Q1 2025 totaled $23.1 million, resulting in operating earnings of $823.3 million, or $1.54 per share[38] Sales Performance - Total retail electric sales increased by 3.5% year-over-year, reaching 23,934 million kWh in Q1 2025, up from 23,119 million kWh in Q1 2024[42] - Wholesale electric sales surged by 27.3% year-over-year, totaling 4,791 million kWh in Q1 2025, compared to 3,763 million kWh in Q1 2024[42] - Residential retail electric sales increased by 9.9% to 9,404 million kWh in Q1 2025, compared to 8,560 million kWh in Q1 2024[42] - The industrial retail electric sales decreased by 1.8% year-over-year, totaling 8,101 million kWh in Q1 2025, down from 8,252 million kWh in Q1 2024[42] - Total KWHs delivered by transmission and distribution utilities increased by 10.7% year-over-year, reaching 24,194 million kWh in Q1 2025[42] Capital and Investment - The company secured $2.3 billion through an equity offering completed in March 2025 to support its five-year, $54 billion capital growth plan[5][6] - AEP's capital plan includes $34 billion for distribution and transmission investments to support anticipated load growth, with projects totaling $1.7 billion approved by the PJM board[10][11] - The transmission business is expected to contribute 55% of operating earnings in 2025, with over 500 new and existing customers interested in connecting to the transmission system[11] - AEP's direct tariff exposure related to the $54 billion capital plan is minimal at approximately 0.3%[8] Regulatory and Policy Engagement - The company is actively working with regulators to achieve energy policy goals and has filed updated integrated resource plans in Arkansas and Indiana[13][15] - The impact of Ohio legislation contributed an additional $27.7 million to earnings in Q1 2025[38] Segment Performance - The vertically integrated utilities segment reported a GAAP loss of $324.1 million in Q1 2025, down from a profit of $560.8 million in Q1 2024[39] - The corporate segment reported a loss of $25.5 million in Q1 2025, compared to a loss of $54.3 million in Q1 2024[39] Guidance and Outlook - AEP reaffirmed its 2025 operating earnings guidance of $5.75 to $5.95 per share and a long-term growth rate of 6% to 8%[4][25] - Commercial load increased by 12.3% in the first quarter of 2025 compared to the same period in 2024, continuing a trend from the previous year[6][9]