FirstEnergy (FE) Q4 2025 earnings summary

Executive summary

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

• S&P upgraded the senior unsecured credit rating to BBB or higher, reflecting improved financial discipline and constructive regulatory outcomes.

• 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.

• Targeting Core EPS CAGR near the top end of 6–8% and consolidated ROEs of 9.5–10% through 2030.

• 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, a 7.6% increase year-over-year.

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

• $5.6 billion in capital investments deployed, up 25% from 2024 and 12% above the original plan.

• Quarterly dividends totaled $1.78 per share, a 5% increase from 2024.

• TTM consolidated ROE was 9.8% for 2025, in line with the 9.5–10% target.

Outlook and guidance

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

• Five-year capital plan increased by $8 billion (30%) to $36 billion, with 75% in formula rate programs and 10% annual rate base growth targeted through 2030.

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

• Load forecast includes 2% customer demand growth, mainly from a 5% increase in industrials.

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