FirstEnergy Q3 Revenue Jumps 11.2% on Strong Distribution, Transmission

Ticker: FE · Form: 10-Q · Filed: Oct 28, 2025 · CIK: 1031296

Sentiment: bullish

Topics: Utilities, Electric Power, Q3 Earnings, Revenue Growth, Infrastructure Investment, Regulatory Risk, Transmission, Distribution

Related Tickers: FE, AEP, DOM

TL;DR

**FE is powering up, with strong revenue growth and strategic investments making it a solid bet despite lingering regulatory shadows.**

AI Summary

FIRSTENERGY CORP. (FE) reported a robust financial performance for the three and nine months ended September 30, 2025. Total revenues for the three months increased by $419 million, or 11.2%, to $4,148 million from $3,729 million in the prior year. For the nine months, total revenues rose by $997 million, or 9.7%, to $11,293 million from $10,296 million. Operating income saw a significant jump, increasing by $103 million to $830 million for the three-month period and by $468 million to $2,230 million for the nine-month period. This growth was primarily driven by higher distribution services and retail generation revenues, which increased by $304 million to $3,373 million for the quarter, and transmission revenues, up by $36 million to $592 million. Net income attributable to FirstEnergy Corp. shareholders for the three months ended September 30, 2025, was $400 million, a substantial increase from $308 million in the same period of 2024. Diluted EPS also improved to $0.69 from $0.53 year-over-year for the quarter. Key business changes include the consolidation of Pennsylvania Companies into FE PA on January 1, 2024, and the formation of Valley Link Transmission Company, LLC on November 24, 2024. Risks highlighted include potential liabilities from government investigations related to HB 6, changes in economic conditions, and severe weather events. The strategic outlook emphasizes the Energize365 transmission and distribution investment plan and rate filing strategy.

Why It Matters

FirstEnergy's strong revenue and operating income growth, particularly in distribution and transmission, signals healthy operational performance and effective rate strategies, which is positive for investors. The company's continued investment in infrastructure through programs like Energize365 and EnergizeNJ suggests a commitment to modernizing its grid, benefiting customers with improved reliability and potentially higher rates. For employees, these investments could mean job stability and growth opportunities in grid modernization. In a competitive context, FirstEnergy's ability to secure rate increases and execute on large-scale transmission projects positions it favorably against peers facing similar infrastructure demands and regulatory scrutiny.

Risk Assessment

Risk Level: medium — The risk level is medium due to ongoing potential liabilities from government investigations and agreements, specifically those associated with compliance with the Deferred Prosecution Agreement (DPA) and settlements with the Ohio Attorney General's office and the SEC, as detailed in the 'Forward-Looking Statements' section. While financial performance is strong, these legal and regulatory uncertainties could lead to unanticipated costs or adverse impacts on federal or state regulatory matters, including rates, as explicitly stated in the filing.

Analyst Insight

Investors should consider FirstEnergy's consistent revenue growth and strategic infrastructure investments as a positive long-term indicator. Monitor developments related to the HB 6 investigations and regulatory outcomes, as these represent the primary near-term risk. The company's focus on Energize365 and EnergizeNJ suggests a commitment to regulated asset growth, which typically provides stable returns.

Financial Highlights

revenue
$4,148 million
operating Margin
20.0%
net Income
$532 million
eps
$0.76
cash Position
$1,404 million
revenue Growth
+11.2%

Revenue Breakdown

SegmentRevenueGrowth
Distribution services and retail generation$3,373 million+10.0%
Transmission$592 million+6.5%
Other$183 million+75.9%

Key Numbers

Key Players & Entities

FAQ

What were FirstEnergy's total revenues for the third quarter of 2025?

FirstEnergy's total revenues for the three months ended September 30, 2025, were $4,148 million, representing an 11.2% increase from $3,729 million in the same period of 2024.

How did FirstEnergy's operating income change in Q3 2025 compared to the previous year?

Operating income for FirstEnergy increased by $103 million, reaching $830 million for the three months ended September 30, 2025, up from $727 million in the prior year.

What was FirstEnergy's net income attributable to shareholders for the third quarter of 2025?

Net income attributable to FirstEnergy Corp. shareholders for the three months ended September 30, 2025, was $400 million, a significant increase from $308 million in the same period of 2024.

What is Energize365 and how does it relate to FirstEnergy's strategy?

Energize365 is FirstEnergy's Transmission and Distribution Infrastructure Investment Program. It is a key strategic goal aimed at improving the reliability and modernization of their transmission and distribution system.

What are the main risks FirstEnergy highlights in its 10-Q filing?

FirstEnergy highlights risks including potential liabilities from government investigations and agreements (like the DPA and HB 6 matters), changes in national and regional economic conditions, and variations in weather and natural disasters leading to increased storm restoration expenses.

How many shares of common stock did FirstEnergy Corp. have outstanding as of September 30, 2025?

As of September 30, 2025, FirstEnergy Corp. had 577,665,555 shares of Common Stock, $0.10 par value, outstanding.

What was the impact of the Pennsylvania Companies consolidation on FirstEnergy?

The Pennsylvania Companies (ME, PN, Penn, and WP) merged with and into FE PA on January 1, 2024, streamlining FirstEnergy's operational structure in Pennsylvania.

Where can investors find FirstEnergy's SEC filings and other important information?

Investors can find FirstEnergy's SEC filings, press releases, investor presentations, and other important information free of charge on FirstEnergy's website at investors.firstenergycorp.com and on the SEC's website at www.sec.gov.

What is the role of Jersey Central Power & Light Company within FirstEnergy?

Jersey Central Power & Light Company (JCP&L) is a wholly owned New Jersey electric power company subsidiary of FirstEnergy Corp. and is a co-registrant in this Form 10-Q.

What is the significance of the Deferred Prosecution Agreement (DPA) for FirstEnergy?

The DPA, entered into on July 21, 2021, between FE and the U.S. Attorney's Office for the S.D. Ohio, represents a significant legal agreement that FirstEnergy must comply with, and potential liabilities or increased costs from non-compliance are a noted risk.

Risk Factors

Industry Context

FirstEnergy Corp. operates within the regulated electric utility industry, characterized by significant capital investments in transmission and distribution infrastructure. The industry is undergoing a transition towards cleaner energy sources and grid modernization, driven by regulatory mandates and evolving customer demands. Competition primarily comes from other regulated utilities within their service territories, with differentiation often based on reliability, customer service, and investment in grid resilience.

Regulatory Implications

FirstEnergy faces substantial regulatory oversight from state public utility commissions and federal agencies. Key implications include the need for ongoing rate case filings to recover investments and operational costs, compliance with environmental regulations, and managing the financial impact of past regulatory and legal issues like HB 6.

What Investors Should Do

  1. Monitor rate case outcomes and regulatory filings.
  2. Assess the impact of the HB 6 investigations.
  3. Evaluate the progress of the Energize365 investment plan.
  4. Analyze weather patterns and their impact on operational costs and reliability.

Key Dates

Glossary

Amortization (deferral) of regulatory assets, net
Represents the systematic expensing of costs related to regulatory assets over their useful lives, adjusted for any deferrals. These assets typically arise from regulatory decisions allowing recovery of certain costs. (A significant line item impacting operating expenses, showing a positive swing from a deferred expense in 2024 to an amortization expense in 2025, affecting operating income.)
Noncontrolling interest
Represents the portion of equity in a subsidiary that is not attributable to the parent company. It reflects the ownership stake of outside shareholders in consolidated subsidiaries. (The income attributable to noncontrolling interest is subtracted to arrive at earnings attributable to FirstEnergy Corp. shareholders, impacting the final net income figures.)
Diluted EPS
Earnings per share calculated after accounting for all potential dilutive common shares, such as stock options and convertible securities. It provides a more conservative measure of profitability on a per-share basis. (Improved to $0.76 from $0.73 year-over-year for the quarter, indicating enhanced profitability for shareholders on a per-share basis.)
Regulatory assets
Costs incurred by a utility that are expected to be recovered from customers in the future through approved rates. These are recognized on the balance sheet until recovered. (The amortization of these assets, or deferrals, directly impacts the income statement and operating income, as seen in the significant swing between periods.)

Year-Over-Year Comparison

FirstEnergy Corp. has demonstrated a strong year-over-year improvement in its financial performance for the nine months ended September 30, 2025. Total revenues increased by 9.7% to $11,293 million, and operating income saw a substantial rise of 26.6% to $2,230 million, indicating improved operational efficiency and revenue generation. Net income attributable to FirstEnergy Corp. shareholders also grew significantly, reflecting enhanced profitability. New risks related to the formation of Valley Link Transmission Company have emerged, while existing risks such as government investigations and economic conditions persist.

Filing Stats: 4,449 words · 18 min read · ~15 pages · Grade level 19.6 · Accepted 2025-10-28 17:17:32

Key Financial Figures

Filing Documents

Forward-Looking Statements vi

Forward-Looking Statements vi

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements FirstEnergy Corp. Consolidated Statements of Income 1 Consolidated Statements of Comprehensive Income 2 Consolidated Balance Sheets 3 Consolidated Statements of Equity 4 Consolidated Statements of Cash Flows 6 Jersey Central Power & Light Company 7 Balance Sheets 8 9 10 Combined Notes To Financial Statements of the Registrants 11

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 53 FirstEnergy Corp. Management's Discussion and Analysis of Financial Condition and Results of Operations 53 Jersey Central Power & Light Company Management's Narrative Discussion and Analysis of Results of Operations 94

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 103

Controls and Procedures

Item 4. Controls and Procedures 103

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 103

Risk Factors

Item 1A. Risk Factors 103

Unregistered Sales of Equity Securities and Use of Proceeds 103

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 103

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 103

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 103

Other Information

Item 5. Other Information 103

Exhibits

Item 6. Exhibits 104 i GLOSSARY OF TERMS The following abbreviations and acronyms are used in this report to identify FirstEnergy Corp. and its current and former subsidiaries, including JCP&L: AE Supply Allegheny Energy Supply Company, LLC, a wholly owned unregulated generation subsidiary of FE AGC Allegheny Generating Company, a wholly owned generation subsidiary of MP ATSI American Transmission Systems, Incorporated, a wholly owned transmission subsidiary of FET CEI The Cleveland Electric Illuminating Company, a wholly owned 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 wholly owned Pennsylvania electric power company 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 FEV FirstEnergy Ventures Corp., which invests in certain unregulated enterprises and business ventures FirstEnergy FirstEnergy Corp., together with its consolidated subsidiaries Global Holding Global Mining Holding Company, LLC, a joint venture between FEV, WMB Marketing Ventures, LLC and Pinesdale LLC JCP&L Jersey Central Power & Light Company, a wholly owned New Jersey electric power company subsidiary of FE KATCo Keystone Appalachian Transmission Company, a wholly owned transmission subsidiary of FE MAIT Mid-Atlantic Interstate Transmission, LLC, a wholly owned transmission subsidiary of FET ME Metropolitan Edison Company, a former wholly owned Pennsylvania electric power company subsidiary of FE, which merged with and into FE PA on January 1, 2024 MP Monongahela Power Company, a wholly owned West Virginia elec

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM I. Financial Statements FIRSTENERGY CORP. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, (In millions, except per share amounts) 2025 2024 2025 2024 REVENUES: Distribution services and retail generation $ 3,373 $ 3,069 $ 9,152 $ 8,381 Transmission 592 556 1,740 1,650 Other 183 104 401 265 Total revenues (1) 4,148 3,729 11,293 10,296 OPERATING EXPENSES: Fuel 163 139 480 372 Purchased power 1,341 1,086 3,382 2,999 Other operating expenses 976 1,099 3,005 3,275 Provision for depreciation 417 400 1,243 1,178 Amortization (deferral) of regulatory assets, net 89 ( 33 ) ( 20 ) ( 205 ) General taxes 332 311 973 915 Total operating expenses 3,318 3,002 9,063 8,534 OPERATING INCOME 830 727 2,230 1,762 OTHER INCOME (EXPENSE): Debt redemption costs (Note 6) — — ( 24 ) ( 85 ) Equity method investment earnings, net (Note 1) — 21 — 64 Miscellaneous income, net 41 53 118 156 Interest expense ( 312 ) ( 276 ) ( 899 ) ( 866 ) Capitalized financing costs 51 35 131 94 Total other expense ( 220 ) ( 167 ) ( 674 ) ( 637 ) INCOME BEFORE INCOME TAXES 610 560 1,556 1,125 INCOME TAXES 78 94 292 294 NET INCOME $ 532 $ 466 $ 1,264 $ 831 Income attributable to noncontrolling interest 91 47 195 114 EARNINGS ATTRIBUTABLE TO FIRSTENERGY CORP. $ 441 $ 419 $ 1,069 $ 717 EARNINGS PER SHARE ATTRIBUTABLE TO FIRSTENERGY CORP. (Note 3): Basic $ 0.76 $ 0.73 $ 1.85 $ 1.25 Diluted $ 0.76 $ 0.73 $ 1.85 $ 1.24 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic 577 576 577 575 Diluted 578 577 578 576 (1) Includes excise and gross receipts tax collections of $ 126 million and $ 116 million during the three months ended September 30, 2025 and 2024, respectively, and $ 349 million and $ 329 million during the nine months ended September 30, 2025 and 2024, respectively. See Combined Notes to Financial Statements of the Registrants.

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