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Dec 31, 2024
FirstEnergy Q4 2024 Earnings Report
FirstEnergy reported strong Q4 2024 earnings, with increased operating income and revenue, benefiting from rate base growth and cost efficiencies.
Key Takeaways
FirstEnergy posted Q4 2024 GAAP earnings of $261 million, or $0.45 per share, on revenue of $3.2 billion. Non-GAAP operating earnings came in at $0.67 per share, while Core EPS stood at $0.61 per share. The company benefited from higher revenue driven by rate base growth and cost efficiencies, but faced some headwinds from tax rates and lower Ohio distribution revenues.
Q4 2024 GAAP earnings were $261 million ($0.45 per share), up from $175 million ($0.30 per share) in Q4 2023.
Operating (Non-GAAP) EPS increased to $0.67 per share from $0.62 per share in Q4 2023.
Core EPS (Non-GAAP) was reported at $0.61 per share, up from $0.52 per share in Q4 2023.
Revenue remained stable at $3.2 billion, benefiting from rate base growth and formula rate adjustments.
FirstEnergy
FirstEnergy
Forward Guidance
FirstEnergy expects continued earnings growth in 2025, supported by infrastructure investments and regulatory rate increases.
Positive Outlook
- 2025 Core earnings guidance set at $1.4 billion to $1.5 billion, or $2.40 to $2.60 per share.
- Projected 6-8% compound annual Core earnings growth over the next five years.
- Energize365 capital investment program extended through 2029 with $28 billion in planned investments.
- Strong financial position supports continued infrastructure expansion and modernization.
- Commitment to maintaining investment-grade credit ratings and strategic financing options.
Challenges Ahead
- Higher effective tax rate expected to impact earnings.
- Lower Ohio distribution revenues due to ESP V order implementation.
- Potential dilution effects from future asset sales and financing activities.
- Regulatory uncertainties could impact rate adjustments and profitability.
- Market volatility and economic conditions may affect demand and operational efficiency.