FirstEnergy (NYSE:FE) reaffirmed its 2026 earnings and capital-spending outlook as the utility reported second-quarter results in line with its plan and highlighted growing electricity demand from data centers across its service territory.
The company maintained its 2026 capital investment plan of $6 billion and its Core EPS guidance range of $2.62 to $2.82 per share. It also reaffirmed its five-year, $36 billion capital plan and said it expects Core EPS growth near the upper end of its 6% to 8% target through 2030.
Second-Quarter Results and Capital Deployment
FirstEnergy reported second-quarter GAAP earnings of $0.50 per share, up from $0.46 per share in the second quarter of 2025. Core earnings were $0.50 per share, compared with $0.52 per share a year earlier. For the first six months of 2026, Core earnings totaled $1.22 per share, compared with $1.19 per share in the prior-year period.
Senior Vice President and Chief Financial Officer Jon Taylor said results reflected returns from regulated, customer-focused formula-rate investment programs, partly offset by the planned timing of higher operating expenses.
The company invested $2.9 billion in capital during the first half of 2026, representing a 19% increase from the comparable period in 2025. FirstEnergy’s trailing 12-month consolidated return on equity was 9.5%, which Taylor said was in line with the company’s targeted returns.
Weather-adjusted customer load rose about 2% during the quarter. Industrial load increased more than 4%, with growth led by metals, oil and gas, and chemicals. Taylor said the trends reflect stronger order activity and tailwinds from artificial intelligence and data-center infrastructure development.
Data-Center Pipeline Expands
FirstEnergy said total forecasted data-center demand across its system increased 30% from the first quarter to roughly 25 gigawatts. The company contracted an additional 2.1 gigawatts during the second quarter, bringing contracted demand to 6.4 gigawatts.
Tierney said the company expects another 1.5 gigawatts of demand to enter contracts in the coming weeks. Contracted and pipeline demand together represent about 70% of FirstEnergy’s July system peak load of 34.8 gigawatts, according to the company.
In West Virginia, FirstEnergy has 4.3 gigawatts of contracted and pipeline data-center demand and expects that total to increase by year-end. Tierney said West Virginia offers a “one-stop-shop” advantage because the utility can provide both transmission arrangements and generation service, unlike in deregulated jurisdictions.
Management said the most significant current data-center interest is in West Virginia, Pennsylvania and Maryland. The company cited its geographic position between the Northern Virginia data-center hub and the growing New Albany, Ohio, hub as another advantage.
FirstEnergy estimated that each gigawatt of additional capacity could require roughly $250 million of investment. Taylor said approximately $400 million of investment related to the 2.2 gigawatts contracted since the first quarter is outside the existing $36 billion capital plan, with most of that spending expected in 2030 through 2032.
West Virginia Generation Opportunity
The company is seeking approval for its proposed 1.2-gigawatt Moundsville Energy Center in West Virginia. Hearings on the certificate of public convenience and necessity application took place earlier in July, and FirstEnergy expects a decision this fall.
Taylor said the company expects a large portion, if not all, of the facility’s output to support data-center load. It is also working on a fully bundled service agreement for a data-center customer that would be filed with the Public Service Commission of West Virginia. The company said the expected agreement would include customer protections and long-term benefit sharing for existing West Virginia customers.
FirstEnergy is progressing contracts for engineering, procurement and construction work, original equipment manufacturer equipment, and a fuel lateral for Moundsville. Taylor said the company expects to be able to sign those contracts after receiving regulatory approval.
Management is also evaluating a potential affiliated generation-company structure for future West Virginia projects. Tierney said such a structure could require Federal Energy Regulatory Commission approval for wholesale sales, along with approval from the West Virginia commission for an agreement between the generation company and a utility such as Mon Power. He said that approach could be faster than a traditional certificate process.
The company has begun developing a request for proposals for major equipment and has started site selection for a potential next-generation plant. FirstEnergy plans to provide more detail on timing later this year.
Rate Cases and Transmission Growth
In West Virginia, FirstEnergy expects an order on new rates before the end of July. The outcome would produce a cumulative $76 million revenue increase, including a $38 million increase beginning Aug. 1 and a similar increase beginning June 1, 2027.
In Ohio, the company’s application for a three-year rate plan has been accepted. The proposal includes $2.5 billion of capital investments focused on reliability and resiliency. A staff report is due Nov. 30, hearings are scheduled to begin March 1, 2027, and an order is anticipated in the second quarter of 2027.
FirstEnergy also expects to file base-rate cases in Maryland and New Jersey during the third quarter. In New Jersey, Tierney said the company has engaged with the governor’s administration and Board of Public Utilities ahead of the filing, which is intended to recover investments made to improve reliability.
The company’s transmission business is projected to grow at a 16% compound annual rate through 2030 under the current plan. FirstEnergy plans to participate in PJM’s 2026 open-window process, with project awards expected in the first quarter of 2027. Tierney noted that the company has secured about $5 billion of projects through prior competitive transmission solicitations.
Management said it expects to update its five-year plan later this year or early next year, potentially incorporating a meaningful portion of the growth opportunities under development.
About FirstEnergy (NYSE:FE)
FirstEnergy Corp. (NYSE: FE) is a U.S.-based electric utility holding company headquartered in Akron, Ohio. The company’s primary business is the delivery of electricity through its regulated transmission and distribution utilities, serving residential, commercial and industrial customers across parts of the Midwest and Mid‑Atlantic. FirstEnergy’s service territory includes states such as Ohio, Pennsylvania, New Jersey, Maryland and West Virginia, and it operates primarily within the PJM regional transmission organization.
FirstEnergy’s core activities center on owning and operating electric distribution networks and transmission systems, maintaining and upgrading grid infrastructure, managing storm response and restoration, and offering customer programs that include energy efficiency and reliability services.
