FirstEnergy Transmission, LLC Annual Report - Your Investor Snapshot for 2025

Unlock the key insights from FirstEnergy Transmission, LLC's (FET) annual report for the year ending December 31, 2025. This summary breaks down their performance into plain English, focusing on what matters most for you as an investor.

FirstEnergy Transmission, LLC: A Closer Look at 2025 Performance

Business Overview

Who is FirstEnergy Transmission, LLC (FET)? FirstEnergy Transmission, LLC (FET), a Delaware-based company headquartered in Fairmont, WV, operates as a vital part of the larger FirstEnergy Corp. (FE) family. As a wholly-owned subsidiary, FET focuses on the essential business of electricity transmission – efficiently and reliably moving power from generation sources to local distribution networks.

FET serves as the parent company for key transmission subsidiaries, including American Transmission Systems, Incorporated (ATSI), Mid-Atlantic Interstate Transmission LLC (MAIT), and TrAILCo. Additionally, FET holds significant interests in strategic joint ventures like PATH, Valley Link, and Grid Growth, all dedicated to enhancing regional grid capacity and resilience.

Can I invest directly in FET? For retail investors, it's important to know that FET's common equity does not trade publicly on a stock exchange. Typically, investors gain exposure to FET's operations through ownership of its publicly traded parent company, FirstEnergy Corp.

Financial Performance

2025 Financial Highlights: Strategic Investment and Stable Performance For the fiscal year ended December 31, 2025, FET delivered solid financial performance, driven by ongoing investment in its regulated asset base.

• Revenue: FET reported total operating revenues of approximately $1.85 billion, a 6% increase from the previous year. Higher transmission service rates, approved by the Federal Energy Regulatory Commission (FERC), and a growing rate base primarily drove this increase.
• Net Income: Net income for the year reached $420 million, reflecting effective cost management and the increased revenue.
• Capital Expenditures: The company invested a substantial $1.1 billion in grid modernization and expansion projects during 2025. This underscores its commitment to reliability and future growth. Key investments included upgrading over 300 miles of transmission lines and enhancing substation capacity across its service territories.

Risk Factors

Key Risks While FET benefits from a stable, regulated business model, investors should be aware of potential risks:

• Regulatory Environment: Changes in FERC regulations or state-level energy policies could impact approved transmission rates and how FET recovers costs.
• Capital Project Execution: Delays or cost overruns in large-scale transmission projects could affect financial performance and return on investment.
• Operational Risks: Extreme weather events, cybersecurity threats, and equipment failures pose ongoing challenges to grid reliability and operational costs.
• Interest Rate Fluctuations: As a capital-intensive business, FET is sensitive to changes in interest rates, which can affect borrowing costs for new projects.

Management Discussion and Analysis (MD&A) Highlights

Management highlighted the drivers behind the financial results and operational achievements.

• Revenue Growth: The 6% revenue increase stemmed primarily from higher FERC-approved transmission service rates and a growing rate base, reflecting ongoing investments.
• Net Income: Effective cost management supported net income growth.
• Operational Progress: Operationally, 2025 saw significant progress in grid modernization. This included completing Phase 2 of the "Power Up" initiative, which enhanced resilience in Ohio and Pennsylvania.
• Strategic Ventures: Strategic joint ventures like PATH and Valley Link advanced on schedule, contributing to future regional energy security.
• Renewable Integration: FET also continued its focus on facilitating renewable energy integration through necessary infrastructure upgrades.

These efforts underscore the company's commitment to reliability, capacity expansion, and supporting the energy transition.

Financial Health

Debt & Liquidity: FET maintained a strong financial position with manageable debt levels and robust liquidity. Its stable, regulated revenue streams and access to FirstEnergy Corp.'s broader credit facilities support this. This financial stability is crucial for funding its capital-intensive operations and investment programs.

Future Outlook

Outlook and Strategy Looking ahead, FET plans to continue its strategic capital investment program, focusing on grid resilience, capacity expansion, and supporting the energy transition. The company anticipates filing new rate cases in 2026 to ensure adequate cost recovery for its ongoing infrastructure investments. This strategy aims to ensure long-term reliability and meet evolving energy demands.

Competitive Position

As a regulated electric transmission utility, FET largely operates as a natural monopoly within its designated service territories. The regulatory framework established by the Federal Energy Regulatory Commission (FERC) and state utility commissions primarily defines its competitive position, granting exclusive rights to operate and maintain transmission infrastructure in specific areas.

Barriers to entry for new competitors remain extremely high due to the significant capital investment required, extensive regulatory approvals, and the need for rights-of-way. While FERC Order 1000 introduced competitive solicitations for certain new transmission projects, FET's established infrastructure, operational expertise, and strong relationship with its parent company, FirstEnergy Corp., provide a robust and stable competitive advantage in its core business.

Regulatory & Reporting Status The SEC classifies FET as a "Non-accelerated Filer." This designation reflects its market capitalization relative to larger public companies but does not diminish its commitment to transparent and rigorous financial reporting, subject to full SEC oversight. FET is confirmed not to be a "shell company," signifying its active and substantial operations.

In Conclusion: FirstEnergy Transmission, LLC delivered a strong performance in 2025, marked by significant capital investments, stable financial results, and progress on key operational initiatives. As a critical infrastructure asset within the FirstEnergy Corp. portfolio, FET plays an indispensable role in delivering reliable power and is strategically positioned for continued growth within the regulated transmission sector.