[Exelon Reports Second Quarter 2025 Results](index=1&type=section&id=Exelon%20Reports%20Second%20Quarter%202025%20Results) Exelon reported Q2 2025 results, detailing financial performance, operating company contributions, and recent corporate developments [Financial Highlights & Guidance](index=1&type=section&id=Earnings%20Release%20Highlights) Exelon reported a decrease in both GAAP and Adjusted (non-GAAP) operating earnings for Q2 2025, yet reaffirmed its full-year 2025 guidance and long-term growth targets Q2 2025 Earnings and Full-Year Guidance | Metric | Q2 2025 | Q2 2024 | Change | Full Year 2025 Guidance | | :--- | :--- | :--- | :--- | :--- | | GAAP Net Income per Share | $0.39 | $0.45 | -13.3% | N/A | | Adjusted (non-GAAP) Operating EPS | $0.39 | $0.47 | -17.0% | $2.64 - $2.74 (Affirmed) | - The company reaffirmed its long-term operating EPS compounded annual growth target of **5-7%** from 2024 to 2028[4](index=4&type=chunk) - Exelon has successfully executed approximately **80%** of its planned debt financings for 2025 and priced **100%** of its **$700 million** annualized equity financing need for 2025[4](index=4&type=chunk) [Consolidated Performance Analysis](index=2&type=section&id=Consolidated%20Performance%20Analysis) Exelon's Q2 2025 consolidated earnings were negatively impacted by distribution timing, increased storm costs, and higher interest expenses, partially offset by rate increases - Utility earnings decreased primarily due to distribution earnings timing and lower transmission peak load at ComEd, increased storm costs at PECO, and lower Maryland multi-year plan reconciliations with higher credit loss/interest expense at PHI[9](index=9&type=chunk) - These negative impacts were partially offset by distribution and transmission rate increases at PECO, BGE, ComEd, and PHI[9](index=9&type=chunk) - Exelon holding company costs increased due to a one-time charitable contribution to the Customer Relief Fund and higher interest expenses[9](index=9&type=chunk) [Operating Company Performance](index=2&type=section&id=Operating%20Company%20Results) Q2 2025 performance varied across Exelon's operating companies, with PECO and BGE showing increased net income due to higher rates, while ComEd and PHI experienced decreases [ComEd](index=2&type=section&id=ComEd) ComEd's Q2 2025 GAAP net income and Adjusted operating earnings decreased due to distribution earnings timing and lower transmission peak load, partially offset by investments ComEd Q2 Financial Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $228 | $270 | -15.6% | | Adjusted (non-GAAP) Operating Earnings | $228 | $285 | -20.0% | [PECO](index=2&type=section&id=PECO) PECO reported significant increases in Q2 2025 GAAP net income and Adjusted operating earnings, driven by higher electric and gas distribution rates, despite increased storm costs PECO Q2 Financial Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $136 | $90 | +51.1% | | Adjusted (non-GAAP) Operating Earnings | $136 | $93 | +46.2% | [BGE](index=4&type=section&id=BGE) BGE's Q2 2025 GAAP net income and Adjusted operating earnings increased due to updated distribution rates reflecting new investments, partially offset by regulatory asset derecognition BGE Q2 Financial Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $55 | $45 | +22.2% | | Adjusted (non-GAAP) Operating Earnings | $55 | $45 | +22.2% | [PHI](index=4&type=section&id=PHI) PHI experienced decreases in Q2 2025 GAAP net income and Adjusted operating earnings, mainly due to lower Maryland multi-year plan reconciliations, increased expenses, and storm costs PHI Q2 Financial Results (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $143 | $158 | -9.5% | | Adjusted (non-GAAP) Operating Earnings | $144 | $162 | -11.1% | [Recent Developments](index=4&type=section&id=Recent%20Developments%20and%20Second%20Quarter%20Highlights) Exelon declared a regular quarterly dividend and engaged in significant financing activities, with BGE and ComEd issuing new long-term debt to manage commercial paper and fund corporate purposes - On July 29, 2025, Exelon's Board of Directors declared a regular quarterly dividend of **$0.40 per share**[13](index=13&type=chunk) - There were no new rate case developments during the second quarter of 2025[13](index=13&type=chunk) Q2 2025 Financing Activities | Date | Issuer | Action | Amount (millions) | Details | | :--- | :--- | :--- | :--- | :--- | | May 16, 2025 | BGE | Issued 5.45% Notes due 2035 | $650 | To repay commercial paper and for general corporate purposes | | May 19, 2025 | ComEd | Issued 5.95% Series Bonds due 2055 | $725 | To repay commercial paper and for general corporate purposes | | July 1, 2025 | DPL | Reoffered 2020 Series A Bonds | $78.4 | Interest rate modified to 3.60%, maturity to 2031 | [Supplemental Information](index=5&type=section&id=Supplemental%20Information) This section provides additional financial details, including a reconciliation of GAAP to non-GAAP earnings and cautionary statements regarding forward-looking information [Adjusted (non-GAAP) Operating Earnings Reconciliation](index=5&type=section&id=Adjusted%20%28non-GAAP%29%20Operating%20Earnings%20Reconciliation) Exelon reconciles GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, showing minor tax adjustments for Q2 2025 and adjustments for environmental liabilities, a FERC audit, and cost management for Q2 2024 Q2 2025 Reconciliation of GAAP to Non-GAAP Earnings (per share) | Item | Amount (per share) | | :--- | :--- | | 2025 GAAP Net Income | $0.39 | | Income Tax-Related Adjustments | $0.00 | | **2025 Adjusted (non-GAAP) Operating Earnings** | **$0.39** | Q2 2024 Reconciliation of GAAP to Non-GAAP Earnings (per share) | Item | Amount (per share) | | :--- | :--- | | 2024 GAAP Net Income | $0.45 | | Change in FERC Audit Liability | $0.01 | | Cost management charge | $0.01 | | Other minor adjustments | $0.00 | | **2024 Adjusted (non-GAAP) Operating Earnings** | **$0.47** | - Management believes Adjusted (non-GAAP) operating earnings represent earnings directly related to ongoing business operations and uses this measure for performance evaluation, resource allocation, and incentive compensation[19](index=19&type=chunk) [Cautionary Statements Regarding Forward-Looking Information](index=6&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Information) This section warns investors that forward-looking statements are subject to risks and uncertainties, including regulatory actions, environmental liabilities, cybersecurity threats, and extreme weather, which could cause actual results to differ - The press release contains forward-looking statements that are subject to risks and uncertainties[20](index=20&type=chunk) - Key risk factors include, but are not limited to: unfavorable legislative/regulatory actions, environmental liabilities, cybersecurity risks, extreme weather events, and instability in capital markets[20](index=20&type=chunk) - Investors are advised not to place undue reliance on these statements and are directed to the company's SEC filings (Form 10-K, 10-Q) for a more detailed discussion of risk factors[22](index=22&type=chunk)[23](index=23&type=chunk) [Earnings Release Attachments](index=8&type=section&id=Earnings%20Release%20Attachments) This section provides detailed financial statements, including the consolidating statement of operations, balance sheets, cash flows, detailed earnings reconciliation, and utility operating statistics [Consolidating Statement of Operations](index=9&type=section&id=Consolidating%20Statement%20of%20Operations) For Q2 2025, Exelon's consolidated operating revenues increased slightly to **$5.43 billion**, but higher operating and interest expenses led to a **12.7%** decrease in net income attributable to common shareholders Consolidated Statement of Operations Highlights (Three Months Ended June 30, in millions) | (in millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $5,427 | $5,361 | +1.2% | | Total Operating Expenses | $4,502 | $4,455 | +1.1% | | Operating Income | $927 | $913 | +1.5% | | Net Income Attributable to Common Shareholders | $391 | $448 | -12.7% | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Exelon's total assets increased to **$111.1 billion**, driven by property, plant, and equipment, while total liabilities also grew due to increased long-term debt Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $8,676 | $8,384 | | Property, Plant, and Equipment, net | $80,609 | $78,182 | | **Total Assets** | **$111,147** | **$107,784** | | Total Current Liabilities | $9,156 | $9,611 | | Long-term Debt | $45,527 | $42,947 | | **Total Liabilities** | **$83,527** | **$80,863** | | **Total Shareholders' Equity** | **$27,620** | **$26,921** | [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities increased to **$2.71 billion**, while net cash used in investing activities rose to **$3.96 billion** due to higher capital expenditures Consolidated Cash Flow Summary (Six Months Ended June 30, in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $2,711 | $2,454 | | Net Cash used in Investing Activities | ($3,962) | ($3,467) | | Net Cash from Financing Activities | $1,563 | $1,447 | | **Increase in Cash** | **$312** | **$434** | [Detailed Earnings Reconciliation and Analysis](index=14&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Adjusted%20%28non-GAAP%29%20Operating%20Earnings%20and%20Analysis%20of%20Earnings) The Q2 2025 decrease in adjusted operating EPS from **$0.47** to **$0.39** was primarily driven by higher operating and maintenance expenses and increased interest expense, partially offset by rate increases Key Drivers of YoY Change in Q2 Adjusted (non-GAAP) Operating EPS (per share) | Driver | Impact per Share | | :--- | :--- | | 2024 Adjusted (non-GAAP) Operating EPS | **$0.47** | | Distribution and transmission rates | +$0.14 | | Operating and maintenance expense | -$0.13 | | Interest expense and other | -$0.06 | | Weather & Load | -$0.02 | | Other minor factors | -$0.01 | | **2025 Adjusted (non-GAAP) Operating EPS** | **$0.39** | [Utility Operating Statistics](index=16&type=section&id=Statistics) This section presents detailed operational and financial statistics for each utility, including electric and natural gas deliveries, revenues by customer class, and weather impacts [ComEd Statistics](index=16&type=section&id=ComEd%20Statistics) ComEd's Q2 2025 total electric deliveries were flat, but total electric revenues decreased by **11.7%** to **$1.84 billion**, mainly due to lower large commercial & industrial customer revenue ComEd Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 20,370 | 20,368 | 0.0% | | Total Electric Revenues (millions) | $1,836 | $2,079 | -11.7% | [PECO Statistics](index=17&type=section&id=PECO%20Statistics) PECO's Q2 2025 total electric and natural gas revenues increased by **12.2%** to **$1.0 billion**, driven by higher rates, despite a **4.1%** decrease in electric deliveries PECO Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 8,339 | 8,695 | -4.1% | | Total Natural Gas Deliveries (mmcfs) | 13,407 | 12,963 | +3.4% | | Total Revenues (millions) | $1,000 | $891 | +12.2% | [BGE Statistics](index=19&type=section&id=BGE%20Statistics) BGE's Q2 2025 total electric and natural gas revenues grew by **10.9%** to **$1.03 billion**, supported by higher rates, despite a **3.0%** decrease in electric deliveries BGE Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 6,603 | 6,808 | -3.0% | | Total Natural Gas Deliveries (mmcfs) | 14,166 | 13,979 | +1.3% | | Total Revenues (millions) | $1,029 | $928 | +10.9% | [Pepco Statistics](index=22&type=section&id=Pepco%20Statistics) Pepco's Q2 2025 electric revenues increased by **10.9%** to **$776 million**, with electric deliveries growing by **1.7%**, reflecting the impact of higher rates and increased large commercial customer deliveries Pepco Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 5,666 | 5,572 | +1.7% | | Total Electric Revenues (millions) | $776 | $700 | +10.9% | [DPL Statistics](index=23&type=section&id=DPL%20Statistics) DPL's Q2 2025 total electric and natural gas revenues rose by **7.9%** to **$421 million**, driven by higher rates, despite nearly flat electric deliveries and a **3.2%** decrease in natural gas deliveries DPL Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 2,721 | 2,723 | -0.1% | | Total Natural Gas Deliveries (mmcfs) | 3,025 | 3,125 | -3.2% | | Total Revenues (millions) | $421 | $390 | +7.9% | [ACE Statistics](index=26&type=section&id=ACE%20Statistics) ACE's Q2 2025 total electric revenues were flat at **$384 million**, while electric deliveries decreased by **3.7%**, with rate adjustments offsetting the decline in residential customer deliveries ACE Q2 2025 Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Electric Deliveries (GWhs) | 2,067 | 2,146 | -3.7% | | Total Electric Revenues (millions) | $384 | $383 | +0.3% |

Core Viewpoint - Exelon Corporation (EXC) is set to release its second-quarter 2025 results on July 31, with expectations of a mixed performance in earnings and revenue [1][4]. Factors Impacting Q2 Performance - Exelon's earnings are anticipated to benefit from a reduction in volumetric risk, with approximately 78% of its distribution revenues decoupled [2]. - The implementation of new gas and electric rates in EXC's service areas is expected to positively influence its bottom line [2]. - Ongoing energy efficiency programs and increased demand from data centers are likely to contribute to the company's performance [3]. Q2 Expectations - The Zacks Consensus Estimate for Exelon's earnings is 43 cents per share, reflecting a year-over-year decrease of 8.5% [4]. - Revenue estimates are projected at $5.83 billion, indicating a year-over-year improvement of 8.7% [4][8]. Earnings Prediction Model - The current Earnings ESP for Exelon is -11.58%, suggesting that the company may not exceed earnings estimates this quarter [5][8]. - Exelon holds a Zacks Rank of 3, indicating a neutral outlook [6]. Industry Comparisons - Other companies in the industry, such as Eversource Energy (ES) and IDACORP (IDA), are expected to report earnings beats, with respective Earnings ESPs of +0.26% and +2.34% [7][9].

Company Overview - Exelon (EXC) is headquartered in Chicago and operates in the Utilities sector, with a stock price change of 13.18% since the beginning of the year [3]. Dividend Information - Exelon currently pays a dividend of $0.4 per share, resulting in a dividend yield of 3.76%, which is higher than the Utility - Electric Power industry's yield of 3.27% and the S&P 500's yield of 1.62% [3]. - The company's annualized dividend of $1.60 has increased by 5.3% from the previous year, with three dividend increases over the last five years, averaging an annual increase of 0.01% [4]. Earnings Growth - The Zacks Consensus Estimate for Exelon's earnings in 2025 is $2.70 per share, indicating a year-over-year earnings growth rate of 8% [5]. Investment Appeal - Exelon is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7].

Group 1 - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research framework identifies companies with durable business models, mispriced cash flow potential, and intelligent capital allocation, emphasizing a structured and repeatable approach [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model and capital structure, prioritizing comparability, simplicity, and relevance [1] Group 2 - Research coverage focuses on underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] - Moretus Research aims to elevate the standard for independent investment research by providing professional-grade insights and actionable valuation [1]

Core Viewpoint - Exelon Corporation (EXC) is expected to be a consistent performer in the utility industry due to its investments in grid modernization, electric transmission, and cost-saving efforts, despite facing risks related to equipment failures [1] Group 1: Investments and Growth - Exelon plans to invest over $38 billion in regulated utility operations from 2025 to 2028, representing a 10% increase over previous plans, aimed at meeting customer needs and maintaining grid reliability [2] - The systematic investments are projected to ensure a rate-based growth of approximately 7.4% from 2024 to 2028, with approved distribution rates expected to enhance revenues and profitability [3] - Exelon serves over 10 million customers, benefiting from tax reforms, energy efficiency programs, and effective cost management, keeping expenses below inflation [3][7] Group 2: Risks and Challenges - Risks include potential failures of equipment or facilities in delivery systems, which could disrupt electric transmission and supply, leading to revenue losses and increased maintenance costs [4] - Extreme weather conditions or storm damage may strain transmission and distribution systems, resulting in higher maintenance expenditures and reduced capacity to meet peak demands [5] Group 3: Stock Performance - Over the past six months, EXC shares have increased by 14%, outperforming the industry growth of 7.6% [6][7]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Investing in safer asset classes like utilities can yield compelling total returns while offering higher yields compared to other sectors [2] - The article emphasizes the importance of due diligence and independent conclusions for investment decisions [3] Group 2 - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [4]

Core Viewpoint - Exelon (EXC) has shown a downtrend recently, losing 5.5% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near its opening price, reflecting buying interest [4][5]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [5]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for Exelon, which supports the bullish case for the stock [2][7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 1.2%, indicating improved earnings expectations from analysts [8]. - Exelon currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [9].

Group 1 - The primary focus of income investors is generating consistent cash flow from liquid investments, including stocks, bonds, and dividends [1][2] - Dividends are a significant component of long-term returns, often contributing over one-third of total returns [2] - Exelon (EXC), a utility company based in Chicago, has experienced a stock price increase of 17.59% year-to-date and currently pays a dividend of $0.8 per share, yielding 3.62% [3] Group 2 - Exelon's annualized dividend of $1.60 represents a 5.3% increase from the previous year, with an average annual increase of 0.01% over the last five years [4] - The company's current payout ratio is 58%, indicating that it pays out 58% of its trailing 12-month earnings per share as dividends [4] - The Zacks Consensus Estimate projects Exelon's earnings to grow to $2.70 per share in 2025, reflecting an 8% increase from the previous year [5] Group 3 - High-yielding stocks may face challenges during periods of rising interest rates, but Exelon is considered a compelling investment opportunity due to its strong dividend profile [7] - Exelon holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [7]

Core Viewpoint - Exelon Corporation (EXC) is positioned as a strong investment option in the utility sector due to its investment plans aimed at enhancing transmission and distribution infrastructure, which will improve service reliability and operational resilience [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has risen by 1.1% to $2.67 over the past 60 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $24.11 billion, reflecting a year-over-year increase of 4.7% [2] - Exelon's long-term earnings growth rate is estimated at 6.42%, with a trailing four-quarter average earnings surprise of 10.1% [2] Return on Equity (ROE) - Exelon's current ROE stands at 10.29%, slightly above the sector average of 10.2%, indicating effective utilization of shareholders' funds to generate income [3] Dividend Growth - Exelon maintains a quarterly dividend of 40 cents per share, translating to an annualized dividend of $1.60 [4] - The company aims to increase its dividend per share by 5-7% annually through 2028, pending board approval, with a long-term dividend payout ratio projected at 60% [5] - Exelon's current dividend yield is 3.79%, significantly higher than the Zacks S&P 500 composite average of 1.54% [5] Solvency - The time-to-interest earned ratio at the end of Q1 2024 was 2.5, indicating the company's strong ability to meet future interest obligations [6] Focus on Strategic Investments - Exelon plans to invest nearly $38 billion in regulated utility operations from 2025 to 2028, with allocations of $21.7 billion for electric distribution, $12.6 billion for electric transmission, and $3.8 billion for gas delivery [7] Share Price Performance - Over the past six months, Exelon's stock has returned 10.7%, outperforming the industry's growth of 0.2% [8]

Core Viewpoint - Investors in the Utility - Electric Power sector should consider Exelon (EXC) and NextEra Energy (NEE) for potential value opportunities [1] Group 1: Company Rankings and Earnings Outlook - Exelon (EXC) has a Zacks Rank of 2 (Buy), while NextEra Energy (NEE) has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, indicating that EXC's earnings outlook is improving more significantly than NEE's [3] Group 2: Valuation Metrics - EXC has a forward P/E ratio of 15.80, compared to NEE's forward P/E of 19.64 [5] - EXC's PEG ratio is 2.46, while NEE's PEG ratio is slightly higher at 2.54 [5] - EXC's P/B ratio is 1.54, significantly lower than NEE's P/B ratio of 2.46 [6] Group 3: Value Grades - Based on various valuation metrics, EXC holds a Value grade of B, whereas NEE has a Value grade of D [6] - EXC is considered the superior value option due to its solid earnings outlook and favorable valuation figures [6]