American Electric Power (NASDAQ:AEP) reported fourth-quarter 2025 operating earnings that beat Wall Street expectations and reiterated its outlook for 2026, sending shares modestly higher in premarket trading.
The utility posted operating earnings of $1.19 per share for the quarter, ahead of analyst estimates of $1.14. Revenue climbed to $5.31 billion, comfortably above the $4.99 billion consensus forecast. Shares rose 0.77% ahead of the opening bell.
While quarterly operating earnings were slightly below the $1.24 per share recorded a year earlier, full-year 2025 operating earnings improved to $5.97 per share, up from $5.62 in 2024.
AEP reaffirmed its 2026 operating earnings guidance of $6.15 to $6.45 per share and maintained its long-term annual growth target of 7% to 9%.
The company highlighted accelerating electricity demand, announcing that it has signed agreements for an additional 28 gigawatts of load since October. That brings total incremental demand expectations to 56 GW by 2030, opening the door to an estimated $5 billion to $8 billion in incremental investment opportunities beyond its existing $72 billion five-year capital plan.
“We delivered an exceptional year in 2025, with strong financial performance enabling us to advance infrastructure investments that are driving sustained growth,” said Bill Fehrman, AEP chairman, president and CEO.
“AEP is exceptionally well positioned for the future with the scale and discipline to execute large-scale infrastructure projects needed to meet unprecedented customer demand.”
In the fourth quarter, retail electric sales in AEP’s Transmission & Distribution Utilities segment surged 18.3% year over year, led by a 39.6% jump in commercial sales. Retail sales in the Vertically Integrated Utilities segment rose 5.2%, supported by a 14.7% increase in commercial demand.
The company also reiterated its focus on affordability, noting it has introduced new rate structures in several states requiring large-load customers to fund the infrastructure needed for grid connections.