Is FE (FirstEnergy Corp.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, FE is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in FE.

FirstEnergy Corp. is a major American utility company that generates, transmits, and distributes electricity across the United States. The company operates a diverse mix of power generation facilities, including coal, nuclear, natural gas, and renewable energy sources, managing over 24,000 miles of transmission lines. For Muslim investors using AAOIFI standards, FirstEnergy currently holds a Doubtful status and fails the overall shariah screening. Although the company's core business of providing electricity is perfectly permissible, the stock fails the financial screening due to heavily leveraged operations. The primary concern from an Islamic finance perspective is FirstEnergy's massive debt load, with its debt-to-market capitalization ratio reaching 96.3%, severely breaching the 33% maximum limit. On a positive note, the company's interest income is virtually non-existent at 0.00% of revenue, and cash reserves are very low at 0.4%, meaning the compliance failure is strictly tied to its borrowing practices. Given the capital-intensive nature of the regulated electric industry, high debt levels are common, but FirstEnergy's leverage is exceptionally high. Halal investors should monitor the company's balance sheet for significant debt reduction before considering it for a shariah-compliant portfolio. FirstEnergy Corp. operates in the Utilities sector under the Regulated Electric industry and is headquartered in Akron, OH, US. The company is led by CEO Brian X. Tierney and employs approximately 12,294 people.

FE was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. FE passed 3 of these 4 screens.

FE was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.