Core Insights - Procter & Gamble (P&G) reported a net sales increase of 3% year-over-year for the first quarter of fiscal year 2026, reaching $22.4 billion, with organic sales growth of 2% [1][4] - Diluted earnings per share (EPS) rose by 21% to $1.95, while core EPS increased by 3% to $1.99 [1][6] - The company maintained its fiscal year guidance for sales and EPS growth, expecting organic sales growth to be in line with or up to 4% [11][12] Financial Performance - Operating cash flow for the quarter was $5.4 billion, with net earnings of $4.8 billion [2] - Adjusted free cash flow productivity was reported at 102%, indicating strong cash generation relative to net earnings [2] - P&G returned $3.8 billion to shareholders through dividends of $2.55 billion and share repurchases of $1.25 billion [2] Segment Performance - The Beauty segment saw organic sales growth of 6%, driven by innovation and pricing strategies [8] - Grooming segment organic sales increased by 3%, while Health Care segment organic sales rose by 1% [8] - Fabric & Home Care segment organic sales remained unchanged, and Baby, Feminine & Family Care segment organic sales also showed no growth [8] Cost and Margin Analysis - Reported gross margin decreased by 70 basis points year-over-year, with core gross margin down by 50 basis points [7][10] - Selling, general and administrative (SG&A) expenses as a percentage of sales declined by 20 basis points, reflecting improved productivity [9] - The operating margin decreased by 50 basis points, while core operating margin remained unchanged [10] Guidance and Outlook - P&G maintained its fiscal 2026 sales growth guidance in the range of 1% to 5%, with a net tailwind from foreign exchange expected to contribute approximately 1% [11] - The company anticipates diluted net EPS growth of 3% to 9% for fiscal 2026, with core EPS growth expected to be in line with or up to 4% [12] - P&G expects commodity cost headwinds of approximately $100 million and tariff-related costs of about $400 million for fiscal 2026 [13]

Financial Performance - The company's 3Q25 Core EPS was $083/share, a 9% increase compared to $076/share in 3Q24, driven by customer-focused formula-rate investments and new PA rates[16] - Year-to-date 2025 Core EPS reached $202/share, reflecting a 15% growth from $176/share in the same period of 2024, attributed to strong execution and financial discipline[16] - The company is raising its 2025 Core EPS guidance midpoint and narrowing the range to $250-$256/share, compared to the previous range of $240-$260/share and the 2024 result of $237/share[11, 16] - Year-to-date 2025 investments totaled $40 billion, approximately 30% higher than the same period in 2024, and the company is increasing its 2025 forecast to $55 billion from $50 billion, compared to $45 billion in 2024[11, 16] - A dividend of $0445/share was declared in September, consistent with guidance and representing approximately 5% growth compared to 2024[16] Strategic Initiatives and Growth Opportunities - The company's long-term pipeline demand from data centers has nearly doubled since February 2025, reaching 117 GW, while contracted demand has increased by over 30% to 38 GW[25] - The company filed its West Virginia Integrated Resource Plan (IRP) on October 1, 2025, which includes plans to build 1200 MW of CCGT and 70 MW of solar generation[12, 29] - The company expects to increase total transmission investments by 30% in its next 5-year plan, resulting in a total transmission rate base growth of up to 18% through 2030, with the rate base expected to more than double by 2030[31] Financial Outlook and Shareholder Value - The company is reaffirming its 6-8% Core EPS CAGR from 2025-2029, which, combined with the current dividend yield, represents a total shareholder return proposition of 10-12%[9, 40] - The company is reaffirming its 2025-2029 base investment plan of approximately $28 billion, with a significant increase in 2026-2030 expected to be announced on the 4Q25 earnings call[40]

Focused on Our Future 2Q 2025 Strategic & Financial Highlights Published July 30, 2025 Forward-Looking Statements Forward-Looking Statements: This presentation includes forward-looking statements based on information currently available to management and unless the context requires otherwise, references to "we," "us," "our" and "FirstEnergy" refers to FirstEnergy Corp. and its subsidiaries. Such statements are subject to certain risks and uncertainties and readers are cautioned not to place undue reliance o ...

Financial Performance - Organic sales grew by 2% in Q1-Q3 2025 [13] - The company estimates organic sales growth of 2% for FY 2025 [126] - Core EPS is expected to grow by 2-4% in FY 2025 [21, 129] - Adjusted free cash flow productivity was 105% in FY 2024 [21, 130] - The company has delivered 69 consecutive years of dividend increases [23] Business Segments Performance (Q1-Q3 2025) - Personal Health Care organic sales increased by 5% [14] - Family Care organic sales increased by 4% [14] - Grooming organic sales increased by 3% [14, 124] - Baby Care organic sales decreased by 2% [14] Strategic Initiatives - The company is implementing a 2-year non-core restructuring program [34, 36] - The company is targeting $1.8 billion per year in productivity results [33] - The company aims to improve media reach to 80% through brand superiority campaigns [90, 91] - The company is focusing on supply chain 3.0 to drive productivity [99, 101]