Financial Performance - For the three months ended June 30, 2025, Southern California Edison Company reported a loss from operations of $X million, compared to a loss of $Y million for the same period in 2024, indicating a Z% change[7] - Edison International's net income for the six months ended June 30, 2025, was $1,779 million, an increase of $1,351 million compared to the same period in 2024[22] - SCE's core earnings for the six months ended June 30, 2025, were $1,094 million, reflecting a $22 million increase from the prior year[24] - Edison International's core earnings for the second quarter of 2025 decreased by $101 million compared to the second quarter of 2024, totaling $374 million[21] - Net income available to common stock for the three months ended June 30, 2025, was $443 million, down from $523 million in 2024, a decrease of $80 million[64] - Net income for the six months ended June 30, 2025, was $2,077 million, a significant increase from $678 million in 2024, reflecting a change of $1,399 million[118] - Operating revenue for the three months ended June 30, 2025, was $4,532 million, an increase of $208 million compared to $4,324 million in 2024[64] - Operating revenue for Q2 2025 was $4,543 million, a 4.8% increase from $4,336 million in Q2 2024[133] - Total operating expenses for the three months ended June 30, 2025, were $3,738 million, an increase of $330 million compared to $3,408 million in 2024[64] - Total operating expenses for Q2 2025 were $3,768 million, an increase of 9.7% from $3,436 million in Q2 2024[133] Capital Expenditures and Investments - Total capital expenditures for the six months ended June 30, 2025, were $3.1 billion, compared to $2.5 billion for the same period in 2024[35] - Edison International's capital investment plan includes $C billion allocated for infrastructure improvements and wildfire mitigation efforts over the next three years[7] - SCE forecasts total capital expenditures between $26.6 billion and $31.5 billion for the period 2025-2028, with a weighted average annual rate base projected from $48.1 billion to $60.6 billion[36] - Capital expenditures for the first half of 2025 were $3,120 million, compared to $2,700 million in the first half of 2024[143] Liquidity and Financing - The available liquidity for Edison International as of June 30, 2025, was $A billion, reflecting an increase of B% compared to the previous quarter[8] - SCE's net cash provided by operating activities for the six months ended June 30, 2025, was $2.251 billion, an increase of $721 million from the previous year[116] - As of June 30, 2025, SCE had cash on hand of $77 million and approximately $2.9 billion available to borrow on its $3.4 billion revolving credit facility[91] - SCE's debt to total capitalization ratio was 0.58 to 1 as of June 30, 2025, in compliance with financial covenants affecting access to capital[92] - SCE issued a total of $3.0 billion of first and refunding mortgage bonds during the six months ended June 30, 2025[89] Wildfire Mitigation and Related Costs - The company anticipates a revenue requirement increase of D% in the upcoming 2025 General Rate Case, aimed at recovering costs associated with wildfire risk mitigation[7] - SCE's wildfire mitigation efforts include the implementation of a Wildfire Mitigation Plan (WMP) and the Public Safety Power Shutoff (PSPS) program to reduce wildfire risks[39] - Wildfire-related claims, net of recoveries, for the six months ended June 30, 2025, resulted in a loss of $1,355 million, compared to a gain of $614 million in 2024, a change of $1,969 million[74] - The increase in operation and maintenance expense for the three months ended June 30, 2025, was $295 million, primarily due to higher wildfire mitigation costs[67] - SCE recorded cost recoveries of $1.6 billion in Q1 2025, including $1.3 billion for uninsured claims and $0.3 billion for associated costs[50] Regulatory and Rate Cases - The proposed decision for the 2025 General Rate Case includes a base rate revenue requirement of $9.8 billion, an increase of approximately $1.2 billion over 2024[29] - The proposed 2026 transmission revenue requirement is $1.5 billion, reflecting an 11% increase from 2025 due to recovery of previous undercollections[100] - SCE requested authorization to recover an initial revenue requirement of $384 million related to wildfire mitigation, with interim rate recovery of $210 million approved by the CPUC[94] - The CPUC authorized recovery of $291 million in operations and maintenance expenses and $99 million in capital expenditures in June 2025[95] Environmental and Sustainability Goals - Edison International is actively pursuing new technologies in renewable energy, with a focus on increasing its renewable energy portfolio by E% by 2026[7] - The company is committed to reducing greenhouse gas emissions by M% by 2030, aligning with California's environmental regulations and sustainability goals[7] Customer Growth and Market Expansion - The company reported a year-over-year increase of J% in customer accounts, reaching a total of K million customers as of June 30, 2025[7] - The company has initiated a market expansion strategy targeting F new regions, which is expected to contribute an additional $G million in annual revenue[7] Debt and Equity - Long-term debt as of June 30, 2025, was $34,971 million, up from $33,534 million at the end of 2024[141] - Edison International's consolidated debt to total capitalization ratio was 0.64 to 1 as of June 30, 2025, also in compliance with financial covenants[110] - As of June 30, 2025, Edison International's total equity attributable to shareholders is $18,861 million, a decrease from $18,797 million at March 31, 2025[180] - SCE's total equity increased to $22,395 million from $21,751 million at December 31, 2024, reflecting a growth of approximately 2.97%[182] Miscellaneous - The company is currently evaluating the impact of new accounting standards updates issued by the FASB, effective for annual disclosures for the year ended December 31, 2027[179] - The Wildfire Insurance Fund has an initial claims-paying capacity of approximately $21 billion for all participating utilities, with reimbursements processed on a first-come, first-served basis[44]

[Second-Quarter 2025 Results Overview](index=1&type=section&id=Edison%20International%20Reports%20Second-Quarter%202025%20Results) Edison International reported its second-quarter 2025 financial performance, management insights, and key strategic and regulatory updates [Second-Quarter 2025 Financial Highlights](index=1&type=section&id=Second-Quarter%202025%20Financial%20Highlights) Edison International reported a decrease in second-quarter 2025 net income and core earnings compared to the prior year, driven by higher operations and maintenance expenses, regulatory decisions for SCE, and increased interest expense Second-Quarter 2025 Financial Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | Change (%) | | :----------------------- | :------ | :------ | :----- | :--------- | | Net Income (millions) | $343 | $439 | $(96) | -21.87% | | Net Income per share | $0.89 | $1.14 | $(0.25) | -21.93% | | Core Earnings (millions) | $374 | $475 | $(101) | -21.26% | | Core Earnings per share | $0.97 | $1.23 | $(0.26) | -21.14% | - Southern California Edison's **core EPS decreased year-over-year** due to higher operations and maintenance expense and the net impact of regulatory decisions[3](index=3&type=chunk) - Edison International Parent and Other's **core loss per share increased year-over-year**, primarily due to higher interest expense[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Pedro J. Pizarro expressed encouragement regarding ongoing legislative discussions to enhance California's AB 1054 regulatory framework and highlighted SCE's continued investment in wildfire risk reduction - CEO Pedro J. Pizarro is **encouraged by discussions** to enhance California's AB 1054 regulatory framework and **confident in policymakers strengthening the wildfire framework**[5](index=5&type=chunk) - SCE continues to **invest in new and innovative solutions** to reduce wildfire risk, emphasizing the importance of mitigation plans and infrastructure resiliency[5](index=5&type=chunk) [Key Strategic and Regulatory Updates](index=1&type=section&id=Key%20Strategic%20and%20Regulatory%20Updates) The company is actively addressing wildfire-related issues, making significant regulatory progress, and reaffirming its 2025 Core EPS guidance with confidence in long-term growth - **Eaton Fire investigations are ongoing**, and SCE plans to launch a **Wildfire Recovery Compensation Program**[6](index=6&type=chunk) - The company is **confident that legislative action will enhance California's AB 1054 regulatory framework**[6](index=6&type=chunk) - **Strong regulatory progress** includes WMCE settlement approval, a final decision in the WM/VM proceeding, and a GRC proposed decision[6](index=6&type=chunk) - Reaffirmed 2025 Core EPS guidance of **$5.94-$6.34** and continued confidence in delivering **5-7% Core EPS growth** from 2025 to 2028 (**$6.74-$7.14**)[6](index=6&type=chunk) [2025 Earnings Guidance and Investor Information](index=3&type=section&id=2025%20Earnings%20Guidance) Edison International reaffirmed its 2025 earnings guidance and provided details for its upcoming investor conference call and webcast [Reaffirmed 2025 Earnings Guidance](index=3&type=section&id=Reaffirmed%202025%20Earnings%20Guidance) Edison International reaffirmed its 2025 earnings guidance range, maintaining the Core EPS guidance at $5.94-$6.34, with a slight adjustment to Basic EPS for non-core items 2025 Earnings Guidance (as of July 31, 2025) | Metric | Low | High | | :---------------- | :---- | :---- | | EIX Basic EPS | $8.22 | $8.62 | | Less: Non-Core Items | 2.28 | 2.28 | | EIX Core EPS | $5.94 | $6.34 | - Non-core items recorded for the six months ended June 30, 2025, totaled **$877 million**, or **$2.28 per share**[8](index=8&type=chunk) [Conference Call and Webcast Details](index=3&type=section&id=Second-Quarter%202025%20Earnings%20Conference%20Call%20and%20Webcast%20Details) Edison International provided details for its second-quarter 2025 earnings conference call and webcast, including access information and availability of related materials on its investor relations website Conference Call Details | Event | Details | | :------------------ | :----------------------------------- | | When | Thursday, July 31, 1:30-2:30 p.m. (PDT) | | Telephone (U.S.) | 1-888-673-9780 (Passcode: Edison) | | Telephone (Int'l) | 1-312-470-0178 (Passcode: Edison) | | Telephone Replay (U.S.) | 1-800-685-6667 (Passcode: 6728) | | Telephone Replay (Int'l)| 1-203-369-3864 (Passcode: 6728) | | Replay Availability | Through Aug. 14 at 6 p.m. (PDT) | - Prepared remarks by the CEO and CFO, teleconference presentation, and Form 10-Q are available on www.edisoninvestor.com[9](index=9&type=chunk)[10](index=10&type=chunk) [Company Profile](index=4&type=section&id=About%20Edison%20International) This section provides an overview of Edison International's business, its primary utility subsidiary, and non-regulated energy advisory services [Company Overview](index=4&type=section&id=Company%20Overview) Edison International is a major U.S. electric utility holding company, providing clean and reliable energy through Southern California Edison and offering sustainability advisory services via Trio - Edison International (NYSE: EIX) is one of the nation's **largest electric utility holding companies**, focused on providing clean and reliable energy and energy services[11](index=11&type=chunk) - Southern California Edison Company, a utility subsidiary, delivers electricity to **15 million people** across Southern, Central, and Coastal California[11](index=11&type=chunk) - **Trio (formerly Edison Energy)** is a portfolio of nonregulated competitive businesses providing integrated sustainability and energy advisory services to large commercial, industrial, and institutional organizations in North America and Europe[11](index=11&type=chunk) [Appendix](index=6&type=section&id=Appendix) The appendix provides supplementary financial information, details on non-GAAP measures, and a safe harbor statement outlining key risk factors [Use of Non-GAAP Financial Measures](index=6&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Edison International uses non-GAAP financial measures like 'core earnings' and 'core EPS' for internal planning and investor communications, excluding discrete items not representative of ongoing earnings - Core earnings and core EPS are **non-GAAP financial measures** used internally for financial planning and performance analysis, and externally for investor communications[13](index=13&type=chunk) - Core earnings and core EPS **exclude income or loss from discontinued operations and significant discrete items** not considered representative of ongoing earnings[14](index=14&type=chunk) - These non-GAAP measures may not be comparable to those of other companies and are reconciled to basic GAAP earnings in attached tables[14](index=14&type=chunk) [Safe Harbor Statement and Risk Factors](index=6&type=section&id=Safe%20Harbor%20Statement) This section outlines the forward-looking nature of statements and details important factors that could cause actual results to differ materially from current expectations, including cost recovery, cybersecurity, and wildfire liability - Statements about future performance are **forward-looking** and involve risks and uncertainties that could cause actual results to differ materially[15](index=15&type=chunk) - **Key risk factors** include SCE's ability to recover costs through regulated rates (especially wildfire-related costs), cybersecurity and physical security of assets, and risks associated with operating electrical facilities[15](index=15&type=chunk) - **Other significant risks** involve the impact of customer rate affordability, ability to update grid infrastructure, implementation of operational and strategic plans (including Wildfire Mitigation Plan), regulatory or legislative restrictions on wildfire mitigation, and the effectiveness of California Assembly Bill 1054 (AB 1054) in mitigating wildfire liability[15](index=15&type=chunk)[17](index=17&type=chunk) - **Additional risks** include attracting and retaining a skilled workforce, decisions by regulatory bodies (CPUC, FERC, NRC), governmental changes affecting the electricity industry, potential penalties for non-compliance, extreme weather events, decommissioning of San Onofre, cost allocation leading to higher rates for bundled service customers, and credit rating agency actions[17](index=17&type=chunk) [Reconciliation of Basic to Core Earnings](index=8&type=section&id=Second%20Quarter%20Reconciliation%20of%20Basic%20Earnings%20Per%20Share%20to%20Core%20Earnings%20Per%20Share) This section provides detailed reconciliations of basic GAAP earnings per share and net income to core earnings per share and core earnings, explaining specific non-core items primarily related to wildfire claims Second Quarter Reconciliation of Basic EPS to Core EPS | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----- | | Earnings (loss) per share available to EIX | $0.89 | $1.14 | $(0.25) | | Less: Non-core items | $(0.08) | $(0.09) | $0.01 | | Core earnings (loss) per share | $0.97 | $1.23 | $(0.26) | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----- | | Earnings (loss) per share available to EIX | $4.62 | $1.11 | $3.51 | | Less: Non-core items | $2.28 | $(1.26) | $3.54 | | Core earnings (loss) per share | $2.34 | $2.37 | $(0.03) | Second Quarter Reconciliation of Basic Earnings to Core Earnings (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----- | | Net income (loss) available to EIX | $343 | $439 | $(96) | | Less: Non-core items | $(31) | $(36) | $5 | | Core earnings (losses) | $374 | $475 | $(101) | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----- | | Net income (loss) available to EIX | $1,779 | $428 | $1,351 | | Less: Non-core items | $877 | $(485) | $1,362 | | Core earnings (losses) | $902 | $913 | $(11) | - Non-core items for SCE in the six months ended June 30, 2025, include net earnings related to the TKM Settlement Agreement (**$1,341 million** claim costs, **$58 million** legal expenses, partially offset by **$50 million** shareholder-funded wildfire mitigation and **$8 million** impairment of restoration assets)[19](index=19&type=chunk) - **Non-core items also include charges** for 2017/2018 Wildfire/Mudslide Events claims and legal expenses, net of expected regulatory recoveries, and charges for Other Wildfires claims and legal expenses, net of expected insurance and regulatory recoveries[19](index=19&type=chunk) - Amortization of SCE's Wildfire Insurance Fund expenses (**$36 million** for Q2 2025, **$72 million** for YTD 2025) and wildfire claims insured by EIS (**$50 million** for YTD 2025) are also included as non-core items[20](index=20&type=chunk) [Condensed Consolidated Financial Statements](index=11&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated statements of income, balance sheets, and cash flows [Statements of Income](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20Edison%20International) Condensed Consolidated Statements of Income (in millions) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating revenue | $4,543 | $4,336 | $8,354 | $8,414 | | Total operating expenses | $3,768 | $3,436 | $5,445 | $7,269 | | Operating income | $775 | $900 | $2,909 | $1,145 | | Net income | $398 | $509 | $1,890 | $561 | | Net income available to EIX common shareholders | $343 | $439 | $1,779 | $428 | | Basic earnings per common share | $0.89 | $1.14 | $4.62 | $1.11 | [Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------------- | :------------ | :---------------- | | Total current assets | $6,950 | $7,155 | | Total assets | $88,813 | $85,579 | | Total current liabilities | $7,965 | $8,439 | | Long-term debt | $34,971 | $33,534 | | Total liabilities | $69,952 | $67,839 | | Total Edison International's shareholders' equity | $16,686 | $15,565 | | Total equity | $18,861 | $17,740 | | Total liabilities and equity | $88,813 | $85,579 | [Statements of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in millions) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $2,106 | $1,372 | | Net cash provided by financing activities | $991 | $1,565 | | Net cash used in investing activities | $(3,002) | $(2,670) | | Net increase in cash, cash equivalents and restricted cash | $95 | $267 | | Cash, cash equivalents and restricted cash at end of period | $779 | $799 |

Core Viewpoint - Edison International (EIX) is expected to report its second-quarter 2025 results on July 31, with prior earnings surprises indicating potential performance trends [1][5]. Group 1: Revenue Influences - The service territories of Edison International experienced moderate temperatures in Q2 2025, with above-normal temperatures in May likely increasing electricity usage and positively impacting revenues [2][8]. - Wildfires in California during the quarter may have caused outages and infrastructure damage, negatively affecting revenues [3][8]. - Lower operating revenues at Southern California Edison (SCE) due to reduced expenses passed through to customers may have contributed to a year-over-year decline in overall revenues [3][5]. Group 2: Earnings Expectations - The Zacks Consensus Estimate for EIX's sales is $4.27 billion, reflecting a 1.6% decrease from the previous year [5]. - The earnings estimate is set at 96 cents per share, indicating a decline of 21.3% compared to the prior-year quarter [5]. - Increased operating expenses for infrastructure restoration due to wildfires and significant charges for wildfire-related claims are expected to negatively impact second-quarter earnings [4][8]. Group 3: Earnings Prediction Model - The current model does not predict an earnings beat for EIX, with an Earnings ESP of -8.93% and a Zacks Rank of 3 (Hold) [6][7].

Group 1 - The analyst has a master's degree in economics and 15 years of experience in both public and private sectors, providing a global perspective on investing insights [1] - The investment approach includes a mix of growth stocks, quality stalwarts, and dividend growth strategies, aiming for a balanced portfolio that outperforms the market [1] - The analyst teaches investing, micro, and macroeconomics, focusing on educating the next generation of investors about financial market fundamentals [1] Group 2 - The analyst currently holds a beneficial long position in EIX shares and may consider increasing this position in the near future [2] - The article expresses the analyst's personal opinions and is not influenced by any compensation from companies mentioned [2]

Company Overview - Edison International (EIX) is expected to report a year-over-year decline in earnings, with a projected EPS of $1.03, reflecting a decrease of 15.6% compared to the previous year [3][12] - Revenues for the quarter are anticipated to be $4.27 billion, down 1.6% from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 19.33% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12] - Edison International currently has an Earnings ESP of -5.70%, suggesting that the Most Accurate Estimate is lower than the Zacks Consensus Estimate [12] Earnings Surprise History - In the last reported quarter, Edison International exceeded the expected EPS of $1.21 by delivering $1.37, resulting in a surprise of +13.22% [13] - Over the past four quarters, the company has beaten consensus EPS estimates three times [14] Comparison with Industry Peers - American Electric Power (AEP), a competitor in the electric power industry, is expected to report an EPS of $1.16, which represents a year-over-year decline of 7.2% [18] - AEP's revenues are projected to be $4.76 billion, up 3.9% from the previous year, and it has an Earnings ESP of +10.63%, indicating a higher likelihood of beating the consensus EPS estimate [19][20]

Core Viewpoint - Edison International is facing potential legal claims from investors due to the impact of wildfires in January 2025, which may have been caused by its subsidiary Southern California Edison’s electrical equipment [2][3] Group 1: Wildfire Incident and Impact - A series of wildfires began in early January 2025, significantly affecting the Los Angeles area, including regions serviced by Southern California Edison (SCE) [2] - Evidence suggests that SCE's electrical equipment may have initiated some of the wildfires, leading to multiple lawsuits against Edison and SCE from individual plaintiffs and municipalities [2] - Edison has acknowledged that it is "probable" to incur "material losses" due to the wildfires, and its stock price has significantly declined since the incidents began, resulting in substantial losses for shareholders [2] Group 2: Legal Actions and Investigations - An investor class action lawsuit has been filed against Edison in the U.S. District Court for the Central District of California, claiming that the company made false and misleading statements regarding its safety practices [2] - Schubert Jonckheer & Kolbe LLP is investigating potential negligence or wrongdoing by Edison's officers and directors in relation to the wildfires and the subsequent legal claims [3]

Group 1 - The utility sector has shown strong performance in an uncertain macro environment, achieving a 7% gain since the beginning of the year [1]

Group 1 - Edison International (EIX) experienced a decline of approximately 8.1%, marking its lowest closing price since September 2020 [1] - The recent drop in stock price coincides with President Trump's deployment of troops to suppress immigrant riots in Los Angeles, California [1]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Edison International due to a class action complaint alleging breaches of fiduciary duties by the board of directors [1] Group 1: Allegations and Claims - The class action complaint alleges that Edison made false and misleading statements regarding its Public Safety Power Shutoffs program, claiming it was used to mitigate wildfire risks, which was found to be false [2] - The complaint states that the misleading claims resulted in increased fire risk in California and heightened legal exposure for Edison [2] - As a result of these misleading statements, the lawsuit claims that investors suffered damages when the true information became public [2] Group 2: Legal Representation - Bragar Eagel & Squire, P.C. is representing long-term stockholders of Edison and is seeking information related to the claims [3] - The firm emphasizes that there is no cost or obligation for stockholders to inquire about their rights or interests regarding these matters [3] Group 3: Firm Background - Bragar Eagel & Squire, P.C. is a nationally recognized law firm with expertise in representing individual and institutional investors in complex litigation [4] - The firm operates in both New York and California, handling cases in state and federal courts across the country [4]