FIRSTENERGY CORP (FE)

Price—Loading quote

AI: Fair-priced

Price checkAt about $49, the shares look reasonably priced but offer little obvious bargain cushion.

At $48.71, FirstEnergy trades at about 17.9 times the midpoint of management’s 2026 adjusted earnings guidance of $2.62-$2.82 per share. Adjusted earnings exclude selected unusual costs; reported earnings over the latest four quarters were roughly $1.87 per share, implying a much higher multiple near 26. The expected $1.86 annual dividend yields about 3.8%. This balanced return supports a Fair-priced verdict: investors receive income and regulated growth, but the price already assumes guidance delivery and continued 6%-8% earnings growth.

Big pictureEarnings are steadier than cash, because heavy grid spending requires outside funding.

Revenue rose 12% to $15.09 billion in 2025, while net income increased 4% to $1.02 billion. However, operating cash of $3.70 billion did not cover $4.71 billion of capital spending; free cash flow—cash left after running and investing in the business—was negative by about $1.01 billion before $1.02 billion of dividends. Debt consequently rose $2.79 billion to $25.83 billion. By March 2026, debt reached $27.64 billion, cash was only $52 million, and current liabilities exceeded current assets by $2.79 billion.

Business strengthThe regulated network supports recurring demand, while investment and maintenance timing move quarterly results.

FirstEnergy serves more than six million customers, giving it relatively durable electricity demand. First-half 2026 revenue rose 11% to $7.9 billion, and reported earnings increased to $1.20 from $1.09 per share. Second-quarter adjusted earnings slipped to $0.50 from $0.52 because planned maintenance offset transmission growth, illustrating expense and weather-related variability. Capital investment drove 22% transmission asset growth in the integrated segment and 11% in stand-alone transmission. Capital allocation favors dividends and expansion: shares increased 6.4% from 2020 through 2025, with no reported buybacks.

What could change the storyData-center growth could lift returns, but debt and rate approvals remain decisive tests.

The strongest upside case is contracted data-center demand, which reached 6.4 gigawatts, while West Virginia demand rose 137% to 4.3 gigawatts. Converting that demand into approved, customer-funded infrastructure could support the $36 billion investment plan and 6%-8% earnings growth. The bear case is that regulators reduce requested returns or projects arrive before cash recovery, forcing still more borrowing. The current price needs guidance near its midpoint and sustained growth. The thesis strengthens if operating cash approaches capital spending and debt stabilizes; continued debt growth would weaken it.

$48.71 price considered

AI: News

Second-quarter resultsProfit rose modestly, guidance held, and data-center demand expanded sharply.

On July 28, FirstEnergy reported second-quarter revenue of $3.7 billion and earnings of $0.50 per share, versus $3.4 billion and $0.46 a year earlier. Adjusted earnings slipped from $0.52 to $0.50 because of planned maintenance, but management retained its $2.62-$2.82 full-year range. Contracted data-center demand reached 6.4 gigawatts. Shares closed 1.05% lower the next session; the timing is consistent with a muted response, but it does not prove why the price moved.

Ohio rate planThe Ohio utilities requested higher charges to fund grid upgrades and future earnings.

On May 22, FirstEnergy’s three Ohio utilities filed their first three-year distribution-rate plan. They requested $481.4 million of additional base revenue, although transfers from existing charges reduce the estimated net customer increase to $392.2 million. The filing assumes a 10.20% return on shareholder-funded capital and roughly $2 billion of added regulated assets. Approval would improve recovery of investment costs from mid-2027; reductions by Ohio regulators would lower the earnings and cash expected from the plan.

West Virginia rate pathRegulators allowed a gradual rate proposal that could support reliability spending and cash recovery.

On May 21, West Virginia regulators allowed Mon Power and Potomac Edison to pursue an inflation-and-investment approach instead of their larger traditional request. The proposal seeks $76 million in total adjustments, split into two $38 million steps, with the first targeted for August 2026 and the second for June 2027. This gradual route could improve recovery of operating and infrastructure costs, but it is small relative to FirstEnergy’s capital program and remains exposed to the final regulatory outcome.

Revenue

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$15.09B	$13.47B	$12.87B	$12.46B	$11.11B	$10.70B	$10.80B	$10.94B	$10.93B	$10.70B	$15.03B	$15.05B	$14.89B	$15.25B	$16.11B	$13.34B	$12.97B	$13.63B	$12.80B
Operating expenses	—	—	—	—	$2.96B	$2.70B	$2.93B	$3.11B	$2.93B	$3.31B	—	—	—	—	—	—	$2.70B	$3.04B	$3.08B
Operating income	$2.21B	$2.38B	$2.27B	$1.91B	$1.73B	$2.16B	$2.51B	$2.50B	$2.43B	$2.05B	$2.29B	$1.06B	$1.58B	$2.13B	$1.68B	$1.74B	$1.68B	$2.76B	$2.82B
EBITDAderived	—	—	—	$3.23B	$3.39B	$3.36B	$3.73B	$3.89B	$4.13B	$4.03B	$4.12B	$2.65B	$3.60B	$3.19B	$3.07B	$3.21B	$3.46B	$4.17B	—
Net income	$1.02B	$978.0M	$1.10B	$406.0M	$1.28B	$1.08B	$912.0M	$1.35B	−$1.72B	−$6.18B	$578.0M	$299.0M	$392.0M	$770.0M	$885.0M	$742.0M	$872.0M	$1.34B	$1.31B
Basic EPSper diluted share	$1.77	$1.70	$1.92	$0.71	$2.35	$1.99	$1.70	$1.99	-$3.88	-$14.49	$1.37	$0.71	$0.94	$1.85	$2.22	$2.44	$2.87	$4.41	$4.27
Diluted EPSper diluted share	$1.76	$1.70	$1.92	$0.71	$2.35	$1.99	$1.68	$1.99	-$3.88	-$14.49	$1.37	$0.71	$0.94	$1.84	$2.21	$2.42	$2.85	$4.38	$4.22

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)6$3.01M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 11, 2026Form 4	ONEIL JAMES FDirector	SellCommon Stock	7.9K	$50.60	$402.0K	1.9K
Mar 10, 2026Form 4	K. Jon TaylorSVP, CFO and Strategy	SellCommon Stock	26.8K	$50.94	$1.37M	119.6K
Mar 6, 2026Form 4	Lisowski JasonVP, Controller & CAO	SellCommon Stock · indirect	1.4K	$50.84	$69.8K	0
Mar 6, 2026Form 4	Lisowski JasonVP, Controller & CAO	SellCommon Stock	3.0K	$50.84	$152.5K	7.2K
May 22, 2025Form 4	Lisowski JasonVP, Controller & CAO	SellCommon Stock	12.0K	$41.97	$503.6K	183.1

Review ownership filings at SEC.gov ↗

FIRSTENERGY CORP (FE)

Financial charts

Financial statements

Insider buys & sells