FirstEnergy (FE) Q3 2024 earnings summary

Executive summary

• Q3 2024 GAAP earnings from continuing operations were $0.73 per share, with operating earnings of $0.85 per share, both within guidance; YTD operating EPS was $1.96, $0.02 above YTD 2023.

• Revenue for Q3 2024 rose 7% year-over-year to $3.73 billion, with operating income up 9% to $727 million; net income was $419 million.

• The 2024 capital investment plan was increased to $4.6 billion, up 24% from 2023, and the five-year CapEx plan of $26 billion through 2028 was reaffirmed.

• 2024 operating earnings guidance narrowed to $2.61–$2.71 per share, reflecting higher storm costs and lower customer demand.

• Major developments included the $3.5 billion sale of a 30% equity interest in FET to Brookfield and regulatory settlements in Pennsylvania and New Jersey.

Financial highlights

• Q3 2024 revenue was $3.73B (+7% YoY); operating income was $727M (+9% YoY); net income was $419M ($0.73/share).

• Year-to-date capital investments reached $3.1 billion, up 22% from the first nine months of 2023.

• Operating expenses rose 6% YoY in both Q3 and YTD, driven by higher storm restoration and depreciation.

• Cash from operations for nine months was $1.85B, up from $429M in 2023, aided by lower pension contributions and legal settlement proceeds.

• Completed $1.4B in long-term debt transactions YTD at a 5.1% weighted average coupon; liquidity of ~$6B as of October 28, 2024.

Outlook and guidance

• 2024 operating earnings guidance narrowed to $2.61–$2.71 per share, midpoint $2.66, down from the original midpoint of $2.71.

• Five-year CapEx plan of $26 billion and 6–8% annual operating earnings growth rate reaffirmed, driven by 9% average annual rate base growth.

• No incremental equity needs expected through the planning period beyond employee benefit programs.

• A comprehensive 2025–2029 financial plan and updated load growth outlook will be provided early next year.

• Targeting a dividend payout ratio of 60–70% and total shareholder return of 10–12%+.