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American Electric's Q2 Earnings Beat Estimates, Revenues Increase Y/Y

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Key Takeaways

  • AEP reported Q2 EPS of $1.43, topping estimates by 11.7% and rising 14.4% year over year.
  • Q2 revenues reached $5.09B, up 11.1% from $4.58B last year and beating consensus estimate by 2.9%.
  • AEP reaffirmed 2025 EPS guidance of $5.75-$5.95 and expects long-term EPS growth of 6-8%.

American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2025 operating earnings per share (EPS) of $1.43, which beat the Zacks Consensus Estimate of $1.28 by 11.7%. The bottom line inched up 14.4% from $1.25 recorded in the year-ago quarter. 

The company reported GAAP earnings of $2.29 per share compared with the year-ago quarter’s 64 cents.

Total Revenues

AEP’s revenues of $5.09 billion rose 11.1% from the year-ago quarter’s level of $4.58 billion. The top line also beat the Zacks Consensus Estimate of $4.94 billion by 2.9%.

AEP’s Segmental Performance

Vertically Integrated Utility Operations: Operating earnings increased to $296.7 million from $244.8 million in the year-ago period.

Transmission & Distribution Utilities: Operating earnings totaled $224.1 million, up from $215.3 million in the year-ago quarter.

AEP Transmission Holdco: This segment generated operating earnings of $224.5 million, up from $208.9 million in the year-ago quarter.

Generation and Marketing: Operating earnings amounted to $91.7 million, up from $61 million in the year-ago quarter.

All Other: The segment reported an operating loss of $71.3 million, wider than the year-ago reported loss of $68 million.

AEP’s 2025 Guidance

American Electric has reaffirmed its 2025 operating earnings guidance. It still expects to generate earnings in the band of $5.75-$5.95 per share. The Zacks Consensus Estimate for earnings is pegged at $5.85 per share, which lies in line with the midpoint of the company’s projected range.

AEP continues to expect the long-term EPS growth rate to be in the range of 6-8%.

AEP’s Zacks Rank

American Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

DTE Energy Company (DTE - Free Report) reported second-quarter 2025 operating earnings per share (EPS) of $1.36, which lagged the Zacks Consensus Estimate of $1.37 by 0.7%. The bottom line also declined 4.9% from the year-ago reported figure of $1.43.

DTE Energy reiterated its 2025 operating EPS guidance. The company expects the metric to be in the range of $7.09-$7.23.

CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2025 adjusted earnings of 29 cents per share, which lagged the Zacks Consensus Estimate of 34 cents by 14.7%. The bottom line also declined 19.4% from the year-ago quarter’s figure of 36 cents.

CNP generated revenues of $1.94 billion, which beat the Zacks Consensus Estimate by a whisker. The top line was also up 2% from the year-ago quarter’s reported figure of $1.91 billion.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2025 adjusted earnings of $1.05 per share, which topped the Zacks Consensus Estimate of $1.02 by 2.9%. The bottom line was also up nearly 9.4% year over year. 

In the second quarter, NextEra Energy’s operating revenues were $6.7 billion, which missed the Zacks Consensus Estimate of $7.22 billion by 7.28%. However, the top line improved 10.4% year over year.
 

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