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Introduction & Market Context
FirstEnergy Corporation (NYSE:FE) presented its second quarter 2025 financial results on July 31, highlighting strong performance across key metrics and significant growth opportunities in data centers and transmission infrastructure. The utility company’s stock traded slightly lower in premarket at $41.57, down 0.53% following the presentation, after closing at $41.79 on July 30.
The company delivered solid financial results in a quarter marked by continued investments in its regulated transmission and distribution businesses, while maintaining its focus on Pennsylvania as a key growth region. FirstEnergy continues to benefit from increasing data center demand across its service territories, positioning it well for long-term growth.
Quarterly Performance Highlights
FirstEnergy reported second quarter 2025 Core EPS of $0.52 per share, slightly above the $0.51 per share reported in Q2 2024. More impressively, year-to-date Core EPS reached $1.19 per share, representing a 19% increase compared to $1.00 per share in the first half of 2024. The company’s GAAP EPS for Q2 2025 was $0.46, significantly higher than the $0.08 reported in the same period last year.
As shown in the following financial overview, FirstEnergy’s investment plan is accelerating, with year-to-date investments of $2.5 billion, 29% higher than the $1.9 billion invested in the first half of 2024:
The company’s trailing twelve-month consolidated return on equity reached 9.7%, in line with its targeted range of 9.5-10%, reflecting strong execution of regulated strategies and financial discipline. Cash from operations for Q2 2025 totaled $1.1 billion, while year-to-date cash from operations reached $1.7 billion, both favorable compared to plan and the previous year.
FirstEnergy’s performance across all key metrics has been strong in 2025, as illustrated in this comprehensive summary:
Strategic Initiatives
FirstEnergy reaffirmed its 2025 Core EPS guidance range of $2.40-$2.60 per share and expressed confidence in delivering results in the upper half of this range. The company also maintained its 6-8% Core EPS compound annual growth rate (CAGR) target for 2025-2029, supported by its $28 billion base investment plan and projected 9% rate base growth over the same period.
The company declared a dividend of $0.445 per share (payable September 1, 2025), representing approximately 5% growth compared to 2024, consistent with its target payout ratio of 60-70% of Core EPS.
FirstEnergy completed the sale of its minority interest in Signal Peak in July 2025, eliminating any remaining financial or operational liability and allowing the company to focus on its core regulated utility business. The company also executed a $2.5 billion convertible debt offering in June 2025 at an approximately 3.75% weighted average coupon, reducing its 2026 financing risk by more than 40%.
The company’s shareholder value proposition centers around strong growth, financial discipline, and an attractive risk profile:
Data Center & Transmission Growth Opportunities
One of the most significant growth drivers for FirstEnergy is the increasing demand from data centers. The company reported that its long-term pipeline demand (beyond 2029) has increased by more than 80% since February 2025, growing from 6,115 MW to 11,130 MW. Contracted demand for 2029 has also increased by approximately 25% over the same period.
The following chart illustrates the substantial growth in cumulative data center demand across FirstEnergy’s service territories:
FirstEnergy is strategically positioned to capitalize on transmission growth opportunities, with its transmission operations including approximately 24,000 line miles, making it one of the largest in PJM. The company’s $28 billion base investment plan for 2025-2029 includes more than $14 billion in transmission investments, driving approximately 15% rate base growth in this segment.
The company expects its transmission investment plan to increase by up to 20% in its next five-year plan, driven by data center growth and reliability needs:
Pennsylvania Investment Focus
FirstEnergy is making significant investments across Pennsylvania, which represents approximately 35% of its rate base. The company highlighted Pennsylvania’s constructive regulatory environment, strong state leadership, and economic development opportunities, particularly related to data centers.
The company plans to invest $15 billion in Pennsylvania from 2025-2029, including nearly $10 billion in capital investments and approximately $5 billion in operating expenses. At a recent Pennsylvania Energy and Innovation Summit, companies announced over $90 billion of investments in data centers, infrastructure, workforce, and AI projects, which will require incremental electric infrastructure investments beyond FirstEnergy’s current plan.
The following slide illustrates FirstEnergy’s investment strategy in Pennsylvania and its position within the company’s overall investment plan:
Regulatory Updates
FirstEnergy provided updates on key regulatory proceedings across its service territories. In Ohio, the company expects a final decision from the Public Utilities Commission of Ohio (PUCO) on its base rate case by year-end. The new regulatory framework in Ohio includes multi-year rate cases and forward test years, which supports capital investments and provides greater transparency and predictability.
In West Virginia, FirstEnergy is preparing to file its 10-year Integrated Resource Plan (IRP) by October 1, 2025. The filing is expected to include an updated state load forecast and recommendations to address generation requirements. West Virginia’s fully integrated regulatory framework supports economic development and provides a path for investments in new dispatchable generation.
Forward-Looking Statements
Looking ahead, FirstEnergy remains focused on executing its strategic plan and delivering on its financial commitments. The company’s strong outlook is supported by its balanced jurisdictional exposure and diverse investment opportunities:
This performance builds on FirstEnergy’s strong start to 2025, when it reported first-quarter earnings that surpassed analyst expectations with an EPS of $0.67 against a forecast of $0.58. The company’s consistent execution and strategic focus on high-growth areas like data centers and transmission infrastructure position it well to deliver on its long-term financial targets.
FirstEnergy’s management emphasized its commitment to operating at a high level, delivering stable growth, and realizing a bright future for customers, communities, and investors. With its disciplined approach to investments and operations, the company appears well-positioned to navigate the evolving energy landscape and capitalize on emerging opportunities in its service territories.
Full presentation:
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