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    EIX
    Earnings call· Dec 2025(Q4 FY25)

    EDISON INTERNATIONAL Q4 FY25 earnings call EIX

    Feb 18, 2026 Source

    Executive summary

    Edison International Q4 FY25 — Exceeds EPS Guidance, Extends Growth Target to 2030

    Edison International exceeded its Q4 FY25 core EPS guidance, successfully delivering its long-term growth target. The company reaffirmed its 2028 outlook and extended its 5% to 7% EPS growth target through 2030, supported by a robust capital plan and no projected equity needs. While 2026 EPS growth is muted due to specific variances, the company anticipates higher growth in subsequent years driven by rate base expansion and continued operational focus.

    Highlights

    5

    • Full year 2025 core EPS of $6.55 exceeded the high end of guidance, extending a 2-decade track record of meeting or exceeding annual EPS guidance.

    • Successfully delivered the long-term core EPS growth target established for 2021 through 2025.

    • SCE announced a 2.3% rate decrease for residential customers and a 5.3% decrease for small- and medium-sized business customers.

    • Projected rate base growth of approximately 7% from 2025 to 2030.

    • No equity needs projected for the next five years through 2030.

    Concerns

    3

    • Fourth quarter core EPS includes $0.06 of costs attributed to preferred stock tender offers and redemption.

    • Muted 2026 core EPS growth of about 3.5% at midpoint compared to the $5.84 baseline, driven by a $0.25 impact from fewer regulatory decisions, asset mix differences, and financing/tax variances.

    • Eaton fire investigations remain ongoing, with SCE unable to reasonably estimate a range of potential losses, though confident in demonstrating reasonable utility conduct.

    Guidance & targets

    8
    CategoryTargetConfidence
    Core EPS
    $5.90 to $6.20
    high materiality
    High
    Core EPS
    $6.25 to $6.65
    high materiality
    High
    Core EPS growth target
    5% to 7%
    high materiality
    High
    2028 Core EPS outlook
    Reaffirmed (5% to 7% growth from $5.84 baseline)
    high materiality
    High
    Dividend yield
    approximately 5%
    medium materiality
    High
    Total shareholder returns
    10% to 12%
    medium materiality
    High
    Equity needs
    No equity needs
    high materiality
    High
    Woolsey Securitization closing
    mid-2026
    medium materiality
    High

    Operational metrics

    17
    Core EPS
    $1.86
    Q4 2025

    Reported for the fourth quarter.

    Core EPS
    $6.55exceeded high end of guidance
    Full-year 2025

    Exceeded the high end of the company's guidance range.

    Preferred stock tender offer costs
    $0.06
    Q4 2025

    Included in Q4 core EPS.

    Woolsey cost recovery true-up
    $0.46
    Q4 2025

    Recorded following final decision in Woolsey cost recovery proceeding.

    Core EPS growth
    3.5%
    2026

    Muted growth at the midpoint compared to the 2025 baseline, driven by specific variances.

    Core EPS growth
    high end of 5% to 7% range
    2027

    Expected growth in 2027, supported by SCE's 7% rate base growth.

    Long-term core EPS growth target delivery
    successfully delivered
    2021-2025

    Successfully delivered the target established for the period.

    Residential rate decrease
    2.3%
    Recent

    Announced by SCE.

    Small- and medium-sized business rate decrease
    5.3%
    Recent

    Announced by SCE.

    System average rate vs. California major IOUs
    20% lower
    Current

    SCE maintains the lowest system average rate.

    Typical non-CARE residential customer bill
    $188modestly higher than $180 two years ago
    Current

    Reflects disciplined cost management.

    Wildfire claims submitted
    >2,300
    To date

    Under the wildfire recovery compensation program.

    Wildfire offers made
    >590
    To date

    Under the wildfire recovery compensation program.

    Eligible properties for WRCP
    18,000
    Current

    Potential pool for the wildfire recovery compensation program.

    Subrogation settlement rate
    ~0.55
    Recent

    Average rate for two subrogation settlements.

    WRCP legal fees coverage
    20%increased from 10%
    Ongoing

    Increased to provide stronger support for claimants.

    Eaton fire donation
    $2M
    Current

    Donation to Pasadena Community Foundation for recovery efforts.

    Industry KPIs

    2
    MetricValueDetails
    Ffo to debt15% to 17%%
    Regulatory rate base growthapproximately 7%%

    Capital programs

    3
    SCE Capital Planunderway$38B to $41B
    Start: 2026

    Benefit: Essential work in load growth-driven programs, infrastructure replacement, and wildfire mitigation

    Extended capital plan, includes opportunities up to $9B per year in the next GRC cycle.

    Advanced Metering Infrastructure (AMI) 2.0upcoming applicationexceed $3B
    Period spend: $1.5B
    Start: 2026

    Benefit: Significant long-term customer benefits

    Total request will exceed $3B, with $1.5B included in the 2026-2030 capital plan and remaining spending through 2033.

    Woolsey Securitizationpending regulatory approvalabout $2B

    Benefit: Offset normal course debt issuances at SCE

    Utility filed application with CPUC; proceeds will offset debt issuances rather than paying down specific ones.

    Risks & headwinds

    5
    Eaton Fire Liability EstimationOngoing

    Unable to reasonably estimate a range of potential losses

    Mitigation: Confident in demonstrating reasonable utility conduct; actively prioritizing recovery for impacted community members; made $2M donation.

    Muted 2026 EPS GrowthFull-year 2026

    3.5% at midpoint, $0.25 impact

    Mitigation: Variances are baked into 2026 and not expected to result in negative variances in later periods; expected EPS growth in 2027 to be at the high end of 5-7% range.

    Pace of Wildfire Claims ProcessingOngoing

    2,300 claims submitted, >590 offers made, 18,000 eligible properties

    Mitigation: Tweaked WRCP program to provide stronger support for displaced renters and increased legal fees coverage; aim for program stability.

    Credit Rating Agency ScrutinyOngoing

    California specific risk factors

    Mitigation: Actively engaging with policymakers and state leaders to reinforce the value of a stable regulatory framework and strengthen regulatory durability.

    LA District Attorney's Investigation (Eaton Fire)Ongoing

    Investigation to determine whether criminal violations occurred

    Mitigation: Team will collaborate with the attorney's office; confident SCE can make a good faith showing of reasonable utility conduct.

    Q&A highlights

    8

    When will the company be able to estimate the low end of losses for the Eaton fire, given $1.1 billion recorded so far?

    Management clarified that the $1.1 billion recorded is a combination of Wildfire Recovery Compensation Program (WRCP) payments and subrogation settlements. With only 2,300 claims submitted out of 18,000 eligible properties (potentially tens of thousands of claimants), they cannot yet estimate a range of potential losses with GAAP confidence.

    “we really don't have an estimate for that yet because it really depends on the pace of this.”

    asked by Nicholas Campanella · answered by Pedro Pizarro

    2 min read6 chapters

    Detailed Narrative

    01

    Wildfire Risk Mitigation & Customer Trust

    SCE has installed over 7,000 miles of covered conductor in high fire risk areas, representing over 90% of its planned grid hardening effort. The utility has also implemented fast-curve settings on 93% of its distribution circuits to quickly detect and address faults. This extensive work has contributed to SCE achieving the highest absolute brand trust score among large California investor-owned utilities in a Q4 2025 residential customer engagement survey.

    02

    Customer Affordability & Rates

    SCE announced a 2.3% rate decrease for residential customers and a 5.3% decrease for small- and medium-sized business customers. The utility maintains the lowest system average rate among California's major investor-owned utilities by a 20% margin. A typical non-CARE residential customer pays about $188 per month, a modest increase from $180 two years ago, reflecting disciplined cost management to support affordability.

    03

    Eaton Fire Update

    Investigations into the Eaton fire remain ongoing. While SCE has not conclusively determined its equipment caused the ignition, it believes it is likely associated, absent other evidence. The company is currently unable to reasonably estimate a range of potential losses but remains confident in demonstrating that its conduct was consistent with a reasonable utility. Edison International has donated $2 million to the Pasadena Community Foundation to aid community recovery efforts.

    04

    Regulatory Visibility & Policy Engagement

    2025 was a significant regulatory year, concluding GRC, cost of capital, TKM, and Woolsey settlement agreements, providing greater clarity into capital plans and revenue requirements. The company is actively engaged in the SB 254 natural catastrophe resiliency study, advocating for a 'whole-of-society' solution to mitigate wildfire risk, enhance public safety, improve affordability, and support predictable long-term investment in California's energy system.

    05

    Capital Plan & AMI 2.0

    SCE's extended capital plan of $38 billion to $41 billion from 2026 through 2030 includes nearly $1.5 billion for the upcoming Advanced Metering Infrastructure (AMI) 2.0 application. The total AMI 2.0 request will exceed $3 billion, with spending expected to continue through 2033. This capital deployment is driven by essential investments in load growth, infrastructure replacement, and wildfire mitigation, projected to result in approximately 7% rate base growth.

    06

    Financial Trajectory & Financing

    The company projects no equity needs for the next five years through 2030, maintaining a strong balance sheet within its 15% to 17% FFO to debt framework. The Woolsey Securitization, valued at approximately $2 billion, is expected to close in mid-2026, with proceeds used to offset normal course debt issuances rather than paying down specific issuances.

    AI-generated summary of the company’s earnings call. Not investment advice.