American Electric Power Company
AEPFinancial Snapshot
ticker: AEP step: 04 generated: 2026-05-12 source: quick-research
American Electric Power Company (AEP) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$19.6B | $18.98B | $19.72B | +3.9% |
| Operating EPS | $5.09 | $5.25 | $5.62 | +7% |
| GAAP EPS | $4.51 | $4.26 | $5.60 | +31% |
| Net Income (GAAP) | ~$2.33B | ~$2.21B | ~$2.97B | +34% |
FY2025: Operating EPS $5.97 (+6.2%), GAAP EPS $6.70 (+20%), net income $3.58B. FY2026 operating EPS guidance: $6.15–$6.45. Long-term guidance: 7–9% CAGR (recently raised to above 9% given expanded capital plan).
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$5.0B |
| Free Cash Flow | Negative (intentionally — capex exceeds operating cash flow in the investment cycle) |
| Total Capex | ~$10–12B/year (scaling toward $15B+/year by 2029-2030) |
| Total Debt | ~$45B |
| Net Debt / EBITDA | ~5–6x (typical for regulated electric utilities with heavy capex) |
| Rate Base | ~$50B+ (growing ~11% annually toward $85B+ by 2030) |
Regulated utilities by design run at negative FCF during investment cycles — they issue debt and equity to fund capex, earning regulated returns on the new rate base. Dividends are funded by operating earnings, not FCF.
Key Ratios (approximate, FY2025)
- P/E (operating): ~16–18x | Dividend Yield: ~3.5–4.0%
- EV/EBITDA: ~12–14x | Regulated ROE: ~9.3% (trending toward 9.5% by 2030)
- Rate Base Growth: ~11% annually | Moody's Credit: A2 (upgraded 2025)
Growth Profile
AEP's earnings growth has accelerated from the 5–7% range to a guided >9% CAGR as the data center buildout in its Ohio and Texas territories has materially exceeded expectations. Commercial load grew 10.6% in FY2024, with 4.7 GW of new data center connections in 2025 alone. Management projects 24 GW of new load by 2030 (18 GW from data centers), supported by 63 GW of contracted load commitments. The $78B capital plan (increased from $72B in 2025, and from prior plans of ~$40B) is the most aggressive in AEP's history, with nearly 11% annual rate base growth expected. FERC-regulated transmission earns ~10–11% allowed ROE on new infrastructure — among the highest-return regulated investments in the utility sector.
Forward Estimates
- FY2026: Operating EPS $6.15–$6.45 (management guidance); revenue ~$21B+ as large commercial load ramps
- FY2027–2030: 7–9%+ annual EPS CAGR anchored in rate base growth; long-term target rate base ~$85B+ by 2030
- Dividend: $3.80/share annualized (~$0.95/quarter); ~3.8% yield; consistent annual increases targeting 5–7% dividend growth
- Equity financing: AEP will issue equity (ATM program, block sales) to fund the $78B capex plan — dilution of ~2–3% per year expected
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $AEP.