Exelon Exceeds Q2 Earnings Projections, Maintains Optimistic Outlook for 2025 and Beyond.

Exelon (EXC) Q2 earnings beat estimates with a Non-GAAP EPS of $0.39, but revenue fell short of projections at $5.43 billion. Analysts maintain a "Hold" consensus and expect 5-7% annual growth in operating EPS through 2028. The average one-year price target is $47.62, suggesting a potential upside of 7.59% from the current market price.

Title: Exelon Corporation (EXC) Q2 2025 Earnings: Mixed Performance with Maintained Full-Year Guidance

July 02, 2025

Exelon Corporation (NASDAQ: EXC) released its second quarter 2025 earnings on July 31, reporting a decline in quarterly earnings but maintaining its full-year guidance based on strong year-to-date performance. The utility's stock experienced a premarket drop of 2.33% to $43.23 following the announcement, after closing at $44.26 the previous day.

The company reported GAAP earnings of $0.39 per share for Q2 2025, down from $0.45 per share in the same period last year. Adjusted operating earnings also decreased to $0.39 per share from $0.47 in Q2 2024. Despite the quarterly dip, Exelon reaffirmed its 2025 earnings guidance of $2.64-$2.74 per share, citing strong year-to-date performance and continued growth opportunities in transmission and data center markets [1].

Quarterly Performance Highlights

Exelon's Q2 2025 results show a mixed performance across its utility subsidiaries. The earnings decline was primarily driven by timing of distribution earnings, transmission peak load impacts, and increased storm costs, partially offset by higher distribution and transmission rates. ComEd earnings decreased from $0.16 to $0.13 per share, while PECO saw a significant drop from $0.28 to $0.14 per share, primarily due to storm costs and customer relief fund impacts [1].

Despite the quarterly decline, Exelon’s year-to-date performance remains strong, with adjusted operating earnings reaching $1.31 per share compared to $1.16 for the same period in 2024. This 13% year-over-year improvement provides the foundation for the company’s maintained full-year guidance [1].

Strategic Initiatives

Exelon continues to position itself as a key partner in economic development, particularly in the rapidly growing data center market. The company highlighted its historical data center load growth in Northern Illinois, which has experienced approximately 27% CAGR from 2015 to June 2025 [1].

The company is also capitalizing on significant transmission investment opportunities, identifying $10-15 billion of potential projects beyond its current capital plan. These opportunities are driven by increased reliability needs, accelerating load growth from high-density customers, and an evolving generation supply stack [1].

Forward-Looking Statements

Despite the quarterly earnings decline, Exelon reaffirmed its 2025 earnings guidance of $2.64-$2.74 per share and maintained its 2024-2028 EPS CAGR of 5-7%, with expectations to be at the midpoint or better. The company’s confidence is supported by its $38 billion capital investment plan, which is expected to drive 7.4% rate base growth [1].

Financial Position

Exelon emphasized its strong balance sheet as a source of strategic and financial flexibility. The company’s credit metrics are trending upward from 12% towards 14% between 2022 and 2028, comfortably above the downgrade threshold of around 13% [1].

Analyst Ratings and Price Targets

Shares of Exelon Corporation (NASDAQ: EXC) have received a consensus recommendation of "Hold" from the ten research firms that are presently covering the company. One equities research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation, and four have given a buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $47.20 [2].

Conclusion

Exelon Corporation's Q2 2025 earnings report highlights a mixed performance with a decline in quarterly earnings but a strong year-to-date performance. The company maintained its full-year guidance and continues to focus on growth opportunities in transmission and data center markets. Analysts maintain a "Hold" consensus, with an average one-year price target suggesting a potential upside of 7.59% from the current market price.

References

[1] https://www.investing.com/news/company-news/exelon-q2-2025-slides-earnings-dip-but-fullyear-guidance-maintained-on-strong-ytd-93CH-4162542
[2] https://www.marketbeat.com/instant-alerts/exelon-corporation-nasdaqexc-receives-consensus-rating-of-hold-from-brokerages-2025-07-24/