Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 28, 2026 · Beat 4 of last 7 quarters
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FirstEnergy's surge in data center contracted demand (6.4 GW, up from 4.3 GW in Q1) and 25 GW pipeline underscores the accelerating AI infrastructure buildout in PJM. The company's ability to offer generation in West Virginia positions it as a key enabler of data center growth, potentially driving incremental transmission and generation investment beyond its current $36B plan.
Q2 GAAP EPS was $0.50 vs $0.46 a year ago; core EPS was $0.50 vs $0.52, in line with plan. H1 core EPS was $1.22 vs $1.19. Capital deployed was $2.9B in H1, up 19% YoY. Data center contracted demand rose to 6.4 GW, with total pipeline ~25 GW. West Virginia rate case hearings concluded; Maidsville CPCN hearings held, with order expected this fall.
Management reaffirmed 2026 core EPS guidance of $2.62–$2.82 and the $6B 2026 capital plan, as well as the $36B 5-year plan with 6–8% core EPS growth through 2030, near the top end. They highlighted significant upside from data center demand, particularly in West Virginia, where they are pursuing a 1.2 GW Maidsville plant and evaluating a Genco structure for additional generation. They expect a West Virginia rate order before month-end with $76M cumulative increase, and plan base rate case filings in New Jersey and Maryland in Q3. They also see transmission growth from PJM open windows and will update long-term plans once the Maidsville CPCN is approved.
“Across our system, total forecasted data center demand has increased 30% since the first quarter to approximately 25 gigawatts and during the second quarter alone, we contracted an additional 2.1 gigawatts, bringing our total contracted demand to 6.4 gigawatts.”
on Data center demand growth
“We are evaluating the right structure to support that future growth, including the potential for structures that would allow Mon Power or Potomac Edison West Virginia to enter into a wholesale power agreement with an affiliated generation company.”
on West Virginia generation structure
“We don't anticipate trouble in New Jersey in this filing. I think we found the commission there and the administration to be much more collaborative than prior rhetoric might have led people to believe.”
on New Jersey regulatory outlook
On West Virginia data center pipeline, what is the open capacity on the transmission system and incremental investment opportunity? Do you have to build one-for-one generation for every megawatt of new demand?
Near-term capacity exists for ~100-200 MW for early queue customers; remaining 800-900 MW requires build-out. Average investment is ~$250M per gigawatt of capacity added.
What would the regulatory process be for a Genco structure to serve West Virginia demand, and how could it differ from the current CPCN process?
A Genco would require FERC approval for wholesale sales, and the contract with Mon Power would need WV PSC approval, but the process would be considerably faster than a traditional CPCN.
What are the primary guardrails in New Jersey given the BPU report and potential ROE changes? Why file now?
The Phase 1 report is a menu; we will comment. We've had constructive prefiling meetings. The last rate case demanded reliability investment, which we've delivered (16% improvement '24-'25, 38% YTD '25-'26), so we need recovery for that investment.