Updated December 1, 2025
Key Takeaways
- FirstEnergy’s share price is up roughly 19–20% in 2025 and near its 52‑week high, supported by stronger earnings, higher capital spending and renewed interest in utility stocks. [1]
- On December 1, 2025, FirstEnergy is paying a quarterly dividend of $0.445 per share, capping a year of higher shareholder payouts and a forward yield around the mid‑3% range. [2]
- Ohio regulators recently ordered FirstEnergy’s utilities to pay about $250.7 million in refunds and civil penalties tied to the long‑running House Bill 6 bribery scandal, underscoring ongoing regulatory risk. [3]
- Analyst opinion is split on valuation: Zacks currently rates FE a Buy with rising EPS estimates, while Simply Wall St’s dividend model suggests the stock is significantly overvalued, even as its price/earnings ratio looks roughly fair. [4]
- Fresh institutional buying and a $28 billion grid‑modernization plan through 2029 point to long‑term growth, even as fines, workforce reductions and rate‑case uncertainty keep risk on the table. [5]
Where FirstEnergy Stands as December Begins
FirstEnergy Corp. (NYSE: FE), the Akron‑based regulated electric utility, heads into December 2025 riding a strong year for its stock but carrying equally strong headlines.
As of the latest close, FE trades around the high‑$40s, near a 52‑week range of roughly $37.6 to $48.2, giving the company a market cap of about $27–28 billion. Its trailing price/earnings (P/E) ratio sits just above 20x, and the indicated dividend yield is in the 3.5–4% area. [6]
From a performance standpoint, the stock has climbed about 19–20% year‑to‑date and delivered mid‑teens percentage gains over the past 12 months, a move spotlighted in recent coverage asking whether FirstEnergy’s “19.6% 2025 rally” is justified in light of a broader utility sector rebound. [7]
This recovery stands in contrast to the company’s troubled past, which still includes legal and regulatory aftershocks from its role in the Ohio House Bill 6 bribery scandal. The juxtaposition of strong share performance, big capex plans and fresh fines is exactly what investors are trying to price in as of December 1.
December 1, 2025 News: Dividend Day and New Institutional Buying
Dividend hits investor accounts
The most immediate catalyst on December 1, 2025 is income‑oriented rather than dramatic: FirstEnergy is paying a quarterly common stock dividend of $0.445 per share to shareholders of record earlier this fall. [8]
That payout:
- Represents an annual rate of $1.78 per share, assuming the dividend is maintained. [9]
- Reflects a 4.7% increase over the 2024 rate, after the board raised the quarterly dividend from $0.425 earlier this year. [10]
For investors, the combination of a high‑3% yield and mid‑single‑digit dividend growth is one reason FirstEnergy continues to show up on income screens, particularly now that its underlying earnings profile looks more stable. [11]
Fresh 13F filings: more money flowing into FE
Today’s news flow also reflects fresh institutional interest. A new filing shows Global Retirement Partners LLC initiated a roughly $305,000 position in FirstEnergy, adding the utility to its portfolio of dividend and income names. [12]
That move follows several recent filings in late November:
- The State Board of Administration of Florida Retirement System modestly increased its stake, adding more than 6,700 shares. [13]
- Millington Financial Advisors LLC grew its FirstEnergy position by over 20%, to nearly 45,000 shares. [14]
Taken together, these small but steady flows underscore that institutional investors continue to treat FE as a core regulated‑utility holding rather than a name to abandon in the wake of its regulatory troubles.
What Powered the 2025 Rally: Earnings Beat and a Bigger Capex Plan
Q3 2025 results: higher profits and tighter guidance
The backbone of this year’s rally is FirstEnergy’s improving financial performance.
In its third‑quarter 2025 earnings release, the company reported: [15]
- GAAP earnings of $441 million, or $0.76 per share, up from $0.73 a year earlier.
- Core (non‑GAAP) EPS of $0.83, up 9% year‑on‑year.
- Revenue of $4.1 billion, versus $3.7 billion in Q3 2024.
Year‑to‑date through September:
- GAAP EPS climbed from $1.25 to $1.85.
- Core EPS rose from $1.76 to $2.02, a 15% increase. [16]
On the strength of those results, FirstEnergy narrowed its 2025 core EPS guidance to $2.50–$2.56, toward the upper half of its previous $2.40–$2.60 range, while reaffirming a 6–8% compound annual core EPS growth target for 2025–2029. [17]
Energize365: $28 billion to remake the grid
The company also used its Q3 update to underscore the scale of its capital program:
- FirstEnergy has already deployed more than $4 billion of capital through September 2025.
- Management increased planned 2025 capital spending by 10%, from $5.0 billion to $5.5 billion.
- The multi‑year “Energize365” program calls for about $28 billion in grid investments from 2025 through 2029. [18]
These dollars are flowing into concrete reliability and growth projects across its footprint. Recent examples include:
- In western Pennsylvania, a $368 million long‑term infrastructure plan that includes rebuilt local lines, larger conductors and new equipment to support growth and reduce outages for West Penn Power customers. [19]
- In northwest Ohio, a major Toledo Edison project adding a new substation and a nine‑mile 345‑kV transmission line, part of more than $200 million in planned high‑voltage upgrades in that region alone and contributing to a reported 50% reduction in high‑voltage outages since 2014. [20]
For investors, this capex story matters because regulated utilities typically earn allowed returns on invested capital over time. If regulators sign off on these projects and cost recovery mechanisms, the investments can support the earnings growth targets management is projecting.
Big Growth Bet in West Virginia: 1.2 GW Gas Plant Plus Solar
Another pillar of the bullish case is FirstEnergy’s plan to expand its regulated generation base in West Virginia.
In early November, the company announced a proposal to build a 1,200‑megawatt combined‑cycle natural gas plant along with 70 megawatts of utility‑scale solar in the state. [21]
Key details from that proposal:
- Construction of the gas plant is expected to create more than 3,260 jobs and generate about $68 million in state and local tax revenue. [22]
- A study cited by FirstEnergy estimates ongoing operations could support around 2,200 direct and indirect jobs and nearly $86 million in annual tax revenue. [23]
- Between 2025 and 2029, FirstEnergy plans to invest about $5.2 billion in West Virginia, and, if regulators approve the new generation, another $2.5 billion on top of that. [24]
The project is aligned with West Virginia’s “50 by 50” initiative to grow the state’s energy capacity to 50 gigawatts by 2050 and is expected to be filed with state regulators in early 2026. [25]
From an investment perspective, this plan:
- Could increase FirstEnergy’s regulated generation portfolio by roughly 35% once the plant is in service around 2031. [26]
- Adds long‑lived, rate‑base‑eligible assets that can support earnings growth—assuming the company secures favourable cost recovery and maintains political support for natural‑gas generation.
The flip side is that gas projects introduce long‑term policy and climate risks, particularly if carbon regulation tightens or renewable economics improve faster than expected.
The Dark Cloud: Ohio’s $250.7 Million PUCO Order
FirstEnergy’s improved fundamentals and stock performance are still overshadowed by the aftermath of the Ohio House Bill 6 scandal, which involved secret payments to secure a nuclear‑bailout law and toppled the state’s former House speaker.
On November 19, 2025, the Public Utilities Commission of Ohio (PUCO) ordered three FirstEnergy utilities—Ohio Edison, The Cleveland Electric Illuminating Company and Toledo Edison—to pay about $250.7 million in total: [27]
- Roughly $186–187 million in refunds and restitution to customers.
- Approximately $64 million in civil forfeitures and penalties.
Regulators concluded that customer funds collected between 2017 and 2019 for grid‑modernization were misused to support an unregulated affiliate and related activities, violating a prior PUCO order and state law. [28]
Coverage from national and local outlets emphasizes:
- The order concludes three state regulatory investigations that had been paused while federal prosecutors pursued a criminal case. [29]
- FirstEnergy has already paid $230 million to resolve federal charges and over $390 million in other fines and settlements related to the scandal, and says the PUCO ruling “closes a chapter” that does not reflect the company’s current culture. [30]
For shareholders, the financial hit is significant but manageable in light of a $27+ billion market cap and a multi‑year investment plan. The bigger issue is reputational and regulatory:
- Consumer advocates argue the penalties should have been higher and continue to scrutinize the company’s rates and practices. [31]
- At least one major brokerage, KeyBanc Capital Markets, downgraded FirstEnergy to “Sector Weight”, flagging the Ohio rate environment and regulatory overhang as reasons for caution. [32]
The new order doesn’t erase the company’s past; it merely quantifies another chunk of the cost.
Wall Street’s Split View: Bullish EPS vs. Mixed Valuation Signals
Zacks: “Include FirstEnergy in your portfolio now”
On the bullish side, Zacks Equity Research recently highlighted FE in a note titled “Here’s Why You Should Include FirstEnergy Stock in Your Portfolio Now.” Syndicated versions of the article emphasize several positives: [33]
- The Zacks Consensus Estimate for 2025 EPS has risen 0.4% over the last month to $2.54 per share.
- Consensus 2025 revenue of about $14.4 billion implies 6.9% growth versus 2024.
- The firm cites a long‑term earnings growth rate of roughly 6.5% and an average earnings surprise of just over 5% across the last four quarters.
Zacks currently assigns FirstEnergy a Rank #2 (Buy) within the utilities sector, grouping it with other favored names like Ameren and Alliant Energy. [34]
In the Zacks framework, rising estimates and solid surprise history often point to momentum in both earnings and share price, which helps explain why FE has been characterized as a “compelling utility investment pick” despite its legal baggage. [35]
Simply Wall St / valuation models: Is FE overvalued?
More valuation‑driven analysis paints a less enthusiastic picture. A recent Simply Wall St‑style breakdown—republished on several platforms—makes these key points: [36]
- Using a Dividend Discount Model (DDM) that assumes annual dividends of $1.92 per share, a payout ratio of about 99%, and minimal growth, the estimated intrinsic value comes out near $27.86 per share. At current prices, that suggests the stock could be roughly 65–70% overvalued under a strict dividend‑only lens.
- However, on a P/E basis, FirstEnergy trades at about 20.2x earnings, just under the electric‑utility industry average of 20.5x, and above a peer group near 15.7x. When compared with a customized “fair” P/E ratio of 21.9x that adjusts for its growth and risk profile, the stock looks close to fairly valued or slightly inexpensive.
The takeaway: valuation is highly sensitive to the model you choose. If you think dividends will grow faster than that conservative DDM assumes—or that capital investments will translate into higher regulated returns—you’re likely to reach a higher fair‑value estimate than $27–28.
MarketBeat and Barchart: Moderate Buy with modest upside
A look at aggregated analyst data provides a middle ground:
- MarketBeat reports a “Moderate Buy” consensus rating, with a 12‑month average price target around $49, just above current levels. [37]
- FE’s 52‑week high is only slightly above today’s price, suggesting analysts see more of a steady income and modest upside story than a dramatic growth play. [38]
- Barchart’s recent piece “Do Wall Street Analysts Like FirstEnergy Stock?” echoes this view, highlighting the same moderate‑buy tilt and the role of stable dividends in total‑return expectations. [39]
Other 2025 Developments Investors Should Know
Beyond earnings, fines and capex, several 2025 storylines help frame the risk‑reward profile.
Workforce restructuring and cost discipline
FirstEnergy has been reshaping its organization and cost base:
- In March, the company announced strategic organizational changes that would reassign around 200 employees and reduce headcount by “less than 3%,” or roughly 350 positions, as part of a push to align accountability more closely with customers, regulators and operations. [40]
- Additional smaller layoffs—fewer than 50 roles—were reported in August across Ohio, Pennsylvania, West Virginia, Maryland and New Jersey. [41]
Management frames these moves as efficiency and O&M‑discipline initiatives, which can support margins but may also affect morale and political perception.
Competitive bidding and regulatory process in Ohio
On the regulatory mechanics side, FirstEnergy’s Ohio utilities are preparing for a competitive bidding process to procure full‑requirements supply for Standard Service Offer customers:
- An information session for potential bidders is set for November 24, 2025, ahead of a January 20, 2026 auction managed by Charles River Associates and approved by PUCO. [42]
This process is routine in Ohio’s deregulated retail environment, but in the context of the recent HB6 order, it underscores how PUCO will remain central to FirstEnergy’s risk profile and earnings visibility.
So Is FirstEnergy Stock Still a Buy After December’s Headlines?
As of December 1, 2025, the investment case for FirstEnergy can be summed up as a tug‑of‑war between steady income and lingering risk.
What the bulls see
Supporters of FE tend to focus on:
- Reliable, regulated utility earnings with a clear path to 6–8% core EPS growth, backed by a $28 billion capex pipeline through 2029. [43]
- A growing dividend, now at $0.445 per quarter, and a yield comfortably above broader‑market averages. [44]
- Earnings momentum, as shown by rising 2025 EPS estimates and a positive surprise track record in recent quarters. [45]
- Structural demand tailwinds from data centers, industrial growth and electrification in its service territories, which management explicitly calls out as drivers of future transmission investment. [46]
For these investors, FirstEnergy looks like a defensive, income‑oriented holding with a moderate growth kicker.
What the bears worry about
Skeptics, however, point to:
- Regulatory and legal overhang: The $250.7 million Ohio order may be the latest major fine, but it keeps the scandal in the headlines and could influence future rate decisions or political scrutiny. [47]
- Leverage and payout concerns: With a payout ratio hovering near 100% of earnings under conservative assumptions, dividend‑discount models flag limited room for missteps or faster‑than‑expected capex. [48]
- Valuation risk: If you believe the DDM over the P/E‑based fair‑value estimate, the stock may be pricing in more growth and rate support than is prudent for a company still healing from scandal. [49]
- Execution risk on mega‑projects, particularly the West Virginia gas plant, which must navigate political, environmental and regulatory challenges over many years. [50]
A balanced takeaway
For now, the consensus market view sits somewhere in the middle:
- Analysts broadly see limited but positive upside from current levels, complemented by a solid dividend. [51]
- Quantitative and qualitative research shops are split, with some urging investors to “include FirstEnergy now” and others calling it a defensive name with limited upside or even overvaluation based on dividends alone. [52]
Whether FE is right for you depends on your risk tolerance and what you’re really after:
- If you want regulated utility income, exposure to grid modernization and can live with regulatory noise, FE can make sense as part of a diversified portfolio.
- If you’re more sensitive to governance history, regulatory surprises or valuation, there may be cleaner stories elsewhere in the utilities space.
As always, this overview is informational only and not personalized investment advice. Before buying or selling any stock, consider your financial situation, time horizon and consult a qualified adviser if needed.
References
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