FirstEnergy (FE) Q1 2025 earnings summary

Executive summary

• Q1 2025 GAAP EPS was $0.62 and Core EPS was $0.67, up from $0.44 and $0.49, respectively, year-over-year, with earnings attributable to FE up 42% to $360 million, driven by new base rates, higher demand, and regulated capital investments.

• Over $1 billion in capital investments executed in Q1 2025, supporting a $5 billion annual plan and the five-year $28 billion Energize365 program.

• Dividend increased to $0.445 per share, representing a 4.7%–5% growth, payable June 1, and reflecting 11% annual growth since 2023.

• JCP&L's net income rose to $49 million from a $8 million loss, reflecting new base rates, higher demand, and the absence of a prior year charge.

• Organizational changes included a workforce reduction of less than 3%, incurring a $26 million pre-tax charge.

Financial highlights

• Q1 2025 Core EPS rose 37% year-over-year to $0.67, driven by new base rates and higher customer demand; GAAP EPS was $0.62, up from $0.44.

• Revenues increased 15% to $3.77–$3.8 billion, with operating income up 23% to $754 million.

• Cash from operations was $637 million, a significant improvement from a $40 million outflow in Q1 2024.

• O&M expenses were 3.5% lower than last year, with Q1 base O&M at $340 million, in line with plan.

• Distribution deliveries increased over 4% year-over-year; residential sales up 10%, commercial up 5%, industrial down nearly 3%.

Outlook and guidance

• Reaffirmed 2025 Core EPS guidance of $2.40–$2.60, targeting the upper half of the range, and 6%–8% Core EPS CAGR through 2029, supported by a $28 billion capital investment plan.

• Expects total annual shareholder return of 10%–12% with potential upside.

• No incremental equity needs in the base plan beyond employee benefit programs.

• $5 billion in targeted capital investments planned for 2025 as part of the Energize365 initiative.