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COLUMBUS - On Wednesday, American Electric Power (NASDAQ:AEP) reported second-quarter 2025 adjusted earnings that significantly exceeded analyst expectations, driven by strong customer growth and strategic investments.
The utility company’s shares rose 1.57% in pre-market trading after the results.
AEP posted adjusted earnings of $1.43 per share, beating analyst estimates of $1.22 by 17.2%. Revenue climbed to $5.09 billion, surpassing the consensus estimate of $4.9 billion and representing an 11.1% increase from $4.58 billion in the same quarter last year. The company has now guided to the upper half of its full-year earnings guidance range of $5.75 to $5.95 per share, while reaffirming its long-term growth rate of 6% to 8%.
"Our record second-quarter results reflect the strength of our customer-focused strategy and the dedication of our teams across the company," said Bill Fehrman, AEP president and chief executive officer.
The company reported significant customer load growth, securing agreements for 24 gigawatts of new load by the end of the decade, up from 21 gigawatts previously announced. This growth is expected to bring AEP’s peak load to more than 60 gigawatts, positioning it among the fastest-growing utilities in the industry.
AEP also plans to announce a new five-year capital plan of approximately $70 billion this fall, up substantially from its current $54 billion plan, to meet increasing customer demand. The company has strengthened its financial position through strategic transactions, including a $2.82 billion investment from KKR and PSP Investments for a 19.9% equity stake in its Ohio and Indiana Michigan transmission companies.
"AEP is strategically positioned for sustained growth as we transform the electric grid and invest in new resources to meet the generational load growth opportunity in front of us," Fehrman added.
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