Edison International 2025 Q3 Earnings Beats Expectations with 53.9% Net Income Growth

Edison International (EIX) delivered robust third-quarter results, surpassing revenue and earnings estimates while narrowing its 2025 guidance. The utility giant reported a 10.6% revenue increase to $5.75 billion and a 62.4% surge in EPS to $2.16, driven by regulatory settlements and infrastructure investments. Management now targets 5-7% core EPS growth through 2028.

Revenue

Edison International’s total revenue rose 10.6% year-over-year to $5.75 billion in Q3 2025, reflecting strong performance across its regulated utility operations. The increase was fueled by the 2025 General Rate Case (GRC) approval, which authorized 91% of Southern California Edison’s proposed capital expenditures. This regulatory progress bolstered operating revenue, which aligned with total revenue at $5.75 billion, underscoring the company’s focus on grid modernization and wildfire mitigation initiatives.

Earnings/Net Income

Net income surged 53.9% to $888 million in Q3 2025, with EPS climbing 62.4% to $2.16 from $1.33 in the prior-year period. Core EPS reached $2.34, a 55% year-over-year increase, driven by GRC-related revenue and reduced legacy liabilities. These results highlight Edison’s operational resilience and strategic execution, positioning the company to sustain long-term profitability despite regulatory and financial challenges.

Post-Earnings Price Action Review

Following the Q3 earnings release, Edison International’s stock experienced mixed short-term performance. Shares edged down 1.02% in the latest trading day and dropped 3.96% over the past week, though they gained 1.89% month-to-date. The immediate post-earnings reaction saw a 0.7% price increase, aligning with the company’s revenue and EPS beats. However, broader market sentiment remains cautious, as EIX underperformed the S&P 500 by 28.7% year-to-date. Analysts note that while recent momentum supports a 30-day hold strategy, risks such as a 2.37 debt-to-equity ratio, liquidity constraints (current ratio of 0.87), and regulatory uncertainties could temper upside potential. The Zacks Rank #2 (Buy) rating suggests optimism, but investors must weigh these factors against the Altman Z-Score in the distress zone (0.7).

CEO Commentary

CEO Pedro Pizarro emphasized progress in resolving wildfire liabilities and regulatory settlements, narrowing 2025 core EPS guidance to $5.95–$6.20. He highlighted investments in grid resilience, including 14,000+ miles of hardened distribution lines, and legislative reforms like SB 254, which he termed “a constructive and important step” for risk equity. Pizarro reaffirmed a 5-7% core EPS CAGR through 2028, underscoring confidence in operational execution and financial stability.

Guidance

Edison International narrowed its 2025 core EPS guidance to $5.95–$6.20, factoring in $0.10/share costs from refinancing activities. The company maintains a 5-7% core EPS growth target through 2028, supported by a $28–29 billion 4-year capital plan focused on grid resilience and electrification. Regulatory recoveries, including $3.6 billion from TKM and Woolsey settlements, underpin financial stability, with projected 7-8% rate base growth.

Additional News

Edison International faces potential liability from the Eaton Fire but remains confident in its operational integrity and ability to manage losses without new debt. Recent legislative developments, including SB 254 and the Woolsey fire settlement, are expected to enhance financial stability by creating an $18 billion wildfire liability fund. Institutional ownership remains strong, with major investors like Vanguard and JPMorgan increasing stakes. Analysts have upgraded price targets, with a consensus rating of “Hold” and an average target of $64.55.

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