EXELON Q4 FY25 earnings call EXC

Exelon maintained top-quartile reliability metrics, ranking 1, 2, 4, and 7 among peers based on 2024 benchmarking data. The company's infrastructure demonstrated resilience during Winter Storm Fern, with fewer than 1% of customers experiencing outages despite PJM RTO experiencing 5 consecutive days of peak load reaching 97% of the all-time winter peak. These investments have prevented outages and delivered best-in-class service, creating 8 jobs or $1.6 million of economic output for every $1 million invested.

The company achieved several regulatory milestones, including final settlements for Atlantic City Electric and Delmarva gas rate cases, and reconciliation orders at ComEd and BGE. Exelon plans to invest $41.3 billion through 2029, a $3.3 billion (9%) increase from the prior plan, with over 70% of the increase driven by transmission investments. This plan is diversified across 7 regulatory jurisdictions, with no single jurisdiction exceeding 30% and no project more than 3% of the total.

Exelon is uniquely positioned to capitalize on transmission investments, with $1.2 billion of incremental investment recommended in recent PJM Reliability Window results. The company sees robust demand, with anticipated load growth exceeding 3% through 2029, supported by an increasing number of signed transmission security agreements (TSAs). There is line of sight to an additional $12 billion to $17 billion in transmission opportunities over the next decade, including $1 billion associated with high-density load projects with signed TSAs.

Customer affordability remains a top priority, with Exelon driving costs out of the business and maintaining cost growth well below inflation. The company executed a $60 million customer relief fund, advanced innovative TSAs, and expanded energy efficiency programs. Exelon is actively partnering with federal, RTO, and state leaders to address high supply prices and emerging reliability risks, advocating for an 'all-of-the-above' strategy including utility-generated energy, which a Charles River Associates study suggests could save PJM customers $9.6 billion to $20 billion in the 2028/2029 delivery year.

Exelon delivered $2.77 adjusted operating EPS for FY25, exceeding expectations. The company is initiating 2026 operating earnings guidance of $2.81 to $2.91 per share, with expected annual earnings growth near the top end of 5% to 7% through 2029. The $41.3 billion capital plan will be funded with $22 billion of internally generated cash flow, $13 billion of utility debt, $3 billion of holding company debt, and a modest $3.4 billion of equity over the 4-year plan, maintaining target credit metrics of 14%.