FEMEDIUM SIGNALFINANCIAL10-K

FirstEnergy shows strong revenue and cash flow growth but concerning debt increase and significant cash decline in its combined filing structure with Jersey Central Power Light.

The 13.4% debt increase to $25.5B combined with a 48.6% drop in cash reserves suggests potential liquidity pressures despite operational improvements. The strong operating cash flow growth of 28% indicates underlying business performance remains solid, but the cash burn and increased leverage warrant monitoring.

Comparing 2026-02-18 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

FirstEnergy delivered strong operational performance with revenue growing 12% to $15.1B and operating cash flow surging 28% to $3.7B, indicating robust underlying business fundamentals. However, the company's financial position shows stress with total debt rising 13.4% to $25.5B while cash plummeted 48.6% to just $57M, creating a concerning liquidity picture. The combination of increased leverage, reduced cash buffers, and higher accounts receivable suggests the utility is managing through a capital-intensive period that requires careful monitoring of debt servicing capabilities.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-48.6%
$111.0M$57.0M

Cash declined 48.6% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Cash Flow
Cash Flow
+28%
$2.9B$3.7B

Operating cash flow grew 28% — strong conversion of earnings to cash, healthy business fundamentals.

Total Debt
Balance Sheet
+13.4%
$22.5B$25.5B

Debt rose 13.4% — additional borrowing for investment or operations; monitor coverage ratios.

Accounts Receivable
Balance Sheet
+12.8%
$1.5B$1.7B

Receivables grew 12.8% — monitor days sales outstanding for collection efficiency.

Revenue
P&L
+12%
$13.5B$15.1B

Revenue growing 12% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-18
PRIOR — 2025-02-27
ADDED
Employer File Number Address and Telephone Number States of Incorporation Identification No.
Common Stock, $0.10 par value 577,932,879 Jersey Central Power Light Company Common Stock, $10 par value 13,628,447 , all held by FirstEnergy Corp.
This combined Form 10-K is separately filed by FirstEnergy Corp.
Information contained herein relating to any individual registrant is filed by such registrant on its own behalf.
Jersey Central Power Light Company makes no representation as to information relating to FirstEnergy Corp.
Jersey Central Power Light Company meets the conditions set forth in General Instruction I(1)(a) and (b) of Form 10-K and is therefore filing this Form 10-K with the reduced disclosure format specified in General Instruction I(2) to Form 10-K.
Management s Discussion and Analysis of Financial Condition and Results of Operations 29 FirstEnergy Corp.
Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Jersey Central Power Light Company Management s Narrative Discussion and Analysis of Results of Operations 80 Item 7A.
Consolidated Statements of Income 90 Consolidated Statements of Comprehensive Income 91 Consolidated Balance Sheets 92 Consolidated Statements of Stockholders' Equity 94 Consolidated Statements of Cash Flows 95 Jersey Central Power Light Company Statement s of Income and Comprehensive Income 96 Balance Sheets 97 Statements of S tockholder's Equity 98 Statements of Cash Flows 99 Combined Notes To Financial Statements of the Registrants 100 Item 9.
Department of Energy DominionHV Dominion High Voltage Mid-Atlantic, Inc., an affiliate of VEPCO DPA Deferred Prosecution Agreement entered into on July 21, 2021 between FE and the U.S.
REMOVED
Employer File Number Address; and Telephone Number Identification No.
Management s Discussion and Analysis of Financial Condition and Results of Operations 30 Item 7A.
and its current and former subsidiaries: AE Supply Allegheny Energy Supply Company, LLC, an unregulated generation subsidiary of FE AGC Allegheny Generating Company, a generation subsidiary of MP ATSI American Transmission Systems, Incorporated, a transmission subsidiary of FET CEI The Cleveland Electric Illuminating Company, an Ohio electric utility subsidiary of FE Electric Companies OE, CEI, TE, JCP L, MP, PE and FE PA (as successor-in-interest to Penn, ME, PN and WP) FE FirstEnergy Corp., a public utility holding company FENOC Energy Harbor Nuclear Corp.
AFS Available-for-sale AFSI Adjusted Financial Statement Income AFUDC Allowance for Funds Used During Construction AMI Advanced Metering Infrastructure AMT Alternative Minimum Tax AOCI Accumulated Other Comprehensive Income (Loss) ARO Asset Retirement Obligation ARP Alternative Revenue Program ASC Accounting Standards Codification ASU Accounting Standards Update Bankruptcy Court U.S.
Department of Energy DPA Deferred Prosecution Agreement entered into on July 21, 2021 between FE and the U.S.
Ohio DSIC Distribution System Improvement Charge EBRG Employee Business Resource Group EDC Electric Distribution Company EDCP FE Amended and Restated Executive Deferred Compensation Plan EE C Energy Efficiency and Conservation EEI The Edison Electric Institute iv EGS Electric Generation Supplier EGU Electric Generation Unit EH Energy Harbor Corp.
ELG Effluent Limitation Guidelines EmPOWER Maryland EmPOWER Maryland Energy Efficiency Act ENEC Expanded Net Energy Cost Energize365 FirstEnergy's Transmission and Distribution Infrastructure Investment Program.
2020 Incentive Compensation Plan IRA of 2022 Inflation Reduction Act of 2022 IRS Internal Revenue Service KATCo Revolving Facility KATCo s four-year syndicated revolving credit facility, dated as of October 20, 2023, as amended through October 24, 2024 kV Kilovolt kWh Kilowatt-hour LOC Letter of Credit LTIIP Long-Term Infrastructure Improvement Plan MDPSC Maryland Public Service Commission MGP Manufactured Gas Plants Moody s Moody s Investors Service, Inc.
PJM Tariff PJM Open Access Transmission Tariff POLR Provider of Last Resort PPA Purchase Power Agreement PPUC Pennsylvania Public Utility Commission PUCO Public Utilities Commission of Ohio Regulation FD Regulation Fair Disclosure promulgated by the SEC RFC ReliabilityFirst Corporation ROE Return on Equity RTO Regional Transmission Organization S P Standard Poor s Ratings Service S P 500 Standard Poor s 500 index S.D.
FirstEnergy s transmission operations include more than 24,000 miles of transmission lines and two regional transmission operation centers.
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