FE

FirstEnergy Corp.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is FE Halal?

Electric utility — permissible service but high debt and governance concerns.

What You Should Know

FirstEnergy's March 31, 2026 filing reports debt/assets of 49.30%, liquidity including identified short-term investments/assets of 0.16% and receivables plus cash/assets of 3.55%; gross interest income is not separately disclosed. Electric distribution and transmission remain generally permissible, while past bribery and governance issues, spent-nuclear-fuel trusts, environmental liabilities and financing structures require review.

⚠️ Concerns

  • Debt screen fails at 49.30% of assets
  • Past bribery and governance scandal
  • Spent-nuclear-fuel trust assets and restricted cash excluded from liquidity
  • Gross interest income and a universal prohibited-revenue numerator are unavailable

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
49.30%Above limit
Below 33.333% under FTSE Yasaar

28,060 / 56,917

Cash + interest-bearing securities / assets
0.16%Within limit
Below 33.333% under FTSE Yasaar

93 / 56,917

Receivables + cash / assets
3.55%Within limit
Below 50% under FTSE Yasaar

2,020 / 56,917

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt is 49.30% of total assets, above the examined 33.333% limit; liquidity including identified short-term investments is 0.16% and receivables plus cash are 3.55%, while gross interest income is unavailable.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt is 49.30% of total assets, above the examined 33.33% limit; liquidity and receivables-plus-cash are below the examined total-assets limits. This is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt is 49.30% of total assets, above the examined 33% limit; identifiable liquidity is below 33%. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible 24- or 36-month issuer market-cap history is not stored, so market-cap methods are not estimated from a current spot price.

Business-activity disclosure

FirstEnergy operates regulated electric distribution and transmission businesses in the Midwest and Mid-Atlantic. Core utility service is generally permissible, while transmission contracts, environmental liabilities, spent-nuclear-fuel trusts, conventional financing and governance history require qualitative review.

Limitation: The filing does not quantify a scholar-specific prohibited-revenue numerator or gross interest-income numerator; this is not an official Sharia classification.

Purification

Gross interest income is not separately disclosed and no scholar-approved purification percentage is prescribed; no fixed amount is estimated.

Inputs, assumptions and primary sources
  • Amounts are USD millions from FirstEnergy's March 31, 2026 Form 10-Q.
  • Interest-bearing debt includes $424 million of currently payable long-term debt, $1,305 million of short-term borrowings and $26,331 million of long-term debt and other long-term obligations; operating leases are excluded.
  • Cash and cash equivalents are $52 million and restricted cash of $28 million is excluded. $41 million of the fair-value investment balance is treated as identifiable unrestricted short-term investments; $282 million of debt securities in spent-nuclear-fuel trusts is excluded.
  • Receivables combine customer receivables net of allowance of $1,645 million and other receivables of $323 million; first-quarter revenue is $4,202 million.
  • The filing does not separately disclose gross interest income or a universal prohibited-revenue numerator.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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