American Electric Power(US:AEP)2025-10-29 11:02Financial Performance - Third-quarter 2025 GAAP earnings were $972 million or $1.82 per share, compared to $960 million or $1.80 per share in the same quarter of 2024[3] - Operating earnings for third-quarter 2025 were $963 million or $1.80 per share, down from $985 million or $1.85 per share in third-quarter 2024[3] - AEP's revenue for the third quarter of 2025 was $6.01 billion, an increase of $590.3 million from $5.42 billion in the same quarter of 2024[13] - Year-to-date GAAP earnings for 2025 were $2,998.0 million, with an EPS of $5.61, compared to $2,551.9 million and $4.78 in the same period of 2024[35] - The company reported a total adjustment impact of $14.8 million on earnings, contributing an additional $0.03 to EPS[37] - The company incurred severance charges of $93.6 million, impacting overall earnings[37] - The impact of regulatory liabilities and adjustments related to NOLC reduced earnings by $259.6 million[37] Operating Earnings Guidance - AEP reaffirms its 2025 operating earnings guidance range of $5.75 to $5.95 per share, expecting results to be in the upper half of this range[4] - AEP announced a new long-term operating earnings growth rate of 7-9% over the next five years, supported by a $72 billion capital plan[4] - Year-to-date operating earnings (non-GAAP) for 2025 were $2,551.9 million, reflecting a significant increase compared to the previous year[35] Capital Investment and Growth - The capital plan is expected to drive a 10% annual growth in rate base, reaching $128 billion by 2030[5] - The company plans to invest over $20 billion in generation resources and $30 billion in transmission assets over the next five years[8] - AEP's capital plan is one of the largest in the industry, driven by commitments from large load customers including data centers and industrials[6] Sales Performance - Total retail electric sales for Q3 2025 reached 25,348 million kWh, a 1.2% increase from 25,043 million kWh in Q3 2024[34] - Wholesale electric sales increased by 18.5% in Q3 2025, totaling 4,217 million kWh compared to 3,559 million kWh in Q3 2024[34] - The company experienced a 30.4% increase in commercial retail electric sales in Q3 2025, reaching 12,610 million kWh[34] - Total retail electric sales increased by 1.3% year-over-year, totaling 71,115 million kWh[39] - Wholesale electric sales surged by 18.6%, reaching 12,451 million kWh compared to the previous year[39] - Residential retail electric sales rose by 1.8%, totaling 24,618 million kWh[39] - Commercial retail electric sales increased by 4.2%, reaching 19,548 million kWh[39] - Total retail electric sales in transmission and distribution utilities grew by 10.6%, totaling 76,172 million kWh[39] Other Financial Impacts - The impact of Ohio legislation resulted in a reduction of $8.5 million in Q3 2025[31] - The company reported a mark-to-market impact of commodity hedging activities resulting in a loss of $0.6 million in Q3 2025[31] - Operating earnings for Q3 2025 (non-GAAP) were $962.9 million, down from $985.4 million in Q3 2024[31]