American Electric Power(US:AEP)2025-07-30 11:02Financial Performance - Second-quarter 2025 GAAP earnings reached $1,226 million or $2.29 per share, a significant increase from $340 million or $0.64 per share in the same quarter of 2024[2] - Operating earnings for the second quarter of 2025 were $766 million or $1.43 per share, compared to $662 million or $1.25 per share in the second quarter of 2024, reflecting a year-over-year increase of 15.7%[5] - AEP's revenue for the second quarter of 2025 was $5,086.9 million, up from $4,579.2 million in the same quarter of 2024, marking a 11.1% increase[13] - Year-to-date GAAP earnings for 2025 reached $2,026.0 million with an EPS of $3.80, up from the previous year's figures[35] - Year-to-date operating earnings for 2025 were $1,589.0 million, translating to an EPS of $2.98, reflecting a strong performance compared to prior year[35] - GAAP earnings for Q2 2025 were $1,225.8 million, resulting in an EPS of $2.29, compared to $340.3 million and an EPS of $0.64 in Q2 2024[31][32] - Operating earnings for Q2 2025 were $765.7 million, or $1.43 per share, while Q2 2024 reported $662.0 million, or $1.25 per share, indicating a year-over-year increase of 15.5% in operating EPS[31][32] - Adjustments to GAAP earnings in Q2 2025 included a negative impact of $480.1 million from the FERC NOLC Order[31] - Adjustments to GAAP earnings included a mark-to-market impact of $(59.0) million, affecting EPS by $(0.11)[37] - Employee severance charges accounted for $93.6 million, impacting overall earnings[37] Sales Performance - Total retail electric sales for vertically integrated utilities decreased by 1.1% to 21,833 million kWh in Q2 2025 from 22,073 million kWh in Q2 2024[34] - Wholesale electric sales increased by 8.4% to 3,443 million kWh in Q2 2025 compared to 3,176 million kWh in Q2 2024[34] - The company reported a significant increase in commercial retail electric sales by 19.9% in Q2 2025, reaching 11,042 million kWh[34] - The company experienced a 4.5% decrease in residential retail electric sales in both vertically integrated and transmission & distribution utilities segments[34] - Total retail electric sales increased by 1.3% year-over-year, totaling 45,767 million kWh[39] - Wholesale electric sales surged by 18.7%, reaching 8,234 million kWh compared to the previous year[39] - The company's vertically integrated utilities reported a 3.6% increase in residential electric sales, totaling 15,776 million kWh[39] - The company experienced a 9.1% increase in total retail electric sales for transmission and distribution utilities, totaling 48,088 million kWh[39] - The industrial segment saw a slight decline of 1.8% in electric sales, totaling 16,696 million kWh[39] Strategic Initiatives - AEP is guiding to the upper half of its 2025 operating earnings guidance range of $5.75 to $5.95 per share, reaffirming a long-term growth rate of 6% to 8%[3] - AEP expects to announce a new five-year capital plan of approximately $70 billion, building on its current $54 billion capital plan[5][9] - Customer agreements have been secured for 24 gigawatts of new load by the end of the decade, an increase from the previous 21 gigawatts[5] - AEP has over 190 gigawatts of load requests at various stages of development, actively working to convert these into contracts for long-term growth[10] - The acquisition of the Green Country natural gas plant and approval of large load tariffs have driven positive results, supporting infrastructure investment opportunities[6] - AEP's peak load is expected to exceed 60 gigawatts, positioning the company among the fastest-growing in the industry[10] Regulatory and Market Changes - The company anticipates regulatory changes to reduce assets related to purchased power costs, effective April 2025[41] - Total connected load for regulated utilities showed a stable performance, with minor fluctuations in energy delivery across different customer segments[33]