FirstEnergy Corp. (NYSE: FE) has reported its financial results for the second quarter of 2024, revealing GAAP earnings of $45 million, or $0.08 per share, on revenue of $3.3 billion. This marks a decrease from the second quarter of 2023, which saw GAAP earnings of $235 million, or $0.41 per share, on revenue of $3.0 billion.
The company attributed the lower GAAP earnings to increased asset retirement obligations due to new environmental regulations and anticipated remediation costs for retired generation facilities, as well as debt redemption and legal costs related to HB-6 matters. These were partially offset by insurance proceeds from a shareholder derivative lawsuit.
Operating (non-GAAP) earnings for Q2 2024 stood at $0.56 per share, surpassing the midpoint of FirstEnergy's guidance and showing an increase from the $0.47 per share recorded in Q2 2023.
"Our second quarter financial results are in line with our expectations," said Brian X. Tierney, President and CEO of FirstEnergy Corp., highlighting progress in regulatory outcomes and customer experience improvements.
FirstEnergy reaffirmed its full-year 2024 operating (non-GAAP) earnings guidance range of $2.61 to $2.81 per share and maintained its long-term annual operating earnings growth target of 6-8%. The company also provided third-quarter earnings guidance ranging from $490 million to $547 million or $0.85 to $0.95 per share.
Second-quarter results were driven by rate base growth in distribution and transmission formula rate programs under the Energize365 investment plan, higher distribution sales, and favorable regulatory outcomes across multiple jurisdictions.
For the first half of 2024, FirstEnergy reported GAAP earnings of $298 million or $0.52 per share on revenue of $6.6 billion compared to GAAP earnings of $527 million or $0.92 per share on revenue of $6.2 billion during the same period in 2023.
The company's non-GAAP financial measures exclude special items such as charges or benefits not indicative of ongoing core activities and results.
FirstEnergy will host a teleconference for financial analysts tomorrow at 10:00 a.m EDT to discuss these results further.