Edison International 2025 Q2 Earnings Misses Targets as Net Income Falls 21.8%

Edison International (EIX) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Edison International's earnings for the second quarter of 2025 failed to meet expectations, with EPS declining to $0.89 from $1.14 in the same quarter last year. The company reaffirmed its 2025 EPS guidance range, remaining confident in its ability to deliver growth despite ongoing challenges. The announcement highlighted the company's focus on maintaining operational resilience amidst economic headwinds.

Revenue
The total revenue of Edison International increased by 4.8% to $4.54 billion in 2025 Q2, up from $4.34 billion in 2024 Q2.

Earnings/Net Income
Edison International's EPS declined 21.9% to $0.89 in 2025 Q2 from $1.14 in 2024 Q2. Meanwhile, the company's net income declined to $398 million in 2025 Q2, down 21.8% from $509 million reported in 2024 Q2. Despite the decrease in EPS, Edison International continues to demonstrate strong operational resilience.

Post-Earnings Price Action Review
The strategy of buying EIX when earnings beat and holding for 30 days resulted in a 2.22% return, which significantly underperformed the benchmark return of 85.57%. Despite avoiding losses, the strategy's Sharpe ratio was 0.02, indicating a low risk-adjusted return and a failure to capitalize on broader market gains. The maximum drawdown was zero, suggesting the strategy avoided losses but had limited success in generating substantial returns. This highlights the challenges faced by investors relying solely on earnings beats as an indicator for stock appreciation, underscoring the need to consider additional market factors and broader industry trends for effective investment strategies.

CEO Commentary
Pedro J. Pizarro - President, CEO & Director emphasized that Edison International remains confident in its ability to meet 2025 EPS guidance despite reporting second quarter core EPS of $0.97, down from $1.23 a year ago. He highlighted ongoing investigations into the Eaton Fire, asserting that SCE equipment could be linked to the ignition, while also noting the importance of community engagement through the new wildfire recovery compensation program. Pizarro expressed optimism regarding legislative support for California's investor-owned utilities and the alignment of regulatory decisions with SCE’s commitments to safety, reliability, and affordability as essential for future growth.

Guidance
Edison International reaffirms its 2025 EPS guidance range of $5.94 to $6.34, anticipating a core EPS CAGR of 5% to 7% through 2028. The proposed decision in SCE's 2025 GRC suggests base revenue requirements of $9.8 billion in 2025, increasing to $11 billion by 2028, while maintaining a focus on significant capital investments in wildfire mitigation and infrastructure.

Additional News
In recent developments, Edison International has announced the launch of a Wildfire Recovery Compensation Program following investigations into the Eaton Fire. The program aims to engage communities affected by wildfires and provide necessary support for recovery efforts. Additionally, the company is actively engaging with legislative leaders to enhance California's AB 1054 regulatory framework for investor-owned utilities, seeking to bolster industry confidence and address wildfire-related liabilities. Furthermore, Edison International is focusing on grid modernization initiatives and renewable energy integration to drive future growth, positioning itself as a leader in clean energy solutions within the Electric Utilities sector.