Did FirstEnergy change its 2025 earnings outlook?

Yes, somewhat. FirstEnergy narrowed its 2025 Core EPS guidance to $2.50 to $2.56 from $2.40 to $2.60. The range now sits in the upper half of the original range, and the midpoint rose to $2.53 from $2.50. Management cited year-to-date strength and the outlook for the rest of the year. The guidance is non-GAAP and excludes special items that the company cannot reliably forecast.

Why is FirstEnergy increasing its capital investment plan, and what does it mean for future growth?

The company increased its 2025 investment plan by 10% to $5.5 billion, mainly in transmission, to meet demand growth from data centers in the PJM region. Management expects total transmission investment to rise about 30% in its next five-year plan, which would support transmission rate base growth of up to 18%. The company also plans a West Virginia generation project of about 1.2 GW, with an initial investment estimate of about $2.5 billion. Management said the base plan of about $28 billion for 2025-2029 is reaffirmed, with a larger 2026-2030 plan to be announced with Q4 results. Rate base growth and capital spending do not guarantee earnings growth, and the plan depends on regulatory approvals.

Is the 6% to 8% long-term growth target still in place?

Yes. FirstEnergy affirmed its 6% to 8% compound annual Core EPS growth target for 2025 through 2029, which it says is supported by the Energize365 investment plan. The company also reaffirmed its roughly $28 billion base investment plan for 2025 to 2029. Management noted that the target is non-GAAP and that forward-looking projections are subject to risks, including regulatory outcomes, weather, financing costs, and the timing of special items.

What are the key risks and near-term catalysts for investors?

Near-term catalysts include the expected November 2025 decision in the Ohio base rate case, the planned filing of an Ohio multi-year rate plan, the West Virginia IRP and related PSC filing expected in Q1 2026, and a Pennsylvania energy efficiency filing expected in Q4 2025. Key risks named in the filing include regulatory and legal outcomes related to Ohio House Bill 6 investigations, weather and storm-related costs, interest rates and access to capital, credit rating actions, pension asset performance, and cyber and physical security threats. Special items, which in 2025 included investigation costs, reorganization costs, and debt-related costs, could also affect GAAP results.

FE 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed October 22, 2025. Cited figures are marked; the original filing is the authoritative source.

FirstEnergy (FE) reported third-quarter 2025 GAAP earnings of $441 million^a, or $0.76 per share, and Core (non-GAAP) earnings of $0.83 per share, up 9% from $0.76 a year earlier.

Year-to-date Core EPS was $2.02^b, up 15% from $1.76, and GAAP EPS was $1.85. Results benefited from new base rates in Pennsylvania, growth in formula-rate transmission rate base, and higher weather-related distribution sales, partly offset by higher planned operating expenses, accelerated maintenance work, and higher financing costs. Management narrowed full-year 2025 Core EPS guidance to $2.50 to $2.56 from the original $2.40 to $2.60 range, placing it in the upper half of the original range and raising the midpoint from $2.50 to $2.53.

The company also affirmed its 6% to 8% Core EPS compound annual growth target for 2025 through 2029. The most notable change is in capital spending. FirstEnergy raised its 2025 investment plan by 10%, from $5.0 billion to $5.5 billion^c, with over half of the increase in transmission.

Management expects total transmission investment in its next five-year plan to rise about 30%, driving transmission rate base growth of up to 18%, and it attributes this to data center load growth in the PJM region. It also proposed a West Virginia Integrated Resource Plan to add 1.2 GW of combined-cycle gas generation around 2031, an initial investment estimate of about $2.5 billion^d, and filed the plan on October 1, 2025. The Reaffirmed 2025-2029 base investment plan is about $28 billion, with a significant increase for 2026-2030 expected to be announced on the Q4 2025 call.

Investors should note several items. Management stated that the 2025 Core EPS and growth targets exclude special items, which are difficult to forecast and could be significant.

Pending catalysts include an Ohio base rate decision expected in November 2025 and a planned Ohio multi-year rate plan filing, as well as the West Virginia IRP and generation RFP. The company also reported a trailing-twelve-month consolidated ROE of 10.1%, within or slightly above its targeted 9.5% to 10% range, and year-to-date cash from operations of $2.6 billion, about 40% higher than the prior year.

02—Key points

Key Highlights

Q3 2025 GAAP EPS of $0.76 vs. $0.73 in Q3 2024; Core EPS of $0.83 vs. $0.76, up 9%, driven by new Pennsylvania rates and transmission formula-rate growth.
YTD 2025 Core EPS of $2.02 vs. $1.76 in YTD 2024, up 15%; YTD GAAP EPS of $1.85 vs. $1.25.
2025 Core EPS guidance narrowed to $2.50 to $2.56 (midpoint raised to $2.53 from $2.50), in the upper half of the original $2.40 to $2.60 range.
2025 capital investment plan increased 10% to $5.5 billion from $5.0 billion, with over half the increase in transmission; YTD investments of about $4.0 billion, roughly 30% above YTD 2024.
Transmission outlook: next five-year transmission investment expected up about 30%, with transmission rate base growth of up to 18%; data center pipeline of 11.7 GW, nearly doubled since February 2025.
Affirmed 6% to 8% Core EPS CAGR (2025-2029) and about $28 billion base investment plan; shareholder return target of 10% to 12% including a roughly 4% dividend yield.
Regulatory catalysts: Ohio base rate decision expected November 2025; West Virginia IRP (1,200 MW CCGT, 70 MW solar) filed October 1, 2025, with a PSC filing expected in Q1 2026.

03—Questions

Frequently Asked Questions

Did FirstEnergy change its 2025 earnings outlook?
Yes, somewhat. FirstEnergy narrowed its 2025 Core EPS guidance to $2.50 to $2.56 from $2.40 to $2.60. The range now sits in the upper half of the original range, and the midpoint rose to $2.53 from $2.50. Management cited year-to-date strength and the outlook for the rest of the year. The guidance is non-GAAP and excludes special items that the company cannot reliably forecast.
What drove the Core EPS growth in the third quarter and year to date?
In Q3, Core EPS growth came mainly from new base rates in Pennsylvania (effective January 1, 2025) and transmission rate base growth under formula rate programs. Higher residential and commercial load also contributed. These were partly offset by higher planned operating expenses, accelerated maintenance work, and a higher effective tax rate in the Integrated segment. Year to date, growth also reflected new rates in West Virginia and New Jersey and higher weather-related distribution sales, partly offset by higher financing costs and dilution from the 2024 FET equity sale.
Why is FirstEnergy increasing its capital investment plan, and what does it mean for future growth?
The company increased its 2025 investment plan by 10% to $5.5 billion, mainly in transmission, to meet demand growth from data centers in the PJM region. Management expects total transmission investment to rise about 30% in its next five-year plan, which would support transmission rate base growth of up to 18%. The company also plans a West Virginia generation project of about 1.2 GW, with an initial investment estimate of about $2.5 billion. Management said the base plan of about $28 billion for 2025-2029 is reaffirmed, with a larger 2026-2030 plan to be announced with Q4 results. Rate base growth and capital spending do not guarantee earnings growth, and the plan depends on regulatory approvals.
Is the 6% to 8% long-term growth target still in place?
Yes. FirstEnergy affirmed its 6% to 8% compound annual Core EPS growth target for 2025 through 2029, which it says is supported by the Energize365 investment plan. The company also reaffirmed its roughly $28 billion base investment plan for 2025 to 2029. Management noted that the target is non-GAAP and that forward-looking projections are subject to risks, including regulatory outcomes, weather, financing costs, and the timing of special items.
What are the key risks and near-term catalysts for investors?
Near-term catalysts include the expected November 2025 decision in the Ohio base rate case, the planned filing of an Ohio multi-year rate plan, the West Virginia IRP and related PSC filing expected in Q1 2026, and a Pennsylvania energy efficiency filing expected in Q4 2025. Key risks named in the filing include regulatory and legal outcomes related to Ohio House Bill 6 investigations, weather and storm-related costs, interest rates and access to capital, credit rating actions, pension asset performance, and cyber and physical security threats. Special items, which in 2025 included investigation costs, reorganization costs, and debt-related costs, could also affect GAAP results.

04—Continue

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