Key Takeaways WEC posted Q2 EPS of 76 cents, beating estimates by 7% and rising 13.4% from last year's 67 cents.Revenues climbed 13.4% to $2.01B on higher electricity volumes and stronger commercial demand.Operating income rose 11% to $404.9M, while expenses and interest costs also saw double-digit gains.WEC Energy Group (WEC) reported second-quarter 2025 earnings of 76 cents per share, which surpassed the Zacks Consensus Estimate of 71 cents by 7%. The bottom line also increased 13.4% from the year-ago qua ...

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 ...

Core Insights - Southern Company reported second-quarter earnings of $0.9 billion, or $0.80 per share, in 2025, a decrease from $1.2 billion, or $1.10 per share, in the same quarter of 2024 [1][2] - For the first half of 2025, earnings totaled $2.2 billion, or $2.01 per share, compared to $2.3 billion, or $2.13 per share, for the same period in 2024 [1][2] - Operating revenues for the second quarter of 2025 were $7.0 billion, reflecting a 7.9% increase from $6.5 billion in the second quarter of 2024 [5][26] - The company emphasized its commitment to balancing growth, reliability, and affordability for customers, while achieving operational and financial performance [6] Financial Performance - Excluding certain items, Southern Company earned $1.0 billion, or $0.92 per share, in the second quarter of 2025, down from $1.2 billion, or $1.10 per share, in the same quarter of 2024 [2][3] - For the six months ended June 30, 2025, excluding these items, earnings were $2.4 billion, or $2.15 per share, compared to $2.3 billion, or $2.13 per share, for the same period in 2024 [2][3] - The average shares outstanding increased slightly from 1,096 million in 2024 to 1,101 million in 2025 [3][12] Revenue Breakdown - Retail electric revenues for the second quarter of 2025 included $1.139 billion from fuel and $3.619 billion from non-fuel sources, contributing to total operating revenues of $6.973 billion [26] - Natural gas revenues increased to $979 million in the second quarter of 2025, up from $831 million in the same quarter of 2024 [26] - Total operating revenues for the first half of 2025 reached $14.748 billion, a 12.5% increase from $13.109 billion in the first half of 2024 [5][26] Operational Insights - Adjusted earnings drivers included higher non-fuel operations and maintenance expenses, prior year gains on transmission asset sales, milder weather, and increased income taxes, depreciation, and interest expenses [4] - The company reported a net income of $880 million for the second quarter of 2025, down from $1.203 billion in the same quarter of 2024 [12][26] - Significant factors impacting earnings per share included increased operations and maintenance expenses and higher interest expenses [16][20]

Core Insights - FirstEnergy reported revenue of $3.38 billion for the quarter ended June 2025, reflecting a 3.1% increase year-over-year, but fell short of the Zacks Consensus Estimate of $3.41 billion, resulting in a surprise of -1% [1] - The company's EPS was $0.52, down from $0.56 in the same quarter last year, but exceeded the consensus estimate of $0.50, leading to an EPS surprise of +4% [1] Financial Performance Metrics - Total Electric Distribution Deliveries were 34,510 MWh, below the two-analyst average estimate of 36,000.49 MWh [4] - Distribution revenues were reported at $1.68 billion, matching the two-analyst average estimate [4] - Stand-Alone Transmission revenues were $456 million, slightly below the average estimate of $467.85 million [4] - Consolidated external revenues were $3.38 billion, compared to the estimated $3.47 billion by two analysts [4] - Revenues from Total Corporate/Other & Reconciling Adjustments were -$12 million, better than the estimated -$13.29 million, but represented a -14.3% change compared to the year-ago quarter [4] - Integrated revenues were $1.26 billion, surpassing the average estimate of $1.21 billion [4] Stock Performance - FirstEnergy's shares returned +3.5% over the past month, slightly outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - FirstEnergy Corp. reported second quarter 2025 GAAP earnings of $268 million, or $0.46 per share, on revenue of $3.4 billion, a significant increase from $45 million, or $0.08 per share, on revenue of $3.3 billion in the same quarter of 2024 [1][9] - Core Earnings (non-GAAP) for the second quarter of 2025 were $0.52 per share, slightly up from $0.51 per share in the second quarter of 2024, reflecting a year-over-year growth [2][10] - The company has deployed $2.5 billion in capital investments through the first half of 2025, aligning with its $5 billion investment plan for 2025 and a broader $28 billion Energize365 program for 2025-2029 [1][3] Financial Performance - Year-to-date GAAP earnings for June 2025 reached $1.09 per share, with Core Earnings at $1.19 per share, marking a 19% increase in Core Earnings year-over-year [1][10] - FirstEnergy affirmed its full-year 2025 Core Earnings guidance of $2.40 to $2.60 per share, targeting the upper half of this range [3][4] - The company expects a compounded annual growth rate of 6-8% in Core Earnings from 2025 through 2029, supported by its capital investment strategy [3][4] Segment Performance - In the Distribution segment, Core Earnings increased by $0.06 per share compared to the second quarter of 2024, primarily due to new base rates in Pennsylvania and lower operating expenses [5] - The Integrated segment's Core Earnings remained flat year-over-year, benefiting from a 14% growth in transmission rate base but offset by lower customer demand [6] - The Stand-Alone Transmission segment saw a decrease of $0.01 per share in Core Earnings compared to the previous year, despite an 8% increase in rate base due to capital investments [7] Special Items and Adjustments - The GAAP results for both the second quarter and first half of 2025 reflect the impact of special items, which include various adjustments that management believes are not indicative of ongoing core activities [12][16] - For the second quarter of 2025, total special items amounted to $0.06 per share, compared to $0.43 per share in the same quarter of 2024 [12]

Core Viewpoint - Dominion Energy is expected to report its second-quarter 2025 results on August 1, with a prior earnings surprise of 20.78% in the last quarter [1] Group 1: Factors Impacting Q2 Performance - Earnings are likely to benefit from ongoing regulated investment, new electric rates, higher demand in service territories, and nuclear production tax credits [2][8] - Robust commercial load growth driven by data centers and customer growth in Virginia and South Carolina is expected to contribute positively [3] - However, higher financing costs, share dilution, planned nuclear unit outages, and increased depreciation, depletion, and amortization (DD&A) may offset some of these positives [3][8] Group 2: Q2 Expectations - The Zacks Consensus Estimate for earnings is set at 69 cents per share, indicating a year-over-year increase of 25.4% [4][8] - Revenue is estimated at $3.64 billion, reflecting a 4.55% increase from the previous year [4] Group 3: Earnings Prediction Model - The current Earnings ESP for Dominion Energy is 0.00%, suggesting that an earnings beat is not predicted this time [5][6] - The company holds a Zacks Rank of 3, indicating a hold position [6] Group 4: Comparisons with Other Stocks - Essential Utilities (WTRG) is expected to report an earnings beat with an Earnings ESP of +6.90% and a Zacks Rank of 2 [7] - IDACORP (IDA) and ONE Gas Inc. (OGS) are also anticipated to report earnings beats, with respective Earnings ESPs of +4.55% and +3.22% [9][10]

Financial Data and Key Metrics Changes - The company reported second quarter adjusted earnings per share (EPS) of $1.05, maintaining guidance for 2025 results [5][29] - Adjusted EPS for the quarter was $1.50, driven by net investments for customers, higher retail sales volume, and increased other income [29][30] - Weather-adjusted retail sales growth was strong at 4.5%, with industrial sales growing close to 12% [30] Business Line Data and Key Metrics Changes - The company secured significant new growth in Arkansas, expecting a four-year industrial sales growth rate of approximately 13% [9] - The four-year capital plan has been updated to $40 billion, focusing on customer-driven generation, including 3 gigawatts of solar and 1.4 gigawatts of battery storage [9][10] - The company has signed roughly 8 gigawatts of electric service agreements since the beginning of last year [9] Market Data and Key Metrics Changes - The company has over 3 million customers, primarily residential, achieving a Net Promoter Score in the first quartile for utility residential service [6] - The economic development model is attracting new businesses to the service area, contributing to job growth and tax base [8][12] Company Strategy and Development Direction - The company aims to be the premier utility, focusing on sustainable value creation for stakeholders [5] - A significant investment of $8 billion in transmission is planned, including projects that enhance grid resilience [15] - The company is working on an accelerated resilience program to better manage storm impacts, with $2 billion approved for projects [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on 2025 guidance, despite challenges such as higher MISO capacity costs [37] - The company is optimistic about future growth opportunities, supported by a higher capital plan and strong customer demand [38] - Regulatory changes are expected to improve storm cost recovery and reduce financial risks for customers [102][104] Other Important Information - The company completed the sale of its gas LDC businesses to Delta Utilities, allowing a focus on core electric operations [19][20] - The company has been recognized as a top community-minded company, contributing over 122,000 volunteer hours valued at over $4 million [26] Q&A Session Summary Question: Inquiry about new Arkansas customer details - Management stated they cannot disclose specifics about the customer but will provide details in upcoming regulatory filings [44] Question: Clarification on gas generation capacity - The seven gigawatts mentioned are related to projects not yet publicly announced, available for future customer growth [46] Question: Update on Meta's Hyperion data center regulatory approval - Management confirmed no regulatory process has started for the upsizing of Hyperion and emphasized excitement about potential expansion [50][51] Question: Discussion on nuclear upgrades and risk management - Management indicated that the operating companies are not large enough to take on construction risks for nuclear units and are exploring various support options [55] Question: Clarification on storm recovery mechanisms - Management explained a new mechanism in Louisiana allows for quicker recovery of securitization costs, benefiting customers and improving credit metrics [102][104] Question: Concerns about gas plant construction timelines - Management expressed confidence in managing project timelines through strong relationships with EPCs and simplified designs [106][108] Question: Coexistence of storm resilience and data center customers - Management noted that data centers are locating further from the coast and emphasized building modern infrastructure to reduce storm risks [116]

Financial Data and Key Metrics Changes - The company reported second quarter adjusted earnings per share (EPS) of 1.05, which aligns with the guidance for 2025 [5][28] - Adjusted EPS for the quarter was positively impacted by net investments for customers, higher retail sales volume, and increased other income, despite higher operational and maintenance costs [29][30] - Weather-adjusted retail sales growth for the quarter was strong at 4.5%, with industrial sales contributing close to 12% growth [29][30] Business Line Data and Key Metrics Changes - The company has updated its four-year capital plan to $40 billion, which includes significant investments in customer-driven generation, including approximately 3 gigawatts of solar and 1.4 gigawatts of battery storage [8][9] - The industrial sales growth rate is expected to be approximately 13% over the next four years, driven by new growth in Arkansas [8][10] Market Data and Key Metrics Changes - The company has secured significant new growth opportunities in Arkansas, which will benefit existing customers and communities [8][10] - The customer pipeline remains robust, particularly in the data center segment, which is expected to contribute significantly to future growth [10] Company Strategy and Development Direction - The company aims to be the premier utility provider and create sustainable value for stakeholders, focusing on customer service and economic development [5][6] - The strategy includes a focus on storm resilience and grid hardening, with a planned $8 billion investment in transmission over the next four years [14][15] - The company is also exploring new nuclear opportunities while managing construction risks through potential partnerships with larger entities [54][122] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 guidance and highlighted the importance of capital deployment to support growth [35][36] - The company is optimistic about the economic impact of its projects on communities and the potential for job creation [11][24] - Management noted improvements in storm recovery processes and regulatory support, which are expected to enhance financial stability and customer confidence [100][104] Other Important Information - The company completed the sale of its gas local distribution company to focus on its core electric business [17] - The company has been recognized as a top community-minded company, reflecting its commitment to social responsibility [24][25] - The board of directors has welcomed a new member with extensive investment experience, which is expected to enhance governance [25] Q&A Session Summary Question: Inquiry about the new Arkansas customer and sales growth - Management indicated that specific details about the customer cannot be disclosed at this time, but regulatory filings will provide more information soon [42] Question: Clarification on gas generation capacity - The seven gigawatts of gas generation capacity mentioned is related to projects not yet publicly announced, indicating potential for future customer growth [45] Question: Update on Meta's Hyperion data center expansion - Management confirmed that no regulatory approval process has started for the expansion, and further details would need to come from Meta [50] Question: Discussion on nuclear projects and risk management - Management is exploring various options to manage construction risks associated with new nuclear projects, including potential partnerships with larger entities [54][122] Question: Updates on storm recovery processes - Management highlighted new mechanisms in Louisiana for quicker storm cost recovery, which are expected to benefit customers and improve credit metrics [100][104] Question: Concerns regarding the ability to complete gas projects on time - Management expressed confidence in their relationships with EPCs and the use of standardized designs to facilitate timely project completion [106][109]

Financial Performance - Second quarter 2025 adjusted EPS was $105[7] - Second quarter 2025 OCF was $1262 million[8] - The company is affirming its 2025 adjusted EPS guidance and updating 2027E–2028E outlooks[9] - The company is raising 2027E–2028E adjusted EPS outlooks, projecting greater than 8% CAGR through 2028E[29] - The company's cumulative OCF outlook for 2025E-2028E is approximately $225 billion[118] Sales and Growth - The company experienced very strong second quarter 2025 retail sales growth, including approximately 12% industrial growth[9] - The company has a strong sales outlook, including significant new load in Arkansas and a strong pipeline of customer interest[9] - The company's four-year industrial sales CAGR is approximately 13%[10] Capital Investments and Equity - The company is updating its capital plan to serve growing customer needs[9] - The company is adding $3 billion to its four-year capital plan, bringing the total to $40 billion[23, 24] - The company settled approximately $800 million of equity forwards in May, contracting equity needs into 2027[9] Regulatory and Credit - Credit metric outlooks remain better than agency thresholds[16] - The company is continuing progress on resilience, including capital investment, regulatory/legislative enactments, and financial readiness[9]

Core Viewpoint - Pinnacle West Capital Corporation (PNW) is expected to report second-quarter 2025 results on August 6, following a significant negative earnings surprise of 180% in the previous quarter [1] Group 1: Factors Impacting Q2 Performance - PNW's Q2 earnings are anticipated to benefit from retail customer growth and increased retail electricity sales, driven by higher electricity demand from new large manufacturing facilities and data centers [2] - The bottom line is expected to improve due to lower core operations and maintenance expenses, with Arizona Public Service's Energy Management System enhancing the integration of renewable and energy storage assets [3] - However, higher depreciation, amortization, and property taxes are likely to offset some of the positive impacts on PNW's performance [4] Group 2: Q2 Expectations - The Zacks Consensus Estimate for earnings is $1.58 per share, reflecting a year-over-year decrease of 10.2% [5] - The revenue estimate stands at $1.27 billion, indicating a year-over-year decline of 3% [5] - Total electric sales are estimated at 9,757.73 gigawatt-hours, down 1.7% from the previous year's quarter [5] Group 3: Earnings Prediction - The current model does not predict an earnings beat for PNW, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6][7] - Other industry players like IDACORP and Xcel Energy are expected to report earnings beats, with IDACORP having an Earnings ESP of +1.56% and a Zacks Rank of 2 [8][10]