FirstEnergy(FE) - 2025 Q1 - Quarterly Results

FirstEnergy Q1 2025 Financial Results Financial Highlights FirstEnergy reported strong Q1 2025 results with significant year-over-year growth in GAAP and Core Earnings, affirming full-year guidance and investment plans Q1 2025 vs. Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Earnings (million USD) | $360 | $253 | +42.3% | | GAAP EPS (USD) | $0.62 | $0.44 | +$0.18 | | Core Earnings (non-GAAP) EPS (USD) | $0.67 | $0.49 | +$0.18 | | Revenue (billion USD) | $3.8 | $3.3 | +15.2% | - The company is on track with its 2025 $5 billion investment plan, having made over $1 billion in customer-focused capital investments during the first quarter[1] - FirstEnergy affirmed its full-year 2025 Core Earnings guidance of $2.40 to $2.60 per share and its long-term 6-8% compounded annual Core Earnings growth rate target through 2029[1][4] Performance Analysis Core Earnings growth in Q1 2025 was driven by new base rates and increased demand, partially offset by higher operating expenses and FET equity sale dilution - Positive drivers for Core Earnings included new base rates in Pennsylvania, West Virginia, and New Jersey, growth in rate base, lower financing costs, and normal weather-related demand[5] - Performance was partially offset by higher operating expenses from increased maintenance and dilution related to the FirstEnergy Transmission (FET) equity interest sale in March 2024[5] Q1 2025 vs. Q1 2024 Sales Change | Customer Sector | Sales Change (%) | | :--- | :--- | | Total Distribution Deliveries | > +4 | | Residential | +10 | | Commercial | > +5 | | Industrial | ~ -3 | Segment Performance Distribution and Integrated segments showed Core Earnings growth from new rates and demand, while Stand-Alone Transmission declined due to dilution, and Corporate/Other improved from lower financing costs - Distribution Segment: Core Earnings increased by $0.10 per share, driven by new base rates in Pennsylvania effective Jan 1, 2025, and stronger customer demand[6] - Integrated Segment: Core Earnings increased by $0.10 per share, resulting from new base rates in New Jersey and West Virginia, strong rate base growth (including 19% in transmission), and higher demand[7] - Stand-Alone Transmission Segment: Core Earnings decreased by $0.04 per share as dilution from the FET equity sale offset rate base growth of over 10%[8] - Corporate/Other: Results improved by $0.02 per share compared to Q1 2024, due to lower financing costs from reduced long-term debt and revolver borrowings[9] GAAP to Non-GAAP Reconciliation The company reconciles GAAP EPS to Core EPS, showing Q1 2025 GAAP EPS of $0.62 adjusted by $0.05 for special items to reach Core EPS of $0.67 Consolidated GAAP EPS to Core EPS (non-GAAP) Reconciliation | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Basic – EPS (GAAP) (USD) | $0.62 | $0.44 | | Excluding Special Items: | | | | FE Forward cost to achieve | — | 0.01 | | Investigation and other related costs | 0.03 | 0.03 | | Net Pension/OPEB credits | (0.01) | (0.03) | | Regulatory credits | — | (0.01) | | Reorganization costs | 0.03 | — | | Signal Peak earnings impact | — | (0.03) | | Strategic transaction charges | — | 0.08 | | Total Special Items | 0.05 | 0.05 | | Core EPS (Non-GAAP) (USD) | $0.67 | $0.49 | Company Outlook and Strategic Initiatives FirstEnergy reaffirms its full-year 2025 Core Earnings guidance and long-term growth target through 2029, supported by the "Energize365" capital investment plan - Affirms full-year 2025 Core Earnings guidance of $2.40 to $2.60 per share[4] - Maintains a 6-8% targeted compound annual Core Earnings growth rate from 2025 through 2029[4] - Growth is supported by the five-year, $28 billion "Energize365" capital investment plan, with $5 billion planned for 2025[4] Important Disclosures and Investor Information This section details the use of non-GAAP measures, provides forward-looking statement disclaimers, and outlines investor resource access Non-GAAP Financial Measures Management utilizes non-GAAP measures like Core EPS to assess performance and provide a clearer view of ongoing operations by excluding special items, complementing GAAP measures - Management uses non-GAAP financial measures to evaluate performance, manage operations, and facilitate historical and ongoing performance comparisons[12] - Special items, which are excluded from non-GAAP measures, represent charges or benefits that management believes are not indicative of ongoing core activities[13] - A quantitative reconciliation for forward-looking non-GAAP measures is not provided due to the unreasonable effort required to forecast and quantify special items[14] Investor Resources The company provides investor access to its Strategic and Financial Highlights presentation online and details for a live webcast and teleconference - The Strategic and Financial Highlights presentation is available on the company's investor relations website, www.firstenergycorp.com/ir[15](index=15&type=chunk) - A live webcast and teleconference for financial analysts will be held at 9:00 a.m. EDT to present an overview of financial results and host a Q&A session[16] Forward-Looking Statements The news release contains forward-looking statements subject to various risks, including investigations, economic conditions, and regulatory changes, with no obligation to update - The news release includes forward-looking statements that are subject to risks and uncertainties which could cause actual results to differ materially from expectations[18] - Key risks include potential liabilities from government investigations (e.g., HB 6), economic volatility, severe weather events, legislative and regulatory developments, and cyber-attacks[18] - FirstEnergy expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law[19]