FirstEnergy (FE) Q1 2025 earnings summary

Executive summary

• Q1 2025 GAAP EPS rose to $0.62 from $0.44, and Core EPS increased to $0.67 from $0.49, reflecting 41–42% and 37% year-over-year growth, respectively, driven by new base rates, higher demand, and regulated capital investments.

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

• Dividend increased to $0.445/share (4.7–5% growth), annualized at $1.78/share, reflecting confidence in future growth.

• Strong start to 2025 with performance on track to meet financial and strategic goals.

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

Financial highlights

• Q1 2025 revenues grew to $3.77–$3.8 billion, up 15% from Q1 2024; operating income rose 23% to $754 million.

• Q1 cash flow from operations was $637 million, a significant improvement from the prior year.

• O&M expenses were 3.5% lower year-over-year, with baseline O&M at $340 million, in line with plan.

• Over $1 billion invested in Q1, up 15% from last year, with $1.03 billion in capital investments.

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

Outlook and guidance

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

• Total annual shareholder return proposition of 10–12% combining EPS growth and dividend yield.

• 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.