FirstEnergy (FE) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +9.21%. A quarter ago, it was expected that this utility company would post earnings of $0.5 per share when it actually produced earnings of $0.52, delivering a surprise of +4%.Over the last four quarters, the company ha ...

Core Viewpoint - FirstEnergy exceeded Wall Street profit expectations for the third quarter, driven by increased electricity rates and strong demand from both commercial and residential sectors [1] Company Summary - FirstEnergy reported a profit that surpassed analysts' forecasts for the third quarter [1] - The company's performance was bolstered by higher electricity rates [1] - There was notable demand growth from both commercial and residential customers [1] Industry Summary - The utility sector is experiencing upward pressure on electricity rates, contributing to improved profitability for companies like FirstEnergy [1] - Increased demand in both commercial and residential markets indicates a positive trend in the utility industry [1]

[Executive Summary & Key Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Financial%20Highlights) [Third Quarter 2025 Financial Overview](index=1&type=section&id=1.1%20Third%20Quarter%202025%20Financial%20Overview) FirstEnergy reported strong third-quarter 2025 financial results, with increased GAAP and Core Earnings per share and higher revenue Third Quarter 2025 Key Financials | Metric | Q3 2025 | Q3 2024 | YoY Change | | :--- | :--- | :--- | :--- | | GAAP Earnings per share | $0.76 | $0.73 | +$0.03 | | Core Earnings (non-GAAP) per share | $0.83 | $0.76 | +9% | | Revenue | $4.1 billion | $3.7 billion | +$0.4 billion | [Year-to-Date 2025 Financial Overview](index=3&type=section&id=1.2%20Year-to-Date%202025%20Financial%20Overview) FirstEnergy achieved significant year-to-date 2025 GAAP and Core Earnings per share growth, with Core Earnings up 15% YoY Year-to-Date 2025 Key Financials (First Nine Months) | Metric | 9M 2025 | 9M 2024 | YoY Change | | :--- | :--- | :--- | :--- | | GAAP Earnings per share | $1.85 | $1.25 | +$0.60 | | Core Earnings (non-GAAP) per share | $2.02 | $1.76 | +15% | | Revenue | $11.3 billion | $10.3 billion | +$1.0 billion | [Strategic Capital Investments & Growth Outlook](index=1&type=section&id=1.3%20Strategic%20Capital%20Investments%20%26%20Growth%20Outlook) FirstEnergy narrowed 2025 Core EPS guidance, increased capital investments, and affirmed 6-8% annual Core EPS growth through 2029 Capital Investment and Earnings Growth Targets | Metric | Value | | :--- | :--- | | Full-year 2025 Core Earnings guidance | $2.50 to $2.56 per share (narrowed from $2.40-$2.60) | | 2025 Capital Investment Program | Increased by 10% to $5.5 billion (from $5.0 billion) | | Capital Investments Deployed (through Sept 2025) | Over $4 billion | | Compounded Annual Core Earnings Growth Rate (2025-2029) | 6-8% | | Energize365 Capital Investment Plan (2025-2029) | $28 billion | [CEO Commentary](index=2&type=section&id=1.4%20CEO%20Commentary) CEO highlighted strong results, increased capital, and the transformative impact of data centers on transmission investment - CEO Brian X. Tierney emphasized strong results and being ahead of plan on key financial metrics, enabling a **10% increase** in the 2025 capital program[4](index=4&type=chunk) - The proliferation of large data center load is transforming the electric industry, particularly in FirstEnergy's region, driving a strong need for additional transmission capital investments[5](index=5&type=chunk) Projected Transmission Investment Growth | Metric | Projection | | :--- | :--- | | Increase in total transmission investments (next 5-year capital plan) | 30% | | Compound transmission rate base growth | Up to 18% | - FirstEnergy is pursuing a project to add **1.2 gigawatts** of dispatchable combined-cycle generation in West Virginia, expected to be operational around 2031, increasing its current regulated generation portfolio by **35%**[6](index=6&type=chunk) [Detailed Financial Performance](index=3&type=section&id=Detailed%20Financial%20Performance) [Third Quarter Segment Results](index=3&type=section&id=2.1%20Third%20Quarter%20Segment%20Results) Q3 2025 Core Earnings benefited from new base rates and transmission growth, partially offset by higher planned operating expenses - Third quarter 2025 Core Earnings benefited from new base rates in Pennsylvania and growth in transmission rate base under formula rate programs[7](index=7&type=chunk) - These benefits were partially offset by higher planned operating expenses, including work accelerated into 2025[7](index=7&type=chunk) [Distribution Segment](index=3&type=section&id=2.1.1%20Distribution%20Segment) Distribution segment Core Earnings increased $0.03 per share YoY, driven by new Pennsylvania base rates and higher load Distribution Segment Q3 2025 Performance | Metric | Change | | :--- | :--- | | Core Earnings increase (YoY) | $0.03 per share | | Primary Drivers | New base rates in Pennsylvania (effective Jan 1, 2025), higher residential and commercial load | | Offset | Higher planned operating expenses | [Integrated Segment](index=3&type=section&id=2.1.2%20Integrated%20Segment) Integrated segment Core Earnings benefited from transmission rate base growth but were offset by higher tax rates and operating expenses Integrated Segment Q3 2025 Performance | Metric | Value/Impact | | :--- | :--- | | Transmission rate base growth | 16% | | Earnings benefit from rate base growth | $0.03 per share | | Offsets | Higher effective tax rate, lower distribution demand from commercial customers, higher planned operating expenses | [Stand-Alone Transmission Segment](index=3&type=section&id=2.1.3%20Stand-Alone%20Transmission%20Segment) Stand-Alone Transmission segment Core Earnings increased $0.08 per share YoY, driven by rate base growth and lower tax rates Stand-Alone Transmission Segment Q3 2025 Performance | Metric | Change | | :--- | :--- | | Core Earnings increase (YoY) | $0.08 per share | | Primary Drivers | 9% increase in rate base (from capital investments), lower effective tax rate | [Corporate/Other](index=3&type=section&id=2.1.4%20Corporate%2FOther) Corporate/Other segment results remained flat compared to the third quarter of the previous year - Corporate/Other segment results were flat compared to the third quarter of 2024[11](index=11&type=chunk) [Year-to-Date Core Earnings Drivers](index=4&type=section&id=2.2%20Year-to-Date%20Core%20Earnings%20Drivers) Year-to-Date Core Earnings growth driven by regulated investments and new base rates, offset by higher expenses and financing costs - Year-to-date Core Earnings growth reflects the continued success of the company's regulated investment strategy[14](index=14&type=chunk) - Growth was also driven by the impact of new base rates in Pennsylvania, West Virginia, and New Jersey, and higher weather-related distribution sales[14](index=14&type=chunk) - These positive factors were offset by higher planned operating expenses (including accelerated work), increased financing costs, and dilution from the FET equity interest transaction that closed in March 2024[14](index=14&type=chunk) [Non-GAAP Financial Measures & Reconciliation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliation) [GAAP to Core EPS Reconciliation](index=4&type=section&id=3.1%20GAAP%20to%20Core%20EPS%20Reconciliation) FirstEnergy provides a detailed reconciliation of GAAP Earnings to Core EPS for Q3 and YTD 2025 and 2024, detailing special items Consolidated GAAP Earnings Per Share (EPS) to Core (Non-GAAP) EPS Reconciliation | | Three Months Ended Sept. 30, | | Nine Months Ended Sept. 30, | | | --- | --- | --- | --- | --- | | | 2025 | 2024 | 2025 | 2024 | | Earnings Attributable to FirstEnergy Corp. (GAAP) - $M | $441 | $419 | $1,069 | $717 | | Basic EPS (GAAP) | $0.76 | $0.73 | $1.85 | $1.25 | | Excluding Special Items: | | | | | | Net Pension/OPEB credits | (0.01) | (0.03) | (0.04) | (0.07) | | Signal Peak earnings impact | — | (0.06) | — | (0.13) | | ARO regulatory change | — | — | — | 0.28 | | Debt-related costs | — | — | 0.03 | 0.12 | | Enhanced employee retirement and other related costs | — | 0.01 | — | 0.01 | | FE Forward cost to achieve | — | 0.08 | — | 0.09 | | Investigation and other related costs | 0.05 | 0.03 | 0.09 | 0.10 | | Regulatory charges | 0.01 | — | 0.01 | 0.03 | | Reorganization costs | — | — | 0.06 | — | | Strategic transaction charges | 0.02 | — | 0.02 | 0.08 | | Total Special Items | 0.07 | 0.03 | 0.17 | 0.51 | | Core EPS (Non-GAAP) | $0.83 | $0.76 | $2.02 | $1.76 | [Definition and Use of Non-GAAP Measures](index=4&type=section&id=3.2%20Definition%20and%20Use%20of%20Non-GAAP%20Measures) Core EPS is a non-GAAP measure excluding special items, used by management to evaluate performance and provide consistent business insights - Core Earnings (non-GAAP) per share ("Core EPS") are non-GAAP financial measures that exclude the impact of "special items" from earnings attributable to FirstEnergy Corp[16](index=16&type=chunk) - Management uses these non-GAAP measures to evaluate company and segment performance, manage operations, and facilitate historical and ongoing performance comparisons[17](index=17&type=chunk) - Special items represent charges or benefits that management believes are not indicative of, or may obscure trends useful in evaluating, the company's ongoing core activities and results of operations[19](index=19&type=chunk) [Forward-Looking Non-GAAP Measures](index=5&type=section&id=3.3%20Forward-Looking%20Non-GAAP%20Measures) No quantitative reconciliation for forward-looking non-GAAP measures is provided due to unpredictable special items and to avoid misleading precision - A quantitative reconciliation of forward-looking non-GAAP measures (e.g., 2025 Core EPS guidance, growth rate projections) to GAAP measures is not provided[20](index=20&type=chunk) - This is due to the inherent difficulty in forecasting and quantifying the impact of special items, which are significant, difficult to predict, and highly variable[20](index=20&type=chunk) - The company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors[20](index=20&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) [Investor Materials and Teleconference](index=5&type=section&id=4.1%20Investor%20Materials%20and%20Teleconference) Investor materials and a live webcast of the financial analyst teleconference are available on FirstEnergy's Investor Information website - FirstEnergy's Strategic and Financial Highlights presentation is available on the company's Investor Information website (www.firstenergycorp.com/ir)[21](index=21&type=chunk) - A live webcast of the teleconference for financial analysts, including an overview of financial results and a Q&A session, will be held at 9:00 a.m. EDT[22](index=22&type=chunk) - The webcast and presentation will be archived on the Investor Information website[22](index=22&type=chunk) [Company Overview](index=6&type=section&id=4.2%20Company%20Overview) FirstEnergy is a major U.S. investor-owned electric system serving over 6 million customers across six states with extensive transmission lines - FirstEnergy's electric distribution companies form one of the nation's largest investor-owned electric systems[23](index=23&type=chunk) - The company serves more than **6 million customers** in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York[23](index=23&type=chunk) - FirstEnergy's transmission subsidiaries operate over **24,000 miles** of transmission lines connecting the Midwest and Mid-Atlantic regions[23](index=23&type=chunk) [Forward-Looking Statements](index=6&type=section&id=4.3%20Forward-Looking%20Statements) This section cautions against undue reliance on forward-looking statements, outlining risks that could cause actual results to differ materially - This news release includes forward-looking statements based on management's current information, beliefs, and expectations, subject to certain risks and uncertainties[24](index=24&type=chunk) - Readers are cautioned not to place undue reliance on these statements, as actual results may differ materially due to various factors[24](index=24&type=chunk) - Key risks include government investigations (e.g., HB 6), litigation, changes in economic conditions, weather variations, legislative and regulatory developments, ability to access capital markets, cyber-attacks, and challenges in achieving strategic and financial goals[24](index=24&type=chunk)[25](index=25&type=chunk)

Core Insights - FirstEnergy Corp. reported third quarter 2025 GAAP earnings of $441 million, or $0.76 per share, on revenue of $4.1 billion, reflecting an increase from $419 million, or $0.73 per share, on revenue of $3.7 billion in the same quarter of 2024 [1][7] - Core Earnings (non-GAAP) for the third quarter of 2025 were $0.83 per share, a 9% increase compared to $0.76 per share in the third quarter of 2024 [2][5] - The company narrowed its full-year 2025 Core Earnings guidance to a range of $2.50 to $2.56 per share, indicating a positive outlook based on year-to-date results [2][9] Financial Performance - Year-to-date GAAP earnings for the first nine months of 2025 were $1,069 million, or $1.85 per share, on revenue of $11.3 billion, compared to $717 million, or $1.25 per share, on revenue of $10.3 billion in the same period of 2024 [7][8] - Core Earnings for the first nine months of 2025 were $2.02 per share, a 15% increase from $1.76 per share in the same period of 2024 [8][9] Capital Investments - The company deployed over $4 billion in capital investments through September 2025 and increased its planned investment program for 2025 by 10% to $5.5 billion [2][3] - Future transmission investments are projected to increase by 30% due to industry transformation, with a compound transmission rate base growth expected to reach up to 18% [3][4] Strategic Initiatives - FirstEnergy's Energize365 capital investment plan includes $28 billion in investments from 2025 to 2029, supporting a compounded annual Core Earnings growth rate target of 6-8% from 2025 through 2029 [2][3] - In West Virginia, the company is pursuing a project to add 1.2 gigawatts of dispatchable combined-cycle generation, which aligns with the state's energy goals and represents a 35% increase in its current regulated generation portfolio [4]

Core Insights - A major reliability project is underway in Fulton County, enhancing electric service for residents and businesses in the greater Toledo area, particularly benefiting Toledo Edison customers [1][2]. Project Overview - The project, led by American Transmission Systems, Inc. (ATSI), includes the construction of a new substation and a nine-mile-long 345-kilovolt (kV) transmission line aimed at reducing power outages in Delta Village, Fulton, Pike, Swan Creek, and York townships [2][3]. - A new electric substation is expected to be operational by December 2026, connected to the existing Sydney Substation via two new half-mile power lines, increasing electricity supply and flexibility during outages [4]. Infrastructure Investment - The project is part of FirstEnergy's broader $28 billion investment program, Energize365, aimed at modernizing the electric grid from 2025 to 2029, with over $200 million allocated for high-voltage grid enhancements in northwest Ohio [8]. - Since 2014, FirstEnergy's transmission companies have successfully reduced outages by 50% on high-voltage power lines exceeding 100 kV, demonstrating the effectiveness of strategic infrastructure investments [6]. Community Impact - The upgrades are designed to ensure reliable power during peak demand periods, such as heat waves and storms, and will incorporate backup power sources and advanced equipment for quicker restoration during outages [7]. - The project supports the industrial growth in northwest Ohio, which has seen an influx of new jobs and families, aligning with the region's future energy needs [7].

Core Insights - A major reliability project is underway in Fulton County, aimed at enhancing electric service and resilience for residents and businesses in the greater Toledo area, particularly benefiting Toledo Edison customers [1][2]. Project Overview - The project, led by American Transmission Systems, Inc. (ATSI), includes the construction of a new substation and a nine-mile-long 345-kilovolt (kV) transmission line to mitigate power outages in Delta Village, Fulton, Pike, Swan Creek, and York townships [2][3]. - A new electric substation is expected to be operational by December 2026, connected to the existing Sydney Substation via two new half-mile power lines, enhancing electricity supply and restoration capabilities during outages [4]. Infrastructure Investment - The project is part of FirstEnergy's broader $28 billion investment program, Energize365, aimed at modernizing the electric grid from 2025 to 2029, with over $200 million allocated for high-voltage grid enhancements in northwest Ohio [8]. - Since 2014, FirstEnergy's transmission companies have successfully reduced outages by 50% on high-voltage power lines exceeding 100-kV, demonstrating the effectiveness of strategic infrastructure investments [6]. Community Impact - The upgrades are designed to ensure reliable power supply during peak demand periods, such as heat waves and storms, and will incorporate backup power sources and advanced equipment for rerouting electricity during outages [7]. - The project supports the industrial growth in northwest Ohio, which has seen an influx of new jobs and families, aligning with the region's future energy needs [7].

Core Insights - FirstEnergy Corp. is a major electric utility holding company based in Ohio, serving approximately 6 million customers across multiple states with a market cap of $27.1 billion [1] Earnings Expectations - FirstEnergy is expected to announce its fiscal Q3 2025 earnings results on October 22, with analysts predicting an adjusted EPS of $0.73, a decrease of 14.1% from $0.85 in the same quarter last year [2] - For fiscal 2025, the anticipated adjusted EPS is $2.53, reflecting a decline of 3.8% from $2.63 in fiscal 2024, but is expected to grow by 6.7% year-over-year to $2.70 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, FirstEnergy shares have increased by 8.2%, which is lower than the S&P 500 Index's return of 14.8% and the Utilities Select Sector SPDR Fund's gain of 11.7% during the same period [4] Analyst Ratings - Analysts maintain a cautiously optimistic view on FirstEnergy stock, with a consensus "Moderate Buy" rating; out of 17 analysts, six recommend a "Strong Buy," one a "Moderate Buy," and ten a "Hold" [6] - The mean price target for FirstEnergy is $47.83, suggesting a slight potential increase from current market prices [6] Recent Developments - On October 16, FirstEnergy shares fell by 1.9% after JPMorgan Chase & Co. analyst Jeremy Tonet reaffirmed a "Hold" rating with a price target of $47, citing stable utility operations but ongoing challenges in the power generation segment [5]

Core Viewpoint - FirstEnergy is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a solid history of exceeding expectations [1][2]. Earnings Performance - FirstEnergy has a track record of surpassing earnings estimates, with an average surprise of 7.83% over the last two quarters [2]. - In the last reported quarter, FirstEnergy achieved earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, resulting in a surprise of 4.00% [3]. - In the previous quarter, the company reported earnings of $0.67 per share against an expected $0.60 per share, delivering a surprise of 11.67% [3]. Earnings Estimates and Predictions - Recent estimates for FirstEnergy have been revised upward, indicating a positive outlook for the company's near-term earnings potential [6]. - The Zacks Earnings ESP for FirstEnergy is currently +5.84%, suggesting analysts are optimistic about the company's upcoming earnings report [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a strong possibility of another earnings beat [9]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8].

Core Insights - FirstEnergy Corporation (FE) is set to release its third-quarter 2025 results on October 22, with a previous earnings surprise of 4% in the last quarter [1] Factors Impacting Q3 Performance - FirstEnergy's subsidiary Potomac Edison commissioned a new substation in Morgan County, WV, enhancing power reliability for nearly 2,000 residents and businesses through smart grid technology [2] - The new Klecknersville Substation, energized in August 2025, provides additional power to over 5,000 residents and businesses in Northampton County, PA, supporting regional development [3] - Significant infrastructure upgrades in Westmoreland County improved reliability for 2,300 customers, minimizing outages and accelerating restoration times [5] - These initiatives are expected to enhance service reliability and positively impact quarterly performance [4] Q3 Expectations - The Zacks Consensus Estimate for earnings is 71 cents per share, reflecting a year-over-year decline of 16.5% [7] - Revenue is estimated at $3.86 billion, indicating a 3.5% year-over-year improvement [7] - Total electric distribution deliveries are expected to be 39,638.43 megawatt-hours, down 0.2% from the previous year [7] Earnings Prediction Model - The current Earnings ESP for FirstEnergy is 0.00%, indicating no conclusive prediction for an earnings beat [8] Operating Expenses - Higher operating expenses may offset the benefits gained from infrastructure improvements during the quarter [6][9] Zacks Rank - FirstEnergy currently holds a Zacks Rank of 3, indicating a hold position [10]

Group 1 - Top Wall Street analysts have revised their outlook on several prominent stocks, indicating a shift in market sentiment [1] - The article suggests that investors consider buying GEV stock based on analysts' recommendations [1]