FirstEnergy (FE) Q3 2024 earnings summary

Executive summary

• Q3 2024 GAAP earnings from continuing operations were $0.73 per share and operating earnings were $0.85 per share, within guidance; YTD 2024 operating EPS was $1.96, up from $1.94 in 2023.

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

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

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

• Affirmed 6–8% long-term annual operating earnings growth target and reported regulatory progress, including a $225 million PA rate case settlement.

Financial highlights

• Q3 2024 revenue was $3.73B (+7% YoY); operating income $727M (+9% YoY); net income $419M ($0.73/share); operating EPS $0.85.

• YTD 2024 revenue was $10.3B (+6% YoY); net income $717M ($1.25/share), down from $948M ($1.66/share) in 2023.

• Q3 operating earnings were at the low end of guidance, mainly due to $30 million in non-deferred storm O&M.

• 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 late October 2024.

Outlook and guidance

• 2024 operating earnings guidance narrowed to $2.61–$2.71 per share, midpoint $2.66, down from the original $2.71, due to storm costs and lower demand.

• Five-year CapEx plan of $26 billion through 2028 and 6–8% annual operating earnings growth reaffirmed.

• 2024 capital investment plan increased to $4.6 billion, 24% higher than 2023 and 7% above original budget.

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

• A comprehensive 2025–2029 financial plan and updated long-term outlook will be provided early next year.