FirstEnergy (FE)
NYSE:FE
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FirstEnergy
(NYSE:FE)
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Rating:64Neutral
Price Target:
$52.00
▲(1.34% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
FirstEnergy (FE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.65B
Dividend Yield3.94%
Average Volume (3M)4.31M
Price to Earnings (P/E)25.3
Beta (1Y)0.04
Revenue Growth7.64%
EPS Growth48.61%
CountryUS
Employees12,294
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.53
Shares Outstanding577,932,860
10 Day Avg. Volume4,346,753
30 Day Avg. Volume4,309,383
Financial Highlights & Ratios
PEG Ratio6.15
Price to Book (P/B)2.06
Price to Sales (P/S)1.71
P/FCF Ratio-25.70
Enterprise Value/Market Cap1.90
Enterprise Value/Revenue3.74
Enterprise Value/Gross Profit6.83
Enterprise Value/Ebitda12.87
Forecast
1Y Price Target
$52.67Price Target Upside2.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.73
Revenue Forecast (FY)$14.90B
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,...
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 ...
FirstEnergy Key Performance Indicators (KPIs)
FirstEnergy Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook: management reported solid 2025 financial results (core EPS +7.6%), improved reliability metrics, strong cash flow, a constructive ratings action, and announced an accelerated $36B five‑year capital plan that supports targeted earnings growth (6%–8% CAGR). Key lowlights were execution and timing risks tied to the large CapEx ramp, substantial asset renewal needs, regulatory and PJM dependencies, and affordability/policy pressures in several jurisdictions. On balance, the highlights (growth, cash generation, ratings upgrade, disciplined financing and cost savings) materially outweigh the identified risks, though successful execution and regulatory approvals will be critical to realize the plan.Positive Updates
Core EPS Growth
Core earnings per share of $2.55 in 2025, a 7.6% increase versus 2024 and ~2% above the company’s original guidance midpoint; positions company to deliver a targeted core EPS CAGR near the top end of 6%–8% from 2026–2030.
Negative Updates
Large Asset Renewal Need
Approximately 70% of transmission lines and 30% of major substation assets are expected to reach end of life over the next decade, requiring substantial ongoing investment and creating execution and timing risk for the capital program.
Read all updates
Q4-2025 Updates
Positive
Negative
Core EPS Growth
Core earnings per share of $2.55 in 2025, a 7.6% increase versus 2024 and ~2% above the company’s original guidance midpoint; positions company to deliver a targeted core EPS CAGR near the top end of 6%–8% from 2026–2030.
Read all positive updates
Company Guidance
The company guided to a $36,000,000,000 five‑year capital program (nearly 30% above the prior plan) driving roughly 10% consolidated rate‑base growth through 2030 (rising to ~11% if the $2,500,000,000 West Virginia CCGT is approved), with $19,000,000,000 targeted to transmission (a 35% increase) and 75% of total investments in formula‑rate programs; management expects core EPS to compound near the top end of 6%–8% CAGR from 2026–2030 (core EPS was $2.55 in 2025; GAAP $1.77), targets a consolidated earned ROE of 9.5%–10%, and assumes ~2% customer demand growth (5% industrial). Financing plans fund ~65% of the plan from cash from operations (2025 cash from ops ~$3.7B), include ~$16B new long‑term debt, up to $2B equity need (including a $100M annual DRIP), and for the WV plant target a 50% DOE loan, ~15% CWIP/cash recovery during construction and ~35% new equity; other metrics cited: 2025 investments $5.6B (≈25% above 2024), distribution reliability improved 10%, baseline O&M savings ~15% (> $200M since 2022), declared dividends $1.78 (up 5%), and an approximate 12% total shareholder return opportunity.FirstEnergy Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
49
Neutral
Cash Flow
57
Neutral
| 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 | 1.02B | 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
Positive
51.31
Price Trends
49.25
Positive
47.18
Positive
44.84
Positive
Market Momentum
0.32
Negative
62.47
Neutral
67.35
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 51.31 is above the 20-day moving average (MA) of 50.39, above the 50-day MA of 49.25, and above the 200-day MA of 44.84, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 62.47 is Neutral, neither overbought nor oversold. The STOCH value of 67.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FE.
FirstEnergy Risk Analysis
FirstEnergy disclosed 45 risk factors in its most recent earnings report. FirstEnergy reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FirstEnergy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $30.87B | 18.55 | 11.48% | 2.86% | 22.71% | 22.86% | |
67 Neutral | $29.03B | 21.95 | 8.16% | 3.13% | 8.42% | 32.48% | |
66 Neutral | $24.08B | 19.63 | 12.33% | 3.10% | 10.96% | -0.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $29.65B | 25.33 | 8.04% | 3.94% | 7.64% | 48.61% | |
61 Neutral | $30.76B | 18.26 | 12.16% | 3.45% | 19.42% | -9.68% | |
56 Neutral | $26.09B | 14.75 | 10.71% | 4.54% | 13.12% | ― |
* Utilities Sector Average
FE
FirstEnergy
51.31
14.12
37.95%
AEE
Ameren
111.68
19.99
21.80%
CMS
CMS Energy
78.58
9.72
14.12%
DTE
DTE Energy
148.04
24.23
19.58%
ES
Eversource Energy
69.47
16.37
30.83%
PPL
PPL
38.64
6.15
18.94%
FirstEnergy Corporate Events
Business Operations and StrategyFinancial Disclosures
FirstEnergy Posts Strong 2025 Results, Expands Capital Plan
Positive
Feb 17, 2026
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 Fe...
Executive/Board Changes
FirstEnergy announces routine board change as director departs
Neutral
Feb 12, 2026
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&...
Business Operations and StrategyFinancial Disclosures
FirstEnergy Releases 2026 Financial Outlook and Guidance
Positive
Dec 9, 2025
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...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
FirstEnergy Faces $250.7 Million Order from Ohio Commission
Negative
Nov 20, 2025
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.