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1. Company Snapshot

1.a. Company Description

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States.It operates through Regulated Distribution and Regulated Transmission segments.The company owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities.


It operates 24,074 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 273,295 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits.The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York.FirstEnergy Corp.


was incorporated in 1996 and is headquartered in Akron, Ohio.

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1.b. Last Insights on FE

FirstEnergy Corp.'s recent performance was driven by its solid Q2 2025 earnings, which surpassed estimates, and a revenue increase year-over-year. The company's $28 billion grid modernization plan and growing data center demand highlight its growth prospects. Additionally, its customer-focused capital investments, totaling $2.5 billion through June 2025, align with its $5 billion 2025 investment plan. A quarterly dividend of $0.445 per share of outstanding common stock was declared, representing a 2025 annual rate of $1.78 per share.

1.c. Company Highlights

2. FirstEnergy Corp. Delivers Strong 2025 Results with Robust Capital Investment

FirstEnergy Corp. reported 2025 GAAP earnings of $1.77 per share and core earnings of $2.55 per share, at the top end of their revised guidance range. The company's actual EPS came out at $0.53, slightly beating estimates of $0.52. The strong financial performance was driven by a $36 billion five-year capital investment program aimed at improving customer reliability and grid resiliency. The company's revenues are expected to grow at 3.8% next year, according to analysts' estimates.

Publication Date: Feb -23

📋 Highlights
  • 2025 Earnings Performance: GAAP EPS of $1.77 and core EPS of $2.55, meeting top end of revised guidance.
  • Capital Investment Plan: $36B five-year CapEx targeting 10% rate base growth and 6–8% core EPS CAGR (2026–2030).
  • Dividend Growth: Quarterly dividends of $1.78/share, a 5% increase YoY, reflecting shareholder returns.
  • ROE Target: 2025 ROE of 9.8% on $27.8B rate base, with a 9.5–10% ROE goal through 2030.

Capital Investment and Rate Base Growth

The company's $36 billion five-year capital investment program is expected to drive 10% rate base growth and deliver a core earnings per share compounded annual growth rate near the top end of 6% to 8% from 2026 to 2030. In 2025, the company deployed $5.6 billion in customer-focused capital investments, a 25% increase from 2024. The company's rate base growth is expected to be around 10.4%, which could increase to 11.4% with the addition of West Virginia.

Financial Performance and Valuation

The company's return on equity in 2025 was 9.8% on a rate base of $27.8 billion. The current valuation metrics suggest that the stock is trading at a P/E Ratio of 22.79 and a P/B Ratio of 2.32. The Dividend Yield is 3.55%, indicating a relatively attractive yield for income investors. With a ROE of 10.02%, the company is demonstrating a strong ability to generate returns for shareholders.

State-Specific Updates and Growth Opportunities

The company is focused on investing in Pennsylvania's distribution system, with $6.7 billion invested to date. In New Jersey, the company is working to improve reliability and affordability, with plans to file for another rate case to reflect increased investment. The company is also pursuing incremental investment opportunities in West Virginia, with a goal of adding another 1,200 megawatts of generation, potentially dedicated to data center load.

Transmission Investments and Data Center Activity

The company's transmission investments are driven by both demand and aging infrastructure, with $5 billion of investments made since 2022 in response to demand. Data center activity is driving transmission investments, with 13 gigawatts of pipeline demand through 2035, expected to drive $250 million of incremental capital investments per gigawatt.

Regulatory Updates and Future Plans

The company plans to file base rate cases in Maryland and West Virginia and a three-year rate plan in Ohio. The company targets a consolidated ROE of 9.5% to 10% through the planning period and expects modest increases in operating expenses. The financing plan includes $16 billion in new long-term debt issuances and modest levels of equity or equity-like securities.

3. NewsRoom

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FE or AEP: Which Is the Better Value Stock Right Now?

Mar -05

Source: zacks.com

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FirstEnergy: Well-Positioned To Profit From AI-Driven Electric Demand Growth

Mar -04

Source: seekingalpha.com

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FirstEnergy unit to invest $950 million in Ohio and Pennsylvania grid upgrades

Mar -02

Source: reuters.com

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FirstEnergy Transmission Awarded Projects by PJM Interconnection to Enhance Reliability and Address Rising Customer Demand

Mar -02

Source: prnewswire.com

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PPL vs. FirstEnergy: Which Utility Is Positioned for Stronger Growth?

Feb -27

Source: zacks.com

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FirstEnergy Enhances Leadership Team with Appointment of Hannah Turner as Vice President, Transmission Finance

Feb -26

Source: prnewswire.com

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FirstEnergy Foundation Invests in First Responder Training with $10,000 Grant to Butler County Community College

Feb -25

Source: prnewswire.com

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What Makes FirstEnergy (FE) a Strong Momentum Stock: Buy Now?

Feb -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.55%)

6. Segments

Regulated Distribution

Expected Growth: 4.5%

FirstEnergy Corp.'s regulated distribution segment growth of 4.5% is driven by increasing electricity demand, infrastructure investments, and rate base growth. Additionally, the company's focus on grid modernization, renewable energy integration, and customer growth initiatives contribute to its steady growth. Furthermore, favorable regulatory environments and cost savings from operational efficiencies also support the segment's growth.

Regulated Transmission

Expected Growth: 4.8%

FirstEnergy Corp.'s Regulated Transmission segment growth of 4.8% is driven by increasing demand for reliable and efficient energy transmission, investments in grid modernization, and favorable regulatory policies. Additionally, the company's focus on infrastructure upgrades, expansion of transmission lines, and strategic acquisitions contribute to its growth momentum.

Corporate/Other

Expected Growth: 3.2%

FirstEnergy Corp's Corporate/Other segment growth of 3.2% is driven by increased transmission revenue, higher allowance for funds used during construction (AFUDC) and a rise in other income, partially offset by higher operation and maintenance expenses. Additionally, the company's focus on grid modernization and infrastructure investments also contribute to the segment's growth.

7. Detailed Products

Electricity Distribution

FirstEnergy Corp. distributes electricity to residential, commercial, and industrial customers through its regulated utility subsidiaries.

Transmission Services

FirstEnergy Corp. owns and operates a high-voltage transmission system that connects generating plants to the grid, enabling the efficient transmission of electricity.

Generation Services

FirstEnergy Corp. generates electricity through its fossil fuel-based and nuclear power plants, providing a reliable source of power to the grid.

Renewable Energy Solutions

FirstEnergy Corp. offers renewable energy solutions, including wind and solar power, to customers seeking sustainable energy options.

Energy Efficiency Programs

FirstEnergy Corp. offers energy efficiency programs and services to help customers reduce their energy consumption and costs.

Smart Grid Solutions

FirstEnergy Corp. provides advanced smart grid solutions, including smart meters and grid management systems, to enhance grid reliability and efficiency.

8. FirstEnergy Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for FirstEnergy Corp. is medium due to the availability of alternative energy sources such as renewable energy and natural gas.

Bargaining Power Of Customers

The bargaining power of customers for FirstEnergy Corp. is low due to the lack of alternatives and the company's dominant market position.

Bargaining Power Of Suppliers

The bargaining power of suppliers for FirstEnergy Corp. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for FirstEnergy Corp. is low due to the high barriers to entry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for FirstEnergy Corp. is high due to the presence of multiple competitors and the company's need to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.47%
Debt Cost 5.04%
Equity Weight 29.53%
Equity Cost 6.32%
WACC 5.42%
Leverage 238.67%

11. Quality Control: FirstEnergy Corp. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quality: 4.4

Yield: 8.0

Momentum: 8.5

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Quality: 5.4

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FirstEnergy

A-Score: 6.6/10

Value: 5.4

Growth: 3.6

Quality: 4.9

Yield: 8.0

Momentum: 8.0

Volatility: 10.0

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A-Score: 6.5/10

Value: 6.5

Growth: 5.1

Quality: 4.1

Yield: 8.0

Momentum: 5.5

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A-Score: 4.5/10

Value: 4.9

Growth: 4.3

Quality: 3.5

Yield: 4.0

Momentum: 7.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.96$

Current Price

50.96$

Potential

-0.00%

Expected Cash-Flows