On February 26, 2025, FirstEnergy Corp (FE, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year 2024. FirstEnergy, an investor-owned holding company with 10 regulated distribution utilities across six mid-Atlantic and Midwestern states, also owns and operates one of the nation's largest electric transmission systems.

Performance Overview

FirstEnergy Corp (FE, Financial) reported full year 2024 GAAP earnings of $1.70 per share, which fell short of the annual estimated earnings per share of $2.32. However, the company's Operating (non-GAAP) earnings were $2.63 per share, surpassing the estimated figure. The company's revenue for the year was $13.5 billion, slightly below the estimated $13.96 billion.

Financial Achievements and Challenges

FirstEnergy's financial achievements include a 20% increase in customer-focused capital investments, totaling $4.5 billion in 2024, aimed at improving grid reliability and supporting the energy transition. The company also expanded its Energize365 capital investment program through 2029, with planned investments of $28 billion, representing an 8% increase from the previous five-year plan. These investments are crucial for maintaining and enhancing the infrastructure necessary for reliable electric service.

Despite these achievements, FirstEnergy faces challenges, including volatility in its unregulated legacy investment in Signal Peak and the mark-to-market impacts from its pension plan. These factors have contributed to investor uncertainty, despite improvements in the company's core business fundamentals.

Income Statement Highlights

For the fourth quarter of 2024, FirstEnergy reported GAAP earnings from continuing operations of $261 million, or $0.45 per share, on revenue of $3.2 billion. This compares to fourth quarter 2023 GAAP earnings of $175 million, or $0.30 per share, on the same revenue. The company's Operating (non-GAAP) earnings for the fourth quarter were $0.67 per share, within the guidance range.

Core Earnings and Growth Prospects

FirstEnergy's Core (non-GAAP) earnings for 2024 were $2.37 per share, an 8% increase from $2.20 per share in 2023. The company introduced a 2025 Core earnings guidance range of $1.4 billion to $1.5 billion, or $2.40 to $2.60 per share, representing a 5.5% growth at the midpoint compared to 2024 Core earnings. The company targets a 6-8% compounded annual growth rate for Core earnings through the five-year planning period.

Key Metrics and Financial Health

FirstEnergy's financial health is supported by its commitment to maintaining investment-grade credit ratings and exploring a broad range of financing options. The company's strategic focus on regulated investment strategy and rate base growth has contributed to its financial stability.

In 2024, we implemented tremendous structural change to position FirstEnergy for long-term success as a premier electric company," said Brian X. Tierney, FirstEnergy Board Chair, President and Chief Executive Officer.

Analysis and Conclusion

FirstEnergy Corp (FE, Financial) has demonstrated resilience through strategic investments and operational improvements, despite facing challenges from legacy investments and pension impacts. The company's focus on enhancing grid reliability and expanding its capital investment program positions it well for future growth. However, the discrepancy between GAAP and non-GAAP earnings highlights the importance of understanding the underlying factors affecting financial performance.

Explore the complete 8-K earnings release (here) from FirstEnergy Corp for further details.