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FirstEnergy (FE) AI Stock Analysis
FirstEnergy
(NYSE:FE)
FE scores as a steady but financing-dependent utility. The biggest constraint is financial performance—especially deeply negative free cash flow and high leverage—despite stable revenue growth and positive margins. The earnings call supports the outlook with reaffirmed guidance and upbeat long-term growth/investment plans, while technicals are moderately positive but not yet strong on a longer-term trend basis. Valuation is mixed: a solid dividend yield is offset by a P/E that is not especially cheap for the sector.
FirstEnergy Key Performance Indicators (KPIs)
Revenue by TypeAnalyzes income from different sources, highlighting which business segments are driving growth and where diversification or concentration risks may lie.
Distribution Services and Retail Generation is the earnings engine—steady, rate‑base‑backed growth driven by accelerated customer investments and formula rates. Transmission revenue is also trending up, reflecting meaningful transmission rate‑base expansion and competitive project awards. The pronounced Q1‑2026 spike in Other looks like project‑conversion or timing (data‑center/WV generation) rather than durable base growth, so expect volatility; regulatory affordability pressure and PJM uncertainty remain the key risk to sustaining allowed returns despite management’s bullish capital plan and reaffirmed guidance.
FirstEnergy (FE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $27.57B
- Dividend Yield
- 3.82%
- Average Volume (3M)
- 4.28M
- Price to Earnings (P/E)
- 23.0
- Beta (1Y)
- -0.04
- Revenue Growth
- 12.20%
- EPS Growth
- -9.94%
- Country
- US
- Employees
- 11,186
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Regulated Electric
FirstEnergy Business Overview & Revenue Model
Company Description
FirstEnergy Corp. is an American utility company that, through its subsidiaries, provides comprehensive electricity services, encompassing generation, transmission, and distribution throughout the United States. Its operations are structured into Reg...
How the Company Makes Money
FirstEnergy primarily makes money through regulated utility operations, where revenues and earnings are largely determined by state public utility commissions (for distribution) and the Federal Energy Regulatory Commission (FERC) or regional transmis...
FirstEnergy Earnings Call Summary
The call was strongly positive overall. Management reported year-to-date earnings growth, higher investment deployment, improving reliability, robust industrial and data center demand, expanding transmission opportunities, and reaffirmed 2026 and long-term earnings objectives. The main challenges were pending regulatory approvals, the later timing of additional West Virginia generation, unresolved rate-case matters, and the equity or equity-like financing required for incremental investment.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
FirstEnergy reaffirmed its 2026 Core EPS guidance range of $2.62 to $2.82 per share and expects to be at or slightly above the midpoint, with core earnings growth near the top end of its 6%-8% range through 2030; it expects an order on the Maidsville CPCN in the fourth quarter, has reserved turbines for delivery in 2030, expects an update on the initial 3 GW RFP in early 2027, and expects the 3 GW’s longer-term solutions in the 2031, 2032 and beyond timeframe. The company expects at least a 25% increase in its current $19 billion transmission investment plan, will provide its updated 2027 through 2031 capital investment and financial outlook on the fourth quarter earnings call in February, and expects additional investments to be funded with up to 35% equity or equity-like securities; its current five-year $36 billion investment plan includes up to $2 billion of equity or equity-like securities through 2030, while common equity is expected to be 1% of market cap on an annual basis for the foreseeable future. It expects New Jersey rates to remain approximately 18% below the state average for investor-owned utilities even with the proposed increase, and expects a regulatory outcome on New Jersey’s review later this year or early next year.
FirstEnergy Financial Statement Overview
Summary
Revenue has risen steadily to $16.2B (TTM) with positive profitability and improved net margin (7.8% TTM). However, operating profitability has compressed (EBITDA margin ~23.9% TTM vs ~38.5% in 2021), leverage remains high (debt ~$30.1B; debt-to-equity ~2.16x), and free cash flow is deeply negative (-$2.2B TTM), implying continued reliance on external financing.
Income Statement
72PositiveBalance Sheet
55NeutralCash Flow
34Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.23B | 15.09B | 13.47B | 12.87B | 12.46B | 11.13B |
| Gross Profit | 8.85B | 8.27B | 9.10B | 8.22B | 7.87B | 7.69B |
| EBITDA | 3.97B | 4.31B | 4.10B | 3.77B | 3.71B | 4.29B |
| Net Income | 1.20B | 1.02B | 978.00M | 1.10B | 406.00M | 1.28B |
Balance Sheet | ||||||
| Total Assets | 59.83B | 55.90B | 52.04B | 48.77B | 46.11B | 45.43B |
| Cash, Cash Equivalents and Short-Term Investments | 48.00M | 99.00M | 111.00M | 137.00M | 160.00M | 1.46B |
| Total Debt | 30.05B | 27.07B | 24.27B | 24.91B | 21.66B | 23.85B |
| Total Liabilities | 45.33B | 41.98B | 38.32B | 37.85B | 35.47B | 36.76B |
| Stockholders Equity | 12.97B | 12.51B | 12.46B | 10.44B | 10.17B | 8.68B |
Cash Flow | ||||||
| Free Cash Flow | -2.16B | -1.00B | -1.14B | -1.97B | -73.00M | 366.00M |
| Operating Cash Flow | 3.19B | 3.70B | 2.89B | 1.39B | 2.68B | 2.81B |
| Investing Cash Flow | -5.87B | -5.07B | -4.35B | -3.65B | -3.08B | -2.56B |
| Financing Cash Flow | 1.37B | 1.31B | 1.43B | 2.24B | -912.00M | -542.00M |
FirstEnergy Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FE, the sentiment is Positive. The current price of 47.04 is above the 20-day moving average (MA) of 45.79, above the 50-day MA of 45.45, and above the 200-day MA of 46.97, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 69.88 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FE.
FirstEnergy Risk Analysis
FirstEnergy disclosed 45 risk factors in its most recent earnings report. FirstEnergy reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
0 New RisksFirstEnergy Peers Comparison
Overall Rating
AEP73Outperform
DUK73Outperform
DTE67.4Neutral
EXC67Neutral
FE63Neutral
PPL62Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 73Outperform | $70.90B | 21.09 | 10.49% | 2.92% | 9.75% | -9.77% | |
| 73Outperform | $99.33B | 19.28 | 9.88% | 3.33% | 6.33% | 8.98% | |
| 67Neutral | $28.19B | 21.33 | 10.78% | 3.43% | 17.53% | -8.86% | |
| 67Neutral | $47.65B | 18.07 | 8.95% | 3.57% | 6.67% | -7.99% | |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| 63Neutral | $27.16B | 22.95 | 9.41% | 3.82% | 12.20% | -9.94% | |
| 62Neutral | $26.83B | 21.26 | 8.53% | 3.12% | 6.73% | 26.95% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FE | FirstEnergy Corp | 47.63 | 3.26 | 7.35% | |
| AEP | American Electric Power Company, Inc. | 130.33 | 13.65 | 11.70% | |
| DTE | DTE Energy Company | 135.85 | 6.85 | 5.31% | |
| DUK | Duke Energy | 128.38 | 8.75 | 7.31% | |
| EXC | Exelon Corp. | 46.45 | 1.71 | 3.83% | |
| PPL | PPL Corporation | 36.14 | 1.03 | 2.92% |
FirstEnergy Corporate Events
FirstEnergy posts strong Q3 earnings, reaffirms guidance
PositiveOn Oct. 27, 2026, FirstEnergy reported strong third-quarter 2026 results, with GAAP earnings rising to $557 million, or $0.96 per share, on $4.6 billion in revenue, and Core Earnings at $0.98 per share, up from $0.83 a year earlier. Year-to-date GAAP...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 29, 2026