Exelon(EXC) - 2025 Q2 - Quarterly Results

Exelon Reports Second Quarter 2025 Results Exelon reported Q2 2025 results, detailing financial performance, operating company contributions, and recent corporate developments Financial Highlights & Guidance 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] - 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] Consolidated Performance Analysis 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] - These negative impacts were partially offset by distribution and transmission rate increases at PECO, BGE, ComEd, and PHI[9] - Exelon holding company costs increased due to a one-time charitable contribution to the Customer Relief Fund and higher interest expenses[9] Operating Company Performance 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 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 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 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 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 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] - There were no new rate case developments during the second quarter of 2025[13] 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 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 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] Cautionary Statements Regarding Forward-Looking Information 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] - 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] - 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][23] Earnings Release Attachments 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 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 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 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 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 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 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 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 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 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 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 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% |