"Our focus on renewable energy and efficiency projects has not only driven revenue growth but also bolstered our long-term sustainability goals."
— CEO
03Detailed Report
0HEC.L
American Electric Power Company Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
American Electric Power Company Inc (AEP) reported strong revenue growth in Q1 2025, with revenue reaching $5.46 billion, reflecting an 8.71% increase year-over-year and a robust 16.33% increase quarter-over-quarter. However, net income faced a more complex narrative, showing a decrease of 20.23% year-over-year but a recovery phase with a 20.49% increase from the previous quarter. The company’s operating income also grew by 9.52% year-over-year and 17.21% from Q4 2024, indicating operational robustness.
Management cited improved efficiencies and a stable regulatory environment as significant contributors to revenue growth, while balancing these gains with ongoing operational challenges. AEP's strategic investments in renewable energy sources are positioning the company for long-term stability, though near-term profitability is impacted by higher operational costs and interest expenses. Investors should watch for improvements in balance sheet health and continued forward guidance on growth strategies.
Profitability Metrics:
- Gross Profit: $3.29 billion, with a gross profit margin of 60.3% (up from previous periods)
- Operating Income: $1.28 billion (up 9.52% YoY, 17.21% QoQ)
- Net Income: $800.2 million, reflecting a significant drop of 20.23% YoY yet a recovery of 20.49% QoQ, resulting in an EPS of $1.50.
Balance Sheet Highlights:
- Total Assets: $104.39 billion
- Total Liabilities: $77.03 billion, indicating a debt ratio of approximately 45%.
Cash Flow Insights:
- Operating Cash Flow: $1.45 billion
- Free Cash Flow: -$686 million, highlighting investment in growth but signalling pressure on available cash.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.46B
8.71%
16.33%
Gross Profit
3.29B
5.10%
7.90%
Operating Income
1.28B
9.52%
17.21%
Net Income
800.20M
-20.23%
20.49%
EPS
1.50
-21.47%
20.00%
Key Financial Ratios
Gross Profit Margin
Excellent
60.30%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
23.50%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
14.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
0.77%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.93%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.42
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.72
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
18.21x
P/E ratio in line with market averages
Price to Book
Fair Value
2.13x
Price-to-book ratio reasonable for profitable companies
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