Con Eds Revenue Rises, But Earnings Fall as Price Action Defies Results

Consolidated Edison (ED) reported mixed results for 2025 Q4, with revenue rising 8.9% to $3.99 billion but EPS and net income declining. The company maintained its long-term profitability streak, and 2026 guidance aligned with expectations.

Revenue

The total revenue of Consolidated Edison increased by 8.9% to $3.99 billion in 2025 Q4, up from $3.67 billion in 2024 Q4. Electric revenue led the way with $2.88 billion, while gas revenue added $923 million to the total.

Earnings/Net Income

Consolidated Edison's EPS declined 8.0% to $0.82 in 2025 Q4 from $0.89 in 2024 Q4. Meanwhile, the company's net income declined to $297 million in 2025 Q4, down 4.2% from $310 million reported in 2024 Q4. Despite the decline, the company has maintained profitability for over two decades, showcasing operational resilience.

Price Action

The stock price of Consolidated Edison has edged down 0.29% during the latest trading day, has edged up 1.87% during the most recent full trading week, and has climbed 7.81% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Consolidated Edison (ED) shares after its revenue drop quarter-over-quarter on the financial report released date and holding for 30 days resulted in poor performance over the past three years. The strategy had a CAGR of -2.55% and an excess return of -73.22%, significantly underperforming the benchmark return of 63.94%. The strategy also had a high maximum drawdown of 19.83% and a Sharpe ratio of -0.19, indicating significant risk and losses.

CEO Commentary

Tim Cawley, Chairman and CEO of Con Edison, emphasized the durability of regulated businesses and the value of disciplined, forward-looking investments in 2025. He highlighted growing demand for a modern, resilient grid driven by customer electrification of homes, businesses, and vehicles, stating proactive investments support stable, long-term shareholder returns and regional reliability. Cawley underscored strategic priorities: prioritizing capital projects for regional growth, maintaining cost discipline, and expanding discounts for income-eligible customers to foster economic participation. The tone conveyed optimism about Con Edison’s ability to deliver consistent performance amid economic and geopolitical challenges, with a focus on clean energy transition and infrastructure resilience.

Guidance

Con Edison expects 2026 adjusted earnings per share (non-GAAP) to range between $6.00 and $6.20, with a five-year compounded annual growth rate of 6% to 7% for adjusted EPS, based on the midpoint of 2026 guidance. Capital investments are projected at $6,595 million in 2026, $6,759 million in 2027, and $24,339 million from 2028 to 2030. Financing will include internally generated funds, long-term debt (up to $3,200 million in 2026), and common equity (up to $1,100 million in 2026). The company reaffirmed its dividend increase for the 52nd consecutive year and linked growth to its three-year rate plan. Forward-looking statements exclude non-operational items like tax equity adjustments and transaction costs, with actual results subject to regulatory approvals and market conditions.

Additional News

Consolidated Edison recently sold a 6.6% stake in Mountain Valley Pipeline to Ares Management for $357.5 million, signaling strategic divestment activity. The company also reaffirmed its commitment to a 52nd consecutive year of dividend increases, reinforcing its focus on shareholder returns. Additionally, Con Edison plans to fund its $24.3 billion capital investments from 2028–2030 through a mix of internal funds, debt, and equity offerings, underscoring its long-term financial planning.