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FirstEnergy Q2 Earnings Beat Estimates on Strong Transmission Growth
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Key Takeaways
FirstEnergy's Q2 adjusted EPS of 50 cents beat estimates, while revenues rose 8.8% to $3.68 billion.
Transmission rate base grew 14% as first-half capital spending climbed 19% to $2.9 billion.
Data-center demand reached 24.8 GW, up about 30%, with another 1.5 GW expected to be contracted soon.
FirstEnergy (FE - Free Report) reported second-quarter 2026 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 2.04%. In the year-ago quarter, the company reported earnings of 52 cents per share.
FE’s reported GAAP earnings of 50 cents per share in the second quarter of 2026 compared with 46 cents in the year-ago quarter.
Core earnings in the Distribution segment declined 6 cents in the second quarter of 2026 due to higher maintenance expenses, while the Stand-Alone Transmission segment benefited from an 11% increase in transmission rate base, boosting earnings by 4 cents.
Total Revenues of FE
Operating revenues of $3.68 billion beat the Zacks Consensus Estimate of $3.56 billion by 3.43%. The top line increased 8.82% from $3.38 billion recorded in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
Distribution: Revenues from this segment totaled $1.71 billion, up 2.3% from the prior-year quarter’s level. Electric revenues increased $44 million, while other revenues declined $5 million.
Integrated: Revenues from this segment amounted to $1.43 billion, up 13.7% from the prior-year quarter. The increase was driven by a $130 million rise in revenues from contracts with customers and a $43 million increase in other revenues unrelated to contracts with customers.
Stand-Alone Transmission: Revenues from this segment amounted to $544 million, up 19.30% from the prior-year quarter’s level, driven by rate base growth, the recovery of transmission operating costs and annual formula-rate true-ups.
FE's Costs Rise With the Investment Cycle
Total operating expenses were $3 billion, up 9.77% from the year-ago quarter's level of $2.73 billion. Purchased-power costs rose to $1.16 billion from $953 million, while other operating expenses increased to $1.17 billion from $995 million.
Operating income nevertheless increased 4.8% to $677 million as revenue growth exceeded the rise in operating costs.
Interest expense climbed to $337 million from $299 million due to new long-term debt and convertible note issuances, net of repayments.
FirstEnergy's Demand Pipeline Expands
Total contracted and pipeline data center demand reached 24.8 gigawatts (GW), up about 30% from the first quarter. West Virginia demand increased 137% to 4.3 GW, supporting the company's evaluation of additional generation, transmission and distribution investments.
FE expects another 1.5 GW of demand to be contracted shortly. Management is also advancing the proposed 1.2-GW Maidsville Energy Center and 70 megawatts of solar generation in West Virginia.
FE's Capital Spending Strengthens Rate Base
FirstEnergy deployed $2.9 billion of capital through the first half of 2026, up 19% year over year. Total transmission rate base grew 14%, including increases of 22% in Integrated and 11% in Stand-Alone Transmission.
Cash and cash equivalents as of June 30, 2026, were $63 million compared with $57 million as of Dec. 31, 2025.
Long-term debt increased to $27.1 billion as of June 30, 2026, from $25.51 billion at year-end 2025. Short-term borrowings also climbed to $1.38 billion from $325 million.
FE and its subsidiaries maintain investment-grade ratings across all three major credit rating agencies.
FE’s 2026 Guidance
FirstEnergy reaffirmed its 2026 core earnings guidance of $2.62 to $2.82 per share.
The Zacks Consensus Estimate for 2026 is currently pegged at $2.73 per share.
FirstEnergy remains on track to invest $6 billion in 2026 under its Energize365 program. The company also maintained its $36 billion capital plan for 2026-2030 and continues to expect core earnings growth near the top end of its 6-8% target range through 2030.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug. 4, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.29 per share, which suggests a year-over-year increase of 3.20%.
DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.72 per share, which implies a year-over-year improvement of 6.50%.
Consolidated Edison (ED - Free Report) is slated to report second-quarter results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, which implies a year-over-year increase of 10.45%.
ED’s long-term earnings growth rate is 6.32%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 6.84%.
PPL Corporation (PPL - Free Report) is scheduled to report second-quarter results on Aug. 7, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies a year-over-year growth of 9.38%.
PPL’s long-term earnings growth rate is 7.52%. The Zacks Consensus Estimate for 2026 earnings is pinned at $1.94 per share, which implies a year-over-year improvement of 7.18%.
View the Zacks #1 Rank List
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FirstEnergy Q2 Earnings Beat Estimates on Strong Transmission Growth
Key Takeaways
FirstEnergy (FE - Free Report) reported second-quarter 2026 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 2.04%. In the year-ago quarter, the company reported earnings of 52 cents per share.
FE’s reported GAAP earnings of 50 cents per share in the second quarter of 2026 compared with 46 cents in the year-ago quarter.
Core earnings in the Distribution segment declined 6 cents in the second quarter of 2026 due to higher maintenance expenses, while the Stand-Alone Transmission segment benefited from an 11% increase in transmission rate base, boosting earnings by 4 cents.
Total Revenues of FE
Operating revenues of $3.68 billion beat the Zacks Consensus Estimate of $3.56 billion by 3.43%. The top line increased 8.82% from $3.38 billion recorded in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
FirstEnergy Corporation price-consensus-eps-surprise-chart | FirstEnergy Corporation Quote
FE's Revenue Mix Supports Growth
Distribution: Revenues from this segment totaled $1.71 billion, up 2.3% from the prior-year quarter’s level. Electric revenues increased $44 million, while other revenues declined $5 million.
Integrated: Revenues from this segment amounted to $1.43 billion, up 13.7% from the prior-year quarter. The increase was driven by a $130 million rise in revenues from contracts with customers and a $43 million increase in other revenues unrelated to contracts with customers.
Stand-Alone Transmission: Revenues from this segment amounted to $544 million, up 19.30% from the prior-year quarter’s level, driven by rate base growth, the recovery of transmission operating costs and annual formula-rate true-ups.
FE's Costs Rise With the Investment Cycle
Total operating expenses were $3 billion, up 9.77% from the year-ago quarter's level of $2.73 billion. Purchased-power costs rose to $1.16 billion from $953 million, while other operating expenses increased to $1.17 billion from $995 million.
Operating income nevertheless increased 4.8% to $677 million as revenue growth exceeded the rise in operating costs.
Interest expense climbed to $337 million from $299 million due to new long-term debt and convertible note issuances, net of repayments.
FirstEnergy's Demand Pipeline Expands
Total contracted and pipeline data center demand reached 24.8 gigawatts (GW), up about 30% from the first quarter. West Virginia demand increased 137% to 4.3 GW, supporting the company's evaluation of additional generation, transmission and distribution investments.
FE expects another 1.5 GW of demand to be contracted shortly. Management is also advancing the proposed 1.2-GW Maidsville Energy Center and 70 megawatts of solar generation in West Virginia.
FE's Capital Spending Strengthens Rate Base
FirstEnergy deployed $2.9 billion of capital through the first half of 2026, up 19% year over year. Total transmission rate base grew 14%, including increases of 22% in Integrated and 11% in Stand-Alone Transmission.
Cash and cash equivalents as of June 30, 2026, were $63 million compared with $57 million as of Dec. 31, 2025.
Long-term debt increased to $27.1 billion as of June 30, 2026, from $25.51 billion at year-end 2025. Short-term borrowings also climbed to $1.38 billion from $325 million.
FE and its subsidiaries maintain investment-grade ratings across all three major credit rating agencies.
FE’s 2026 Guidance
FirstEnergy reaffirmed its 2026 core earnings guidance of $2.62 to $2.82 per share.
The Zacks Consensus Estimate for 2026 is currently pegged at $2.73 per share.
FirstEnergy remains on track to invest $6 billion in 2026 under its Energize365 program. The company also maintained its $36 billion capital plan for 2026-2030 and continues to expect core earnings growth near the top end of its 6-8% target range through 2030.
FE’s Zacks Rank
FirstEnergy currently has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug. 4, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.29 per share, which suggests a year-over-year increase of 3.20%.
DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.72 per share, which implies a year-over-year improvement of 6.50%.
Consolidated Edison (ED - Free Report) is slated to report second-quarter results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, which implies a year-over-year increase of 10.45%.
ED’s long-term earnings growth rate is 6.32%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 6.84%.
PPL Corporation (PPL - Free Report) is scheduled to report second-quarter results on Aug. 7, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies a year-over-year growth of 9.38%.
PPL’s long-term earnings growth rate is 7.52%. The Zacks Consensus Estimate for 2026 earnings is pinned at $1.94 per share, which implies a year-over-year improvement of 7.18%.