Edison International(EIX) - 2025 Q2 - Quarterly Results

Second-Quarter 2025 Results Overview Edison International reported its second-quarter 2025 financial performance, management insights, and key strategic and regulatory updates Second-Quarter 2025 Financial Highlights 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] - Edison International Parent and Other's core loss per share increased year-over-year, primarily due to higher interest expense[4] Management Commentary 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] - SCE continues to invest in new and innovative solutions to reduce wildfire risk, emphasizing the importance of mitigation plans and infrastructure resiliency[5] Key Strategic and Regulatory Updates 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] - The company is confident that legislative action will enhance California's AB 1054 regulatory framework[6] - Strong regulatory progress includes WMCE settlement approval, a final decision in the WM/VM proceeding, and a GRC proposed decision[6] - 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] 2025 Earnings Guidance and Investor Information Edison International reaffirmed its 2025 earnings guidance and provided details for its upcoming investor conference call and webcast Reaffirmed 2025 Earnings Guidance 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] Conference Call and Webcast Details 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] Company Profile This section provides an overview of Edison International's business, its primary utility subsidiary, and non-regulated energy advisory services Company Overview 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] - Southern California Edison Company, a utility subsidiary, delivers electricity to 15 million people across Southern, Central, and Coastal California[11] - 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] 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 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] - Core earnings and core EPS exclude income or loss from discontinued operations and significant discrete items not considered representative of ongoing earnings[14] - These non-GAAP measures may not be comparable to those of other companies and are reconciled to basic GAAP earnings in attached tables[14] Safe Harbor Statement and Risk Factors 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] - 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] - 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][17] - 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] Reconciliation of Basic to Core Earnings 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] - 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] - 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] Condensed Consolidated Financial Statements This section presents the company's condensed consolidated statements of income, balance sheets, and cash flows Statements of Income 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 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 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 |