FENYSEElectric ServicesUS GAAP · USD

FirstEnergy Corp

FirstEnergy Corp. is a U.S. regulated electric utility holding company that transmits, distributes, and in some areas generates electricity through its operating subsidiaries. Its business is built around rate-regulated electric service territories in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and Virginia, plus a large transmission network connecting the Midwest and Mid-Atlantic.

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Revenue15.1bn USD
+12.0 %y/y
Operating profit (EBIT)2,206m USD
−7.1 %y/y
EBIT margin14.6%
−3.0 ppy/y
Net income1,020m USD
+4.3 %y/y
Free cash flow3,700m USD
+28.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

05101520bn USD2020: 10.8 bn USD2020: EBIT 2.2 bn USD20202021: 11.1 bn USD2021: EBIT 1.7 bn USD20212022: 12.5 bn USD2022: EBIT 1.9 bn USD20222023: 12.9 bn USD2023: EBIT 2.3 bn USD20232024: 13.5 bn USD2024: EBIT 2.4 bn USD20242025: 15.1 bn USD2025: EBIT 2.2 bn USD202515.12.2
RevenueOperating profit (EBIT)
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Business

Share of revenue
Distribution45 %

Electric delivery to retail customers in Ohio and Pennsylvania, including procurement of power for default service needs.

Integrated35 %

Combined distribution, transmission, and regulated generation operations in New Jersey, West Virginia, and Maryland.

Stand-Alone Transmission15 %

Transmission infrastructure and formula-rate revenues from moving electricity across the regional grid.

Corporate / Other5 %

Corporate support costs, holding company items, pension/OPEB assets and liabilities, and non-core activities.

Products

Reported · share of revenue
80.8%15.3%FY2025100 %
  • Electricity Us Regulated80.8 %
  • Electric Transmission15.3 %
  • Electric Worldwide Unregulated Revenue3.9 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

FirstEnergy serves regulated retail and wholesale electricity customers across several Mid-Atlantic and Midwest states, with the largest customer base in Ohio and Pennsylvania. Its customers include households, small businesses, large commercial and industrial users, and regulated transmission customers that pay formula-based rates. The company also serves default-service load where it must procure power and recover costs through approved rate mechanisms.

Residential and small business retail customers

Buy regulated electricity delivery and, in some territories, bundled default service because they need reliable local power service.

Commercial and industrial customers

Buy distribution and transmission service for dependable power access and predictable regulated pricing.

Default-service / standard-service load

Customers whose electricity supply is procured by FirstEnergy and recovered through rate mechanisms.

Wholesale transmission customers

Buy access to FirstEnergy's transmission network under formula rates and annual true-ups.

Regulated generation customers

Customers in territories where FirstEnergy's regulated generation assets support local supply needs.

Strategy

FirstEnergy is focused on regulated grid investment, especially through its Energize365 capital program, which it recently increased for 2025. The company is also shifting toward a more efficient operating model, tighter cost discipline, and a stronger balance sheet to support long-cycle transmission and distribution spending. Its strategy emphasizes reliability, resiliency, cyber security, and selective regulated generation additions where state plans support investment recovery.

Energize365 regulated capital investmentShort term

Supports rate base growth and long-term earnings in a utility model that depends on approved capital deployment.

Grid modernization and resiliencyMedium term

Improves reliability and helps the company recover costs through regulated rates while reducing outage and weather risk.

Operational efficiency and cost disciplineShort term

Offsets inflation, supports credit metrics, and helps preserve returns in a heavily regulated business.

Selective generation build-outMedium term

Adds regulated capacity where state resource plans support recovery and long-term system needs.

Geography

FirstEnergy's business is concentrated in the U.S. Northeast and Midwest, with regulated operations in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and Virginia. Its transmission lines connect the Midwest and Mid-Atlantic regions, so geography matters both for customer density and for regulatory oversight by multiple state and federal bodies. The company also faces weather-driven demand swings, with electricity usage peaking in summer and winter across its service territories.

Risks

FirstEnergy's earnings are exposed to weather-driven demand swings, regulatory outcomes, and the timing of cost recovery under rate mechanisms. The company also faces litigation, FERC audit-related issues, credit risk from counterparties, and climate-related scrutiny tied to its emissions and infrastructure plans. Because it is a regulated utility, many risks are recoverable over time, but delays or disallowances can still affect cash flow, rate base, and investor returns.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Seasonal weather and demand volatility1Regulatory and rate recovery risk2FERC audit and accounting/rate treatment risk3Climate and ESG-related scrutiny4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Seasonal weather and demand volatilityImpact: HighLikelihood: Medium

    Electric sales peak in summer and winter, so mild weather can reduce power sales, revenue, earnings, and cash flow.

    Exposure: Distribution and default-service load

  2. Regulatory and rate recovery riskImpact: HighLikelihood: Medium

    Utility earnings depend on approval of rates and recovery of capital and operating costs through state and federal mechanisms.

    ExposureOhioPennsylvaniaNew JerseyWest VirginiaMarylandVirginia
  3. FERC audit and accounting/rate treatment riskImpact: HighLikelihood: Low

    Audit findings can require reclassification of costs and create disputes over whether certain amounts remain in rate base.

    Exposure: Transmission and corporate support cost allocations

  4. Climate and ESG-related scrutinyImpact: MediumLikelihood: Medium

    Public commitments on carbon neutrality and infrastructure resilience can create reputational and compliance pressure if progress lags.

  5. Counterparty credit riskImpact: Medium

    Power suppliers, utilities, and energy traders may default, forcing replacement purchases and potential working-capital strain.

    ExposureOhio CompaniesFE PAJCP&LPE
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Accounting

Judgemental items
Seasonality of electric sales

Demand peaks in summer and winter, so revenue and cash flow can swing materially by quarter and weather pattern.

Impact: Quarterly comparability and liquidity

Formula-rate transmission accounting

Transmission revenues are updated annually based on projected rate base and costs, with true-ups for actual results.

Impact: Revenue timing and regulatory asset/liability balances

FERC audit cost allocation

Audit findings led to reclassification of certain transmission capital assets to operating expenses and disputes over rate-base treatment.

Impact: Operating expense, rate base, and recoverability

Pension and OPEB obligations

Lift-out transactions remove assets and liabilities from the plan and can reduce earnings volatility and balance-sheet exposure.

Impact: Other comprehensive income, liabilities, and expense volatility

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Last updated: 24/09/2026