What FirstEnergy (FE) Said on Its Q3 Earnings Call

Key Points

• FirstEnergy reported stronger earnings, with Q3 GAAP EPS rising to $0.96 from $0.76 and core EPS to $0.98 from $0.83. The company reaffirmed its 2026 core EPS guidance of $2.62–$2.82 and expects results at or slightly above the midpoint.
• The utility is seeing accelerating electricity demand, particularly from data centers: contracted data center demand reached 7.9 gigawatts, while an additional 4 GW is under negotiation. FirstEnergy has deployed $4.9 billion through September and expects its transmission investment plan to increase by at least 25% from the current $19 billion.
• West Virginia generation projects are expanding, with pipeline demand nearing 6 GW and a regulatory decision on the Maidsville facility expected in Q4. FirstEnergy is also pursuing 3 GW of additional combined-cycle capacity and evaluating bridge-power options to serve near-term large-load needs.

FirstEnergy NYSE: FE reported higher third-quarter earnings and reaffirmed its 2026 guidance as the utility pursues expanded transmission, distribution and generation investments tied to rising electricity demand, including data center development across its service territory.

The company reported third-quarter GAAP earnings of $0.96 per share, up from $0.76 per share a year earlier. Core earnings, a non-GAAP measure, rose to $0.98 per share from $0.83 per share in the prior-year quarter. Chief Financial Officer Jon Taylor attributed the improvement largely to growth from rate and investment programs, increased customer demand, financial discipline and a slightly lower effective tax rate.

For the first nine months of 2026, core earnings per share increased 9% to $2.20, compared with $2.02 during the same period in 2025. FirstEnergy reaffirmed its full-year core EPS guidance range of $2.62 to $2.82 and said it expects results to be at or slightly above the midpoint.

Capital Deployment and Demand Trends

FirstEnergy said it deployed $4.9 billion through September to strengthen its electric system, a 23% increase from the comparable 2025 period. The company’s consolidated trailing-12-month return on equity was 9.5%, in line with its target, Taylor said.

Total company rate base grew 9.9%, supported by 14% total transmission rate-base growth and 21% growth in its integrated transmission business. The company’s transmission network serves the PJM region, which Chief Executive Officer Brian Tierney said provides electricity to more than 65 million people.

Weather-adjusted load increased 1.2% in the third quarter and has risen in each of the past four quarters, according to FirstEnergy. Industrial load rose 3.3% during the quarter and 2.1% over the trailing 12 months, driven by manufacturing activity in metals, oil and gas, and chemicals, as well as growing data center demand.

FirstEnergy said contracted and pipelined data center demand has increased nearly 60% since year-end, including a 90% increase in contracted demand. The company now has 7.9 gigawatts of contracted data center demand across its footprint and is in active negotiations involving about 4 GW of additional load.

West Virginia Generation Plans

West Virginia has become a major focus of FirstEnergy’s large-load opportunity. The company said pipeline demand in the state has increased roughly sixfold to nearly 6 GW. FirstEnergy expects a fourth-quarter order from the West Virginia Public Service Commission on its proposed Maidsville Energy Generating Facility.

To preserve the construction schedule, the company has reserved Siemens turbines for delivery in 2030 and expects other major contracts to be signed shortly after receiving a commission order. Tierney said FirstEnergy is negotiating with large-load customers on location, timing, pricing, risk mitigation and structures intended to benefit communities and protect existing customers.

The company also issued a request for proposals for an initial 3 GW of additional combined-cycle turbine capacity in West Virginia. FirstEnergy expects to provide an update in early 2027. Tierney said the longer-term generation projects would likely enter service in 2031 or 2032 and beyond, given current equipment backlogs.

For nearer-term customer needs, the utility is evaluating bridge-power options, including reciprocating internal-combustion engines, fuel cells and batteries. Tierney said these assets could be reused for future developments and could be owned by FirstEnergy, customers or third parties.

FirstEnergy has not determined whether projects beyond Maidsville would use a rate-based structure or a generation-company structure. Tierney said both remain under consideration, while Taylor said discussions with Maidsville off-takers have included potential surcharge-type funding mechanisms.

Transmission Investment Outlook

FirstEnergy expects rising regional demand and grid reliability needs to drive at least a 25% increase in its current $19 billion transmission investment plan when it releases an updated five-year outlook. Taylor said relatively little of the expected increase would be directly tied to currently contracted demand; most would support reliability, resiliency and capacity needs on the existing transmission system.

The company estimates that each gigawatt of contracted demand requires approximately $250 million of transmission network upgrades. FirstEnergy said it does not include uncontracted demand in its capital plan.

Earlier in October, FirstEnergy submitted several low-voltage transmission proposals through PJM’s Open Window process to address near-term reliability requirements. It expects projects to be awarded in the first quarter of 2027. Since 2022, the company said it has received more than $5 billion in competitive transmission project awards, including joint ventures with other utilities.

FirstEnergy plans to present its full 2027 through 2031 capital investment and financial outlook with fourth-quarter results in February. Its current five-year, $36 billion investment plan is expected to be financed with up to $2 billion in equity or equity-like securities through 2030. The company said incremental investments, including West Virginia generation and transmission, could be financed with up to 35% equity or equity-like securities.

Regulatory and Reliability Updates

In New Jersey, FirstEnergy filed a base-rate case in August seeking a $253 million increase, reflecting approximately $1 billion in rate-base growth since its last increase was approved in February 2024. The company proposed delaying the impact of any increase until 2028 and said it expects its rates to remain about 18% below the state average for investor-owned utilities even with the requested increase.

In Maryland, FirstEnergy filed a base-rate case in September seeking a $53 million revenue increase. Hearings are scheduled for January, with a decision expected in April 2027.

In West Virginia, regulators approved the company’s $76 million inflation and investment adjustment filing as submitted. The first increase took effect Aug. 1, with another scheduled for June 1, 2027. The order also provides for a stay-out period through April 2028.

Tierney said reliability has improved 11% in Pennsylvania and 40% in New Jersey since 2024. In New Jersey specifically, Taylor said reliability improved 16% in 2025 and another 22% year over year through September.

About FirstEnergy (NYSE:FE)

FirstEnergy Corp. NYSE: FE is an electric utility company focused on the transmission and distribution of electricity. Through its regulated utility subsidiaries, the company delivers power to residential, commercial and industrial customers and maintains the poles, lines, substations and other infrastructure that support electric service.

FirstEnergy's distribution operations serve customers across parts of Ohio, Pennsylvania, New Jersey, West Virginia and Maryland. Its utility companies include Ohio Edison, The Illuminating Company, Toledo Edison, Jersey Central Power & Light, Met-Ed, Penelec, Penn Power, West Penn Power, Mon Power and The Potomac Edison Company.

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