FirstEnergy’s 2024 Earnings Report: Investing in the Future
FirstEnergy Corp., an American electric utility company based in Akron, Ohio, recently released its full year 2024 earnings report. The company reported GAAP earnings from continuing operations of $978 million, or $1.70 per basic and diluted share, on revenue of $13.5 billion. This represents a decrease in GAAP earnings compared to 2023, when the company reported earnings of $1,123 million, or $1.96 per basic and diluted share, on revenue of $12.9 billion.
Financial Highlights
Despite the decrease in GAAP earnings, FirstEnergy’s operating (non-GAAP) earnings for 2024 came in at $2.63 per share, which is within the company’s guidance range. This non-GAAP figure takes into account certain items that are excluded from GAAP earnings, such as depreciation and amortization.
Capital Investments
FirstEnergy has announced customer-focused capital investments of $4.5 billion in 2024, representing a 20% increase over 2023. These investments are aimed at improving grid reliability and resiliency, as well as supporting the energy transition to a cleaner energy future.
Future Investments and Growth
The company also announced an expansion of its Energize365 capital investment program, which now includes planned capital investments of $28 billion through 2029. This represents an 8% increase from the previous five-year plan and is expected to result in a 9% rate base growth. Additionally, FirstEnergy introduced 2025 Core (non-GAAP) earnings guidance and a targeted 6-8% compound annual Core earnings growth rate through the five-year planning period.
Impact on Consumers
The increased investments in grid reliability and resiliency, as well as the company’s commitment to supporting the energy transition, may result in higher electricity bills for consumers. However, the benefits of a more reliable and resilient grid, as well as the transition to cleaner energy sources, may outweigh the additional costs for many.
Impact on the World
FirstEnergy’s investments in grid reliability and resiliency, as well as its commitment to supporting the energy transition, have the potential to positively impact the world in several ways. Improved grid reliability and resiliency can help prevent widespread power outages during extreme weather events and natural disasters. Additionally, the transition to cleaner energy sources can help reduce greenhouse gas emissions and mitigate the effects of climate change.
Conclusion
FirstEnergy’s 2024 earnings report highlights the company’s commitment to investing in the future, both in terms of financial performance and in the form of customer-focused capital investments. The increased investments in grid reliability and resiliency, as well as the transition to cleaner energy sources, have the potential to benefit both consumers and the world at large. While higher electricity bills may be a concern for some, the long-term benefits of these investments may outweigh the costs.
- FirstEnergy reported GAAP earnings of $1.70 per share and non-GAAP earnings of $2.63 per share in 2024.
- The company announced customer-focused capital investments of $4.5 billion in 2024, a 20% increase over 2023.
- FirstEnergy also expanded its Energize365 capital investment program through 2029, with planned capital investments of $28 billion and a targeted 6-8% compound annual Core earnings growth rate.
- The increased investments in grid reliability and resiliency and the energy transition may result in higher electricity bills for consumers.
- The benefits of improved grid reliability and resiliency, as well as the transition to cleaner energy sources, may outweigh the costs for many.
