FirstEnergy (FE) Q4 2023 earnings summary

Executive summary

• FY 2023 Operating EPS was $2.56, $0.02 above the guidance midpoint and up from $2.41 in 2022; the long-term annual growth target remains 6%-8%.

• Energize365 is a $26B 2024-2028 investment plan targeting 9% rate-base growth and improved earnings quality.

Financial highlights

• FY 2023 GAAP continuing-operations EPS was $1.96 vs. $0.71 in 2022; Operating EPS was $2.56 vs. $2.41.

• 4Q 2023 GAAP continuing-operations EPS was $0.30 vs. -$0.71; Operating EPS was $0.62 vs. $0.50 in 4Q22, in the upper half of guidance.

• FY 2023 revenue was $12.876B vs. $12.521B in 2022; GAAP operating income was $2.525B vs. $2.178B.

• 2023 operating results included base O&M 14% below and capital deployment 16% above 2022 levels.

Outlook and guidance

• 2024 Operating EPS guidance is $2.61-$2.81/share, with the midpoint 7% above the 2023 guidance midpoint; 1Q 2024 guidance is $0.48-$0.58/share.

• Long-term annual Operating EPS growth target remains 6%-8%; rate base is expected to grow from $29B in 2024 to $41B in 2028, or 9%.

• Energize365 totals $26B over 2024-2028; annual capital spending is projected to rise from $4.3B in 2024 to $6.2B in 2028.

• 2024 dividend plan includes four declared dividends of $0.425/share, or $1.70 for the year, subject to Board approval; target payout is 60%-70%.