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    FE
    Earnings call· Jun 2026(Q2 FY26)

    FIRSTENERGY Q2 FY26 earnings call FE

    Jul 29, 2026 Source

    Executive summary

    FirstEnergy Corp. Q2 FY26 — Strong Data Center Demand and Regulatory Progress Drive Growth Opportunities

    FirstEnergy delivered solid Q2 FY26 results, reaffirming its capital investment and earnings growth targets, driven by strong execution and regulatory progress. The company is experiencing significant demand from data centers, particularly in West Virginia, which is creating substantial new investment opportunities beyond the current plan. Management is actively exploring innovative generation and transmission solutions to meet this growing load, while also advancing key rate cases across its service territories to support continued capital deployment and ensure appropriate returns.

    Highlights

    5

    • Contracted an additional 2.1 GW of data center demand in Q2, bringing total contracted demand to 6.4 GW.

    • Reaffirmed 2026 $6 billion capital investment plan and core earnings guidance range of $2.62 to $2.82 per share.

    • Reaffirmed $36 billion 5-year capital investment plan and core earnings growth near the top end of 6% to 8% through 2030.

    • Customer load increased approximately 2% on a weather-adjusted basis, with industrial load up over 4%.

    • Improved reliability in New Jersey by 16% from '24 to '25 and by 38% year-to-date '25 over '26.

    Concerns

    1

    • Core earnings for Q2 FY26 were $0.50 per share, down from $0.52 per share in Q2 FY25, though in line with plan.

    Guidance & targets

    5
    CategoryTargetConfidence
    Capital Investment Plan
    $6 billion
    high materiality
    High
    Core Earnings per Share
    $2.62 to $2.82
    high materiality
    High
    5-year Capital Investment Plan
    $36 billion
    high materiality
    High
    Core Earnings Growth Rate
    near the top end of 6% to 8%
    high materiality
    High
    Incremental Equity on Incremental CapEx
    30% to 40%
    medium materiality
    Medium

    Operational metrics

    15
    GAAP Earnings per Share
    $0.50vs $0.46 in Q2 FY25
    Q2 FY26

    Reported GAAP earnings per share.

    Core Earnings per Share
    $0.50vs $0.52 in Q2 FY25
    Q2 FY26

    Reported core earnings per share, in line with plan.

    Core Earnings per Share
    $1.22vs $1.19 in H1 FY25
    H1 FY26

    Reported core earnings per share for the first six months.

    Capital Investment Program Deployment
    $2.9 billion19% increase vs H1 FY25
    H1 FY26

    Amount deployed from the $6 billion planned for FY26.

    Consolidated Return on Equity
    9.5%
    TTM

    In line with targeted returns.

    Customer Load Growth
    2%
    Q2 FY26

    Total customer load increase.

    Industrial Load Growth
    4%
    Q2 FY26

    Increase in industrial load, reflecting strengthening order activity.

    West Virginia Cumulative Revenue Increase
    $76 million
    future

    Expected cumulative revenue increase from new rates.

    New Jersey Reliability Improvement
    16%
    FY24 to FY25

    Improvement in reliability.

    New Jersey Reliability Improvement
    38%
    YTD FY26 over FY25

    Year-to-date improvement in reliability.

    Transmission Business CAGR
    16%
    through 2030

    Compound annual growth rate for the transmission business in the current plan.

    PJM Open Window Projects Secured
    $5 billion
    prior

    Amount of opportunities secured in prior competitive solicitations.

    PJM Backstop Auction Allocation
    less than 4%
    future

    FirstEnergy's allocation of the reliability backstop auction, viewed as a good outcome for customers.

    Data Center Capital Investment Outside Plan
    $400 million
    future

    Estimated capital investment related to new data center contracts that is incremental to the $36 billion plan.

    Pennsylvania CapEx under LTIP DISC
    66%
    FY26

    Portion of current year capital expenditures in Pennsylvania recovered under the Long-Term Infrastructure Plan Distribution System Improvement Charge.

    Industry KPIs

    5
    MetricValueDetails
    Retail sales growth2%%
    Regulatory rate base growth—
    Rto market structure reviewPJM reliability backstop procurement
    New gas generation builds upgrades1.2 GWGW
    Contracted large load capacity esas loas6.4 GWGW

    Orderbook & backlog

    5
    Total Forecasted Data Center Demand25 GWQ2 FY26

    30% increase since Q1

    Contracted Data Center Demand6.4 GWQ2 FY26

    2.1 GW added in Q2

    Expected Additional Contracted Data Center Demand1.5 GWQ2 FY26

    Expected to enter into contracts in the next couple of weeks.

    Contracted and Pipeline Data Center Demand as % of System Peak Load70%July FY26

    Represents 70% of July system peak load of 34.8 GW.

    West Virginia Contracted and Pipeline Data Center Demand4.3 GWQ2 FY26

    expected to increase by year-end

    Deals & partnerships

    1
    data center customerfully bundled service agreement

    Working on a fully bundled service agreement for a data center customer in West Virginia, to be filed with the West Virginia Public Service Commission.

    Capital programs

    4
    2026 Capital Investment Planunderway$6 billion
    Period spend: $2.9 billion
    Start: FY26

    Reaffirmed plan, with $2.9 billion deployed in the first half of the year.

    5-year Capital Investment Planunderway$36 billion

    Reaffirmed multi-year plan, with potential for meaningful upside opportunities.

    Maidsville Energy Centerpending regulatory approval

    Benefit: 1.2 GW

    CPCN application hearings took place, order expected this fall. Viewed as the beginning of broader generation investment in West Virginia.

    Ohio 3-year Rate Plan Capital Investmentsapplication accepted$2.5 billion

    Benefit: strengthen reliability and resiliency

    Application for a 3-year rate plan in Ohio, with staff report due November 30 and hearings scheduled for March 1.

    Risks & headwinds

    3
    Opposition to Maidsville Energy Center from coal interestsnear term

    not quantified

    Mitigation: Management believes the plant is additive to existing coal plants and necessary for economic development, with support from the state executive and commission.

    PJM reliability backstop procurement cost allocation and credit supportfuture, after FERC approval

    not quantified

    Mitigation: Company emphasizes ratepayer protection and believes its low allocation (less than 4%) of the auction capacity is a good outcome for its customers. Focus on who pays for auctions and provides credit support.

    Regulatory and political uncertainty in Pennsylvaniaongoing

    not quantified

    Mitigation: Operating under a recent base rate environment (1/1/25) and utilizing the LTIP DISC program for 66% of CapEx. Would only move capital if negative recovery is experienced, which is not anticipated.

    What to watch in Q3 FY26

    5

    Maidsville Energy Center CPCN Approval

    this fall
    CurrentHearings completed
    TargetPositive order received

    Why it matters

    Approval of this 1.2 GW gas plant is critical for supporting data center growth in West Virginia and unlocking broader generation investment opportunities.

    Our team presented a strong case, and we look forward to a resolution which we expect this fall.

    Q&A highlights

    6

    What is the open capacity on the transmission system in West Virginia for data centers, and what is the incremental investment opportunity per gigawatt of new demand?

    There is existing near-term capacity for early entrants (100-200 MW), with opportunities to build out for larger needs in later years. The company estimates about $250 million of investment for each gigawatt of capacity added.

    “In the near term, we have some capacity. So if someone wants to add, say, a gigawatt of capacity we have the opportunity for people early in the queue to add maybe 100 or 200 megawatts in the near term and then the opportunity to build into remaining 900 or 800 [ megawatts ] that we have. So there is existing capacity for people who are in that queue and we've contracted with. And then in the later years, we have the opportunity to build out to meet that need. As we talked about before, we think there's, on average, about $250 million of investment for each gigawatt of capacity that we add, and that's in play here as well.”

    asked by Shahriar Pourreza · answered by Brian Tierney

    2 min read5 chapters

    Detailed Narrative

    01

    Surging Data Center Demand and Strategic Response

    FirstEnergy is experiencing a significant surge in data center demand, with total forecasted demand increasing 30% since Q1 to approximately 25 GW. The company contracted an additional 2.1 GW in Q2, bringing total contracted demand to 6.4 GW, and expects another 1.5 GW to be contracted soon. This contracted and pipeline demand now represents about 70% of the company's July system peak load of 34.8 GW, highlighting a substantial growth opportunity. The company is actively evaluating structures, including a potential Genco, to support this growth and bring new generation online faster, particularly in West Virginia where 4.3 GW of contracted and pipeline demand exists.

    02

    West Virginia Generation Investment and Regulatory Progress

    FirstEnergy is making significant progress towards approval of the 1.2 GW Maidsville Energy Center in West Virginia, with hearings completed and an order expected this fall. This project is viewed as the beginning of a broader generation investment opportunity in the state, with a large portion of its output expected to support data center load. The company is developing an RFP for major equipment for the next generation plant and has started site selection, aiming for speed to power. West Virginia's regulatory environment is seen as supportive of economic development and new generation.

    03

    Regulatory Filings and Constructive Frameworks

    The company is advancing key regulatory strategies across its jurisdictions. In Ohio, a new 3-year rate plan application was accepted, including $2.5 billion in capital investments, with a staff report due by November 30 and an order anticipated in Q2 2027. In New Jersey and Maryland, base rate cases are expected to be filed in Q3, with constructive dialogue ongoing in New Jersey. These filings are crucial for recovering capital deployed and supporting continued investment in reliability and resiliency.

    04

    Transmission Growth and PJM Opportunities

    FirstEnergy's Transmission business is a significant growth driver, with a 16% compound annual growth rate through 2030 in the current plan. The company sees incremental investment opportunities from data center demand and plans to participate in the 2026 PJM open window process, with awards expected in Q1 2027. FirstEnergy has a strong track record in prior competitive solicitations, securing approximately $5 billion in opportunities, and believes its strategic location and expertise position it well for future success in PJM.

    05

    Capital Investment and Financial Performance

    The company deployed $2.9 billion of its $6 billion planned 2026 capital investment in the first half of the year, a 19% increase over 2025. This investment program is a key driver of financial performance and long-term growth. The consolidated return on equity on a trailing 12-month basis was 9.5%, in line with targeted returns. The company is committed to disciplined execution and financial performance, positioning itself to capitalize on future growth opportunities and strengthen its long-term earnings trajectory.

    AI-generated summary of the company’s earnings call. Not investment advice.