FirstEnergy's third-quarter profit rises to $557m from $441m

FirstEnergy earned $557m in the third quarter, or 96 cents a share, up 26.3%* from $441m a year earlier. Revenue rose 9.9%* to $4.56bn. Core earnings, the utility's adjusted measure, rose to 98 cents a share from 83 cents.

The company reaffirmed its 2026 core earnings guidance of $2.62–$2.82 a share and said it expects to land at or slightly above the midpoint. Contracted data-center demand in its territory has nearly doubled since the end of 2025, to 7.9 gigawatts. The figures come from the release and slide deck FirstEnergy furnished on Form 8-K on Oct. 27 and from its earnings call on Oct. 28. The 10-Q had not been filed by the morning of Oct. 28.

Of the 15-cent rise in core earnings, 10 cents came from the corporate segment, mainly from income-tax benefits, the slides show. Stand-alone transmission fell 6 cents because prior-year tax benefits did not recur. Distribution added 7 cents and the integrated segment 4 cents, from rates, demand and lower operating costs. On the call, John Taylor, the finance chief, put the rise down mainly to rates and investment, demand and financial discipline, helped by a slightly lower effective tax rate. Interest expense rose 10.6%* to $345m. Nine-month core earnings were $2.20 a share, up 9%, so guidance's midpoint needs 52 cents* in the fourth quarter.

FirstEnergy's slides count 7.9 GW of contracted data-center demand by 2036, up from 6.4 GW in July. Its pipeline holds another 19.1 GW, for a total of about 27 GW, and it is negotiating contracts for about 4 GW. At about $250m of upgrades per gigawatt, the 3.8 GW added since the end of 2025 is worth about $950m* of work; upgrades tied to contracts signed since February are not in the current plan.

The plan commits $36bn over 2026–2030 for 10.4% annual rate-base growth. FirstEnergy now says the $19bn transmission share will rise by at least 25%, to $23.75bn* or more, when it rolls the plan forward to 2027–2031 in February. It invested $4.9bn in the first nine months, 23% more than a year earlier. Taylor said most of the extra transmission spending will be reliability work on the existing network, with very little tied to contracted data-center demand.

FirstEnergy has reserved Siemens turbines, due in 2030, for its proposed Maidsville gas plant in West Virginia, and expects the state commission to rule this quarter. It is negotiating with a data-center customer to buy the output and has sought bids for another 3 GW of gas turbines, likely in service in 2031–2032. Management gave no cost for Maidsville on the call and will update the 2026–2030 plan after the order. Taylor said the plant needs about 35% equity or equity-like funding if the buyer pays part through a surcharge. Gas supply and the construction contract are still open.

The third-quarter cash-flow statement arrives with the 10-Q. Last-filed figures, in the second-quarter 10-Q, show operating cash flow of $1.14bn in the first half against $2.6bn of capital investments, with $266m returned to Ohio customers under a regulatory settlement. Debt was $28.98bn* at June 30. The slides say FirstEnergy has completed $2.6bn of 2026 subsidiary borrowing. The current plan still allows up to $2bn of equity or equity-like financing, and targets funds from operations of about 14% of debt. Extra West Virginia and transmission spending through 2030 will be funded with up to 35% equity or equity-like securities. Taylor said new common stock should run at about 1% of market value a year. The board declared a quarterly dividend of 46.5 cents on Sept. 29.

West Virginia's commission on July 31 approved a $76m cumulative revenue increase. Jersey Central Power & Light asked New Jersey for a $253m base-rate increase on Aug. 6. Potomac Edison asked Maryland for $52.8m on Sept. 4. Ohio's staff report on the three-year rate plan is due Nov. 30. On Oct. 9 the Federal Energy Regulatory Commission accepted PJM's large-load definition and registry but rejected its interim capacity proposal, according to the slides. Forms 4 since July show only routine director stock-unit grants and no insider sales.

The quarter was solid but flattered by tax benefits. The bigger news is a transmission plan set to grow by at least a quarter, mostly for reliability work, with a 27 GW data-center queue behind it. February's rolled-forward plan will show how much of that queue becomes rate base and how much new equity it takes.

The dividend record date is Nov. 6, and the 10-Q is due by Nov. 9*. Large-load compliance filings at FERC are due Nov. 16, and the Ohio staff report on Nov. 30. West Virginia's ruling on Maidsville is expected by Dec. 31. Maryland hearings run Jan. 11–13, and the plan roll-forward comes in February.

*Rackline estimate from FirstEnergy's release, slides and filings.