Edison International Surges on 65% Volume Spike Ranks 382nd Amid Earnings Dip and Regulatory Uncertainty

Edison International (EIX) closed July 31 with a 0.83% gain, as its $0.38 billion trading volume surged 65.2% from the prior day, ranking 382nd in market activity. The utility giant reported Q2 2025 core earnings of $0.97/share, down from $1.23 in 2024, citing higher operational costs and regulatory adjustments. Despite the decline, the company reaffirmed its 2025 core EPS guidance of $5.94-$6.34, maintaining a 5-7% CAGR outlook through 2028.

Regulatory uncertainties remain central to its strategic narrative. Southern California Edison (SCE) continues operating under 2024 revenue parameters pending a final 2025 General Rate Case (GRC) decision, which could authorize $9.8 billion in base revenue. The proposed GRC decision aligns with SCE's capital investment plans for grid modernization and wildfire mitigation, though revisions are anticipated to address scope and cost adjustments. CEO Pedro Pizarro emphasized confidence in legislative action to strengthen California's AB 1054 framework, which governs wildfire liability risk-sharing between utilities and ratepayers.

Wildfire risk management dominated discussions, with SCE launching a Wildfire Recovery Compensation Program to expedite claims processing. The company also submitted its 2026-2028 mitigation plan, prioritizing $6.2 billion in infrastructure investments, including covered conductor installations and enhanced vegetation management. Ongoing investigations into the Eaton Fire remain inconclusive, but Pizarro noted regulatory and community engagement efforts to ensure accountability while balancing affordability concerns.

Financially, Edison International faces elevated interest expenses impacting parent company performance, though core operations remain stable. The company’s debt management strategy includes securitization proposals for wildfire-related costs, aiming to reduce financing burdens through high-credit-rated bonds. With the CPUC finalizing key regulatory proceedings, including the WMCE settlement and Woolsey cost recovery applications, clarity on 2025 earnings drivers is expected within six weeks of the GRC decision.

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