Did FirstEnergy meet its 2025 earnings expectations?

Yes. Core EPS of $2.55 was at the top end of the revised and increased guidance range of $2.50-$2.56 and was about 2% above the company's internal plan. GAAP EPS of $1.77 was well below Core EPS because of special items, mainly Ohio regulatory charges and legal and investigation costs.

What drove the gap between GAAP and Core EPS in 2025?

Special items totaling $0.78 per share. The largest were regulatory charges of $0.58 (primarily from PUCO orders in the Ohio base rate case and legacy matters) and investigation and other related costs of $0.50, which include settlements and reserves tied to government investigations and customer restitution. These were partly offset by net pension/OPEB credits of $0.35.

What are the main risks to the growth outlook?

Key risks include regulatory outcomes (the Ohio three-year rate plan, West Virginia and Maryland rate cases, and approval of the West Virginia generation project), ongoing government investigations and the securities class action, the deferred prosecution agreement, execution on a much larger capital program, credit rating maintenance, and weather or storm costs. The company's forward-looking statements caution that these factors could cause results to differ materially.

Is the dividend growing, and is it sustainable?

The company plans to declare quarterly dividends of $0.465 per share in 2026, or $1.86 annually, up about 4.5% from $1.78 in 2025. Management targets a payout ratio of 60-70% of Core EPS and expects about 68% in 2026. Dividend declarations remain subject to board approval.

FE 8-K: Earnings & Results & Regulation FD

Q: How significant is the new $36 billion investment plan?

It is an increase of about $8 billion, or roughly 30%, over the prior five-year plan. Transmission investment rises about 35% to $19 billion, and about 75% of the plan is recovered through formula rates, which reduces regulatory lag. Management expects roughly 10% FE-owned rate base growth and says the plan will be funded largely by operating cash flow and debt, with only modest equity issuance.

01—Abstract

Summary

Summary of the 8-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.

FirstEnergy (FE) reported full-year 2025 GAAP earnings of $1.02 billion^a, or $1.77 per basic share, and Core Earnings (non-GAAP) of $2.55 per share, up 7.6% from $2.37 in 2024 and at the top end of its revised guidance range of $2.50 to $2.56.

The GAAP result was weighed down by roughly $0.78^b per share of special items, chiefly regulatory charges tied to the Ohio base rate case and PUCO orders ($0.58), investigation and legal costs ($0.50), and reorganization costs, partly offset by pension/OPEB credits ($0.35). Management reaffirmed 2026 Core EPS guidance of $2.62 to $2.82 per share, which implies about 9% growth over the original 2025 guidance midpoint, and expects Core EPS compound annual growth near the top of its 6-8% target range through 2030. The main strategic news is a larger capital plan.

FirstEnergy announced a $36 billion^c investment program for 2026-2030, up about 30% from the prior $28 billion five-year plan, with transmission investment rising roughly 35% to $19 billion. About 75% of the plan is recovered through formula rates, which reduces regulatory lag, and management targets roughly 10% FE-owned rate base growth. The plan is expected to be funded mainly by cash from operations (about 65%), roughly $3 billion per year of incremental debt, and only modest equity of up to $2 billion.

Management also highlighted a proposed 1,200 MW gas-fired combined cycle plant in West Virginia ($2.5 billion^d, decision expected in 2H26), a data center pipeline of 12.9 GW, and a board-approved increase in the quarterly dividend, with 2026 declarations planned at $0.465 per share ($1.86 annually). Investors should weigh the strong growth outlook against execution and regulatory risk. The 2025 GAAP results carry significant legal and regulatory charges tied to legacy government investigations and the Ohio rate case, and the company continues to operate under a deferred prosecution agreement and faces a securities class action.

Growth also depends on regulators approving rate cases, the West Virginia generation build, and transmission projects, and on keeping affordability pressures in check. Credit ratings improved, with S&P upgrading FirstEnergy Corp. to BBB+ in December 2025, but the company is committed to maintaining its BBB/Baa2 credit profile while funding a much larger capital program.

02—Key points

Key Highlights

GAAP EPS of $1.77 (basic) vs. $1.70 in 2024; Core EPS (non-GAAP) of $2.55, up 7.6% year over year and at the top of the revised guidance range
Special items of $0.78/share in 2025, led by regulatory charges ($0.58) from the Ohio base rate case and investigation/legal costs ($0.50), partly offset by pension/OPEB credits ($0.35)
2026 Core EPS guidance of $2.62-$2.82 reaffirmed, implying ~9% growth vs. the original 2025 guidance midpoint
2026-2030 capital plan raised to $36B (up ~30% from $28B), including ~$19B of transmission investment; ~75% recovered via formula rates; ~10% rate base CAGR
Core EPS CAGR targeted near the top end of 6-8% (2026-2030); consolidated ROE target of 9.5-10%
Proposed 1,200 MW West Virginia CCGT ($2.5B), with CPCN approval expected in 2H26 and operation by year-end 2031
Dividend: 2026 planned declarations of $0.465/quarter ($1.86 annualized), up ~4.5%; target payout of 60-70% of Core EPS; S&P upgraded FE Corp. to BBB+

03—Questions

Frequently Asked Questions

Did FirstEnergy meet its 2025 earnings expectations?
Yes. Core EPS of $2.55 was at the top end of the revised and increased guidance range of $2.50-$2.56 and was about 2% above the company's internal plan. GAAP EPS of $1.77 was well below Core EPS because of special items, mainly Ohio regulatory charges and legal and investigation costs.
What drove the gap between GAAP and Core EPS in 2025?
Special items totaling $0.78 per share. The largest were regulatory charges of $0.58 (primarily from PUCO orders in the Ohio base rate case and legacy matters) and investigation and other related costs of $0.50, which include settlements and reserves tied to government investigations and customer restitution. These were partly offset by net pension/OPEB credits of $0.35.
How significant is the new $36 billion investment plan?
It is an increase of about $8 billion, or roughly 30%, over the prior five-year plan. Transmission investment rises about 35% to $19 billion, and about 75% of the plan is recovered through formula rates, which reduces regulatory lag. Management expects roughly 10% FE-owned rate base growth and says the plan will be funded largely by operating cash flow and debt, with only modest equity issuance.
What are the main risks to the growth outlook?
Key risks include regulatory outcomes (the Ohio three-year rate plan, West Virginia and Maryland rate cases, and approval of the West Virginia generation project), ongoing government investigations and the securities class action, the deferred prosecution agreement, execution on a much larger capital program, credit rating maintenance, and weather or storm costs. The company's forward-looking statements caution that these factors could cause results to differ materially.
Is the dividend growing, and is it sustainable?
The company plans to declare quarterly dividends of $0.465 per share in 2026, or $1.86 annually, up about 4.5% from $1.78 in 2025. Management targets a payout ratio of 60-70% of Core EPS and expects about 68% in 2026. Dividend declarations remain subject to board approval.

04—Continue

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