FirstEnergy (FE) Q4 2024 earnings summary

Executive summary

• Achieved 2024 GAAP EPS of $1.70 and operating EPS of $2.63, both within guidance, with core EPS of $2.37, reflecting strong regulated business growth despite lower sales and storm activity.

• Capital investments reached $4.5 billion in 2024, a 20% increase over 2023 and 5% above plan, focused on grid reliability and energy transition.

• Completed major regulatory milestones, including rate reviews in four of five states, de-risking 83% of rate base and resolving legacy issues.

• Strengthened balance sheet and achieved investment-grade ratings at all subsidiaries following the sale of 30% of FET equity, finalizing a $7B balance sheet improvement initiative.

• Launched a new leadership team and organizational model, including 24 new VP-level appointments, to drive performance and accountability.

Financial highlights

• 2024 operating EPS was $2.63, up from $2.56 in 2023; core EPS was $2.37, up 7.7% from $2.20, and GAAP EPS was $1.70, down from $1.96 due to higher special items.

• Dividend declarations totaled $1.70 per share in 2024, up 6% year-over-year, with payout ratio at 64% of core EPS.

• Invested $4.5 billion in capital in 2024, exceeding plan by 5%.

• FFO to total debt at 14% in 2024, up from 12.5% actual, excluding one-time payments.

• Consolidated ROE improved to 9.4% in 2024 from 8.8% in 2023; targeting 9.5–10%.

Outlook and guidance

• 2025 core EPS guidance is $2.40–$2.60, representing 5.5% growth at midpoint, with a 6–8% core EPS CAGR and 9% rate base CAGR through 2029.

• Annual capital investment plan of $5B in 2025, rising to $6.4B by 2029; Energize365 program extended to $28B through 2029.

• Dividend expected to total $1.78 per share in 2025, with payout ratio targeted at 60–70% of core earnings.

• No incremental equity needs anticipated for base plan, except for employee programs; flexibility to fund incremental opportunities as they arise.

• Attractive total shareholder return of 10–12% expected, with 4%+ dividend yield.