Edison International(US:EIX)2025-10-28 20:11Financial Performance - For the three months ended September 30, 2025, Southern California Edison Company reported a loss from operations, reflecting a significant impact from wildfire-related costs[6]. - Edison International's net income for Q3 2025 was $832 million, an increase of $316 million compared to Q3 2024, driven by SCE's earnings increase of $323 million[20]. - For the nine months ended September 30, 2025, Edison International's earnings rose by $1,667 million, with SCE contributing $1,745 million to this increase[21]. - SCE's core earnings for Q3 2025 were $994 million, up $327 million from Q3 2024, primarily due to higher revenue from the 2025 GRC final decision[23]. - The net income available to common stock for the nine months ended September 30, 2025, was $2,935 million, an increase of $1,745 million compared to $1,190 million in 2024[98]. - Net income for the nine months ended September 30, 2025, was $3,036 million, up from $1,319 million in 2024[144]. - Basic earnings per share available to Edison International common shareholders increased to $6.78 for the nine months ended September 30, 2025, compared to $2.45 in 2024[160]. - The company reported an operating income of $4,438 million for the nine months ended September 30, 2025, compared to $2,190 million in 2024, a significant increase of 102%[172]. Revenue and Rate Adjustments - The CPUC approved a base rate revenue requirement of $9.7 billion for 2025, reflecting an increase of $880 million over the adjusted 2024 revenue requirement[28]. - The final decision from the 2025 General Rate Case authorized a base revenue requirement of $9.7 billion for 2025, an increase of $1.1 billion (12.8%) over 2024[202]. - Authorized revenue for 2024 is $8,582 million, increasing to $9,660 million in 2025, representing a $1,078 million increase[29]. - The increase in authorized revenues of $902 million for January to September 2025 will be collected over a 24-month period starting October 1, 2025[202]. - SCE's 2025 annual transmission revenue requirement update reflects a $1.3 billion requirement, which is a $220 million (20%) increase from 2024[203]. Wildfire Mitigation and Related Costs - The company anticipates a capital investment plan of $2.9 billion for wildfire risk mitigation expenditures, which will be excluded from the equity portion of SCE's rate base as required under SB 254[10]. - The 2025 General Rate Case (GRC) is expected to influence revenue requirements significantly, with a focus on cost recovery for wildfire-related expenses[6]. - SCE recorded $1,341 million in claim costs related to the TKM Settlement Agreement in 2025, with $966 million after-tax recoveries[26]. - SCE expects to incur additional material losses related to the Eaton Fire, with a Wildfire Recovery Compensation Program launching in fall 2025[53]. - SCE has $1.0 billion of customer-funded self-insurance coverage for wildfires in 2025, with a shareholder contribution of 2.5% for costs exceeding $500 million[54]. - SCE anticipates reimbursement for losses exceeding $1.0 billion related to the Eaton Fire from the Initial Account, which has an estimated claims-paying capacity of approximately $21 billion for all participating utilities[55][56]. Capital Expenditures and Investments - Capital expenditures authorized for 2025 are $6.1 billion, including $1 billion for wildfire mitigation programs[33]. - Total capital expenditures for the nine months ended September 30, 2025, were $4.7 billion, up from $4.0 billion in the same period of 2024[36]. - SCE's forecast for total capital expenditures from 2025 to 2028 is approximately $29.3 billion[39]. - The establishment of a memorandum account for capital expenditures above authorized amounts is aimed at supporting grid readiness for future transportation electrification demand[33]. Liquidity and Financial Position - Edison International's liquidity position remains strong, with available liquidity reported at $1.6 billion, ensuring the company can meet its operational needs[7]. - As of September 30, 2025, SCE had cash on hand of $305 million and approximately $2.1 billion available to borrow on its $3.4 billion revolving credit facility, which is accessible until May 2029[116]. - SCE's debt to total capitalization ratio was 0.58 to 1 as of September 30, 2025, remaining compliant with all financial covenants affecting access to capital[117]. - Edison International Parent's consolidated debt to total capitalization ratio was 0.64 to 1 as of September 30, 2025, in compliance with financial covenants[137]. Operational Challenges and Strategies - Edison International is facing challenges related to supply chain constraints and rising interest rates, which may impact its capital investment projects[12]. - The company is committed to enhancing cybersecurity measures for its critical information technology systems to protect against potential threats[12]. - Edison International's workforce management strategy focuses on attracting and retaining skilled workers to support its operational and strategic plans[12]. Other Financial Metrics - Total operating expenses for the three months ended September 30, 2025, were $4,294 million, a decrease of $119 million compared to $4,175 million in 2024[89]. - Interest expense decreased by $141 million for the nine months ended September 30, 2025, primarily due to cost recoveries authorized under the TKM Settlement Agreement[106]. - The company reported a provision for uncollectible accounts of $256 million for the nine months ended September 30, 2025, compared to $204 million in 2024, an increase of 25.5%[191]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $4,455 million, an increase of $418 million compared to $4,037 million in 2024[142].