Edison International(EIX) - 2025 Q1 - Quarterly Results

First Quarter 2025 Results Overview This section overviews Edison International's Q1 2025 financial results, CEO commentary, and key regulatory progress Financial Highlights Edison International reported a significant increase in Q1 2025 net income and core earnings per share compared to the prior year, primarily driven by cost recoveries for Southern California Edison Financial Highlights Summary | Metric | Q1 2025 | Q1 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | GAAP Net Income (millions) | $1,436 | $(11) | +$1,447 | | GAAP EPS | $3.73 | $(0.03) | +$3.76 | | Core Earnings (millions) | $528 | $438 | +$90 | | Core EPS | $1.37 | $1.13 | +$0.24 | - Southern California Edison's (SCE) Q1 2025 core EPS increased year over year, primarily due to a benefit to interest expense related to cost recoveries authorized under the TKM Settlement Agreement[3] - Edison International Parent and Other's Q1 2025 core loss per share increased year over year, primarily due to higher interest expense[3] CEO Commentary CEO Pedro J. Pizarro highlighted ongoing engagement with stakeholders to enhance California's AB 1054 regulatory framework and support community safety, emphasizing the role of investor-owned utilities in the state's growth - Continued engagement with key stakeholders to find solutions to support community safety and enhance California's industry-leading AB 1054 regulatory framework[4] - Working closely with state and county leaders and the communities of Altadena and Malibu to rebuild wildfire-impacted areas stronger than ever[4] - SCE's grid hardening in these areas will increase reliability and reduce the exposure of electrical distribution infrastructure to high wind and other extreme weather events[4] Key Developments & Regulatory Progress The company reported continued investigation into the Eaton Fire, strong regulatory progress including the approval of the TKM settlement, and the filing of 2026 Cost of Capital and NextGen ERP applications, alongside a settlement in the WMCE proceeding - Eaton Fire investigation continues; working closely with state and county leaders and communities to rebuild wildfire-impacted areas[5] - Strong regulatory progress: TKM settlement approved; filed 2026 Cost of Capital and NextGen ERP applications; reached settlement in WMCE proceeding[5] 2025 Earnings Guidance Edison International affirmed its 2025 core EPS guidance range of $5.94-$6.34 and expressed confidence in delivering 5-7% core EPS growth from 2025 to 2028, projecting $6.74-$7.14 2025 Earnings Guidance Summary | Metric | As of Feb. 27, 2025 (Low-High) | As of April 29, 2025 (Low-High) | | :---------------- | :----------------------------- | :------------------------------ | | EIX Basic EPS | $5.94 - $6.34 | $8.30 - $8.70 | | Less: Non-Core Items | — | $2.36 | | EIX Core EPS | $5.94 - $6.34 | $5.94 - $6.34 | - Affirmed 2025 Core EPS guidance of $5.94-$6.34[5][6][7] - Continued confidence in delivering 5-7% Core EPS growth from 2025 to 2028 ($6.74-$7.14)[5] Company Information This section outlines Edison International's business operations and investor relations details, including the earnings call About Edison International Edison International is a major electric utility holding company providing clean and reliable energy, operating Southern California Edison (delivering electricity to 15 million people) and Trio (formerly Edison Energy), which offers non-regulated sustainability and energy advisory services in North America and Europe - 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[9] - Parent company of Southern California Edison Company, a utility delivering electricity to 15 million people across Southern, Central and Coastal California[9] - Also the parent company of Trio (formerly Edison Energy), 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[9] Investor Relations & Conference Call Details The report provides details for the first-quarter 2025 earnings conference call and webcast, including access information and the availability of related materials on the company's investor relations website - First-Quarter 2025 Earnings Conference Call and Webcast Details: Tuesday, April 29, 1:30-2:30 p.m. (PDT)[8] - Telephone replay available through May 13 at 6 p.m. (PDT)[8] - Webcast and related materials (prepared remarks, presentation, Form 10-Q) available at www.edisoninvestor.com[8](index=8&type=chunk) Appendix The appendix covers non-GAAP financial measures, risk factors, financial reconciliations, and consolidated financial statements Use of Non-GAAP Financial Measures Edison International uses "core earnings" and "core EPS" as non-GAAP financial measures for internal planning, performance analysis, and communication with investors, defining them as basic earnings/EPS excluding discontinued operations and significant 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 communication to facilitate period-to-period comparisons[11] - Defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings[12] Safe Harbor Statement & Risk Factors This section outlines forward-looking statements and key risk factors, including cost recovery, operational, regulatory, and environmental challenges - Statements about future performance are forward-looking and involve risks and uncertainties that could cause actual results to differ materially from current expectations[13] - Important factors that could cause different results include, but are not limited to: SCE's ability to recover costs (including wildfire-related) through regulated rates, cybersecurity risks, operational and maintenance risks of electrical facilities (including wildfires), impact of customer rate affordability, ability to update grid infrastructure, implementation of operational and strategic plans (e.g., Wildfire Mitigation Plan), regulatory or legislative restrictions on wildfire mitigation, effectiveness of AB 1054, workforce management, decisions by regulatory bodies, governmental changes, potential penalties, extreme weather events, San Onofre decommissioning, cost allocation risks, and credit rating actions[13][15] Financial Reconciliations This section provides detailed reconciliations of basic to core EPS and earnings for Edison International and its segments Reconciliation of Basic EPS to Core EPS The reconciliation shows how basic EPS is adjusted for non-core items to arrive at core EPS for both Edison International and its segments (SCE, Parent and Other), demonstrating a significant positive change in core EPS year-over-year Reconciliation of Basic EPS to Core EPS | Earnings (loss) per share available to Edison International | March 31, 2025 | March 31, 2024 | Change | | :-------------------------------------------------------- | :------------- | :------------- | :----- | | SCE Basic EPS | $4.07 | $0.17 | $3.90 | | Edison International Parent and Other Basic EPS | $(0.34) | $(0.20) | $(0.14) | | Edison International Basic EPS | $3.73 | $(0.03) | $3.76 | | Less: Total non-core items | $2.36 | $(1.16) | $3.52 | | SCE Core EPS | $1.61 | $1.33 | $0.28 | | Edison International Parent and Other Core EPS | $(0.24) | $(0.20) | $(0.04) | | Edison International Core EPS | $1.37 | $1.13 | $0.24 | Reconciliation of Basic Earnings to Core Earnings This reconciliation details the specific non-core items, such as TKM Settlement Agreement related earnings, wildfire claims, and Wildfire Insurance Fund expenses, that are adjusted from net income to derive core earnings for Edison International and its segments Reconciliation of Basic Earnings to Core Earnings (in millions) | Metric | March 31, 2025 | March 31, 2024 | Change | | :------------------------------------------ | :------------- | :------------- | :----- | | Net income (loss) available to Edison International | $1,436 | $(11) | $1,447 | | Less: Total non-core items | $908 | $(449) | $1,357 | | Core earnings (losses) | $528 | $438 | $90 | - Non-core items for SCE in Q1 2025 included $1,341 million in claim costs and $59 million in legal expenses related to the TKM Settlement Agreement, partially offset by shareholder-funded wildfire mitigation and asset impairment[19] - Non-core items also included $12 million in net earnings from insurance reimbursements for previous years' costs in Q1 2025, compared to $119 million in charges for wildfire claims in Q1 2024[19] Condensed Consolidated Financial Statements This section presents Edison International's condensed consolidated statements of income, balance sheets, and cash flows Condensed Consolidated Statements of Income Edison International reported a significant increase in operating income and net income for Q1 2025 compared to Q1 2024, primarily due to a substantial reduction in wildfire-related claims, net of recoveries Condensed Consolidated Statements of Income (in millions, except per-share amounts) | Metric | 2025 | 2024 | | :-------------------------------------- | :--- | :--- | | Operating revenue | $3,811 | $4,078 | | Total operating expenses | $1,677 | $3,833 | | Operating income | $2,134 | $245 | | Net income | $1,492 | $52 | | Net income (loss) attributable to Edison International common shareholders | $1,436 | $(11) | | Basic earnings (loss) per common share | $3.73 | $(0.03) | - Wildfire-related claims, net of (recoveries) significantly decreased from $615 million in Q1 2024 to $(1,305) million in Q1 2025[21] - Interest expense decreased from $(444) million in Q1 2024 to $(301) million in Q1 2025[21] Condensed Consolidated Balance Sheets As of March 31, 2025, Edison International's total assets increased to $88,420 million from $85,579 million at December 31, 2024, driven by increases in cash and cash equivalents, utility property, plant and equipment, and regulatory assets Condensed Consolidated Balance Sheets (in millions) | Metric | March 31, 2025 | December 31, 2024 | Change | | :------------------------------------------ | :------------- | :---------------- | :----- | | Total assets | $88,420 | $85,579 | +$2,841 | | Total liabilities | $69,623 | $67,839 | +$1,784 | | Total equity | $18,797 | $17,740 | +$1,057 | | Cash and cash equivalents | $1,318 | $193 | +$1,125 | | Short-term debt | $5 | $998 | -$993 | | Long-term debt | $35,387 | $33,534 | +$1,853 | - Long-term regulatory assets increased from $8,886 million at December 31, 2024, to $10,548 million at March 31, 2025[22] - Utility property, plant and equipment, net, increased from $59,047 million at December 31, 2024, to $59,950 million at March 31, 2025[22] Condensed Consolidated Statements of Cash Flows For the three months ended March 31, 2025, Edison International reported increased net cash provided by operating activities and financing activities, while net cash used in investing activities remained substantial, leading to a significant net increase in cash and cash equivalents Condensed Consolidated Statements of Cash Flows (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | | Net cash provided by operating activities | $1,224 | $1,043 | +$181 | | Net cash provided by financing activities | $1,374 | $988 | +$386 | | Net cash used in investing activities | $(1,374) | $(1,276) | -$(98) | | Net increase in cash, cash equivalents and restricted cash | $1,224 | $755 | +$469 | - Long-term debt issued, net of discount and issuance costs, increased to $3,501 million in Q1 2025 from $2,976 million in Q1 2024[25] - Commercial paper repayments, net of borrowing, significantly increased to $(1,687) million in Q1 2025 from $(622) million in Q1 2024[25]