FirstEnergy Corp.

(New York Stock Exchange)
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Bullish +75

Why Is FirstEnergy (FE) Up 3.5% Since Last Earnings Report?

AI-generated analysis

πŸ“ˆ FirstEnergy shares rose 3.5% in the past month, outperforming the S&P 500 since its last earnings report.

πŸ’° Q4 2025 operating earnings per share were 53 cents, beating the consensus estimate of 52 cents by 1.92%.

πŸ“Š 2025 adjusted earnings increased 7.60% year-over-year to $2.55 per share compared with $2.37 in 2024.

πŸ”‹ Operating revenues jumped 19.6% to $3.78 billion, significantly surpassing the consensus estimate of $3.25 billion.

🏭 Distribution segment revenues grew 9.97% to $7.55 billion while Integrated segment revenues rose 16.6% to $5.68 billion.

πŸ“‰ Total operating expenses increased 16.10% to $12.88 billion, causing operating income to drop 7.03% to $2.21 billion.

⚠️ Interest expense climbed 6.38% year-over-year to $1.22 billion as part of the higher total operating expenses.

🎯 Management expects 2026 core EPS between $2.62 and $2.82, placing their guidance above the consensus estimate of $2.71.

πŸ—οΈ The company plans a $36 billion capital investment from 2026 to 2030, up nearly 30% from the previous five-year strategy.

πŸ“ˆ Zacks estimates review has trended upward for FirstEnergy over the past month, supporting its Buy rating of #2.

πŸ”‹ The stock carries a VGM Score of C and a Momentum Score of B, reflecting solid value and growth attributes.

⚑ American Electric Power (AEP) gained 2.9% in the same period as a sector comparison within the Utility - Electric Power industry.

πŸ’Ή AEP reported Q4 revenues of $5.31 billion with an EPS of $1.19, slightly down from $1.24 the previous year.

πŸ“‰ Zacks analysts hold AEP with a Rank #3 (Hold) rating and assign it a lower VGM Score of D compared to FirstEnergy.

Bullish Signals
  • FirstEnergy reported fourth-quarter 2025 operating earnings of 53 cents per share, beating the Zacks Consensus Estimate of 52 cents by 1.92%.
  • The company's 2025 adjusted earnings reached $2.55 per share, reflecting a year-over-year increase of 7.60% compared to $2.37 in 2024.
  • Operating revenues of $3.78 billion surpassed the Zacks Consensus Estimate of $3.25 billion by 16.9%, with total 2025 revenues increasing 12.01% to $15.09 billion.
  • FirstEnergy raised its full-year 2026 core earnings per share guidance to a range of $2.62- $2.82, which is higher than the Zacks Consensus Estimates of $2.71.
  • The company outlined an aggressive capital investment plan of $36 billion for the 2026-2030 period, representing an increase of nearly 30% compared to its previous five-year strategy.
  • Estimates have been trending upward for the stock, contributing to a Zacks Rank #2 (Buy) and an expectation of above average returns in the next few months.
  • FirstEnergy is expected to maintain a long-term EPS growth rate between 6-8% through its infrastructure development and grid upgradation initiatives.
Risk Factors
  • Operating income declined 7.03% to $2.21 billion in Q4 2025 despite revenue growth, indicating margin pressure from higher operating expenses and interest costs.
  • Interest expense increased 6.38% year-over-year to $1.22 billion, adding to the burden on profitability and potentially impacting free cash flow generation.
  • The company has significantly escalated its capital investment plan to $36 billion for 2026-2030 (up nearly 30%), which could strain balance sheet liquidity and return metrics if returns do not improve proportionally.
  • Zacks Consensus Estimates for 2026 core EPS ($2.71) fall below FirstEnergy's lower guidance range, potentially limiting upside if analysts revise targets downward later.
  • The stock carries an average Growth Score of C and Value Score of C, suggesting it does not stand out as a high-growth or undervalued opportunity compared to peers.
Full Analysis
FirstEnergy Corporation (FE) shares have gained approximately 3.5% over the past month since its last earnings report, outperforming the S&P 500. The recent price increase follows a fourth-quarter 2025 operating earnings report where FirstEnergy reported 53 cents per share, beating the Zacks Consensus Estimate of 52 cents by 1.92%. While Q4 operating earnings declined from 67 cents in the year-ago quarter, full-year 2025 adjusted earnings totaled $2.55 per share, representing a 7.60% increase from 2024's $2.37 per share driven by new base rates in Ohio and Pennsylvania and growth in transmission rate bases. Total revenues for the company reached $15.09 billion in 2025, up 12.01% from $13.47 billion in 2024. Operating revenues specifically were $3.78 billion in Q4, surpassing estimates by 16.9% and increasing 19.6% year-over-year to $3.18 billion compared to the prior year. Segment-wise, distribution revenues increased 9.97% to $7.55 billion in 2025, while the integrated segment saw a 16.6% rise to $5.68 billion and stand-alone transmission revenue grew 6.60% to $1.91 billion. However, operating expenses rose 16.10% year-over-year to $12.88 billion due to higher other operating expenses, depreciation provisions, and general taxes, resulting in total operating income of $2.21 billion for 2025, down 7.03% from the previous year's $2.38 billion. Interest expense also increased 6.38% to $1.22 billion in 2025 compared to $1.14 billion in the prior year. Looking ahead, FirstEnergy expects its 2026 core earnings per share to range between $2.62 and $2.82, with a Zacks Consensus Estimate of $2.71 falling below the midpoint of this guidance. The company has outlined a capital investment plan of $36 billion for the 2026-2030 period, marking an increase of nearly 30% from its previous five-year strategy, which targeted a compounded annual growth rate of 10% through 2030. For 2026 specifically, FirstEnergy plans to invest $6 billion in infrastructure development and grid upgrades focused on high-voltage transmission reliability and resiliency. Analysts note that recent upward trends in estimate reviews have led to a Zacks Rank #2 (Buy) rating for the stock, with an average Growth Score of C, a Momentum Score of B, and a Value score of C, resulting in an aggregate VGM Score of C. In comparison to industry peers, American Electric Power (AEP), another utility in the Electric Power sector, has gained 2.9% over the past month since its quarter ended December 2025 earnings release. AEP reported Q4 revenues of $5.31 billion with a 13.2% year-over-year increase, though EPS was $1.19 compared to $1.24 in the prior year. Consensus estimates for AEP suggest earnings of $1.55 per share for the current quarter, a 0.7% year-over-year change. AEP currently holds a Zacks Rank #3 (Hold) with a VGM Score of D. FirstEnergy's momentum and upward estimate revisions have contributed to its outperformance relative to the broader utility sector and index benchmarks in the recent period.