How does American Electric Power Company (AEP) make money?

American Electric Power Company (AEP) primarily makes money through Transmission And Distribution Companies, which accounts for 56.9% of total revenue. For TTM through Q4 2025, American Electric Power Company generated $21.78B in total revenue with a net profit margin of 16.4%.

What is American Electric Power Company (AEP) gross profit margin?

American Electric Power Company (AEP) reported a gross profit margin of 31.8% for TTM through Q4 2025, equivalent to $6.93B in gross profit. This means American Electric Power Company retains 31.8% of each revenue unit after direct costs of production.

What is American Electric Power Company (AEP) operating profit margin?

American Electric Power Company (AEP) reported an operating profit margin of 24.3% for TTM through Q4 2025, equivalent to $5.30B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is American Electric Power Company (AEP) net profit margin?

American Electric Power Company (AEP) reported a net profit margin of 16.4% for TTM through Q4 2025, equivalent to $3.58B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does American Electric Power Company (AEP) spend on capital expenditures?

American Electric Power Company (AEP) spent $130.00M on capital expenditures in TTM through Q4 2025 (0.6% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is American Electric Power Company (AEP) free cash flow?

American Electric Power Company (AEP) generated $6.81B in free cash flow for TTM through Q4 2025 (31.3% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is American Electric Power Company (AEP) effective tax rate?

American Electric Power Company (AEP) had an effective tax rate of 3.4% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

How American Electric Power Company (AEP) Makes Money: A Visual Guide

American Electric Power Company (AEP) generated $21.78B in revenue, earning $3.58B in net profit (16.4% margin). Its largest revenue source is Transmission And Distribution Companies (56.9% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

American Electric Power Company (AEP) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 31, 2025 (reported February 12, 2026).

Frequently asked questions

How does American Electric Power Company (AEP) make money?: American Electric Power Company (AEP) primarily makes money through Transmission And Distribution Companies, which accounts for 56.9% of total revenue. For TTM through Q4 2025, American Electric Power Company generated $21.78B in total revenue with a net profit margin of 16.4%.
What is American Electric Power Company (AEP) gross profit margin?: American Electric Power Company (AEP) reported a gross profit margin of 31.8% for TTM through Q4 2025, equivalent to $6.93B in gross profit. This means American Electric Power Company retains 31.8% of each revenue unit after direct costs of production.
What is American Electric Power Company (AEP) operating profit margin?: American Electric Power Company (AEP) reported an operating profit margin of 24.3% for TTM through Q4 2025, equivalent to $5.30B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is American Electric Power Company (AEP) net profit margin?: American Electric Power Company (AEP) reported a net profit margin of 16.4% for TTM through Q4 2025, equivalent to $3.58B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does American Electric Power Company (AEP) spend on capital expenditures?: American Electric Power Company (AEP) spent $130.00M on capital expenditures in TTM through Q4 2025 (0.6% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is American Electric Power Company (AEP) free cash flow?: American Electric Power Company (AEP) generated $6.81B in free cash flow for TTM through Q4 2025 (31.3% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is American Electric Power Company (AEP) effective tax rate?: American Electric Power Company (AEP) had an effective tax rate of 3.4% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q4 2025.