FirstEnergy Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 GAAP earnings were $557 million ($0.96 per share) on revenue of $4.6 billion, compared to $441 million ($0.76 per share) on $4.1 billion revenue in Q3 2025.
• Third quarter 2026 Core Earnings (non-GAAP) were $0.98 per share, an increase from $0.83 per share in Q3 2025.
• Year-to-date 2026 GAAP earnings were $1.3 billion ($2.16 per share) on revenue of $12.4 billion, compared to $1.1 billion ($1.85 per share) on $11.3 billion revenue for the same period in 2025.
• Year-to-date 2026 Core Earnings were $2.20 per share, a 9% increase from $2.02 per share in the first nine months of 2025.
• GAAP results include special items totaling $0.02 per share for the quarter and $0.04 per share year-to-date.
• Special items for the quarter included $0.03 per share in investigation and other related costs and $0.01 per share in reorganization costs.
• Year-to-date special items included $0.11 per share in investigation and other related costs, $0.07 per share in net pension/OPEB credits, $0.01 per share in ARO regulatory change, and $0.01 per share in reorganization costs.

Guidance and Future Outlook:

• Reaffirmed 2026 Core Earnings guidance range of $2.62 to $2.82 per share, with expectations to perform at or slightly above the midpoint.
• Reaffirmed Core Earnings compound annual growth rate (CAGR) near the top end of the 6% to 8% range through 2030.
• The five-year, $36 billion Energize365 capital investment plan is underway, with $4.9 billion deployed in the first nine months of 2026.
• Transmission investment plan for 2026–2030 is $19 billion; current contracted demand of 7.9 gigawatts (nearly double since the start of the year) and negotiations for an additional 4 gigawatts are expected to drive at least a 25% increase in the plan when rolling forward to 2027–2031.
• Opportunities to support new generation and additional transmission investment have the potential to meaningfully increase the company's investment and earnings growth profile.

Business Segments and Product Lines:

• Transmission: Operating a network in the heart of PJM serving over 65 million people; managing over 24,000 miles of transmission lines connecting the Midwest and Mid-Atlantic regions.
• Generation (West Virginia): Secured turbines via a reservation agreement with Siemens for the proposed Maidsville Energy Center, with delivery expected in 2030.
• Regulatory Status: Pursuing approval from the West Virginia Public Service Commission for the Maidsville combined cycle gas generating facility, with a final order projected in Q4 2026.
• Customer Base: Serves more than 6 million customers across Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.

Market and Competitive Landscape:

• Growing electricity demand is creating opportunities for additional transmission investment across the service territory.
• The company has 7.9 gigawatts of contracted demand from large-load customers, nearly double the amount recorded at the beginning of the year.
• FirstEnergy is in active negotiations for approximately 4 gigawatts of additional load.
• West Virginia is identified as a potential major center for new electricity generation, with the company taking strategic steps to capture this opportunity.

Risks and Challenges:

• Risks include potential liabilities and increased costs from government investigations, including compliance with the Deferred Prosecution Agreement and settlements with the U.S. Attorney's Office and SEC.
• Litigation risks include securities class action lawsuits, regulatory proceedings, arbitration, and mediation.
• Economic and operational risks include geopolitical conflicts, recession, volatile interest rates, inflation, supply chain disruptions, higher fuel costs, and workforce impacts.
• Weather-related risks include severe weather events (wildfires, hurricanes, flooding, droughts, high wind, extreme heat) which may result in increased storm restoration expenses or material liability.
• Regulatory risks involve changes in rates, generation resource adequacy, co-location of generation and large loads, and compliance enforcement.
• Capital market risks include the ability to access public securities and credit markets, potential loss of well-known seasoned issuer status, and changes in credit ratings.
• Cybersecurity and physical security risks include acts of war, terrorism, sabotage, and cyber-attacks.
• Pension and OPEB risks include variations in market conditions affecting asset values and potential for larger or earlier contributions to pension plans.
• Environmental and climate risks include changes to laws regarding climate change, coal combustion residuals, and the ability to meet greenhouse gas reduction goals.
• Tax risks include changes to tax laws such as the Inflation Reduction Act of 2022 and the One Big Beautiful Bill Act of 2025.

Management Commentary and Tone:

• Brian X. Tierney, Chairman, President, and CEO, stated the company is "delivering on our commitments while positioning FirstEnergy for the next phase of growth."
• Management expressed confidence in the long-term outlook due to strong execution and is taking steps to deliver value for customers and shareholders.
• Regarding the Maidsville project, Tierney noted it is "the first of a broader set of opportunities in West Virginia" and emphasized a focus on meeting growing demand while protecting existing customers and delivering economic benefits.

Other Key Points:

• The company operates one of the nation's largest investor-owned electric systems.
• Non-GAAP financial measures (Core Earnings) exclude the impact of special items to facilitate historical and ongoing performance comparisons.
• A quantitative reconciliation of forward-looking non-GAAP measures (2026 Core EPS and CAGR) to GAAP measures is not provided due to the inherent difficulty in forecasting special items.
• Strategic and Financial Highlights presentation and webcast details were provided for Oct. 28, 2026.
• The press release includes a comprehensive list of forward-looking statement risks and disclaimers regarding the obligation to update information.