FirstEnergy shows solid Q1 growth but faces regulatory risks and high debt, rated Hold for now

FirstEnergy reported a 7.5% year-over-year increase in core EPS for Q1 and reaffirmed its 2026 guidance, indicating improved fundamentals. However, the company's $36 billion five-year capital expenditure plan and data center growth opportunities depend heavily on regulatory approvals, which pose risks. Additionally, FirstEnergy carries a significant $28 billion debt load and potential dilution concerns. Due to these uncertainties, the stock trades at about 16.5 times forward earnings and is currently rated Hold, pending clearer regulatory outcomes and project timelines.