FE — FirstEnergy Corp.

Summary of FirstEnergy Corp. Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• GAAP Earnings: $0.76 per share, up from $0.73 in Q3 2024.
• Core Earnings: $0.83 per share, a 9% increase from $0.76 in Q3 2024. Year-to-date core earnings reached $2.02 per share, a 15% increase from $1.76 in 2024.
• Capital Investments: $4 billion invested in regulated utilities year-to-date, a 30% increase from the previous year. The 2025 capital investment program has been raised by 10% to $5.5 billion.
• Return on Equity (ROE): 10.1% on a trailing 12-month basis, slightly above the target range of 9.5% to 10%.

2. Strategic Updates and Business Highlights:

• Load Growth: Increased demand from data centers is expected to boost FirstEnergy's system peak load by 15 gigawatts by 2035.
• Integrated Resource Plan (IRP): Submitted for West Virginia, proposing significant investments in solar and gas generation to meet future capacity needs.
• Transmission Investments: Anticipated growth in transmission rate base by up to 18% per year through 2030, with ongoing investments to enhance reliability and accommodate increased demand.
• Customer Engagement: Efforts to mitigate rising electric bills, particularly in deregulated states, with a focus on advocating for changes in capacity auction structures.

3. Forward Guidance and Outlook:

• 2025 Earnings Guidance: Raised midpoint to a range of $2.50 to $2.56 per share, reaffirming a core earnings compound annual growth rate (CAGR) of 6% to 8% through 2029.
• Future Capital Plans: A new capital investment plan for 2026-2030 is expected to be rolled out early next year, with significant focus on transmission and generation projects.

4. Challenges and Points of Concern:

• Rising Customer Bills: There has been an 11% increase in average electric bills in deregulated states, primarily driven by generation costs, which poses a risk to customer satisfaction and regulatory scrutiny.
• Regulatory Environment: The need for timely recovery of investments through base rate cases in Ohio and other states is critical, as the company no longer has trackers and riders in place.
• Market Pressures: Concerns over the sustainability of current generation costs and the impact of PJM capacity auctions, which are perceived as burdensome for customers.

5. Notable Q&A Insights:

• West Virginia Generation Strategy: Discussion on the potential for self-build versus build-transfer for new generation projects, with a focus on capital recovery during construction.
• Rate Case Strategy: Plans to file for a multiyear rate plan in Ohio following the upcoming base rate case order, emphasizing the need for timely recovery of investments.
• Data Center Load Forecast: Confidence in the visibility of load forecasts, particularly from contracted data center customers, which is expected to drive future transmission CapEx.
• Transmission CapEx Upside: The company is seeing significant investment opportunities across all five states, with a focus on reliability enhancements and regulatory compliance.

Overall, FirstEnergy Corp. reported strong financial performance in Q3 2025, with positive growth metrics and a robust capital investment strategy, while also facing challenges related to rising customer bills and regulatory pressures. The company remains optimistic about future growth driven by data center demand and strategic investments in transmission and generation.