FE · 10-Q · 2026Q1 · Full report

Income Tax Rate

FIRSTENERGY CORP · 2026-04-28 · Importance 18 · Surprise 14

The effective income tax rate was 25.0% for the three months ended March 31, 2026, compared with 25.4% for the three months ended March 31, 2025. This represents a 0.4 percentage point decline in the effective tax rate year-over-year. The filing does not quantify the dollar impact of the tax rate change on Q1 2026 net income in this section. The slight decline in the rate provided limited downward pressure on effective tax expense in Q1 2026.

Key facts

• Distribution segment effective tax rate was 20.6% for the three months ended March 31, 2026 and 21.6% for the three months ended March 31, 2025.
• Integrated segment effective tax rate was 23.1% for the three months ended March 31, 2026 and 22.7% for the three months ended March 31, 2025.
• Stand-Alone Transmission effective tax rate was 23.2% for the three months ended March 31, 2026 and 22.9% for the three months ended March 31, 2025.
• The effective tax rate for the three months ended March 31, 2026 was 25.0% and for the three months ended March 31, 2025 was 25.4%.
• FirstEnergy reversed $18 million in corporate AMT credit carryforwards in the first quarter of 2026 related to corporate AMT incurred and paid in prior tax years for the FirstEnergy consolidated tax group and the FET consolidated tax group; this reversal had no impact on the effective tax rate.