April 28th, 2026

The call presents a constructive operational and financial picture: core earnings grew 7.5% year-over-year, guidance and capital plan were reaffirmed, investments and transmission rate base are accelerating, credit metrics improved (Moody's positive outlook) and the data center pipeline and WV generation opportunity are notable growth catalysts. Offsetting risks include strong political and regulatory focus on affordability, uncertainty in PJM capacity reforms and backstop proposals, supply-side pressures on major equipment pricing, and continued large capital needs that require careful financing. Management emphasizes engagement with stakeholders, cost reductions (O&M down materially since 2022) and disciplined financing to mitigate these challenges.

Company Guidance

FirstEnergy reaffirmed 2026 core earnings guidance of $2.62–$2.82 per share (midpoint $2.72) and a $6.0 billion 2026 capital plan, while reaffirming long‑term core earnings CAGR of 6%–8% through 2030 (targeting near the top end off the $2.72 midpoint); Q1 results included GAAP EPS $0.70 vs. $0.62 a year ago and core EPS $0.72 vs. $0.67 (+7.5% YoY), with $1.4 billion of customer‑focused investment in the quarter (+33% YoY), 75% of the capital program under formula rates, transmission rate base growth of 13% (integrated +19%, standalone +11%), consolidated TTM ROE of 9.8%, base O&M down ~5% in the quarter (and >$200 million or ~15% since 2022), and a financing plan that included an $850 million PA debt issue (4.4% coupon), $250 million (MAIT) and $175 million (ATSI) offerings, $1.7 billion of planned subsidiary debt for the year, modest common equity issuance and up to $2 billion of equity/equity‑like over five years (including $100 million annually from benefit programs; annual common equity ≈1% of market cap); notable project and regulatory metrics called out include the 1.2 GW WV combined‑cycle project (~$2.5 billion capex, approval expected H2 2026 with equipment online by 2031 and rate base growth rising from just over 10% to just over 11% with ~35% equity funding), WV data center pipeline ~1.8 GW credible (+50% since Feb) and >6 GW prospective (4 GW in final contract negotiations), Ohio distribution investment >$1.3 billion since 2024 with a proposed ~15% increase to ~$800 million annually (customer bill impacts <3%/yr; new rates mid‑2027), PA recovery of ~50% of FE PA capital via the DSIC, and >$5 billion of competitive transmission awards over the last four years (PJM open‑window approvals expected Q1 next year).