On February 13, 2025, American Electric Power Co Inc (AEP, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full year of 2024. As one of the largest regulated utilities in the United States, AEP provides electricity generation, transmission, and distribution to over 5 million customers across 11 states. The company's energy capacity is primarily derived from coal (42%), with the remainder from natural gas (27%), renewable energy and hydro (21%), nuclear (8%), and demand response (2%).
American Electric Power Co Inc (AEP, Financial) reported a significant increase in its earnings for 2024, with GAAP earnings per share (EPS) reaching $5.60, aligning with the annual estimate. Operating earnings per share were slightly higher at $5.62, marking a 7% increase over the previous year. The company's commercial load grew by 10.6% in 2024, driven by economic development in key service areas such as Indiana, Ohio, and Texas. This growth is crucial as AEP plans to execute a historic five-year, $54 billion capital plan aimed at enhancing infrastructure and supporting customer needs.
AEP's financial achievements underscore its robust position in the regulated utilities sector. The company's reaffirmation of its 2025 operating earnings guidance range of $5.75 to $5.95 per share, along with a long-term EPS growth rate of 6% to 8%, highlights its commitment to sustainable growth. The focus on infrastructure investment, particularly in transmission and distribution systems, is vital for maintaining reliable service and meeting increasing energy demands.
For the fourth quarter of 2024, AEP reported GAAP earnings of $664 million, or $1.25 per share, surpassing the analyst estimate of $1.16 per share. This represents a substantial increase from the $336 million, or $0.64 per share, reported in the same quarter of 2023. Operating earnings for the quarter were $660 million, or $1.24 per share, compared to $647 million, or $1.23 per share, in the previous year. The company's revenue for the fourth quarter was $4,696.3 million, below the estimated $4,876.22 million.
| Metric | Q4 2024 | Q4 2023 | Variance |
|---|---|---|---|
| Revenue ($ in millions) | 4,696.3 | 4,577.2 | 119.1 |
| GAAP Earnings ($ in millions) | 664.1 | 336.2 | 327.9 |
| Operating Earnings (non-GAAP) ($ in millions) | 660.1 | 646.9 | 13.2 |
| GAAP EPS ($) | 1.25 | 0.64 | 0.61 |
| Operating EPS (non-GAAP) ($) | 1.24 | 1.23 | 0.01 |
The company's strategic focus on infrastructure investment and economic development positions it well for future growth. AEP's commitment to expanding its generation capacity, including the approval of 2.3 gigawatts of natural gas generation and innovative solutions like fuel cells, demonstrates its proactive approach to meeting increasing energy demands. The company's financial flexibility, bolstered by a $2.82 billion minority equity interest transaction, supports its growth initiatives while maintaining a strong balance sheet.
AEP is delivering on our commitment to provide safe, reliable and affordable power for the customers we serve. In 2024, we experienced significant load growth in our commercial class, largely due to economic development in Indiana, Ohio and Texas," said Bill Fehrman, AEP president and chief executive officer.
Overall, American Electric Power Co Inc (AEP, Financial) has demonstrated strong financial performance and strategic foresight, positioning itself as a leader in the utilities sector. The company's focus on infrastructure development and innovative energy solutions is expected to drive continued growth and value for its stakeholders.
Explore the complete 8-K earnings release (here) from American Electric Power Co Inc for further details.
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