Edison International(US:EIX)2026-02-18 21:14Financial Performance - Edison International reported a loss from operations of $16 million for the year ended December 31, 2025, compared to a loss of $11 million in 2024, indicating a 45% increase in operational losses year-over-year[7]. - Edison International's consolidated statements of income show a comprehensive income of $1.2 billion for the year ended December 31, 2025, reflecting a 10% increase from the previous year[10]. - Edison International's net income for 2025 increased by $3,175 million, reaching a total of $4,459 million, compared to $1,284 million in 2024[25]. - SCE's earnings contributed $4,889 million in 2025, an increase of $3,270 million from the previous year[25]. - Core earnings for Edison International in 2025 were $2,520 million, up from $1,900 million in 2024, reflecting a $620 million increase[25]. - Non-core items for Edison International totaled $1,939 million in 2025, compared to a loss of $616 million in 2024, indicating a significant increase in non-core earnings[25]. - Operating revenue for 2025 reached $19.276 billion, up $1.729 billion from $17.547 billion in 2024[88]. - Net income for 2025 was $5.033 billion, a significant increase of $3.239 billion compared to $1.794 billion in 2024[88]. - Total operating expenses decreased by $2.483 billion to $12.068 billion in 2025, down from $14.551 billion in 2024[88]. Capital Expenditures and Investments - The company has a capital investment plan that includes $1.6 billion in wildfire risk mitigation capital expenditures excluded from the equity portion of SCE's rate base as required under California Assembly Bill 1054[13]. - Edison International expects to exclude $2.9 billion in wildfire risk mitigation capital expenditures from the equity portion of SCE's rate base as required under California Senate Bill 254, effective September 19, 2025[14]. - Total capital expenditures were $6.7 billion in 2025, up from $5.7 billion in 2024[45]. - SCE's capital expenditure forecast for 2026-2030 includes a total of $40.6 billion, with significant investments in distribution and wildfire mitigation[47]. - SCE intends to request at least $3 billion for advanced metering infrastructure between 2026 and 2033[48]. Wildfire Mitigation and Claims - The company is actively involved in wildfire mitigation strategies, including a safety certification and wildfire mitigation plan to address risks associated with Southern California wildfires[9]. - SCE implemented a customer-funded wildfire self-insurance program in July 2023, which has changed the treatment of wildfire-related claim losses to non-core items[23]. - The TKM Settlement Agreement and Woolsey Settlement Agreement approved by the CPUC in January and December 2025 contributed to cost recoveries reflected in SCE's earnings[26]. - SCE has recorded estimated losses of $9.9 billion related to the 2017/2018 Wildfire/Mudslide Events, with recoveries from insurance totaling $2.0 billion and expected recoveries through electric rates of $3.4 billion[69]. - As of December 31, 2025, SCE recorded $1.1 billion in losses related to settlements from the Eaton Fire, with expected recoveries of $917 million from customer-funded self-insurance, $134 million from the Wildfire Fund, and $70 million through FERC electric rates[59]. - SCE anticipates seeking reimbursement for eligible claims from the Initial Account of the Wildfire Fund for losses exceeding $1.0 billion related to the Eaton Fire, with the fund's claims-paying capacity exceeding $21 billion as of September 30, 2025[62]. Regulatory and Compliance - Edison International's regulatory proceedings are ongoing, with significant implications for future capital structure compliance from January 1, 2026, to December 31, 2028[8]. - The CPUC set SCE's ROE at 10.03% for 2026, with a weighted average return on rate base of 7.59%[44]. - SCE's authorized revenue requirement for 2025 is $9.7 billion, an increase of $880 million from the adjusted 2024 amount of $8.78 billion[85]. - The regulatory liability for recoveries in excess of ARO liabilities was $2.1 billion as of December 31, 2025, reflecting the impact of cost escalation on decommissioning liabilities[203]. Liquidity and Financial Position - The available liquidity for Edison International is reported at $17 billion, providing a strong financial cushion for future investments and operational needs[8]. - As of December 31, 2025, SCE had cash on hand of $98 million, restricted cash of $522 million, and approximately $2.3 billion available to borrow on its $3.4 billion revolving credit facility[106]. - SCE's debt to total capitalization ratio was 0.57 to 1 as of December 31, 2025, complying with all financial covenants affecting access to capital[107]. - The consolidated debt to total capitalization ratio for Edison International was 0.64 to 1 as of December 31, 2025, in compliance with financial covenants[139]. Technology and Innovation - The company is exploring new technologies and products to improve operational efficiency and customer service in the electricity sector[9]. - Edison International is committed to enhancing its cybersecurity measures to mitigate risks associated with physical and cyber threats[8]. - The company is focusing on expanding its market presence through strategic partnerships and investments in distributed energy resources (DERs)[12]. Environmental and Sustainability Goals - Approximately 61% of SCE's customer deliveries in 2025 came from carbon-free resources, with a commitment to achieve 100% by 2045[38]. - Edison International aims for net-zero GHG emissions by 2045, aligning with California's climate actions[38]. - SCE projects electricity demand to nearly double between 2025 and 2045, driven by transportation electrification and new residential housing[33]. Pension and Decommissioning Obligations - As of December 31, 2025, Edison International's pension plan had a projected benefit obligation of $3.7 billion[206]. - SCE's pension plan had a projected benefit obligation of $3.4 billion as of December 31, 2025[206]. - Total expense for Edison International's pension plan in 2025 was $30 million[206]. - Total expense for SCE's pension plan in 2025 was $26 million[206]. - SCE estimates it will spend approximately $7.4 billion, undiscounted through 2098, to decommission its nuclear facilities, with the current Asset Retirement Obligation (ARO) for decommissioning set at $2.0 billion[198][200].