FirstEnergy Transmission's Q3 Net Income Soars 82% on Revenue Growth

TL;DR

**FirstEnergy Transmission is crushing it, with net income up 82% and debt slashed, making it a solid bet for infrastructure plays.**

AI Summary

FirstEnergy Transmission, LLC reported a significant increase in net income for the three and nine months ended September 30, 2025. Net income for the three-month period surged to $202 million, a substantial 81.98% increase from $111 million in the same period of 2024. For the nine-month period, net income rose to $448 million, up 38.27% from $324 million in 2024. Total revenues also saw growth, reaching $464 million for the three months ended September 30, 2025, a 2.88% increase from $451 million, and $1,367 million for the nine months, a 4.03% increase from $1,314 million. Operating expenses decreased by 10.16% to $712 million for the nine months ended September 30, 2025, compared to $709 million in the prior year, primarily due to a reduction in other operating expenses from $257 million to $226 million. The company's total assets grew to $13,542 million as of September 30, 2025, from $12,565 million at December 31, 2024, driven by an increase in property, plant and equipment, particularly construction work in progress which rose from $914 million to $1,455 million. Cash and cash equivalents dramatically increased to $188 million from $8 million at the beginning of the period. The company also saw a significant reduction in currently payable long-term debt from $625 million to $75 million.

Why It Matters

This strong performance by FirstEnergy Transmission, LLC, a key player in the PJM region's high-voltage transmission, signals robust operational efficiency and strategic investment execution. The substantial increase in net income and revenue, coupled with a significant reduction in current long-term debt, could make FET a more attractive investment for its parent, FirstEnergy Corp., and potentially other infrastructure investors like Brookfield. For customers, these investments in transmission infrastructure, as evidenced by the rise in construction work in progress, suggest improved reliability and capacity in the grid. In a competitive landscape, this financial health positions FET to continue its expansion and modernization efforts, potentially solidifying its market position against other transmission developers in the PJM footprint.

Risk Assessment

Risk Level: medium — While financial performance is strong, the filing highlights several forward-looking risks. These include uncertainties around government investigations and audits regarding HB 6, potential adverse impacts on federal or state regulatory matters, and the inherent risks associated with severe weather events (including those exacerbated by climate change) which could lead to increased restoration expenses or material liability. The company's dependence on FirstEnergy Corp. and its affiliates for employees and key personnel also presents a concentration risk.

Analyst Insight

Investors should monitor FirstEnergy Transmission's ongoing capital expenditure programs, particularly the 'Energize365' initiative, as these drive future revenue growth and asset base expansion. Pay close attention to any developments regarding the HB 6 investigations and their potential impact on regulatory matters, as these could introduce unforeseen costs or rate adjustments. The significant reduction in currently payable long-term debt is a positive sign for liquidity and financial stability.

Financial Highlights

debt To Equity

X.X

revenue

$1,367M

operating Margin

47.9%

total Assets

$13,542M

total Debt

$6,704M

net Income

$448M

eps

$X

gross Margin

X%

cash Position

$188M

revenue Growth

+4.03%

Revenue Breakdown

Key Numbers

• $202M — Net Income (Q3 2025) (Increased 81.98% from $111 million in Q3 2024)
• $448M — Net Income (YTD 2025) (Increased 38.27% from $324 million in YTD 2024)
• $464M — Total Revenues (Q3 2025) (Increased 2.88% from $451 million in Q3 2024)
• $1,367M — Total Revenues (YTD 2025) (Increased 4.03% from $1,314 million in YTD 2024)
• $1,455M — Construction Work in Progress (Sept 30, 2025) (Increased from $914 million at Dec 31, 2024, indicating significant capital investment)
• $188M — Cash and Cash Equivalents (Sept 30, 2025) (Increased from $8 million at Dec 31, 2024, showing improved liquidity)
• $75M — Currently Payable Long-Term Debt (Sept 30, 2025) (Decreased significantly from $625 million at Dec 31, 2024)
• $13,542M — Total Assets (Sept 30, 2025) (Increased from $12,565 million at Dec 31, 2024)
• $226M — Other Operating Expenses (YTD 2025) (Decreased from $257 million in YTD 2024)
• $227M — Interest Expense - Other (YTD 2025) (Increased from $194 million in YTD 2024)

Key Players & Entities

• FirstEnergy Transmission, LLC (company) — registrant and parent company of transmission subsidiaries
• FirstEnergy Corp. (company) — public electric power holding company and parent of FET
• Brookfield (company) — controlled investment vehicle entity with 49.9% membership interest in FET
• PJM Interconnection, LLC (company) — Regional Transmission Organization where FET operates
• FERC (regulator) — Federal Energy Regulatory Commission, governing transmission rates
• HB 6 (regulator) — Ohio House Bill 6, subject of government investigations and audits
• PATH (company) — former joint venture of FET, now terminating operations
• Valley Link Transmission Company, LLC (company) — new joint venture formed by FET
• American Transmission Systems, Incorporated (company) — transmission subsidiary of FET
• Mid-Atlantic Interstate Transmission, LLC (company) — transmission subsidiary of FET

FAQ

Risk Factors

• Regulatory Changes and Compliance [high — regulatory]: FirstEnergy Transmission, LLC operates under stringent regulations from FERC and state commissions (PUCO, PPUC, WVPSC, MDPSC, VSCC). Changes in regulations, rate structures, or compliance requirements could materially impact operations and financial performance. The company's compliance with NERC reliability standards is critical.
• Transmission System Reliability and Maintenance [high — operational]: The company's core business relies on the reliable operation of its 12,520 circuit miles of high-voltage transmission lines. Unforeseen events, natural disasters, or failures in maintenance could lead to service disruptions, significant repair costs, and potential penalties.
• Capital Investment and Financing [medium — financial]: Significant capital investment in construction work in progress, which increased from $914 million to $1,455 million, requires substantial financing. Fluctuations in interest rates and the ability to secure favorable debt terms are crucial for managing these investments and overall financial health.
• PJM Market Dynamics [medium — market]: The company's transmission facilities operate within the PJM Interconnection market. Changes in PJM's market rules, capacity needs, or the integration of new energy sources could affect the utilization and revenue generated by its transmission assets.
• Termination of PATH Entities [low — legal]: The ongoing process of terminating PATH's FERC-jurisdictional rates and facilities, and the winding down of PATH corporate entities, presents potential legal and administrative complexities. Ensuring a smooth transition and compliance with all legal requirements is essential.

Industry Context

FirstEnergy Transmission, LLC operates in the highly regulated electric transmission sector, a critical component of the U.S. energy infrastructure. The industry is characterized by significant capital expenditures for grid modernization and expansion, driven by increasing demand, the integration of renewable energy sources, and evolving reliability standards. Companies like FirstEnergy Transmission are subject to oversight from federal bodies like FERC and various state public utility commissions, influencing rate-setting and operational practices.

Regulatory Implications

The company's operations are heavily influenced by regulatory bodies such as FERC and state commissions. Compliance with NERC reliability standards and evolving environmental regulations are paramount. Any adverse changes in rate structures, approved return on equity, or compliance mandates could significantly impact financial performance and investment decisions.

What Investors Should Do

1. Monitor regulatory filings and rate case outcomes.
2. Analyze capital expenditure plans and their financing.
3. Evaluate the impact of PJM market dynamics on transmission utilization.
4. Assess the company's liquidity and debt management strategies.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported significant net income growth of 81.98% for the quarter and 38.27% year-to-date, alongside increased total assets and cash position.
• 2024-12-31: End of Fiscal Year 2024 — Provided the comparative baseline for asset values, cash, and long-term debt figures for the current reporting period.
• 2024-03-25: Brookfield's increased equity interest in FET — Brookfield increased its stake in FET to 49.9%, impacting ownership structure and governance, though FET continues to be consolidated.
• 2024-03-XX: PATH's termination of FERC-jurisdictional rates and facilities — PATH ceased to be a 'public utility' under FERC jurisdiction, initiating a process of corporate entity termination.

Glossary

VIE

Variable Interest Entity. An entity that is controlled by a company through contractual arrangements rather than through majority voting rights. (FirstEnergy Transmission, LLC is a consolidated VIE of FE, indicating a specific accounting and control structure.)

NCI

Noncontrolling Interest. Represents the portion of equity in a subsidiary that is not attributable to the parent company. (NCI is presented as a component of equity, reflecting FE's ownership structure in FET.)

FERC

Federal Energy Regulatory Commission. An independent agency that regulates the interstate transmission of electricity, natural gas, and oil. (FET operates under FERC jurisdiction and must comply with its regulations.)

PJM

PJM Interconnection. A regional transmission organization that coordinates the operation of the bulk power transmission system in all or parts of 13 states and the District of Columbia. (FET's transmission facilities are located within the PJM market.)

Construction Work in Progress (CWIP)

Costs incurred for construction projects that are not yet completed and placed into service. (A significant increase in CWIP indicates substantial ongoing capital investment in transmission infrastructure.)

Other Operating Expenses

Expenses related to the operation of the business that do not fall into specific categories like depreciation or taxes. (A decrease in these expenses contributed to improved profitability for the nine-month period.)

Year-Over-Year Comparison

Compared to the prior year, FirstEnergy Transmission, LLC has demonstrated robust financial performance. Total revenues for the nine months ended September 30, 2025, increased by 4.03% to $1,367 million, while net income saw a substantial rise of 38.27% to $448 million. This improved profitability was partly driven by a decrease in 'Other operating expenses' by $31 million year-over-year. The company has also significantly strengthened its balance sheet, with total assets growing to $13,542 million and cash and cash equivalents surging from $8 million to $188 million, alongside a notable reduction in currently payable long-term debt from $625 million to $75 million.

Filing Documents

• fet-20250930.htm (10-Q) — 1012KB
• fet-q32025xex311.htm (EX-31.1) — 10KB
• fet-q32025xex312.htm (EX-31.2) — 9KB
• fet-q32025xex32.htm (EX-32) — 6KB
• fet-20250930_g1.jpg (GRAPHIC) — 657KB
• 0002038118-25-000037.txt ( ) — 6506KB
• fet-20250930.xsd (EX-101.SCH) — 40KB
• fet-20250930_cal.xml (EX-101.CAL) — 60KB
• fet-20250930_def.xml (EX-101.DEF) — 203KB
• fet-20250930_lab.xml (EX-101.LAB) — 481KB
• fet-20250930_pre.xml (EX-101.PRE) — 334KB
• fet-20250930_htm.xml (XML) — 528KB

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 17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 31

Controls and Procedures

Item 4. Controls and Procedures 31

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds 31

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 32

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 32

Other Information

Item 5. Other Information 32

Exhibits

Item 6. Exhibits 32 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 joint ventures 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 September 30, For the Nine Months Ended September 30, (In millions) 2025 2024 2025 2024 REVENUES: Revenues from non-affiliates $ 460 $ 447 $ 1,354 $ 1,301 Revenues from affiliates 4 4 13 13 Total revenues 464 451 1,367 1,314 OPERATING EXPENSES: Other operating expenses (1) 68 103 226 257 Provision for depreciation 88 82 262 239 Amortization of regulatory assets, net 1 1 4 4 General taxes 73 70 220 209 Total operating expenses 230 256 712 709 OPERATING INCOME 234 195 655 605 OTHER INCOME (EXPENSE): Interest income from affiliates 3 4 12 7 Miscellaneous income (expense), net ( 1 ) 4 1 5 Interest expense - other ( 81 ) ( 70 ) ( 227 ) ( 194 ) Interest expense - affiliate — — ( 2 ) ( 7 ) Capitalized financing costs 23 15 57 41 Total other expense ( 56 ) ( 47 ) ( 159 ) ( 148 ) INCOME BEFORE INCOME TAXES (BENEFITS) 178 148 496 457 INCOME TAXES (BENEFITS) ( 24 ) 37 48 133 NET INCOME $ 202 $ 111 $ 448 $ 324 Income attributable to noncontrolling interest 21 17 58 52 EARNINGS ATTRIBUTABLE TO FIRSTENERGY TRANSMISSION, LLC $ 181 $ 94 $ 390 $ 272 (1) Includes affiliated operating expenses of $ 46 million and $ 58 million for the three months ended September 30, 2025 and 2024, respectively, and $ 143 million and $ 149 million for the nine months ended September 30, 2025 and 2024, respectively. See Notes to Consolidated Financial Statements. 1 FIRSTENERGY TRANSMISSION, LLC CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) September 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 188 $ 8 Receivables- Affiliated companies 3 23 Other 98 94 Notes receivable from affiliated companies 307 197 Prepaid taxes and other 45 22 641 344 PROPERTY, PLANT AND EQUIPMENT: In service 13,410 12,894 Less — Accumulated provision for deprecia

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 11 6 Regulatory Matters 12 7 Commitments, Guarantees and Contingencies 14 8 Transactions with Affiliates 15 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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