FirstEnergy Q4 Earnings Top Estimates, Revenues Increase Y/Y

Core Insights - FirstEnergy Corp. reported fourth-quarter 2025 operating earnings of 53 cents per share, exceeding the Zacks Consensus Estimate of 52 cents by 1.92%, but down from 67 cents in the same quarter last year [1][7] - The company achieved adjusted earnings of $2.55 per share for 2025, reflecting a year-over-year increase of 7.60% from $2.37 in 2024 [1][2] Revenue Performance - Operating revenues for Q4 2025 reached $3.78 billion, surpassing the Zacks Consensus Estimate of $3.25 billion by 16.9%, and increased by 19.6% from $3.18 billion in the prior year [3][7] - Total revenues for 2025 were $15.09 billion, a 12.01% increase from $13.47 billion in 2024 [3] Segmental Performance - Distribution segment revenues totaled $7.55 billion in 2025, up 9.97% from $6.86 billion in the previous year [4] - Integrated segment revenues amounted to $5.68 billion, rising 16.6% from $4.88 billion [4] - Stand-Alone Transmission segment revenues reached $1.91 billion, up 6.60% from $1.79 billion [4] Operating Expenses and Income - Total operating expenses were $12.88 billion in 2025, an increase of 16.10% from $11.01 billion due to higher operating expenses, depreciation provisions, and general taxes [4] - Operating income was $2.21 billion, down 7.03% from $2.38 billion in the previous year [5] Interest Expense - The company reported an interest expense of $1.22 billion in 2025, which is a 6.38% increase from $1.14 billion in the prior year [5] Future Guidance - FirstEnergy expects 2026 core earnings per share to be in the range of $2.62 to $2.82, with a Zacks Consensus Estimate of $2.71, which is lower than the midpoint of the company's guidance [6][7] - The company anticipates a long-term EPS growth rate of 6-8% and has a capital investment plan of $36 billion for the 2026-2030 period, reflecting a nearly 30% increase compared to the previous five-year investment [6][8]