Total Revenue (Income Statement)

+95% (from $3,146M in Q4 2023 to $6,128M in Q4 2024)

A dramatic revenue jump is observed, likely due to the recovery of previously deferred items, increased regulated revenue elements, and a broadened revenue base that incorporates new or reclassified income streams compared to the prior period. " "

Operating Income

~+8% (from $568M to $613M)

Modest improvement in operating income reflects the positive impact of increased revenues coupled with controlled operating expenses, although higher expense items (such as restoration and management costs) prevented margin expansion from keeping pace with the near‐doubling of revenue. " "

Net Income

+36% (from $192M in Q4 2023 to $261M in Q4 2024)

A 36% increase in net income is driven by the stronger revenue performance and improved cost management, which helped boost bottom‐line profitability relative to the previous period's figures, indicating more efficient earnings conversion despite a higher expense base in some areas. " "

EPS – Basic

+50% (from $0.30 to $0.45)

The 50% rise in Basic EPS results from the significant net income improvement and the dilution effects being favorable over the period, reflecting both operational improvements and possibly lower cost pressures that enhanced per-share profitability compared to Q4 2023. " "

Depreciation & Amortization (D&A)

+440% (from $112M in Q4 2023 to $608M in Q4 2024)

A dramatic 440% rise in D&A primarily indicates a much larger asset base and accelerated depreciation related to extensive recent capital investments and adjustments in regulatory asset deferrals – factors that were less significant in the previous period. " "

Adjustments for Non-Cash Items

+720% (from $207M in Q4 2023 to $1,694M in Q4 2024)

The 720% surge in non-cash adjustments is attributable to large-scale remeasurements and deferred expense recognition which were minimal in Q4 2023; these adjustments signal a shift towards recognizing previously deferred items and valuation changes as part of the current period’s accounting. " "

Capital Expenditures (CapEx)

Swing from +$1,004M in Q4 2023 to –$6,766M in Q4 2024

A significant swing in CapEx reflects a strategic change from capital spending to asset dispositions or capital recycling initiatives; the negative value in Q4 2024 suggests that asset sales or returns of capital are being recognized, a stark contrast to the previous period’s heavy outlay. " "

Revenue Segmentation (by business segment)

Nearly flat overall; key segments declined: Distribution –38%; Stand-Alone Transmission –28%

While overall consolidated segmented revenue remained nearly unchanged, the considerable declines in the Distribution (–38%) and Stand-Alone Transmission (–28%) segments indicate a shift in the revenue mix – likely due to regulatory rate adjustments, reclassifications, or changes in customer mix, with growth possibly absorbed by other segments not showing such steep declines. " "

Core EPS Guidance

FY 2025

no prior guidance

$2.40 to $2.60 per share "

no prior guidance

Core Earnings Growth Rate

FY 2025

no prior guidance

6% to 8% "

no prior guidance

Capital Investment Plan

FY 2025

no prior guidance

$5 billion in 2025; increasing to $6.4 billion by 2028 with 9% growth "

no prior guidance

Dividend Guidance

FY 2025

no prior guidance

$1.78 per share "

no prior guidance

Debt Financing Plan

FY 2025

no prior guidance

8 transactions approximating $3.6 billion, with $2 billion in new money requirements "

no prior guidance

Return on Equity (ROE)

FY 2025

no prior guidance

9.5% to 10% "

no prior guidance

Regulatory uncertainty in Ohio

Q2 discussions focused on unclear aspects of ESP V and an ongoing base rate case ( " " " ); Q1 mentioned audit cases and traditional base rate case filings to resolve issues ( " " )

Q4 emphasized no regulatory overhang, clear separation of legacy issues from rate proceedings, and constructive auditor feedback ( " " " " )

Improved regulatory clarity and reduced uncertainty over time, with a more reassuring regulatory environment in Q4.

Capital investments and grid modernization initiatives

Q2 featured the launch of a $26B Energize365 program, partial Grid Mod II settlement filings, and LTIP 3 filings in Pennsylvania ( " " " ); Q1 discussed CapEx increases and grid modernization initiatives including Grid Mod II settlements ( " )

Q4 highlighted an expanded Energize365 program increased to $28B, approved Grid Mod II settlement in Ohio, and continued investments in Pennsylvania and New Jersey ( " " " )

Consistent aggressive investment with growing scale; sentiment remains strongly bullish on grid modernization and future growth.

Legal and regulatory investigations with legacy issue resolution

Q2 provided detailed updates on DPA completion, SEC settlement, and OOCIC resolution efforts with associated reserves ( " " ); Q1 discussed ongoing legacy investigations with plans for resolution through settlements and tracking mechanisms ( " " " )

Q4 noted that several Ohio legacy proceedings were resolved and that legacy issues were now being clearly separated from traditional rate matters ( " " )

Legacy issues have been de-emphasized as resolutions progress, shifting focus to future priorities.

Data center growth and load expansion opportunities

Q2 emphasized a surge in load study requests, transmission opportunities (e.g., PJM Open Window 3), and moderate incremental load impacts ( " " ); Q1 described geographic expansion and proactive transmission investments with notable customer engagement ( " " )

Q4 underscored strong data center demand with 2.6 GW contracted and a robust pipeline, projecting incremental CapEx and load growth especially in Ohio and Maryland ( " " " )

Continued optimism and a growing pipeline, indicating sustained and expanding opportunities for load growth.

West Virginia generation investment for replacing retiring coal assets

Q2 discussed an “all of the above” approach with openness to combined cycle and solar as part of the IRP ( " " ); Q1 mentioned the possibility of building generation assets if requested by the state ( " )

Q4 provided a clearer strategy with planned retirement of 3,000 MW of coal and a proposal to develop 3,000–4,000 MW of combined cycle generation, with potential investments of $3–6 billion ( " )

More defined and strategic investment planning with a clearer commitment to replacing retiring coal, indicating increasing focus on long-term generation needs.

Pension underfunding and financial flexibility risks

Q2 focused on initiating a second pension lift‐out to address the remaining $700M nonregulated liability ( " " ); Q1 discussed mechanisms and prior lift-outs to reduce volatility and manage pension liabilities ( " )

Q4 reported a pension plan at 84% funded and highlighted completed lift-outs (totaling ~$1.4B) that have reduced volatility despite lower asset performance ( " " )

Consistent risk mitigation through pension lift-outs and tracking, maintaining financial discipline around pension-related risks.

Financing challenges and potential equity dilution

Q2 emphasized limited balance sheet capacity (less than 5% of CapEx), equity needs up to $100M annually, and debt reduction progress ( " " ); Q1 pointed to a strong equity raise ($7B over several years) that eliminated the need for further equity issuance for the base investment plan ( " " " )

Q4 noted financing challenges due to incremental investments (e.g., a potential $350M for data centers) and rising interest rates, but overall financing for the base plan remains stable ( " " " )

Financing pressures persist in light of high CapEx, yet a strong balance sheet and careful regulatory recovery strategies keep equity dilution risks low.

Stable financial metrics and dividend growth outlook

Q1 highlighted strong operating earnings guidance, a dividend increase of 6.25%, and a solid balance sheet post-equity raise ( " " ); Q2 did not provide explicit details on these metrics

Q4 reported stable FFO to total debt at 14% and a dividend outlook of $1.78 per share in 2025, reinforcing steady dividend growth (6–8% CAGR) over the planning horizon ( " " " )

Stable and positive financial metrics continue, supporting a predictable dividend growth outlook and investor confidence.

DOE funding initiatives for grid enhancement technologies

Q1 mentioned pursuing approximately $500M from DOE’s GRIP program for distributed energy management, AMI, grid resilience, and energy storage projects ( " " )

Q4 contained no reference to DOE funding initiatives

This topic is no longer mentioned in later periods, suggesting it may have been deprioritized or integrated into broader grid modernization initiatives.