AEP Reports Fourth Quarter and Full-Year 2025 Results, Reaffirms Long-Term Growth Outlook

Core Viewpoint - American Electric Power (AEP) reported strong financial results for the fourth quarter and full year of 2025, reaffirming its long-term growth outlook and commitment to infrastructure investments to meet increasing customer demand [1][2]. Financial Performance - AEP's fourth-quarter 2025 GAAP earnings were $582 million or $1.09 per share, down from $664 million or $1.25 per share in the same quarter of 2024 [1][2]. - Full-year 2025 GAAP earnings reached $3.58 billion or $6.70 per share, compared to $2.97 billion or $5.60 per share for 2024, reflecting a significant year-over-year increase [1][2]. - Operating earnings for the fourth quarter of 2025 were $638 million or $1.19 per share, compared to $660 million or $1.24 per share in the fourth quarter of 2024 [1][2]. Growth Outlook - AEP reaffirmed its 2026 operating earnings guidance of $6.15 to $6.45 per share and a long-term operating earnings growth rate of 7% to 9% [1][2]. - The company identified opportunities for an additional $5 billion to $8 billion in investments beyond its existing $72 billion five-year capital plan [1][2]. Load Growth and Infrastructure Investment - AEP has signed agreements for an additional 28 gigawatts (GW) of load since October 2025, bringing the total incremental load to 56 GW by 2030 [1][2]. - The load in AEP Texas increased from 13 GW to 36 GW, supported by agreements with major data center developers [1][2]. - AEP is committed to building necessary transmission and distribution infrastructure in Texas and is collaborating with ERCOT to facilitate timely interconnections [1][2]. Customer Affordability and Regulatory Progress - AEP supports fair cost allocation for new large load customers and has implemented new rate structures in several states to ensure that these customers contribute to infrastructure costs [1][2]. - The company has made progress in regulatory cases across its jurisdictions, improving outcomes for customers and supporting long-term investments [2]. Segment Performance - In the fourth quarter of 2025, the Vertically Integrated Utilities segment reported GAAP earnings of $270 million, while the Transmission & Distribution Utilities segment reported $160 million [2]. - For the year-to-date 2025, the Generation & Marketing segment saw a significant increase in operating earnings, contributing $656 million compared to $308 million in the same period of 2024 [2]. Sales Data - AEP's total retail electric sales for the fourth quarter of 2025 increased by 5.2% year-over-year, with residential sales rising by 5.7% and commercial sales by 14.7% [2][5]. - For the year-to-date 2025, total retail electric sales reached 93,967 million kWh, a 2.2% increase from 2024 [5].