NYSE:FE
FIRSTENERGY CORP
FirstEnergy Corp delivers essential electricity and natural gas to millions of homes and businesses with a focus on grid resilience and regulated utility returns.
Key Metrics
Investment Thesis
Bull Case
FirstEnergy offers a compelling value proposition for income-focused investors with its consistent dividend history and regulated utility status providing downside protection. The ongoing infrastructure investment cycle in the Mid-Atlantic region should drive long-term revenue growth and justify higher valuation multiples over time. Strong free cash flow conversion allows for continued share buybacks or special dividends if regulatory frameworks support it.
Bear Case
High debt levels relative to equity, evidenced by $41.98B total liabilities against $13.93B shareholders' equity, creates vulnerability during interest rate hikes or credit rating downgrades. Regulatory uncertainty in key states could lead to stranded assets if carbon pricing policies tighten without adequate compensation mechanisms. Recent cash flow from financing activities of $1.31B partially offset by large debt issuances suggests ongoing refinancing needs that may constrain future capital flexibility.
About FIRSTENERGY CORP
FirstEnergy Corp is a leading investor-owned utility holding company providing electricity and natural gas services to over 3.9 million customers across six Mid-Atlantic states. The company operates through regulated utility segments focused on reliable energy delivery, infrastructure modernization, and customer service while navigating complex regulatory environments. Key revenue drivers include electric distribution, natural gas distribution, and wholesale power sales.
Analysis
Management Discussion
Recent financial performance shows revenue growth to $15.09B in 2025, driven by both organic demand and strategic capital investments in grid modernization. Operating cash flow of $3.70B demonstrates robust liquidity generation despite significant investing outflows of $5.07B for asset upgrades and acquisitions. Net income reached $1.27B, reflecting effective cost management and favorable regulatory settlements that stabilized earnings amidst volatile fuel prices.
Industry Overview
The U.S. utility sector is transitioning toward a low-carbon future with increasing emphasis on grid modernization, renewable energy integration, and cybersecurity resilience. Investor-owned utilities face balancing acts between meeting growing customer demand for clean energy while adhering to strict environmental regulations and rate-of-return constraints. Market consolidation trends favor larger entities capable of managing complex asset portfolios and negotiating favorable fuel supply contracts.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $12.46B | $12.87B | $13.47B | $15.09B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $12.46B | $12.87B | $13.47B | $15.09B |
| Operating Expenses | $10.55B | $10.60B | $11.10B | $12.88B |
| Operating Income | $1.91B | $2.27B | $2.38B | $2.21B |
| D&A | $1.32B | — | — | — |
| Depreciation | $1.38B | $1.46B | $1.58B | $1.66B |
| Non-Operating Income | $-471.0M | $-802.0M | $-871.0M | $-647.0M |
| Interest Expense | $1.04B | $1.12B | — | — |
| Pre-Tax Income | $1.44B | $1.46B | $1.50B | $1.56B |
| Income Tax | $1.00B | $267.0M | $377.0M | $288.0M |
| Continuing Ops | $406.0M | $1.20B | $1.13B | $1.27B |
| Discontinued Ops | $0 | $-21.0M | $0 | $0 |
| Net Income | $439.0M | $1.18B | $1.13B | $1.27B |
| Minority Interest | $33.0M | $74.0M | $149.0M | $251.0M |
| Net to Common | $406.0M | $1.10B | $978.0M | $1.02B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.42B | $2.57B | $2.78B | $2.98B |
| Cash & Equivalents | $160.0M | $137.0M | $111.0M | $57.0M |
| Accounts Receivable | $1.32B | $1.32B | $1.53B | $1.73B |
| Inventory | $421.0M | $512.0M | $549.0M | $577.0M |
| Other Current Assets | $516.0M | $601.0M | $586.0M | $619.0M |
| Long-Term Assets | $43.69B | $46.20B | $49.27B | $52.92B |
| PP&E (Net) | $36.28B | $38.41B | — | — |
| Goodwill | $5.62B | $5.62B | $5.62B | $5.62B |
| Operating Leases | $262.0M | $205.0M | $228.0M | $276.0M |
| LT Investments | $622.0M | $663.0M | $652.0M | $641.0M |
| Other LT Assets | $906.0M | $1.30B | $42.77B | $46.39B |
| Total Assets | $46.11B | $48.77B | $52.04B | $55.90B |
| Current Liabilities | $3.96B | $5.39B | $5.00B | $5.27B |
| Accounts Payable | $1.50B | $1.36B | $1.57B | $2.00B |
| Current Debt | $351.0M | $1.25B | $977.0M | $723.0M |
| Current Leases | $48.0M | $47.0M | $51.0M | $60.0M |
| Deferred Revenue | $223.0M | $227.0M | $233.0M | $250.0M |
| Taxes Payable | $668.0M | $700.0M | $727.0M | $768.0M |
| Other Current Liab | $1.17B | $1.80B | $1.43B | $1.47B |
| Long-Term Liabilities | $31.51B | $32.47B | $33.33B | $36.71B |
| LT Operating Leases | $247.0M | $179.0M | $192.0M | $227.0M |
| Other LT Liab | $31.26B | $32.29B | $33.13B | $36.48B |
| Total Liabilities | $35.47B | $37.85B | $38.32B | $41.98B |
| Shareholders' Equity | $10.64B | $10.92B | $13.72B | $13.93B |
| Retained Earnings | $-1.20B | $-97.0M | $43.0M | $35.0M |
| AOCI | $-14.0M | $-17.0M | $-14.0M | $-14.0M |
| Total L&E | $46.11B | $48.77B | $52.04B | $55.90B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $439.0M | $1.18B | $1.13B | $1.27B |
| Non-Cash Adjustments | $950.0M | $-875.0M | $1.14B | $1.80B |
| Working Capital Changes | $1.29B | $1.09B | $620.0M | $629.0M |
| Cash from Operations | $2.68B | $1.39B | $2.89B | $3.70B |
| Cash from Investing | $-3.08B | $-3.65B | $-4.35B | $-5.07B |
| Debt Issuances | $700.0M | $3.15B | $2.10B | $5.92B |
| Debt Repayments | $3.00B | $537.0M | $2.76B | $3.13B |
| Dividends Paid | $891.0M | $906.0M | $970.0M | $1.02B |
| Cash from Financing | $-912.0M | $2.24B | $1.43B | $1.31B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-1.30B | $-27.0M | $-25.0M | $-55.0M |
| Beginning Cash | $1.51B | $206.0M | $179.0M | $154.0M |
| Ending Cash | $206.0M | $179.0M | $154.0M | $99.0M |
Frequently Asked Questions
How does FIRSTENERGY CORP make money?
The company's financials reflect three primary segments: Electric Distribution (relied upon for the majority of revenue), Natural Gas Distribution (providing heating and cooling services), and Corporate/Other (including wholesale power sales, fuel procurement costs, and regulatory expenses).
What are the main risks for FE?
Regulatory risks remain paramount as state public utility commissions control rate approvals and can alter revenue requirements or return on equity caps. Climate change poses physical risks through increased frequency of severe weather events damaging grid assets and operational risks from transitioning to lower-carbon generation mix. Rising fuel costs for natural gas and coal could impact operating margins if not fully passed through to customers via rate adjustments.
What is FE's competitive advantage?
FirstEnergy benefits from a regulated franchise model that provides stable, inflation-linked revenue streams and predictable cash flows. The company possesses extensive grid infrastructure with significant investment in renewable integration and hardening against extreme weather events. Strong balance sheet management allows for consistent dividend payments and capital allocation to maintain service reliability.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.