Exelon 2025 Q2 Earnings Mixed Performance as Net Income Falls 12.7%

Exelon (EXC) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Exelon's earnings per share (EPS) for the second quarter fell short of expectations, declining to $0.39 from $0.45 in the same period last year. The company reaffirmed its 2025 adjusted operating earnings guidance range of $2.64-$2.74 per share, maintaining its outlook despite the earnings decline. Exelon anticipates a compounded annual growth of 5-7% in operating EPS from 2024 to 2028, indicating steady growth prospects.

Revenue
Exelon's total revenue for the second quarter of 2025 rose by 1.2% to $5.43 billion, compared to $5.36 billion in the same quarter of the previous year. The revenue was distributed among various segments: ComEd brought in $1.84 billion, PECO generated $1 billion, BGE contributed $1.03 billion, PHI earned $1.58 billion, while other operations added $468 million. Intersegment eliminations amounted to -$485 million, resulting in total revenue of $5.43 billion for Exelon.

Earnings/Net Income
Exelon's EPS decreased by 13.3% to $0.39 in Q2 2025, compared to $0.45 in Q2 2024. Additionally, the company's net income declined by 12.7% to $391 million from $448 million in the same period last year. The earnings results reflect a challenging quarter for Exelon.

Price Action
The stock price of Exelon edged up 2.25% during the latest trading day, increased by 2.76% over the most recent full trading week, and climbed 3.50% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Exelon (EXC) shares following a revenue beat and holding for 30 days has provided moderate returns over the past three years. This approach achieved a compound annual growth rate of 10.63%, with a total return of 65.11%. Despite this, the strategy has demonstrated a maximum drawdown of 0.00%, suggesting that it did not experience significant losses during the backtest period. The Sharpe ratio of 0.48 indicates a reasonable risk-adjusted return. This performance suggests that Exelon shares have remained relatively stable, avoiding major downturns, while still offering moderate growth potential for investors.

CEO Commentary
"Exelon’s second-quarter performance reflects our disciplined execution across all fronts," said Calvin Butler, President and Chief Executive Officer. He emphasized the company's commitment to delivering long-term value through operational excellence and a balanced investment strategy focused on grid modernization and energy security. Despite facing challenges such as increased storm costs and timing issues with distribution earnings, Exelon remains confident in its ability to meet evolving customer needs while advancing a cleaner energy future. Butler expressed optimism about the company’s prospects, citing a robust pipeline of large-load projects and a focus on economic development.

Guidance
Exelon reaffirmed its full-year 2025 Adjusted (non-GAAP) operating earnings guidance range of $2.64 to $2.74 per share. The company anticipates compounded annual growth of 5-7% in operating EPS from 2024 to 2028. Additionally, Exelon plans to invest $38 billion through 2028, with potential transmission opportunities identified at $10 to $15 billion beyond the current capital plan, supporting sustained growth.

Additional News
Exelon Corporation declared a regular quarterly dividend of $0.40 per share, payable on September 15, 2025, to shareholders of record as of August 11, 2025. This dividend announcement underscores Exelon's commitment to returning value to its shareholders. In addition, ComEd, a unit of Exelon, completed significant infrastructure upgrades at its Itasca transmission substation as part of a larger investment plan for the Western O'Hare region of Illinois. These upgrades enhance the transmission system's capacity and resiliency, reflecting Exelon's focus on grid modernization. Furthermore, Exelon announced key leadership changes in its Governmental, Regulatory and External Affairs organization, appointing Jaclyn Cantler and promoting Valencia McClure to senior vice president roles, aiming to strengthen its regional focus and enhance customer service across its service areas.