FirstEnergy (FE) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 financial results, with Core EPS of $2.55, up 7.6% year-over-year and at the top end of revised guidance.

• Announced a $36 billion, 5-year capital investment plan for 2026–2030, a 30% increase over the prior plan, focused on reliability, grid resiliency, and transmission/distribution upgrades.

• S&P and Fitch upgraded credit ratings in late 2025, reflecting improved financial discipline and constructive regulatory outcomes.

• Quarterly dividends increased 5% to $1.78 per share in 2025, with a planned 4.5% increase to $1.86 per share in 2026.

• Revenue reached $15.1 billion, a 12% increase from 2024, driven by regulated investment strategies and higher customer demand.

Financial highlights

• 2025 GAAP EPS was $1.77, up from $1.70 in 2024, with Core EPS of $2.55, up from $2.37.

• Cash from operations was $3.7 billion, nearly 30% above 2024.

• Capital investments totaled $5.6 billion, 25% above 2024 and 12% above plan.

• TTM consolidated ROE reached 9.8%, in line with the 9.5–10% target.

• Quarterly dividends declared in 2025 totaled $1.78 per share, a 5% increase over 2024.

Outlook and guidance

• 2026 Core EPS guidance is $2.62–$2.82 per share, representing 7% growth over 2025.

• 2026–2030 capital investment plan totals $36 billion, with 10% annual rate base growth and Core EPS CAGR near the top end of 6–8%.

• 75% of the investment plan is in formula rate programs, supporting stable returns.

• Dividend payout ratio targeted at 60–70% of Core EPS.

• Up to $2 billion in equity financing planned, with a focus on maintaining investment-grade credit profile.