Exelon (EXC) Q2 EPS Beats by 5%

Core Insights - Exelon reported Q2 2025 adjusted (non-GAAP) earnings per share of $0.39, exceeding analyst expectations of $0.37, while GAAP revenue reached $5,427 million, indicating a mixed performance across segments and a year-over-year decline in net income [1][5][11] Financial Performance - Adjusted (non-GAAP) EPS fell 17.0% from $0.47 in Q2 2024 to $0.39 in Q2 2025 [2][5] - GAAP revenue for Q2 2025 was $5,427 million, slightly above the consensus estimate [5] - ComEd segment reported adjusted (non-GAAP) operating earnings of $228 million, down 20.0% year-over-year [2][6] - PECO segment saw a 46.2% increase in adjusted (non-GAAP) operating earnings to $136 million [2][6] - BGE segment's adjusted (non-GAAP) earnings rose 22.2% to $55 million [2][6] - PHI segment reported an 11.1% decline in adjusted (non-GAAP) operating earnings to $144 million [2][6] Business Overview and Strategy - Exelon operates through regulated subsidiaries including ComEd, PECO, BGE, and PHI, focusing on electricity and gas distribution [3] - The company is enhancing grid infrastructure and engaging with regulators to support clean energy goals [4] Capital Investment and Infrastructure - Exelon invested $3.96 billion in capital spending in the first half of 2025, part of a $38 billion four-year plan for grid modernization and capacity expansion [8] - Approximately 80% of planned 2025 debt financing has been completed, reducing future financing risks [8] Regulatory Environment - No significant new rate cases were settled in Q2 2025, but ongoing proceedings in New Jersey and Delaware are progressing [9] - The Next Generation Energy Act in Maryland introduces new requirements for utilities regarding cost recovery and grid updates [9] Dividend and Financial Health - The quarterly dividend was maintained at $0.40 per share, with a solid balance sheet showing $27.6 billion in equity and $1.25 billion in cash [10] Future Outlook - Management reaffirmed full-year adjusted (non-GAAP) operating earnings guidance of $2.64 to $2.74 per share, targeting 5–7% annual EPS growth through 2028 [11] - The company anticipates $10 to $15 billion in additional transmission opportunities due to increased grid investment needs [11]