FirstEnergy (FE) AI Stock Analysis

• Market Cap: $28.27B
• Dividend Yield: 3.94%
• Average Volume (3M): 5.03M
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.01
• Revenue Growth: 7.64%
• EPS Growth: 48.61%
• Country: US
• Employees: 12,294
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.53
• Shares Outstanding: 577,665,500
• 10 Day Avg. Volume: 5,304,805
• 30 Day Avg. Volume: 5,031,642
• PEG Ratio: 4.94
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 1.71
• P/FCF Ratio: -25.70
• Enterprise Value/Market Cap: 1.95
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 6.68
• Enterprise Value/Ebitda: 12.57
• 1Y Price Target: $51.00
• Price Target Upside: 1.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.73
• Revenue Forecast (FY): $14.87B

• Rating: 64 Neutral
• Price Target: $52.00 ▲(3.59% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by stable-to-improving fundamentals (revenue/earnings and 2025 cash-flow rebound) but held back by high leverage and ongoing financing dependence. Technicals are supportive with a strong uptrend, though momentum appears overextended. Valuation is the main secondary drag due to a high P/E, partly cushioned by a ~3.6% dividend yield.

Positive Factors

Stable regulated revenues

FirstEnergy’s core regulated delivery business shows steady top-line growth, driven by stable residential, commercial and industrial demand and approved rate mechanisms. That predictability underpins durable cash flow and supports multi-year investment plans and dividend capacity despite cyclical headwinds.

Large capex to grow rate base

An accelerated $36B Energize365 plan focused on transmission and formula‑rate projects drives roughly 10% rate‑base CAGR and targeted EPS growth. Because most spending sits in formula or transmission recovery mechanisms, the program can sustainably expand regulated earnings and long-term utility value if approvals proceed.

Improved cash flow & cost discipline

Cash generation recovered materially in 2025, with OCF and FCF improving and meaningful O&M savings realized. This strengthens internal funding for a large capex slate, reduces near‑term external financing needs, and improves the firm’s ability to service debt and sustain dividends over the multi-year plan.

Negative Factors

Elevated leverage

Leverage remains high even for a regulated utility, constraining financial flexibility. Large upcoming debt issuances and elevated debt-to-equity raise refinancing and interest coverage risk, making the company more sensitive to rate recovery timing and capital market conditions during the multi-year capex ramp.

CapEx execution & regulatory dependency

A near‑30% increase in five‑year investments intensifies project, supply‑chain and labor demands. Because much recovery depends on multi‑jurisdictional approvals and PJM outcomes, delays or unfavorable rulings could defer cash recovery and compress returns, heightening long‑term execution risk.

Legacy regulatory penalties & scrutiny

Recent Ohio penalties and legacy issues increase regulatory scrutiny and political sensitivity around rate cases. That can limit recovery flexibility, prolong case timelines, and raise compliance and reputational costs, creating a structural constraint on earnings durability across affected jurisdictions.

FirstEnergy Business Overview & Revenue Model

Company Description

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, natural gas, wind, and solar power generating facilities. It operates 24,074 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 273,295 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.

How the Company Makes Money

FirstEnergy generates revenue primarily through the delivery of electricity to its customers, which includes residential, commercial, and industrial segments. The company earns money by charging customers for the electricity they consume, as well as through transmission and distribution fees. Significant revenue streams include regulated utility operations, which are governed by state public utility commissions and provide a stable income through approved rate structures. Additionally, FirstEnergy derives income from ancillary services related to grid management and reliability. The company also engages in energy efficiency programs and demand response initiatives, often receiving incentives and rebates for reducing energy consumption. FirstEnergy's partnerships with regional transmission organizations (RTOs) and its participation in wholesale electricity markets further contribute to its earnings by allowing the company to optimize its energy generation and transmission capabilities.

FirstEnergy Financial Statement Overview

Summary

Operations look stable-to-improving with consistent revenue growth and better 2025 profitability plus a sharp rebound in operating cash flow and free cash flow. The key offset is a constrained balance sheet: leverage remains high (debt-to-equity ~2.10) with rising total debt, limiting flexibility and increasing financing sensitivity.

Income Statement

Revenue has grown consistently from 2021–2025 (2025 up ~4.3%), supporting a steady top-line profile typical of a regulated utility. Profitability is mixed: net margin improved versus 2024 (about 8.4% vs. 7.3%) and net income rose to ~$1.27B, but margins are still below 2021 levels and operating profit measures show volatility (including an apparent anomaly in 2025 operating margin reporting). Overall, the income statement reflects stable demand and improving earnings, but with uneven margin quality year-to-year.

Balance Sheet

Leverage is the key constraint. Total debt increased to ~$26.2B in 2025 and debt remains high relative to equity (debt-to-equity ~2.10 in 2025), which limits financial flexibility even for a regulated business model. Positively, equity has grown versus 2020–2021 and return on equity improved in 2025 (~10.2% vs. ~7.9% in 2024), indicating better profitability on the capital base. Still, the balance sheet is burdened by elevated leverage and a rising debt load.

Cash Flow

Cash generation improved meaningfully in 2025 with operating cash flow rising to ~$3.7B (up from ~$2.9B in 2024) and free cash flow turning strongly positive (~$3.7B) after multiple years of negative free cash flow (2022–2024). However, cash flow volatility is a concern: free cash flow swung from deeply negative in 2023–2024 to sharply positive in 2025, suggesting timing/capex variability. Operating cash flow is healthy in absolute dollars, but debt-related coverage metrics appear uneven across years, reinforcing that cash consistency still needs monitoring.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.09B	13.47B	12.87B	12.46B	11.13B
Gross Profit	8.27B	9.10B	8.22B	7.87B	7.69B
EBITDA	4.39B	4.10B	3.95B	3.77B	4.29B
Net Income	1.27B	978.00M	1.10B	406.00M	1.28B
Balance Sheet
Total Assets	55.90B	52.04B	48.77B	46.11B	45.43B
Cash, Cash Equivalents and Short-Term Investments	99.00M	111.00M	137.00M	160.00M	1.46B
Total Debt	27.07B	24.27B	24.91B	21.66B	23.85B
Total Liabilities	41.98B	38.32B	37.85B	35.47B	36.76B
Stockholders Equity	12.51B	12.46B	10.44B	10.17B	8.68B
Cash Flow
Free Cash Flow	-1.00B	-1.14B	-1.97B	-73.00M	366.00M
Operating Cash Flow	3.70B	2.89B	1.39B	2.68B	2.81B
Investing Cash Flow	-5.07B	-4.35B	-3.65B	-3.08B	-2.56B
Financing Cash Flow	1.31B	1.43B	2.24B	-912.00M	-542.00M

FirstEnergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FE, the sentiment is Positive. The current price of 50.2 is above the 20-day moving average (MA) of 47.59, above the 50-day MA of 45.85, and above the 200-day MA of 43.37, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 72.28 is Negative, neither overbought nor oversold. The STOCH value of 79.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FE.

FirstEnergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	68 Neutral	$29.30B	20.25	11.41%	2.86%	22.71%	22.86%
PPL	68 Neutral	$27.23B	25.05	8.15%	3.13%	8.42%	32.48%
CMS	66 Neutral	$23.02B	21.31	12.33%	3.10%	10.96%	-0.77%
ES	66 Neutral	$26.93B	15.72	10.84%	4.54%	13.12%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$28.27B	27.73	8.17%	3.94%	7.64%	48.61%
DTE	62 Neutral	$29.64B	20.23	12.16%	3.45%	19.42%	-9.68%

FirstEnergy Corporate Events

FirstEnergy Posts Strong 2025 Results, Expands Capital Plan

FirstEnergy reported 2025 GAAP earnings of $1.02 billion, or $1.77 per basic share, on $15.1 billion in revenue, with Core Earnings of $2.55 per share, up 7.6% from 2024 and at the top end of its revised guidance range. The results, released on February 17, 2026, were driven by new Pennsylvania base rates, strong transmission rate base growth of nearly 11%, stronger distribution sales and increased stand-alone transmission investment, partly offset by higher operating and financing costs and regulatory charges in Ohio.

The company affirmed its 2026 Core Earnings guidance of $2.62 to $2.82 per share and unveiled a $36 billion Energize365 capital program for 2026–2030, including more than $19 billion for transmission, representing a near-30% increase over its prior five-year plan. This expanded investment slate is expected to deliver 10% annual rate base growth and Core EPS CAGR near the top of a 6–8% range through 2030, underscoring FirstEnergy’s strategy to strengthen grid resilience and support growing demand while signaling sustained earnings and dividend capacity for investors.

The most recent analyst rating on (FE) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

FirstEnergy announces routine board change as director departs

On February 8, 2026, FirstEnergy Corp. announced that board member Melvin Williams notified the company he will not stand for re-election after his current term ends at the 2026 Annual Meeting of Shareholders. The company emphasized that Williams’s decision was not the result of any disagreement over FirstEnergy’s operations, policies or practices, suggesting an orderly and non-contentious board transition for stakeholders.

The departure reflects routine board refreshment rather than signaling governance conflict or strategic dispute within the utility. Investors and other stakeholders are likely to view the change as a standard succession event, with limited direct impact on FirstEnergy’s ongoing operations or regulatory posture.

The most recent analyst rating on (FE) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

FirstEnergy Releases 2026 Financial Outlook and Guidance

On December 9, 2025, FirstEnergy Corp. released its 2026 financial outlook, highlighting a Core Earnings guidance of $2.62 to $2.82 per share, supported by $6 billion in planned capital investments. This represents a 7.5% growth over the increased 2025 guidance midpoint. The company also affirmed its 6-8% compound annual growth rate through 2029, with investments focused on distribution infrastructure and grid modernization, aiming to enhance reliability and resiliency.

The most recent analyst rating on (FE) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.

FirstEnergy Faces $250.7 Million Order from Ohio Commission

On November 19, 2025, FirstEnergy‘s Ohio subsidiaries received orders from the Public Utilities Commission of Ohio regarding their 2024 base rate case and consolidated audits. The orders include significant financial implications, such as a combined payment of $250.7 million for refunds, restitution, and civil forfeitures. These developments mark important milestones for FirstEnergy, as they continue to invest in distribution system improvements and prepare to file a three-year rate plan in early 2026, aiming to enhance reliability and customer experience.

The most recent analyst rating on (FE) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on FirstEnergy stock, see the FE Stock Forecast page.