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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's Q3 2025 Earnings: A Strong Performance

FirstEnergy Corp's third-quarter 2025 GAAP earnings were $0.76 per share, compared to $0.73 in the third quarter of 2024, while core earnings were $0.83 per share, a 9% increase from 2024, beating analyst estimates of $0.76. The company's revenues are likely to have been driven by its increased capital investments, with $4 billion invested in the first nine months of 2025, a 30% increase from 2024. With a 3.6% estimated revenue growth for next year, the company's financial performance is expected to continue its upward trend. The P/E Ratio of 30.25 suggests that the market is pricing in a certain level of growth, which is in line with the company's 6% to 8% earnings per share growth range.

Publication Date: Oct -27

📋 Highlights
  • Earnings Growth:: Core EPS rose 9% to $0.83 in Q3 2025 ($0.76 GAAP), driven by operational performance.
  • Capital Investment Surge:: 2025 CapEx increased 10% to $5.5B, with $4B spent in first nine months (30% YOY growth).
  • Transmission Expansion:: 18% CAGR in transmission rate base through 2030, supported by $1B in interconnection-driven CapEx.
  • Generation Projects:: $2.5B planned for 1.2 GW gas generation and 70 MW solar in West Virginia by 2031.
  • EPS Guidance:: Narrowed 2025 core EPS range to $2.50–$2.56 (+6–8% CAGR), reflecting confidence in CapEx-driven growth.

Capital Investment and Growth

The company has announced a 10% increase to its 2025 capital investment program to $5.5 billion, driven by significant growth in its transmission business, with a compound transmission rate base growth of up to 18% per year through 2030. The company is also expecting industrial load growth to rebound, driven by data center growth, with mid-single digit increases by Q2 and higher growth by the fourth quarter of next year. As Brian Tierney mentioned, the increased CapEx gives the company confidence in its 6% to 8% earnings per share growth range, targeting the upper end.

Regulatory Developments and Integrated Resource Plan

FirstEnergy's integrated resource plan in West Virginia includes adding 70 megawatts of utility-scale solar in 2028 and 1.2 gigawatts of dispatchable gas combined cycle generation around 2031, with an estimated cost of $2.5 billion. The company plans to file for regulatory approval of the new gas generation in the first quarter of 2026. The company is also advocating for changes to the PJM capacity auctions and exploring other mechanisms to mitigate cost increases, aiming to revamp its pricing structure to pay existing capacity one price and attract incremental capacity with another.

Valuation and Dividend Yield

The company's current valuation metrics, including a P/E Ratio of 30.25, P/B Ratio of 2.09, and EV/EBITDA of 15.81, suggest that the market is pricing in a certain level of growth. The Dividend Yield of 3.73% is attractive, providing a relatively stable return for investors. With a Net Debt / EBITDA ratio of 7.65, the company's leverage is manageable, and its ROE of 7.07% indicates a reasonable return on equity.

3. NewsRoom

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FirstEnergy Corporation $FE Shares Bought by Edgestream Partners L.P.

Dec -03

Source: defenseworld.net

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Grid Upgrades Aim to Reduce Outages, Speed Power Restoration for Westmoreland County Customers

Dec -01

Source: prnewswire.com

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FirstEnergy Foundation Helps Power the Future with $10,000 Grant to York College

Dec -01

Source: prnewswire.com

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Need Help with Your Electric Bill? JCP&L Makes it Easy to Apply for the Universal Service Fund

Dec -01

Source: prnewswire.com

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Here's Why You Should Include FirstEnergy Stock in Your Portfolio Now

Nov -27

Source: zacks.com

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FE vs. AEP: Which Stock Is the Better Value Option?

Nov -25

Source: zacks.com

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Creative Planning Has $2.58 Million Position in FirstEnergy Corporation $FE

Nov -25

Source: defenseworld.net

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AXQ Capital LP Trims Position in FirstEnergy Corporation $FE

Nov -25

Source: defenseworld.net

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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Growth: 4.1

Quality: 5.6

Yield: 8.0

Momentum: 7.5

Volatility: 10.0

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Evergy

A-Score: 6.7/10

Value: 5.5

Growth: 4.7

Quality: 4.7

Yield: 7.0

Momentum: 8.5

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Pinnacle West Capital

A-Score: 6.4/10

Value: 5.9

Growth: 5.2

Quality: 4.1

Yield: 8.0

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FirstEnergy

A-Score: 6.4/10

Value: 5.7

Growth: 3.6

Quality: 4.6

Yield: 8.0

Momentum: 6.5

Volatility: 10.0

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PGE

A-Score: 6.1/10

Value: 6.8

Growth: 4.4

Quality: 4.1

Yield: 8.0

Momentum: 3.5

Volatility: 10.0

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Avangrid

A-Score: 5.2/10

Value: 6.2

Growth: 4.3

Quality: 3.8

Yield: 5.0

Momentum: 5.0

Volatility: 6.7

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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

44.91$

Current Price

44.91$

Potential

-0.00%

Expected Cash-Flows