Edison International reported fourth‑quarter 2025 results that exceeded analyst expectations. Net income reached $1,848 million, giving GAAP earnings per share of $4.80, while core earnings climbed to $717 million, or $1.86 per share. The company beat the consensus EPS estimate of $4.47 by $0.33, and revenue of $5.21 billion surpassed the $4.38 billion estimate by $0.83. The strong performance was driven by a $661 million revenue true‑up from the 2025 General Rate Case final decision, a $1.3 billion after‑tax benefit from the TKM settlement, and cost recoveries related to wildfire mitigation.
Full‑year 2025 figures also outpaced forecasts. Net income totaled $4,459 million, generating GAAP EPS of $11.58 and core earnings of $2,520 million, or $6.55 per share. The full‑year core EPS beat the consensus estimate of $5.93 by $0.62. The year‑long gains were largely attributable to the same revenue true‑up and settlement benefits, as well as disciplined cost management that kept operating margins stable despite higher interest expenses.
Management reiterated its 2026 and 2027 core EPS guidance, maintaining a range of $5.90 to $6.20 for 2026 and $6.25 to $6.65 for 2027. The company also reaffirmed its 5‑7% core EPS growth target through 2030, signaling confidence that regulatory approvals and grid‑hardening investments will continue to support earnings growth without the need for new equity. The guidance reflects expectations of continued revenue recognition from the 2025 GRC final decision and ongoing wildfire cost recoveries.
Edison International declared a quarterly common‑stock dividend of $0.8775 per share, payable on April 30 2026, and reaffirmed its dividend policy of a 45‑55% payout ratio. The dividend increase aligns with the company’s strategy to return value to shareholders while preserving capital for future grid investments.
Market reaction to the earnings was mixed. Some analysts noted that the 2026 core EPS guidance was slightly below consensus estimates, but the overall sentiment remained positive due to the substantial revenue beat and the company’s clear path to sustained profitability. The results reinforced Edison’s derisked earnings trajectory and its ability to fund growth without diluting shareholders.
Management emphasized the broader context of the results. President and CEO Pedro J. Pizarro said, 'This year's results reflect the progress we're making to deliver a safer, more resilient, and more affordable energy system for customers.' He added, 'SCE's extensive wildfire mitigation approach has resulted in the installation of more than 7,000 miles of covered conductor in high fire risk areas—over 90% of the utility's planned grid hardening effort. This work continues to play a critical role in reducing ignition risk and strengthening reliability for the communities we serve.' CFO Maria Rigatti highlighted the company’s confidence in its capital plan, stating, 'We project no equity needs for the next five years through 2030.'
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.