FirstEnergy Q3 Core EPS Rises as Data-Center Demand Drives Expansion Plans

FirstEnergy Corp. (NYSE: FE) reported higher third-quarter and year-to-date earnings as regulated investments, customer demand and lower operating costs supported results, while the utility reaffirmed its 2026 Core EPS outlook and outlined additional transmission and generation opportunities tied to rising data-center demand.

Third-quarter GAAP earnings attributable to FirstEnergy rose to $557 million, or $0.96 per share, from $441 million, or $0.76 per share, a year earlier. Non-GAAP Core EPS increased to $0.98 from $0.83. Revenue totaled $4.56 billion, compared with $4.15 billion in the third quarter of 2025.

For the first nine months of 2026, GAAP earnings were $1.25 billion, or $2.16 per share, up from $1.07 billion, or $1.85 per share, in the prior-year period. Core EPS rose 9% to $2.20 from $2.02.

FirstEnergy reaffirmed its 2026 Core EPS guidance range of $2.62 to $2.82 and said it expects results at or slightly above the midpoint. The company also maintained its expectation for Core EPS compound annual growth through 2030 near the top end of its 6% to 8% range. Because of the difficulty of forecasting special items, FirstEnergy did not provide GAAP reconciliations for those forward-looking non-GAAP measures.

Regulated investment and demand support earnings

FirstEnergy attributed the quarterly Core EPS improvement to a $0.07-per-share contribution from revenue, including rates, investment and customer demand, along with $0.04 from operating and other expense items and $0.04 from financing and other factors. The latter included third-quarter 2026 income-tax benefits.

Core EPS in the Distribution segment increased to $0.48 from $0.41, while Integrated segment Core EPS rose to $0.35 from $0.31. Stand-Alone Transmission Core EPS declined to $0.15 from $0.21. Corporate and other operations were approximately breakeven on a Core EPS basis, compared with a $0.10-per-share loss a year earlier.

FirstEnergy deployed $4.9 billion of capital during the first nine months, 23% more than in the comparable 2025 period. The company said spending was directed toward reliability, resiliency and new business, as well as elevated storm activity. Its total rate base increased 9.9% year over year, including 14% growth in transmission rate base. The trailing-12-month earned return on equity was 9.5%, in line with the company’s targeted range.

Electricity sales also increased. Third-quarter actual sales rose 2.2% to 40.57 million megawatt-hours, while weather-adjusted sales gained 1.2%. Industrial demand led the increase, rising 3.3%, supported by manufacturing and data-center activity. Weather-adjusted commercial sales grew 1.1%, while residential sales decreased 0.6%.

Data centers expand investment opportunities

Contracted data-center demand has nearly doubled since year-end 2025 to about 7.9 gigawatts, while pipeline demand stands at approximately 19.1 GW. FirstEnergy said it was in active contract negotiations covering about 4 GW. Total contracted and pipeline demand reached roughly 27 GW, about 60% higher than at year-end 2025.

The company expects transmission investment during 2027 through 2031 to be at least 25% above its current $19 billion plan. Projects would include replacing aging equipment, adding grid-management capabilities, supporting regional reliability and connecting large new loads. FirstEnergy estimated that each 1 GW of data-center demand generally requires about $250 million of transmission network upgrades. Investments associated with contracted demand signed since February 2026 are not included in the existing 2026-2030 plan.

West Virginia represents another area of potential expansion. Contracted and pipeline demand in the state has increased about sixfold since the beginning of the year to roughly 6 GW. FirstEnergy is advancing negotiations with a data-center customer that could become the long-term buyer of output from the proposed Maidsville combined-cycle gas turbine facility.

The company expects a regulatory order on the project’s certificate of public convenience and necessity in the fourth quarter of 2026. It has signed a turbine reservation agreement securing a 2030 delivery date and expects to finalize other major contracts in the near term. FirstEnergy also issued an initial request for proposals covering 3 GW of additional gas-fired generation equipment and is exploring bridge-power and temporary behind-the-meter options. An update is expected in early 2027.

FirstEnergy’s existing 2026-2030 plan calls for $36 billion of investment and a 10.4% rate-base compound annual growth rate. The company plans to update that plan after receiving the Maidsville order and provide a broader 2027-2031 update in February 2027. It expects to fund about 35% of the Maidsville investment, and up to 35% of other incremental investments, with equity or equity-like capital.

Regulatory proceedings remain central to the plan

In New Jersey, FirstEnergy expects new rates from its August 2026 base-rate filing to take effect in the second quarter of 2027, with customer bill effects delayed until 2028. The filing reflects about $1 billion of rate-base growth since the last increase in February 2024.

In Maryland, hearings on a base-rate filing are scheduled for January 2027, with new rates expected in April. West Virginia regulators approved a cumulative $76 million revenue increase in July, with rate changes effective in August 2026 and June 2027.

Execution of the expanded capital program remains subject to regulatory approvals, customer-demand development, access to capital and the cost of financing. FirstEnergy also identified severe weather, inflation, supply-chain disruption, interest rates, cybersecurity, litigation and government investigations among the factors that could cause actual results to differ from management’s expectations.