American Electric Power Company, Inc. (NASDAQ:AEP) shares are trading higher premarket Wednesday.
The Ohio-based utility reported adjusted earnings of $1.80 per share, down from $1.85 a year ago and missing the Street estimate of $1.81.
Revenue stood at $6.01 billion, ahead of the $5.75 billion analyst consensus.
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Segment Performance
American Electric Power reported higher third-quarter operating earnings in Vertically Integrated Utilities of $573.5 million (up from $572.4 million) and Transmission & Distribution Utilities of $259.1 million (compared with $245.2 million a year ago).
However, Transmission Holdco posted operating earnings of $199.9 million, down from $214.7 million, while the Generation and Marketing segment fell to $48.4 million from $99.2 million in the prior-year period.
Key Metrics
AEP revised its financial commitments to 28 gigawatts of new load by the end of the decade, up from 24 GW since July 2025.
This is led by Electric Service Agreements or Letters of Agreement and an additional 190 GW of load requests at various stages of development.
AEP expects its peak system demand to rise to 65 GW by 2030, compared with the current peak of 37 GW, reflecting strong long-term growth throughout its service area.
To support this expansion, the company plans to invest $30 billion in transmission infrastructure under its new capital plan.
Over the next five years, AEP also intends to invest more than $20 billion in generation resources to meet the needs of customers in fast-growing regions, while roughly $17 billion is projected to be dedicated to enhancing its distribution network through ongoing system improvement initiatives.
Outlook
American Electric Power raised its fiscal 2025 GAAP EPS guidance to $6.58–$6.78 from $6.57–$6.77, above the $6.28 estimate.
The company raised its fiscal 2025 adjusted EPS guidance to $5.85–$5.95 from $5.75–$5.95, compared with the $5.90 consensus estimate.
The company announced a new, increased long-term operating earnings growth rate of 7-9% over the next five years, bolstered by a $72 billion capital plan and supported by an expected 10% annual growth in rate base.
During the first two years of the company’s plan, annual operating earnings growth is anticipated to be in the lower half of the range and at or above the high end of the range in 2028-2030.
As infrastructure projects are put into service to meet customer demand, AEP expects operating earnings per share to increase at a 9% compounded annual growth rate over the five-year period.
The rapidly accelerating load growth also supports AEP’s 2026 operating earnings guidance of $6.15 to $6.45 per share.
Dividend
On October 22, the Board of Directors raised its regular quarterly cash dividend by 2 cents to 95 cents per share.
The dividend will be paid on December 10, 2025, to shareholders of record as of November 10, 2025.
Price Action: AEP shares were trading higher by 4.44% to $120.22 at last check Wednesday.
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