FirstEnergy Corp beats Q2 revenue estimates, reaffirms 2026 outlook

Overview

• U.S. electric utility's Q2 revenue rose, beating analyst expectations

• Q2 Core EPS was $0.50, in line with company plan and down from $0.52 last year

• Company reaffirmed 2026 Core EPS guidance and long-term growth strategy

Outlook

• FirstEnergy reaffirms 2026 Core Earnings guidance range of $2.62 to $2.82 per share

• Company maintains long-term Core Earnings CAGR near top end of 6% to 8% from 2026 to 2030

• FirstEnergy sees expanding opportunities driven by increasing customer demand and need for new infrastructure

Result Drivers

• REGULATED INVESTMENT STRATEGY - Co said results reflect continued execution of its regulated investment strategy and cost management

• DATA CENTER AND REGIONAL DEMAND - Co cited a 30% increase in contracted and pipeline data center demand since Q1 and 137% demand growth in West Virginia as supporting incremental opportunities

• SEGMENT DRIVERS - Distribution Core Earnings fell due to higher maintenance expenses, while Stand-Alone Transmission Core Earnings rose on capital investments and an 11% increase in transmission rate base

Company press release: ID:nPn2hcDnPa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for FirstEnergy Corp is $53.00, about 6.7% above its July 28 closing price of $49.65

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 28 - CenterPoint Energy Q2 profit beats estimates, raises capital plan

• July 28 - CMS Energy Q2 revenue misses estimates; maintains long-term adjusted EPS growth target

• July 28 - DTE Energy tops quarterly profit estimates as energy trading unit shines

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)