Wed, May 7, 8:37 PM (15 days ago)
**FirstEnergy Transmission, LLC (FET) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenues increased by $50 million (12%) to $468 million, driven by higher rate base and recovery of transmission operating expenses. - **Operating Expenses:** Increased by $33 million (15%) to $252 million, primarily due to higher depreciation, property taxes, and operating/maintenance expenses. - **Net Income:** Earnings attributable to FET increased by $37 million (51%) to $109 million, primarily due to higher revenues and the absence of a discrete tax charge from Q1 2024. - **Profit Margins:** Operating margin was approximately 46%, and net margin was around 23%. - **Cash Flow:** Net cash provided from operating activities increased by $95 million (64%) to $243 million. Cash used for investing activities increased by $20 million (7%) to $323 million, primarily due to capital investments. **Key Trends and Uncertainties:** - **Capital Investments:** FET plans to spend approximately $8.6 billion from 2025 through 2029 under the Energize365 program. - **Regulatory Matters:** FET faces several regulatory uncertainties, including FERC audits, transmission ROE incentives, and local transmission planning complaints. - **Economic Conditions:** Supply chain disruptions and tariffs pose risks to FET's operations and financial condition. - **Tax Matters:** The Inflation Reduction Act of 2022 may impact FET's tax liabilities and cash flows. **Future Operations and Impact:** - **Valley Link:** FET, along with partners, was awarded approximately $3.0 billion in transmission projects, with FET's estimated share being approximately $1.020 billion. - **Debt and Liquidity:** FET has sufficient liquidity to meet its obligations, with available liquidity from external sources totaling $1.466 billion as of April 28, 2025. - **Credit Ratings:** FET and its subsidiaries maintain investment-grade credit ratings, which support their access to capital markets. **Ticker:** FET (not traded, part of FirstEnergy Corp.)