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

American Electric Power Company (AEP) generates revenue primarily from Transmission And Distribution Companies, which accounted for 59.5% of total revenue in TTM through Q1 2026. The company reported $22.2B in revenue and converted 16.5% of it into net profit, equivalent to roughly $3.65B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

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

American Electric Power Company (AEP) reported a gross profit margin of 40.4% in TTM through Q1 2026, equivalent to $8.95B in gross profit on $22.2B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

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

American Electric Power Company (AEP) reported an operating profit margin of 23.5% in TTM through Q1 2026, equivalent to $5.2B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

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

American Electric Power Company (AEP) reported a net profit margin of 16.5% in TTM through Q1 2026, equivalent to $3.65B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is American Electric Power Company (AEP) profitable?

Yes. American Electric Power Company (AEP) reported $3.65B in net income for TTM through Q1 2026, with a net profit margin of 16.5%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

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

American Electric Power Company (AEP) spent $642M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 2.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does American Electric Power Company (AEP) generate?

American Electric Power Company (AEP) generated $7.65B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 34.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

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

American Electric Power Company (AEP) had an effective tax rate of 1.2% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of American Electric Power Company (AEP)?

American Electric Power Company (AEP) reports revenue across 5 reportable product segments, led by Transmission & Distribution at 59.5% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How American Electric Power Company Makes Money: 2026 Visual Revenue Map

American Electric Power Company (AEP) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 5, 2026).

American Electric Power Company discloses geographic revenue only in annual filings. to view the full breakdown.

American Electric Power Company (AEP) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for American Electric Power Company (AEP), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Transmission & Distribution	$13.2B	59.5%
Generation & Marketing	$5.85B	26.4%
AEP Transmission Holdco	$1.62B	7.3%
Other	$1.4B	6.3%
Vertically Integrated Utilities Segment	$106M	0.5%
Total	$22.2B	100%

Transmission & Distribution$13.2B
Generation & Marketing$5.85B
AEP Transmission Holdco$1.62B
Other$1.4B
Vertically Integrated Utilities Segment$106M
Total$22.2B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, American Electric Power Company (AEP) reports revenue across 5 reportable product segments; the largest segment was Transmission & Distribution at 59.5%, followed by Generation & Marketing (26.4%) and AEP Transmission Holdco (7.3%).

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