FE — FirstEnergy Corp.

FirstEnergy Corp. Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• GAAP Earnings: $0.50 per share, up from $0.46 in Q2 2025.
• Core Earnings: $0.50 per share, slightly down from $0.52 year-over-year.
• Year-to-Date Core Earnings: $1.22 per share, compared to $1.19 for the same period last year.
• Capital Investment: $2.9 billion deployed in the first half of 2026, a 19% increase from 2025.
• Return on Equity (ROE): 9.5%, consistent with targeted returns.

2. Strategic Updates and Business Highlights

• Capital Investment Plans: Reaffirmed $6 billion capital investment plan for 2026 and a $36 billion plan over five years, with a focus on regulatory strategies and customer-focused capital deployment.
• Data Center Demand: Total forecasted demand increased by 30% to approximately 25 gigawatts, with 6.4 gigawatts contracted. An additional 1.5 gigawatts expected to be contracted soon.
• Regulatory Developments: Advancing regulatory frameworks in Ohio and West Virginia, with a focus on rate cases and new generation projects. A significant CPCN application for the 1.2 gigawatt Maidsville Energy Center is underway.
• Transmission Growth: Projected 16% compound annual growth rate through 2030, driven by data center demand and competitive development projects.

3. Forward Guidance and Outlook

• Earnings Guidance: Reaffirmed core earnings guidance range of $2.62 to $2.82 per share for 2026, with long-term growth expected near 6% to 8% through 2030.
• Upcoming Rate Cases: Anticipated rate increases in West Virginia and filings in New Jersey and Maryland, aimed at recovering capital investments and improving reliability.
• Investment Opportunities: Continued focus on expanding generation capacity to meet growing customer demand, particularly in West Virginia.

4. Bad News, Challenges, or Points of Concern

• Core Earnings Decline: Slight decrease in core earnings year-over-year may raise concerns about growth momentum.
• Regulatory Risks: Potential scrutiny in New Jersey regarding capital spending and cost of capital, which could impact future rate cases.
• Market Competition: Competitive pressures in PJM states where deregulation exists may challenge FirstEnergy's ability to secure contracts compared to states with regulated markets.
• Operational Costs: Higher planned operating expenses could impact profitability in the near term.

5. Notable Q&A Insights

• Data Center Pipeline: Urgency from both developers and utilities to contract demand quickly to facilitate entry into PJM's planning process.
• Regulatory Process for West Virginia: A potential Genco structure could expedite the regulatory process compared to traditional CPCN filings.
• New Jersey Rate Case: Management expressed confidence in collaborative engagement with regulators, expecting a positive outcome despite potential challenges.
• Investment Flexibility: Management emphasized the ability to adjust capital deployment plans based on evolving regulatory environments and investment opportunities.

Overall, FirstEnergy demonstrated solid financial performance and strategic progress in Q2 2026, while navigating regulatory challenges and competitive pressures in its operational landscape.