FirstEnergy Corp ((FE)) has held its Q3 earnings call. Read on for the main highlights of the call.
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FirstEnergy Corp’s recent earnings call painted a picture of robust financial health and a promising future. The company reported strong earnings growth and increased capital investments, buoyed by a surge in demand from data centers. However, there was a note of caution regarding the rising energy generation costs impacting customer bills.
Strong Financial Performance
FirstEnergy Corp showcased a solid financial performance with third-quarter GAAP earnings rising to $0.76 per share, up from $0.73 the previous year. Core earnings saw an increase to $0.83 per share from $0.76, and year-to-date core earnings surged by 15% to $2.02 per share from $1.76 in 2024. This growth underscores the company’s effective financial strategies and operational efficiencies.
Increased Capital Investments
The company has significantly ramped up its capital investments, with $4 billion invested in regulated utilities over the first nine months of 2025, marking a 30% increase from the previous year. FirstEnergy also announced a 10% increase in its 2025 capital investment program, now totaling $5.5 billion, reflecting its commitment to enhancing infrastructure and service delivery.
Data Center Demand Growth
FirstEnergy is experiencing a substantial increase in contracted customer demand, which has grown by over 30% since the last quarter. This surge is largely driven by the expanding data center industry, with the company’s system peak load expected to rise nearly 50% by 2035, indicating a strong growth trajectory in this sector.
Transmission Investments
The company is focusing heavily on transmission investments, with an expected transmission rate base growth of 18% per year through 2030. FirstEnergy has secured $4 billion in capital investments through PJM’s open window process, highlighting its strategic emphasis on strengthening transmission capabilities.
Rising Customer Bills
Despite the positive financial outcomes, FirstEnergy acknowledged the challenge of rising customer bills, which have increased by 11% in deregulated states over the past year. This increase is primarily attributed to the generation component, posing a concern for customer affordability.
Forward-Looking Guidance
FirstEnergy provided an optimistic forward-looking guidance, raising the full-year 2025 guidance midpoint and narrowing the range to $2.50 to $2.56 per share. The company is committed to a compounded annual growth rate of 6% to 8% for core earnings and plans to enhance its capital investment program. Strategic transmission investments are expected to drive substantial growth, with significant opportunities for incremental investments in West Virginia, including plans for 1.2 gigawatts of natural gas generation by 2031.
In summary, FirstEnergy Corp’s earnings call highlighted a strong financial performance and strategic investments poised to drive future growth. While the company faces challenges with rising customer bills, its robust guidance and focus on infrastructure investments suggest a promising outlook for stakeholders.