FIRSTENERGY CORP
For the period ended Dec 31, 2025. Filed Feb 18, 2026.
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FY2025 · Filed Feb 18, 2026
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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The consolidated financial statements and supplementary data of FirstEnergy required in this item are set forth beginning on page 90.
The financial statements and supplementary data of JCP&L required in this item are set forth beginning on page 96.
To the Board of Directors and Stockholders of FirstEnergy Corp.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of FirstEnergy Corp. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of income, of comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Note 1 to the consolidated financial statements, the Company is subject to regulation that sets the prices (rates) it is permitted to charge customers based on costs that the regulatory agencies determine are permitted to be recovered. At times, regulatory agencies permit the future recovery of costs that would be currently charged to expense by an unregulated company. The ratemaking process results in the recording of regulatory assets and liabilities based on anticipated future cash inflows and outflows. Management reviews the probability of recovery of regulatory assets, and settlement of regulatory liabilities, at each balance sheet date and whenever new events occur. Factors that may affect probability include changes in the regulatory environment, issuance of a regulatory commission order, or passage of new legislation. Upon material changes to these factors, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that currently recorded regulatory assets and liabilities will be recovered or settled in future rates. As of December 31, 2025, there were $829 million of regulatory assets and $1,185 million of regulatory liabilities.
The principal considerations for our determination that performing procedures relating to accounting for the effects of rate regulation is a critical audit matter are a high degree of auditor effort in performing procedures and evaluating audit evidence related to the recovery of regulatory assets and the settlement of regulatory liabilities.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the accounting for regulatory matters, including controls over the evaluation of the recoverability and settlement of existing regulatory assets and liabilities. These procedures also included, among others, (i) obtaining the Company’s correspondence with regulators, (ii) evaluating the reasonableness of management’s assessment regarding regulatory guidance, proceedings, and legislation and the related accounting implications, and (iii) testing, on a sample basis, the regulatory assets and liabilities by considering the provisions outlined in rate orders and other correspondence with regulators.
/s/PricewaterhouseCoopers LLP
Cleveland, Ohio
February 18, 2026
We have served as the Company’s auditor since 2002.
To the Board of Directors and Stockholder of Jersey Central Power & Light Company
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Jersey Central Power & Light Company (the "Company") as of December 31, 2025 and 2024, and the related statements of income and comprehensive income, of common stockholder’s equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Accounting for the Effects of Rate Regulation
As described in Note 1 to the financial statements, the Company is subject to regulation that sets the prices (rates) it is permitted to charge customers based on costs that the regulatory agencies determine are permitted to be recovered. At times, regulatory agencies permit the future recovery of costs that would be currently charged to expense by an unregulated company. The ratemaking process results in the recording of regulatory assets and liabilities based on anticipated future cash inflows and outflows. Management reviews the probability of recovery of regulatory assets, and settlement of regulatory liabilities, at each balance sheet date and whenever new events occur. Factors that may affect probability include changes in the regulatory environment, issuance of a regulatory commission order, or passage of new legislation. Upon material changes to these factors, where applicable, management will record new regulatory assets or liabilities and will assess whether it is probable that currently recorded regulatory assets and liabilities will be recovered or settled in future rates. As of December 31, 2025, there were $515 million of regulatory assets, net.
The principal considerations for our determination that performing procedures relating to accounting for the effects of rate regulation is a critical audit matter are a high degree of auditor effort in performing procedures and evaluating audit evidence related to the recovery of regulatory assets and the settlement of regulatory liabilities.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included, among others, (i) obtaining the Company’s correspondence with regulators, (ii) evaluating the reasonableness of management’s assessment regarding regulatory guidance, proceedings, and legislation and the related accounting implications, and (iii) testing, on a sample basis, the regulatory assets and liabilities by considering the provisions outlined in rate orders and other correspondence with regulators.
/s/PricewaterhouseCoopers LLP
Cleveland, Ohio
February 18, 2026
We have served as the Company’s auditor since 2002.
| For the Years Ended December 31, | |||
|---|---|---|---|
| (In millions, except per share amounts) | 2025 | 2024 | 2023 |
| REVENUES: | |||
| Distribution services and retail generation | $12,189 | $10,976 | $10,405 |
| Transmission | 2,311 | 2,148 | 2,049 |
| Other | 590 | 348 | 416 |
| Total revenues(1) | 15,090 | 13,472 | 12,870 |
| OPERATING EXPENSES: | |||
| Fuel | 652 | 464 | 538 |
| Purchased power | 4,583 | 3,912 | 4,108 |
| Other operating expenses | 4,122 | 4,044 | 3,579 |
| Provision for depreciation | 1,664 | 1,581 | 1,461 |
| Deferral of regulatory assets, net | (109) | (231) | (261) |
| General taxes | 1,345 | 1,212 | 1,164 |
| Ohio settlement charges (Note 13.) | 275 | — | — |
| Impairment of assets (Note 1.) | 352 | 115 | 15 |
| Total operating expenses | 12,884 | 11,097 | 10,604 |
| OPERATING INCOME | 2,206 | 2,375 | 2,266 |
| OTHER INCOME (EXPENSE): | |||
| Debt redemption costs (Note 11.) | (24) | (85) | (36) |
| Equity method investment earnings, net (Note 1.) | — | 58 | 175 |
| Miscellaneous income, net | 156 | 189 | 164 |
| Pension and OPEB mark-to-market adjustments (Note 4.) | 253 | (22) | (78) |
| Interest expense | (1,217) | (1,144) | (1,124) |
| Capitalized financing costs | 185 | 133 | 97 |
| Total other expense | (647) | (871) | (802) |
| INCOME BEFORE INCOME TAXES | 1,559 | 1,504 | 1,464 |
| INCOME TAXES | 288 | 377 | 267 |
| INCOME FROM CONTINUING OPERATIONS | 1,271 | 1,127 | 1,197 |
| Discontinued operations (Note 1.)(2) | — | — | (21) |
| NET INCOME | $1,271 | $1,127 | $1,176 |
| Income attributable to noncontrolling interest (continuing operations) | 251 | 149 | 74 |
| EARNINGS ATTRIBUTABLE TO FIRSTENERGY CORP. | $1,020 | $978 | $1,102 |
| EARNINGS ATTRIBUTABLE TO FIRSTENERGY CORP. | |||
| Earnings from continuing operations | $1,020 | $978 | $1,123 |
| Earnings from discontinued operations | — | — | (21) |
| EARNINGS ATTRIBUTABLE TO FIRSTENERGY CORP. | $1,020 | $978 | $1,102 |
| EARNINGS PER SHARE ATTRIBUTABLE TO FIRSTENERGY CORP. (Note 3.) | |||
| Basic - continuing operations | $1.77 | $1.70 | $1.96 |
| Basic - discontinued operations | — | — | (0.04) |
| Basic | $1.77 | $1.70 | $1.92 |
| Diluted - continuing operations | $1.76 | $1.70 | $1.96 |
| Diluted - discontinued operations | — | — | (0.04) |
| Diluted | $1.76 | $1.70 | $1.92 |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | |||
| Basic | 577 | 575 | 573 |
| Diluted | 578 | 577 | 574 |
(1) Includes excise and gross receipts tax collections of $463 million, $429 million and $420 million in 2025, 2024 and 2023, respectively.
(2) Consists of income taxes of $21 million in 2023.
| For the Years Ended December 31, | |||
|---|---|---|---|
| (In millions) | 2025 | 2024 | 2023 |
| NET INCOME | $1,271 | $1,127 | $1,176 |
| OTHER COMPREHENSIVE INCOME (LOSS): | |||
| Pension and OPEB prior service costs | — | 1 | (6) |
| Amortized losses on derivative hedges | — | 3 | 2 |
| Other comprehensive income (loss) | — | 4 | (4) |
| Income tax expense (benefits) on other comprehensive loss | — | 1 | (1) |
| Other comprehensive income (loss), net of tax | — | 3 | (3) |
| COMPREHENSIVE INCOME | $1,271 | $1,130 | $1,173 |
| Comprehensive income attributable to noncontrolling interest | 251 | 149 | 74 |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO FIRSTENERGY CORP. | $1,020 | $981 | $1,099 |
| (In millions, except share amounts) | December 31,2025 | December 31,2024 |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $57 | $111 |
| Restricted cash | 42 | 43 |
| Receivables- | ||
| Customers | 1,783 | 1,585 |
| Less — Allowance for uncollectible customer receivables | 57 | 55 |
| 1,726 | 1,530 | |
| Other, net of allowance for uncollectible accounts of $11 in 2025 and $6 in 2024 | 295 | 303 |
| Materials and supplies, at average cost | 577 | 549 |
| Prepaid taxes and other | 282 | 240 |
| 2,979 | 2,776 | |
| PROPERTY, PLANT AND EQUIPMENT: | ||
| In service | 56,213 | 52,896 |
| Less — Accumulated provision for depreciation | 15,189 | 14,548 |
| 41,024 | 38,348 | |
| Construction work in progress | 3,389 | 2,754 |
| 44,413 | 41,102 | |
| INVESTMENTS AND OTHER NONCURRENT ASSETS: | ||
| Goodwill | 5,618 | 5,618 |
| Investments | 641 | 652 |
| Regulatory assets | 829 | 617 |
| Other | 1,424 | 1,279 |
| 8,512 | 8,166 | |
| TOTAL ASSETS(1) | $55,904 | $52,044 |
| LIABILITIES AND EQUITY | ||
| CURRENT LIABILITIES: | ||
| Currently payable long-term debt | $723 | $977 |
| Short-term borrowings | 325 | 550 |
| Accounts payable | 2,002 | 1,575 |
| Accrued interest | 373 | 269 |
| Accrued taxes | 768 | 727 |
| Accrued compensation and benefits | 286 | 205 |
| Dividends payable | 257 | 245 |
| Customer deposits | 250 | 233 |
| Other | 287 | 216 |
| 5,271 | 4,997 | |
| NONCURRENT LIABILITIES: | ||
| Long-term debt and other long-term obligations | 25,508 | 22,496 |
| Accumulated deferred income taxes | 6,032 | 5,613 |
| Retirement benefits | 1,469 | 1,698 |
| Regulatory liabilities | 1,185 | 995 |
| Other | 2,513 | 2,525 |
| 36,707 | 33,327 | |
| TOTAL LIABILITIES(1) | 41,978 | 38,324 |
| EQUITY: | ||
| Common stockholders' equity- | ||
| Common stock, $0.10 par value, authorized 700,000,000 shares - 577,851,052 and 576,612,245 shares outstanding as of December 31, 2025 and 2024, respectively | 58 | 58 |
| Other paid-in capital | 12,431 | 12,368 |
| Accumulated other comprehensive loss | (14) | (14) |
| Retained earnings | 35 | 43 |
| Total common stockholders' equity | 12,510 | 12,455 |
| Noncontrolling interest | 1,416 | 1,265 |
| TOTAL EQUITY | 13,926 | 13,720 |
| COMMITMENTS, GUARANTEES AND CONTINGENCIES (Note 14.) | ||
| TOTAL LIABILITIES AND EQUITY | $55,904 | $52,044 |
(1)As of December 31, 2025 and 2024, the combined assets of the VIEs were $13,269 million and $12,053 million, respectively, that can only be used to settle obligations of the VIEs. As of December 31, 2025 and 2024, these assets include, respectively: Cash and cash equivalents of $8 million and $8 million, Restricted cash of $40 million and $40 million, Accounts receivable of $92 million and $96 million, Materials and supplies, at average cost of $1 million and $1 million, Prepaid taxes and other current assets of $41 million and $22 million, Property, plant, and equipment of $12,475 million and $11,217 million, Goodwill of $224 million and $224 million, Investments of $19 million and $19 million,
Regulatory assets of $21 million and $92 million, and Other noncurrent assets of $348 million and $334 million. The consolidated liabilities as of December 31, 2025 and 2024, include $10,176 million and $9,147 million, respectively, of liabilities of VIEs whose creditors have no recourse to FE. As of December 31, 2025 and 2024, these liabilities include, respectively: Currently payable long-term debt of $126 million and $674 million, Short-term borrowings of $245 million and $300 million, Accrued interest of $108 million and $76 million, Accrued taxes of $335 million and $306 million, other current liabilities of $9 million and $10 million, Long-term debt and other long-term obligations of $6,884 million and $5,544 million, Accumulated deferred income taxes of $1,540 million and $1,411 million, Regulatory liabilities of $598 million and $526 million, and Other noncurrent liabilities of $331 million and $300 million.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
| Common Stock · OPIC · AOCI · Retained Earnings (Accumulated Deficit) · Total Common Stockholders' Equity · Total Equity | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In millions) · Shares · Amount · NCI | |||||||||||||||
| Balance, January 1, 2023 | 572 | $57 | $11,322 | $(14) | $(1,199) | $10,166 | $477 | $10,643 | |||||||
| Net income | — | — | — | — | 1,102 | 1,102 | 74 | 1,176 | |||||||
| Other comprehensive loss, net of tax | — | — | — | (3) | — | (3) | — | (3) | |||||||
| Cash dividends declared on common stock(1) | — | — | (917) | — | — | (917) | — | (917) | |||||||
| Stock Investment Plan and share-based benefit plans | 2 | — | 89 | — | — | 89 | — | 89 | |||||||
| Noncontrolling interest distributions declared | — | — | — | — | — | — | (72) | (72) | |||||||
| Balance, December 31, 2023 | 574 | $57 | $10,494 | $(17) | $(97) | $10,437 | $479 | $10,916 | |||||||
| Net income | — | — | — | — | 978 | 978 | 149 | 1,127 | |||||||
| Other comprehensive income, net of tax | — | — | — | 3 | — | 3 | — | 3 | |||||||
| Cash dividends declared on common stock(1) | — | — | (141) | — | (838) | (979) | — | (979) | |||||||
| Stock Investment Plan and share-based benefit plans | 3 | 1 | 73 | — | — | 74 | — | 74 | |||||||
| FET Equity Interest Sale (Note 1.) | — | — | 1,934 | — | — | 1,934 | 731 | 2,665 | |||||||
| Noncontrolling interest distributions declared | — | — | — | — | — | — | (86) | (86) | |||||||
| Other | 8 | 8 | (8) | — | |||||||||||
| Balance, December 31, 2024 | 577 | $58 | $12,368 | $(14) | $43 | $12,455 | $1,265 | $13,720 | |||||||
| Net income | — | — | — | 1,020 | 1,020 | 251 | 1,271 | ||||||||
| Cash dividends declared on common stock(1) | — | — | — | — | (1,028) | (1,028) | — | (1,028) | |||||||
| Stock Investment Plan and share-based benefit plans | 1 | 60 | — | — | 60 | — | 60 | ||||||||
| Noncontrolling interest distributions declared | — | — | — | — | — | (100) | (100) | ||||||||
| Other | — | — | 3 | — | — | 3 | — | 3 | |||||||
| Balance, December 31, 2025 | 578 | $58 | $12,431 | $(14) | $35 | $12,510 | $1,416 | $13,926 | |||||||
(1) Dividends declared for each share of common stock totaled: $1.78, $1.70 and $1.60, during 2025, 2024 and 2023, respectively.
| For the Years Ended December 31, | |||
|---|---|---|---|
| (In millions) | 2025 | 2024 | 2023 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net income | 1,271 | $1,127 | $1,176 |
| Adjustments to reconcile net income to net cash from operating activities- | |||
| Depreciation and amortization | 1,607 | 1,446 | 1,255 |
| Impairment of assets | 352 | 142 | 15 |
| Charges (credits) associated with changes in ARO (Note 9.) | (54) | 200 | 10 |
| Employee benefit costs, net | 14 | (32) | (9) |
| Pension and OPEB mark-to-market adjustments | (253) | 22 | 78 |
| Deferred income taxes and investment tax credits, net | 219 | 316 | 252 |
| Transmission revenue collections, net | 197 | 113 | (180) |
| Pension trust contribution | — | — | (750) |
| Loss (gain) on disposal, net of tax | — | — | 21 |
| Changes in current assets and liabilities- | |||
| Receivables | (186) | (249) | (13) |
| Materials and supplies | (28) | (37) | (91) |
| Prepaid taxes and other current assets | (24) | (33) | (43) |
| Accounts payable | 210 | 124 | (141) |
| Accrued taxes | 105 | (126) | 32 |
| Accrued interest | 104 | (23) | 38 |
| Ohio settlement customer restitution and refunds (Note 13.) | 275 | — | — |
| Other current liabilities | 4 | (141) | 41 |
| Cash collateral, net | 4 | 90 | (218) |
| Employee benefit plan funding and related payments | (49) | (59) | (50) |
| Other | (68) | 11 | (36) |
| Net cash provided from operating activities | 3,700 | 2,891 | 1,387 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Capital investments | (4,705) | (4,030) | (3,356) |
| Sales of investment securities held in trusts | 102 | 121 | 38 |
| Purchases of investment securities held in trusts | (114) | (134) | (50) |
| Asset removal costs | (376) | (305) | (274) |
| Other | 28 | (2) | (10) |
| Net cash used for investing activities | (5,065) | (4,350) | (3,652) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| New financing- | |||
| Long-term debt | 5,925 | 2,100 | 3,150 |
| Short-term borrowings, net | — | — | 675 |
| Redemptions and repayments- | |||
| Long-term debt | (3,129) | (2,760) | (537) |
| Short-term borrowings, net | (225) | (225) | — |
| Proceeds from FET Equity Interest Sale (Note 1.) | — | 3,500 | — |
| Noncontrolling interest cash distributions | (100) | (86) | (72) |
| Common stock dividend payments | (1,016) | (970) | (906) |
| Debt issuance and redemption costs, and other | (145) | (125) | (72) |
| Net cash provided from financing activities | 1,310 | 1,434 | 2,238 |
| Net change in cash, cash equivalents and restricted cash | (55) | (25) | (27) |
| Cash, cash equivalents, and restricted cash at beginning of period | 154 | 179 | 206 |
| Cash, cash equivalents, and restricted cash at end of period | $99 | $154 | $179 |
| SUPPLEMENTAL CASH FLOW INFORMATION: | |||
| Cash paid during the year- | |||
| Interest (net of amounts capitalized) | $999 | $1,062 | $1,002 |
| Income taxes, net of refunds | $73 | $161 | $58 |
| Significant non-cash transactions: | |||
| Accrued capital investments | $361 | $315 | $252 |
| McElroy Run Transfer | $99 | $— | $— |
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
| For the Years Ended December 31, | |||
|---|---|---|---|
| (In millions) | 2025 | 2024 | 2023 |
| REVENUES | $2,638 | $2,315 | $2,027 |
| OPERATING EXPENSES: | |||
| Purchased power | 1,402 | 1,155 | 1,037 |
| Other operating expenses(1) | 680 | 654 | 555 |
| Provision for depreciation | 263 | 249 | 231 |
| Deferral of regulatory assets, net | (134) | (124) | (67) |
| General taxes | 23 | 21 | 21 |
| Total operating expenses | 2,234 | 1,955 | 1,777 |
| OPERATING INCOME | 404 | 360 | 250 |
| OTHER INCOME (EXPENSE): | |||
| Miscellaneous income, net | 49 | 34 | 42 |
| Pension and OPEB mark-to-market adjustment (Note 4.) | 55 | 24 | (29) |
| Interest expense - non-affiliates | (132) | (97) | (110) |
| Interest expense - affiliates | (6) | (20) | (14) |
| Capitalized financing costs | 43 | 28 | 19 |
| Total other expense | 9 | (31) | (92) |
| INCOME BEFORE INCOME TAXES | 413 | 329 | 158 |
| INCOME TAXES | 107 | 87 | 33 |
| NET INCOME | $306 | $242 | $125 |
| OTHER COMPREHENSIVE INCOME: | |||
| Pension and OPEB prior service costs | — | 1 | — |
| Other comprehensive income | — | 1 | — |
| Income taxes on other comprehensive income | — | — | — |
| Other comprehensive income, net of tax | — | 1 | — |
| COMPREHENSIVE INCOME | $306 | $243 | $125 |
(1)Includes affiliated operating expenses of $116 million, $118 million and $122 million in 2025, 2024 and 2023, respectively.
BALANCE SHEETS
| (In millions, except share amounts) | December 31, 2025 | December 31, 2024 |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Receivables - | ||
| Customers | $330 | $284 |
| Less — Allowance for uncollectible customer receivables | 6 | 6 |
| 324 | 278 | |
| Affiliated companies | 22 | 44 |
| Other | 25 | 28 |
| Prepaid taxes and other | 33 | 29 |
| 404 | 379 | |
| PROPERTY, PLANT AND EQUIPMENT: | ||
| In service | 9,267 | 8,731 |
| Less — Accumulated provision for depreciation | 2,439 | 2,439 |
| 6,828 | 6,292 | |
| Construction work in progress | 880 | 620 |
| 7,708 | 6,912 | |
| INVESTMENTS AND OTHER NONCURRENT ASSETS: | ||
| Goodwill | 1,811 | 1,811 |
| Investments | 297 | 282 |
| Regulatory assets | 515 | 247 |
| Prepaid OPEB costs | 243 | 215 |
| Other | 131 | 67 |
| 2,997 | 2,622 | |
| TOTAL ASSETS | $11,109 | $9,913 |
| LIABILITIES AND COMMON STOCKHOLDER’S EQUITY | ||
| CURRENT LIABILITIES: | ||
| Currently payable long-term debt | $2 | $1 |
| Short-term borrowings - | ||
| Affiliated companies | 93 | 22 |
| Accounts payable - | ||
| Affiliated companies | 103 | 1 |
| Other | 175 | 176 |
| Accrued compensation and benefits | 34 | 33 |
| Customer deposits | 35 | 34 |
| Accrued taxes | 11 | 21 |
| Accrued interest | 44 | 23 |
| Other | 41 | 34 |
| 538 | 345 | |
| NONCURRENT LIABILITIES: | ||
| Long-term debt and other long-term obligations | 3,023 | 2,339 |
| Accumulated deferred income taxes, net | 1,348 | 1,192 |
| Nuclear fuel disposal costs | 245 | 235 |
| Retirement benefits | 32 | 71 |
| Other | 763 | 764 |
| 5,411 | 4,601 | |
| TOTAL LIABILITIES | 5,949 | 4,946 |
| COMMON STOCKHOLDER'S EQUITY: | ||
| Common stock, $10 par value, authorized 16,000,000 shares - 13,628,447 shares outstanding | 136 | 136 |
| Other paid-in capital | 3,530 | 3,523 |
| Accumulated other comprehensive loss | (4) | (4) |
| Retained earnings | 1,498 | 1,312 |
| TOTAL COMMON STOCKHOLDER’S EQUITY | 5,160 | 4,967 |
| COMMITMENTS, GUARANTEES AND CONTINGENCIES (NOTE 14.) | ||
| TOTAL LIABILITIES AND COMMON STOCKHOLDER’S EQUITY | $11,109 | $9,913 |
STATEMENTS OF COMMON STOCKHOLDER’S EQUITY
| Common Stock | ||||||
|---|---|---|---|---|---|---|
| (In millions, except share amounts) | Number of Shares | Carrying Value | Other Paid-In Capital | AOCI | Retained Earnings | Total Stockholder's Equity |
| Balance, January 1, 2023 | 13,628,447 | $136 | $2,742 | $(5) | $1,095 | $3,968 |
| Net income | — | — | — | — | 125 | 125 |
| Stock-based compensation(1) | — | — | 5 | — | — | 5 |
| Equity contribution from parent | — | — | 30 | — | — | 30 |
| Balance, December 31, 2023 | 13,628,447 | $136 | $2,777 | $(5) | $1,220 | $4,128 |
| Net income | — | — | — | $— | 242 | 242 |
| Comprehensive income | — | — | — | 1 | — | 1 |
| Stock-based compensation(1) | — | — | 6 | — | — | 6 |
| Equity contribution from parent | — | — | 740 | — | — | 740 |
| Cash dividend declared on common stock | — | — | — | — | (150) | (150) |
| Balance, December 31, 2024 | 13,628,447 | $136 | $3,523 | $(4) | $1,312 | $4,967 |
| Net income | — | — | — | — | 306 | 306 |
| Stock-based compensation(1) | — | — | 7 | — | — | 7 |
| Cash dividends declared on common stock | — | — | — | — | (120) | (120) |
| Balance, December 31, 2025 | 13,628,447 | $136 | $3,530 | $(4) | $1,498 | $5,160 |
(1) In the form of FE common equity granted to certain JCP&L employees primarily related to the 401(k) Savings Plan.
STATEMENTS OF CASH FLOWS
| For the Years Ended December 31, | |||
|---|---|---|---|
| (In millions) | 2025 | 2024 | 2023 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net income | $306 | $242 | $125 |
| Adjustments to reconcile net income to net cash from operating activities- | |||
| Depreciation, amortization, and impairments | 130 | 172 | 152 |
| Transmission revenue collections, net | 21 | 6 | (14) |
| Deferred income taxes and investment tax credits, net | 143 | 230 | 48 |
| Spent nuclear fuel disposal trust income | 13 | 12 | 12 |
| New Jersey temporary rate credits, net | (20) | — | — |
| Employee benefit costs, net | (24) | (22) | (27) |
| Pension and OPEB mark-to-market adjustment | (55) | (24) | 29 |
| Changes in current assets and liabilities- | |||
| Receivables | (21) | (32) | (6) |
| Prepaid taxes and other current assets | — | 6 | (9) |
| Accounts payable | 87 | (7) | (6) |
| Accrued taxes | (10) | 17 | 1 |
| Accrued interest | 21 | (4) | 1 |
| Other current liabilities | 4 | — | (3) |
| Collateral, net | — | 29 | (57) |
| Employee benefit plan funding and related payments | — | (7) | (7) |
| Other | (24) | (9) | 25 |
| Net cash provided from operating activities | 571 | 609 | 264 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Capital investments | (1,105) | (879) | (633) |
| Sales of investment securities held in trusts | 102 | 121 | 38 |
| Purchases of investment securities held in trusts | (114) | (134) | (50) |
| Asset removal costs | (84) | (57) | (45) |
| Other | (3) | — | — |
| Net cash used for investing activities | (1,204) | (949) | (690) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| New financing- | |||
| Long-term debt | 1,350 | 700 | — |
| Short-term borrowings | |||
| Affiliated companies, net | 71 | — | 197 |
| Other, net | — | — | 200 |
| Redemptions and repayments- | |||
| Long-term debt | (650) | (500) | — |
| Short-term borrowings | |||
| Affiliated companies, net | — | (240) | — |
| Other, net | — | (200) | — |
| Equity contribution from parent | — | 740 | 30 |
| Common stock dividend payments | (120) | (150) | — |
| Other | (18) | (10) | (1) |
| Net cash provided from financing activities | 633 | 340 | 426 |
| Net change in cash, cash equivalents, and restricted cash | — | — | — |
| Cash, cash equivalents, and restricted cash at beginning of period | — | — | — |
| Cash, cash equivalents, and restricted cash at end of period | $— | $— | $— |
| SUPPLEMENTAL CASH FLOW INFORMATION: | |||
| Cash paid (received) during the year: | |||
| Interest (net of amounts capitalized) | $99 | $96 | $108 |
| Income taxes, net of refunds | $(15) | $(101) | $(11) |
| Significant non-cash transactions | |||
| Accrued capital investments | $92 | $82 | $59 |
COMBINED NOTES TO FINANCIAL STATEMENTS OF THE REGISTRANTS
| NoteNumber · Registrant · PageNumber | |||
|---|---|---|---|
| 1 | Organization and Basis of Presentation | FirstEnergy, JCP&L | 101 |
| 2 | Revenue | FirstEnergy, JCP&L | 111 |
| 3 | Earnings Per Share | FirstEnergy | 115 |
| 4 | Pension and Other Postemployment Benefits | FirstEnergy, JCP&L | 116 |
| 5 | Stock-Based Compensation Plans | FirstEnergy, JCP&L | 117 |
| 6 | Taxes | FirstEnergy, JCP&L | 119 |
| 7 | Leases | FirstEnergy, JCP&L | 126 |
| 8 | Variable Interest Entities | FirstEnergy, JCP&L | 131 |
| 9 | Asset Retirement Obligations | FirstEnergy, JCP&L | 132 |
| 10 | Fair Value Measurements | FirstEnergy, JCP&L | 134 |
| 11 | Capitalization | FirstEnergy, JCP&L | 137 |
| 12 | Short-Term Borrowings and Bank Lines of Credit | FirstEnergy, JCP&L | 142 |
| 13 | Regulatory Matters | FirstEnergy, JCP&L | 143 |
| 14 | Commitments, Guarantees and Contingencies | FirstEnergy, JCP&L | 154 |
| 15 | Segment Information | FirstEnergy, JCP&L | 160 |
| 16 | Transactions with Affiliates | JCP&L | 165 |
| 17 | Revision of Previously Issued Quarterly Financial Statements (Unaudited) | JCP&L | 165 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.