Edison International Posts Strong 2025 and Sets 2026–2027 EPS Targets

Core Insights - Edison International reported a significant increase in earnings for 2025, with GAAP earnings per share rising to $4.80 from $0.88 year-over-year, and core earnings increasing to $1.86 from $1.05 [2][3] - The company has set new core EPS guidance for 2026 and 2027, projecting a range of $5.90 to $6.20 for 2026 and $6.25 to $6.65 for 2027, while maintaining an annual growth expectation of 5% to 7% through 2028 [4] Financial Performance - Full-year GAAP earnings for 2025 reached $11.58 per share, up from $3.33 in 2024, with core earnings climbing to $6.55 from $4.93 [2] - The earnings growth was primarily driven by Southern California Edison (SCE), benefiting from revenue recognition related to the 2025 General Rate Case and reduced interest expenses due to wildfire-related settlements [3] Strategic Initiatives - The company is focusing on investments in wildfire mitigation and grid resilience, having installed over 7,000 miles of covered conductor in high fire-risk areas, which constitutes over 90% of its planned grid hardening efforts [5] - Edison International is processing claims under its Wildfire Recovery Compensation Program, which is a critical part of California's wildfire liability framework [5] Regulatory Environment - California's investor-owned utilities, including Edison International, are facing increased regulatory scrutiny and climate-related risks, with challenges such as wildfire liabilities and infrastructure costs [6] - Earlier in the year, SCE implemented a rate decrease of 2.3% for residential customers and 5.3% for small and medium-sized businesses, positioning its average rates as the lowest among major California utilities [6] Holding Company Performance - At the holding company level, Edison International Parent and Other reported a wider core loss year-over-year, primarily due to higher interest expenses and losses from preferred stock redemption [7]