01—Abstract
Summary
Summary of the 8-K filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.
FirstEnergy (FE) reported first quarter 2026 GAAP earnings of $405 milliona, or $0.70 per basic and diluted share, on revenue of $4.2 billion, compared with GAAP earnings of $360 million, or $0.62 per share, on $3.8 billion of revenue in 1Q25.
Non-GAAP Core Earnings were $0.72b per share, up 7.5% from $0.67 in the prior-year quarter. The GAAP-to-Core gap of $0.02 reflects a $0.04 charge for investigation-related costs partially offset by a $0.02 net pension/OPEB credit. Growth was driven primarily by formula-rate investment returns, lower operating expenses, and higher transmission rate base, which grew 19% in the Integrated segment and 11% in Stand-Alone Transmission.
Trailing 12-month consolidated ROE improved to 9.8%, within management's targeted 9.5%-10% range. Management reaffirmed 2026 Core EPS guidance of $2.62 to $2.82c per share and its long-term Core EPS CAGR target near the top end of 6-8% for 2026-2030. The company invested about $1.4 billion in the quarter, up 33% year over year, and is pursuing a $36 billion Energize365 capital plan for 2026-2030, roughly 30% above the prior five-year plan, which management says supports about 10% rate base CAGR.
Credit positioning also improved: Moody's moved FE's outlook to positive in March, and all FE entities remain investment grade at all three major agencies. The filing also highlights upside optionality and regulatory timing. Management cited potential incremental transmission investment and West Virginia generation (a 1.2 GW CCGT under a CPCN filed in February, with hearings in July and approval expected in 2H 2026).
Data center pipeline demand reached 14.9 GW by 2035, though contracted demand is a smaller 4.3 GW. Ohio's three-year rate plan and a West Virginia base rate case are expected to be filed in May 2026. Investors should note that the company does not provide a GAAP reconciliation for forward Core EPS guidance, that GAAP results include special items that can be volatile, and that the filing also includes extensive forward-looking risk disclosures tied to regulatory, weather, and legal exposures.
02—Key points
Key Highlights
- GAAP EPS of $0.70 (vs. $0.62 in 1Q25) and Core EPS of $0.72 (vs. $0.67), a 7.5% year-over-year increase.
- 2026 Core EPS guidance of $2.62-$2.82 per share reaffirmed, with long-term Core EPS CAGR targeted near the top of 6-8% through 2030.
- Capital investment of ~$1.4 billion in 1Q26 (up 33% y/y) against a $6 billion 2026 plan and a $36 billion 2026-2030 Energize365 plan (~30% above the prior five-year plan).
- Trailing 12-month consolidated ROE of 9.8%, within the 9.5%-10% target range; rate base grew to $28.3 billion at 3/31/26.
- Transmission rate base up 19% in the Integrated segment and 11% in Stand-Alone Transmission, with Distribution Core EPS up $0.03 year over year.
- Moody's revised FE's outlook to positive (Baa3 affirmed) in March; all FE entities remain investment grade at S&P, Moody's, and Fitch.
- Data center pipeline of 14.9 GW by 2035 (contracted 4.3 GW); new WV CPCN decision expected 2H 2026 and Ohio/WV rate filings planned for May 2026.
03—Questions
Frequently Asked Questions
How did FirstEnergy perform in the first quarter of 2026?
FirstEnergy reported GAAP EPS of $0.70 ($405 million) on $4.2 billion of revenue, up from $0.62 in 1Q25. Core EPS, which excludes special items, was $0.72, a 7.5% increase from $0.67. The main drivers were higher rates from formula-rate investment programs and lower operating expenses in Distribution, along with transmission rate base growth in the Integrated and Stand-Alone Transmission segments.
Did FirstEnergy change its 2026 earnings guidance?
No. FirstEnergy reaffirmed its 2026 Core EPS guidance range of $2.62 to $2.82 per share and its long-term Core EPS CAGR target near the top end of 6-8% for 2026-2030. Management does not reconcile forward-looking Core EPS to GAAP because special items are difficult to predict and could be significant.
What is driving FirstEnergy's long-term growth outlook?
The $36 billion Energize365 capital plan for 2026-2030 is the main driver, and management expects it to produce roughly 10% compounded annual rate base growth. About 75% of projected investment is in formula-rate recovery, which reduces regulatory lag. Management also cites possible incremental transmission investment and West Virginia generation, including a 1.2 GW CCGT, as upside opportunities that are not yet in the base plan.
What are the key risks or items to watch?
Key items include the West Virginia CPCN hearings in July 2026 with approval expected in 2H 2026, the Ohio three-year rate plan and West Virginia base rate case filings expected in May 2026, and PJM's planned 15 GW generation procurement, which FERC may act on in June 2026. The GAAP results also include special items such as investigation-related costs, which were $0.04 per share in the quarter. Data center demand is a significant growth driver, but only 4.3 GW of the 14.9 GW 2035 pipeline is contracted.
How strong is FirstEnergy's balance sheet and credit profile?
Credit metrics are improving. Moody's changed its outlook to positive in March 2026 and affirmed the Baa3 rating, and S&P upgraded the issuer rating to BBB+ in December 2025. All FE companies remain investment grade at all three rating agencies. Management is targeting about 14% FFO/debt and maintaining a BBB/Baa2 profile, and it plans to fund growth with operating cash flow, debt, and modest equity. FE Pennsylvania completed an $850 million debut debt offering that was more than 5x oversubscribed.
04—Continue