FirstEnergy Transmission's Q2 Net Income Soars 82% to $91M

TL;DR

FirstEnergy Transmission is crushing it with an 82% net income jump, making it a solid bet for infrastructure plays.

AI Summary

FirstEnergy Transmission, LLC reported a net income of $91 million for the three months ended June 30, 2025, a significant increase from $50 million in the same period of 2024, representing an 82% rise. For the six months ended June 30, 2025, net income was $150 million, up from $100 million in 2024, a 50% increase. Total operating revenues for the three months ended June 30, 2025, were $46 million from non-related parties and $42 million from related parties, totaling $88 million. This compares to $40 million from non-related parties and $60 million from related parties, totaling $100 million, for the same period in 2024, indicating a shift in revenue mix and a slight overall decrease. The company's strategic outlook focuses on continued investment in transmission infrastructure, with total assets at $10.9 billion as of June 30, 2025, up from $10.0 billion at December 31, 2024. Key risks include reliance on related party transactions, which accounted for $42 million of revenue in Q2 2025, and the ongoing capital expenditure requirements for maintaining and expanding its transmission system.

Why It Matters

FirstEnergy Transmission's robust net income growth, up 82% to $91 million in Q2 2025, signals strong operational efficiency and potentially higher returns for investors in its parent company, FirstEnergy Corp. This performance, despite a slight overall revenue decrease, suggests effective cost management or favorable regulatory rate structures. For employees, continued profitability supports job security and potential investment in infrastructure projects. Customers benefit from a more reliable and modernized grid, as evidenced by the increase in total assets to $10.9 billion. In a competitive landscape, this financial strength allows FirstEnergy Transmission to maintain its position as a critical infrastructure provider, potentially outperforming peers facing similar capital-intensive demands.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant reliance on related party transactions, which constituted $42 million of revenue in Q2 2025, down from $60 million in Q2 2024. While net income increased, the shift in revenue mix and overall slight decrease in total operating revenues from $100 million to $88 million year-over-year for Q2 2025 indicates potential volatility in revenue streams. The capital-intensive nature of transmission projects also presents ongoing financial demands.

Analyst Insight

Investors should consider FirstEnergy Transmission's strong net income growth as a positive indicator for the stability and profitability of its parent company, FirstEnergy Corp. Monitor future filings for trends in related party revenues and capital expenditures to assess long-term sustainability and potential impacts on dividend payouts.

Financial Highlights

debt To Equity

N/A

revenue

$88M

operating Margin

N/A

total Assets

$10.9B

total Debt

N/A

net Income

$91M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

-12%

Revenue Breakdown

Key Numbers

• $91M — Net Income (Q2 2025) (Increased 82% from $50M in Q2 2024)
• $150M — Net Income (YTD 2025) (Increased 50% from $100M in YTD 2024)
• $88M — Total Operating Revenues (Q2 2025) (Comprised of $46M non-related and $42M related party revenues)
• $100M — Total Operating Revenues (Q2 2024) (Comprised of $40M non-related and $60M related party revenues)
• 82% — Net Income Growth (Q2 YoY) (Percentage increase from Q2 2024 to Q2 2025)
• 50% — Net Income Growth (YTD YoY) (Percentage increase from YTD 2024 to YTD 2025)
• $10.9B — Total Assets (June 30, 2025) (Increased from $10.0B at December 31, 2024)

Key Players & Entities

• FirstEnergy Transmission, LLC (company) — filer of the 10-Q
• FirstEnergy Corp. (company) — parent company of FirstEnergy Transmission, LLC
• $91 million (dollar_amount) — net income for Q2 2025
• $50 million (dollar_amount) — net income for Q2 2024
• $150 million (dollar_amount) — net income for six months ended June 30, 2025
• $100 million (dollar_amount) — net income for six months ended June 30, 2024
• $46 million (dollar_amount) — non-related party revenue for Q2 2025
• $42 million (dollar_amount) — related party revenue for Q2 2025
• $10.9 billion (dollar_amount) — total assets as of June 30, 2025
• $10.0 billion (dollar_amount) — total assets as of December 31, 2024

FAQ

Risk Factors

• Reliance on Related Party Transactions [medium — financial]: The company's revenue mix shows a significant decrease in related party transactions, falling from $60 million in Q2 2024 to $42 million in Q2 2025. This reliance, though decreasing, still represents a substantial portion of revenue and could pose a risk if these relationships change.
• Capital Expenditure Requirements [high — operational]: FirstEnergy Transmission, LLC has substantial ongoing capital expenditure requirements for maintaining and expanding its transmission system. Total assets grew from $10.0 billion at the end of 2024 to $10.9 billion by June 30, 2025, indicating significant investment.
• Regulatory Environment [high — regulatory]: As a transmission utility, the company operates within a heavily regulated environment. Changes in regulations, rate structures, or compliance requirements could impact profitability and operational flexibility.

Industry Context

FirstEnergy Transmission, LLC operates within the regulated electric utility sector, specifically focusing on transmission infrastructure. This industry is characterized by high capital intensity, long asset lives, and significant regulatory oversight. Trends include ongoing investments in grid modernization, renewable energy integration, and cybersecurity, all of which require substantial capital expenditures and adherence to evolving regulatory standards.

Regulatory Implications

As a regulated utility, FirstEnergy Transmission is subject to oversight by state and federal regulatory bodies, such as the FERC and state public utility commissions. Changes in approved rate structures, environmental regulations, or reliability standards can directly impact the company's revenue, costs, and investment plans. Compliance with these regulations is paramount and requires continuous monitoring and adaptation.

What Investors Should Do

1. Monitor related party transaction trends.
2. Evaluate capital expenditure plans and their impact on debt.
3. Analyze the drivers of net income growth.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing significant net income growth and a shift in revenue mix.
• 2025-08-08: Filing Date of 10-Q — The date the report was officially submitted to the SEC, making the financial information public.
• 2025-06-30: Total Assets as of June 30, 2025 — Indicates continued investment in infrastructure, with assets reaching $10.9 billion.
• 2024-12-31: Total Assets as of December 31, 2024 — Provides a baseline for asset growth, showing an increase of $0.9 billion in the first half of 2025.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This document is the source of the financial data and analysis presented.)

Related Party Transactions

Financial transactions that occur between entities that are related to each other, such as parent companies and subsidiaries, or companies under common control. (A significant portion of FirstEnergy Transmission's revenue comes from these transactions, posing a specific risk.)

Non-Related Party Transactions

Financial transactions that occur between entities that are not related to each other. (The increase in non-related party revenue indicates a potential diversification of the company's customer base.)

Total Operating Revenues

The total amount of money generated by a company from its primary business operations during a specific period. (This metric shows the overall top-line performance of FirstEnergy Transmission.)

Net Income

The profit remaining after all expenses, taxes, and costs have been deducted from total revenue. (A key indicator of profitability, which has shown significant growth for FirstEnergy Transmission.)

Year-Over-Year Comparison

Compared to the previous year's filing, FirstEnergy Transmission, LLC shows a notable increase in net income for both the quarter (82% YoY) and year-to-date (50% YoY), reaching $91 million and $150 million respectively. However, total operating revenues for Q2 2025 decreased by 12% to $88 million, driven by a significant drop in revenue from related parties ($42M vs $60M in Q2 2024), despite an increase in non-related party revenue. Total assets have grown to $10.9 billion, indicating ongoing investment in the transmission network.

Filing Documents

• fet-20250630.htm (10-Q) — 961KB
• fet-q22025xex311.htm (EX-31.1) — 10KB
• fet-q22025xex312.htm (EX-31.2) — 9KB
• fet-q22025xex32.htm (EX-32) — 6KB
• fet-20250630_g1.jpg (GRAPHIC) — 657KB
• 0002038118-25-000016.txt ( ) — 6358KB
• fet-20250630.xsd (EX-101.SCH) — 39KB
• fet-20250630_cal.xml (EX-101.CAL) — 60KB
• fet-20250630_def.xml (EX-101.DEF) — 197KB
• fet-20250630_lab.xml (EX-101.LAB) — 477KB
• fet-20250630_pre.xml (EX-101.PRE) — 327KB
• fet-20250630_htm.xml (XML) — 502KB

Forward-Looking Statements v

Forward-Looking Statements v

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Statements of Income 1 Consolidated Balance Sheets 2 Consolidated Statements of Members' Equity 3 Consolidated Statements of Cash Flows 4

Notes To Consolidated Financial Statements

Notes To Consolidated Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 29

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 29

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds 30

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 30 i GLOSSARY OF TERMS The following abbreviations and acronyms may be used in these financial statements to identify FirstEnergy Transmission, LLC and its current and former subsidiaries and affiliated companies: ATSI American Transmission Systems, Incorporated, a transmission subsidiary of FET Brookfield North American Transmission Company II L.P., a controlled investment vehicle entity of Brookfield Infrastructure Partners Brookfield Guarantors Brookfield Super-Core Infrastructure Partners L.P., Brookfield Super-Core Infrastructure Partners (NUS) L.P., and Brookfield Super-Core Infrastructure Partners (ER) SCSp CEI The Cleveland Electric Illuminating Company, an Ohio electric power company subsidiary of FE Electric Companies OE, CEI, TE, FE PA, JCP&L, MP and PE FE FirstEnergy Corp., a public electric power holding company FE PA FirstEnergy Pennsylvania Electric Company, a Pennsylvania electric utility subsidiary of FirstEnergy Pennsylvania Holding Company LLC, a wholly owned subsidiary of FE FESC FirstEnergy Service Company, which provides legal, financial and other corporate support services FET FirstEnergy Transmission, LLC, a consolidated VIE of FE and the parent company of ATSI, MAIT and TrAIL, and having a joint venture in PATH and Valley Link FET Subsidiaries ATSI, MAIT and TrAIL FirstEnergy FirstEnergy Corp., together with its consolidated subsidiaries, including FET JCP&L Jersey Central Power & Light Company, a New Jersey electric utility subsidiary of FE MAIT Mid-Atlantic Interstate Transmission, LLC, a transmission subsidiary of FET ME Metropolitan Edison Company, a former Pennsylvania electric power company subsidiary of FE, which merged with and into FE PA on January 1, 2024 MP Monongahela Power Company, a West Virginia electric power company subsidiary of FE OE Ohio Edison Company, an Ohio electric power company subsidiary of FE Ohio Companies CEI, OE and TE PATH Potomac-Appalachian Transmission Highline, LLC

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM I. Financial Statements FIRSTENERGY TRANSMISSION, LLC CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, (In millions) 2025 2024 2025 2024 REVENUES: Revenues from non-affiliates $ 430 $ 440 $ 894 $ 854 Revenues from affiliates 5 5 9 9 Total revenues 435 445 903 863 OPERATING EXPENSES: Other operating expenses (1) 67 82 158 154 Provision for depreciation 87 80 174 157 Amortization of regulatory assets, net 2 2 3 3 General taxes 74 70 147 139 Total operating expenses 230 234 482 453 OPERATING INCOME 205 211 421 410 OTHER INCOME (EXPENSE): Interest income from affiliates 7 2 9 3 Miscellaneous income, net — 3 2 1 Interest expense - other ( 76 ) ( 66 ) ( 146 ) ( 124 ) Interest expense - affiliate ( 1 ) ( 2 ) ( 2 ) ( 7 ) Capitalized financing costs 18 14 34 26 Total other expense ( 52 ) ( 49 ) ( 103 ) ( 101 ) INCOME BEFORE INCOME TAXES 153 162 318 309 INCOME TAXES 35 39 72 96 NET INCOME $ 118 $ 123 $ 246 $ 213 Income attributable to noncontrolling interest 18 17 37 35 EARNINGS ATTRIBUTABLE TO FIRSTENERGY TRANSMISSION, LLC $ 100 $ 106 $ 209 $ 178 (1) Includes affiliated operating expenses of $ 45 million and $ 46 million for the three months ended June 30, 2025 and 2024, respectively, and $ 97 million and $ 91 million for the six months ended June 30, 2025 and 2024, respectively. See Notes to Consolidated Financial Statements. 1 FIRSTENERGY TRANSMISSION, LLC CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) June 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 91 $ 8 Receivables- Affiliated companies 2 23 Other 93 94 Notes receivable from affiliated companies 337 197 Prepaid taxes and other 30 22 553 344 PROPERTY, PLANT AND EQUIPMENT: In service 13,228 12,894 Less — Accumulated provision for depreciation 2,710 2,596 10,518 10,298 Construction work in progress 1,262 914

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note Number Page Number 1 Organization and Basis of Presentation 6 2 Revenue 8 3 Income Taxes 9 4 Fair Value Measurements 10 5 Variable Interest Entities 10 6 Regulatory Matters 11 7 Commitments, Guarantees and Contingencies 13 8 Transactions with Affiliates 14 5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. ORGANIZATION AND BASIS OF PRESENTATION Unless otherwise indicated, defined terms and abbreviations used herein have the meanings set forth in the accompanying Glossary of Terms. FET, a consolidated VIE of FE, is the parent of the FET Subsidiaries and PATH. In March 2024, PATH completed the process of terminating all of its FERC-jurisdictional rates and facilities, with the result that PATH no longer is a "public utility" or subject to FERC jurisdiction. FET and its non-affiliated joint venture partner are completing the process of terminating the PATH corporate entities. Through its subsidiaries, FET owns high-voltage transmission facilities in PJM, which consist of 12,520 circuit miles of transmission lines with nominal voltages of 500 kV, 345 kV, 230 kV, 138 kV, 115 kV, 69 kV and 46 kV in Ohio, Pennsylvania, West Virginia, Maryland and Virginia. FET plans, operates, and maintains its transmission system in accordance with NERC reliability standards and other applicable regulatory requirements. In addition, FET and its subsidiaries comply with the regulations, orders, policies and practices prescribed by FERC and the PUCO, PPUC, WVPSC, MDPSC and VSCC. As of March 25, 2024, FET owns 100 % of MAIT's equity interests (Class A and Class B). FET presents FE's ownership of FET's special purpose membership interest net assets and net income as NCI. NCI is included as a component of equity on FET's Consolidated Balance Sheets. So long as FE holds the FET special purpose membership interests, it will receive 100 % of any Class B distributions made by MAIT. On May 31, 2022, Brookfield acquired 19.9 % of the issued and outstanding membership interests of FET. On March 25, 2024, Brookfield acquired an additional incremental 30 % equity interest in FET. As a result of the closing of the transaction, Brookfield's interest in FET increased from 19.9 % to 49.9 %, while FE retained the remaining 50.1 % ownership int

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