How FirstEnergy’s (FE) Natural Gas and Solar Expansion Has Changed Its Investment Story

• On November 6, 2025, FirstEnergy announced plans to build a 1,200-megawatt combined-cycle natural gas plant and 70 megawatts of utility-scale solar capacity in West Virginia, projecting over 3,260 construction jobs and US$68 million in state and local tax revenue during the construction phase.
• This initiative demonstrates FirstEnergy's intent to modernize its grid, boost economic development, and address growing regional energy needs through a balanced approach to generation.
• We'll examine how FirstEnergy's planned natural gas and solar investments could influence its earnings outlook and long-term growth narrative.

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FirstEnergy Investment Narrative Recap

To own FirstEnergy, investors must be comfortable with the outlook for steady rate base growth and the company’s ability to balance large-scale investments with return to shareholders. The recent announcement of a proposed 1,200-megawatt natural gas plant and 70-megawatt solar addition in West Virginia strengthens FirstEnergy’s grid modernization narrative but does not materially change the near-term earnings catalyst, which continues to be constructive regulatory outcomes and efficient execution of planned transmission upgrades. The most pressing risk remains the need to manage high ongoing capital expenditures while protecting free cash flow and avoiding significant dilution.

FirstEnergy’s declared quarterly dividend of US$0.445 per share, sustaining a projected annualized payout of US$1.78 in 2025, stands out amid its infrastructure ambitions. This consistent dividend policy remains of interest to income-focused shareholders, especially as capital needs for grid upgrades and new power generation weigh on the company’s future balance sheet flexibility.

However, investors should also be mindful that, despite ambitious plans for new generation, persistent capital spending could ultimately increase debt and place more pressure on...

Read the full narrative on FirstEnergy (it's free!)

FirstEnergy's narrative projects $15.6 billion revenue and $1.7 billion earnings by 2028. This requires 4.1% yearly revenue growth and a $0.4 billion increase in earnings from $1.3 billion today.

Uncover how FirstEnergy's forecasts yield a $50.00 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate FirstEnergy’s fair value from US$27.86 to US$50.00, showing a wide range across just two perspectives. While many focus on grid and capacity investments bolstering long-term growth, opinions vary widely, see what other investors think.

Explore 2 other fair value estimates on FirstEnergy - why the stock might be worth 40% less than the current price!

Build Your Own FirstEnergy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your FirstEnergy research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free FirstEnergy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FirstEnergy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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