FirstEnergy's quarterly profit rises on higher rates, data-center demand

FirstEnergy

28/04/2026 23:30

April 28 (Reuters) - Utility FirstEnergy FE.N reported a 12.5% rise in first-quarter profit on Tuesday, lifted by higher electricity rates and growing demand from power-hungry data centers.

U.S. electricity demand hit record levels in 2025 and is expected to accelerate further as large technology firms ramp up power usage at fast-growing data centers, with some individual sites using as much energy as an entire city.

Households and businesses are also using more electricity as they shift away from fossil fuels for heating and transportation.

Utilities are pushing to increase customer electricity rates in 2026 to help pay for infrastructure improvements, as power grids are strained by extreme weather and rising demand from electrification and expanding data centers.

FirstEnergy reaffirmed its 2026 core earnings guidance of $2.62 to $2.82 per share, supported by its $6 billion capital investment plan for 2026, focused on grid modernization, distribution upgrades and transmission reliability.

FirstEnergy said its broader $36 billion capital investment plan for 2026 to 2030, up nearly 30% from its previous plan, is expected to generate about 10% compounded annual rate‑base growth.

The company reported quarterly revenue of $4.2 billion, compared with $3.7 billion a year earlier.

It posted a profit of $405 million, or 70 cents per share, for the quarter ended March 31, compared with $360 million, or 62 cents per share, from a year ago.

 (Reporting by Varun Sahay in Bengaluru; Editing by Tasim Zahid)

 ((Varun.Sahay@thomsonreuters.com;))