Open the filing on EDGAREdison International Reports Fourth Quarter and Full-Year 2025 Results
- Fourth-quarter 2025 GAAP EPS of $4.80; core EPS of $1.87
- Full-year 2025 GAAP EPS of $11.58; core EPS of $6.55
- Introduced 2026 core EPS guidance of $5.90-6.20 and 2027 core EPS guidance of $6.25-6.65
- Recent regulatory decisions provide strong visibility into achieving multi-year targets
- Continued confidence in delivering 5-7% core EPS growth from 2028-2028 and extending to 2030
ROSEMEAD, Calif., Feb. 18, 2026 - Edison International (NYSE: EIX) today reported fourth-quarter net income of $1,848 million, or $4.80 per share, compared to net income of $340 million, or $0.88 per share, in the fourth quarter of last year. As adjusted, fourth-quarter core earnings were $717 million, or $1.87 per share, compared to core earnings of $405 million, or $1.05 per share, in the fourth quarter of last year.
Southern California Edison’s fourth-quarter 2025 core earnings per share (EPS) increased year over year, primarily due to a benefit to interest expense related to cost recoveries authorized under the Woolsey Settlement Agreement and revenue recognition from the 2025 GRC final decision.
Edison International Parent and Other’s fourth-quarter 2025 core loss per share increased year over year, primarily due to a loss on preferred stock redemption driven by the recognition of the original issuance costs.
“This year’s results reflect the progress we’re making to deliver a safer, more resilient, and more affordable energy system for customers,” said Pedro J. Pizarro, president and CEO of Edison International. “SCE’s extensive wildfire mitigation approach has resulted in the installation of more than 7,000 miles of covered conductor in high fire risk areas - over 90% of the utility’s planned grid hardening effort. This work continues to play a critical role in reducing ignition risk and strengthening reliability for the communities we serve. We’re also continuing to support communities recovering from recent wildfires through SCE’s Wildfire Recovery Compensation Program, where we are actively processing claims and making payments to help customers rebuild."
Pizarro added, “Safety and affordability remain at the core of our commitment to customers. Earlier this year, SCE announced a 2.3% rate decrease for residential customers and a 5.3% decrease for small and medium-sized businesses. This is starting from a place of having the lowest system average rate among California’s major investor-owned utilities.”
Full-Year Earnings
For 2025, Edison International reported net income of $4,459 million, or $11.58 per share, compared to $1,284 million, or $3.33 per share, for 2024. As adjusted, Edison International’s core earnings were $2,520 million, or $6.55 per share, compared to $1,900 million, or $4.93 per share, in 2024.
SCE’s full-year core EPS was higher, primarily due to revenue recognition from the 2025 GRC final decision and a benefit to interest expense related to cost recoveries authorized under the TKM and Woolsey Settlement Agreements.
Edison International Parent and Other’s full-year core loss per share increased primarily due to higher interest expense and a loss on preferred stock redemption driven by the recognition of the original issuance costs.
Edison International uses core earnings internally for financial planning and analysis of performance. Core earnings are also used when communicating with investors and analysts regarding Edison International’s earnings results to facilitate comparisons of the company’s performance from period to period. Please see the attached tables to reconcile core earnings to basic GAAP earnings.
2026 and 2027 Earnings Guidance
The company introduced its earnings guidance ranges for 2026 and 2027, as summarized in the following table. See the presentation accompanying the company’s conference call for further information and assumptions.
| 2026 Earnings Guidance as of Feb. 18, 2026 | 2027 Earnings Guidance as of Feb. 18, 2026 |
|---|
| Low | High | Low | High |
|---|
| EIX Basic EPS | $5.90 | $6.20 | $6.25 | $6.65 |
|---|
| Less: Non-Core Items* | - | - | - | - |
|---|
| EIX Core EPS | $5.90 | $6.20 | $6.25 | $6.65 |
|---|
*Non-core items are presented as they are recorded.
Edison International and Southern California Edison Declare Dividends
Today, the board of directors of Edison International declared a quarterly common stock dividend of $0.8775 per share, payable on April 30, 2026, to shareholders of record on April 7, 2026. It also declared dividends on preferred stock.
Additionally, the board of directors of Southern California Edison Company today declared dividends on preference stock. For more information, please see the related news release at edisoninvestor.com.
Fourth Quarter and Full-Year 2025 Earnings Conference Call and Webcast Details
Edison International has posted its earnings conference call prepared remarks by the CEO and CFO, the teleconference presentation, and Form 10-K to the company’s investor relations website. These materials are available at edisoninvestor.com.
About Edison International
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 through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility delivering electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Trio (formerly Edison Energy), a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers.
Appendix
Use of Non-GAAP Financial Measures
Edison International’s earnings and basic earnings per share (EPS) are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core EPS internally for financial planning and for analysis of performance of Edison International and Southern California Edison. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to as net income, basic EPS, core earnings, or core EPS also apply to the description of earnings or earnings per share.
Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other.
Safe Harbor Statement
Statements contained in this release about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. These forward-looking statements represent our expectations only as of the date of this release, and Edison International assumes no duty to update them to reflect new information, events or circumstances. Important factors that could cause different results include, but are not limited to the:
- ability of SCE to recover its costs through regulated rates, timely or at all, including uninsured wildfire-related costs (including amounts paid for self-insured retention and co-insurance, and amounts not recoverable from the Wildfire Fund), and costs incurred for wildfire restoration efforts and to mitigate the risk of utility equipment causing future wildfires;
- the cybersecurity of Edison International's and SCE's critical information technology systems for grid control and business, employee and customer data, and the physical security of Edison International's and SCE's critical assets and personnel;
- risks associated with the construction, operation, and maintenance of electrical facilities, including worker, contractor, and public safety issues, the risk of utility assets causing or contributing to wildfires, failure, availability, efficiency, and output of equipment and facilities, and availability and cost of spare parts;
- impact of affordability of customer rates on SCE's ability to execute its strategy, including the impact of affordability on SCE’s ability to obtain regulatory approval of, or cost recovery for, operations and maintenance expenses, proposed capital investment projects, forecasted load growth does not occur, and increased costs due to supply chain constraints, tariffs, inflation and rising interest rates and the impact of legislative actions on affordability;
- ability of SCE to update its grid infrastructure to maintain system integrity and reliability, and meet electrification needs;
- ability of SCE to implement its operational and strategic plans, including its Wildfire Mitigation Plan, its target energization times and capital investment program, including challenges related to project site identification, public opposition, environmental mitigation, construction, permitting, contractor performance, changes in the California Independent System Operator's (“CAISO”) transmission plans, and governmental approvals;
- risks of regulatory or legislative restrictions that would limit SCE's ability to implement operational measures to mitigate wildfire risk, including Public Safety Power Shutoff (“PSPS”) and fast curve settings, when conditions warrant or would otherwise limit SCE's operational practices relative to wildfire risk mitigation;
- ability of SCE to obtain safety certifications from the Office of Energy Infrastructure Safety of the California Natural Resources Agency (“OEIS“);
- risk that California Assembly Bill 1054 (“AB 1054“), California Senate Bill 254 (“SB 254”) or other new California legislation does not effectively mitigate the significant exposure faced by California investor-owned utilities related to liability for damages arising from catastrophic wildfires where utility facilities are alleged to be a substantial or contributing cause, including the longevity of the Wildfire Fund and the California Public Utilities Commission (“CPUC”) interpretation of and actions under AB 1054 or SB 254, including its interpretation of the prudency standard clarified by AB 1054;
- ability of Edison International and SCE to effectively attract, manage, develop and retain a skilled workforce, including its contract workers;
- decisions and other actions by the CPUC, the Federal Energy Regulatory Commission, and the United States Nuclear Regulatory Commission, the California legislature and other governmental authorities, including decisions and actions related to nationwide or statewide crisis, approval of regulatory proceeding settlements, determinations of authorized rates of return or return on equity, the recoverability of wildfire-related and debris flow-related costs, issuance of SCE's wildfire safety certification, reforming wildfire-related liability protections available to California investor-owned utilities, wildfire mitigation efforts, approval and implementation of electrification programs, and delays in executive, regulatory and legislative actions;
- governmental, statutory, regulatory, or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market adopted by the North American Electric Reliability Corporation, CAISO, Western Electricity Coordinating Council, and similar regulatory bodies in adjoining regions, and changes in the United States' and California's environmental priorities that lessen the importance placed on greenhouse gas reduction and other climate related priorities;
- potential for penalties or disallowances for non-compliance with applicable laws and regulations, including fines, penalties and disallowances related to customer notifications and to wildfires where SCE's equipment is alleged to be associated with ignition;
- extreme weather-related incidents (including events caused, or exacerbated, by climate change), such as wildfires, debris flows, flooding, droughts, high wind events and extreme heat events and other natural disasters (such as earthquakes), which could cause, among other things, worker and public safety issues, property damage, outages and other operational issues (such as issues due to damaged infrastructure), PSPS activations and unanticipated costs;
- risks associated with the decommissioning of San Onofre, including those related to worker and public safety, public opposition, permitting, governmental approvals, on-site storage of spent nuclear fuel and other radioactive material, delays, contractual disputes, and cost overruns;
- risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure for other electricity providers such as Community Choice Aggregators (“CCA,” which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses) and Electric Service Providers (entities that offer electric power and ancillary services to retail customers, other than electrical corporations (like SCE) and CCAs);
- actions by credit rating agencies to downgrade Edison International or SCE’s credit ratings or to place those ratings on negative watch or negative outlook.
Other important factors are discussed under the headings “Forward-Looking Statements”, “Risk Factors” and “Management’s Discussion and Analysis” in Edison International’s Form 10-K and other reports filed with the Securities and Exchange Commission, which are available on our website: edisoninvestor.com. These filings also provide additional information on historical and other factual data contained in this release.
Fourth Quarter Reconciliation of Basic Earnings Per Share to Core Earnings Per Share
| Three Months Ended December 31, | | Twelve Months Ended December 31, | |
|---|
| 2025 | 2024 | Change | 2025 | 2024 | Change |
|---|
| Earnings (loss) per share available to Edison International | | | | | | |
| SCE | $5.08 | | $1.11 | | $3.97 | $12.70 | | $4.20 | | $8.50 |
| Edison International Parent and Other | (0.28) | | (0.23) | | (0.05) | (1.12) | | (0.87) | | (0.25) |
| Edison International | 4.80 | | 0.88 | | 3.92 | 11.58 | | 3.33 | | 8.25 |
| Less: Non-core items | | | | | | |
| SCE | 2.93 | | (0.17) | | 3.10 | 5.13 | | (1.59) | | 6.72 |
| Edison International Parent and Other | - | | - | | - | (0.10) | | (0.01) | | (0.09) |
| Total non-core items | 2.93 | | (0.17) | | 3.10 | 5.03 | | (1.60) | | 6.63 |
| Core earnings (loss) per share | | | | | | |
| SCE | 2.15 | | 1.28 | | 0.87 | 7.57 | | 5.79 | | 1.78 |
| Edison International Parent and Other | (0.28) | | (0.23) | | (0.05) | (1.02) | | (0.86) | | (0.16) |
| Edison International | $1.87 | | $1.05 | | $0.82 | $6.55 | | $4.93 | | $1.62 |
Note: Diluted earnings were $4.79 and $0.87 per share for the three months ended December 31, 2025 and 2024, respectively. Diluted earnings were $11.55 and $3.31 per share for the twelve months ended December 31, 2025 and 2024, respectively.
Fourth Quarter Reconciliation of Basic Earnings to Core Earnings (in millions)
| Three Months Ended December 31, | | Twelve Months Ended December 31, | |
|---|
| (in millions) | | 2025 | | 2024 | Change | | 2025 | | 2024 | Change |
| Net income (loss) available to Edison International | | | | | | |
| SCE | $1,954 | | $429 | | $1,525 | $4,889 | | $1,619 | | $3,270 |
| Edison International Parent and Other | (106) | | (89) | | (17) | (430) | | (335) | | (95) |
| Edison International | 1,848 | | 340 | | 1,508 | 4,459 | | 1,284 | | 3,175 |
| Less: Non-core items | | | | | | |
| SCE1,2,3,4,5,6 | 1,131 | | (64) | | 1,195 | 1,978 | | (613) | | 2,591 |
| Edison International Parent and Other | - | | (1) | | 1 | (39) | | (3) | | (36) |
| Total non-core items | 1,131 | | (65) | | 1,196 | 1,939 | | (616) | | 2,555 |
| Core earnings (losses) | | | | | | |
| SCE | 823 | | 493 | | 330 | 2,911 | | 2,232 | | 679 |
| Edison International Parent and Other | (106) | | (88) | | (18) | (391) | | (332) | | (59) |
| Edison International | $717 | | $405 | | $312 | $2,520 | | $1,900 | | $620 |
Includes charges for 2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries:
- Net earnings recorded for the twelve months ended December 31, 2025, related to the TKM Settlement Agreement, including ongoing legal expenses: $1,341 million ($966 million after-tax) of claim costs, and $55 million ($40 million after-tax) of legal expenses authorized for recovery, partially offset by shareholder-funded wildfire mitigation expenses of $50 million ($36 million after-tax) and impairment of incremental restoration-related assets of $8 million ($6 million after-tax); and charges of $3 million ($2 million after-tax) related to claim costs and related legal expenses, net of expected regulatory recoveries for the three months ended December 31, 2025.
- Net earnings recorded in the fourth quarter of 2025, related to the Woolsey Settlement Agreement, including ongoing legal expenses: $1,603 million ($1,154 million after-tax) of claim costs and $35 million ($25 million after-tax) of legal expenses authorized for recovery, partially offset by impairment of incremental restoration-related assets of $10 million ($7 million after-tax).
- Legal expenses authorized for recovery of $2 million ($2 million after-tax) and charges of $5 million ($3 million after tax) related to claim costs and related legal expenses, net of expected regulatory recoveries, for the three and twelve months ended December 31, 2025, respectively.
- Charges of $8 million ($6 million after-tax) and $493 million ($355 million after-tax) related to claim costs and related legal expenses, net of expected regulatory recoveries, for the three and twelve months ended December 31, 2024, respectively.
Includes charges for Eaton Fire claims and expenses of $15 million ($11 million after tax) recorded in the fourth quarter of 2025, primarily from the shareholder contribution related to SCE's customer-funded self-insurance coverage and legal and other expenses.
Includes charges for Other Wildfire Events claims and expenses, net of recoveries:
- Charges of $1 million ($1 million after-tax) for the twelve months ended December 31, 2025, consisted of $15 million of legal expenses, net of expected regulatory recoveries, partially offset by $14 million of insurance reimbursements for costs incurred in previous years.
- Charges of $162 million ($117 million after-tax) for wildfire claims and related legal expenses, net of expected insurance and regulatory recoveries for the twelve months ended December 31, 2024.
- Charges of $5 million ($4 million after-tax) and $38 million ($27 million after-tax) for wildfire claims and related legal expenses, net of expected insurance and regulatory recoveries, for the three months ended December 31, 2025 and 2024, respectively.
Includes amortization of SCE's Wildfire Insurance Fund expenses of $36 million ($26 million after tax) and $37 million ($27 million after-tax) for the three months ended December 31, 2025 and 2024, respectively, and $144 million ($104 million after-tax) and $146 million ($105 million after-tax) for the twelve months ended December 31, 2025 and 2024, respectively.
Includes net charges of $76 million ($39 million after-tax) recorded in the third quarter of 2025, primarily related to impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in SCE's 2025 GRC final decision.
Includes severance costs, net of expected FERC recovery, of $6 million ($4 million after-tax) and $50 million ($36 million after-tax), for the three and twelve months ended December 31, 2024.
Includes charges related to wildfire claims insured by EIS of $50 million ($39 million after-tax) recorded in the first quarter of 2025, and $2 million ($1 million after-tax) and $4 million ($3 million after-tax) for the three and twelve months ended December 31, 2024, respectively.
| Year ended December 31, |
|---|
| Consolidated Statements of Income | Edison International |
| (in millions, except per-share amounts) | | 2025 | | 2024 | | 2023 |
| Operating revenue | $19,317 | | $17,599 | | $16,338 | |
| Purchased power and fuel | 4,933 | | 5,209 | | 5,486 | |
| Operation and maintenance | 5,098 | | 5,172 | | 4,138 | |
| Wildfire-related claims, net of (recoveries) | (1,959) | | 652 | | 667 | |
| Wildfire Fund expense | 144 | | 146 | | 213 | |
| Depreciation and amortization | 3,237 | | 2,866 | | 2,635 | |
| Property and other taxes | 665 | | 624 | | 571 | |
| Asset impairment | 106 | | - | | 1 | |
| Total operating expenses | 12,224 | | 14,669 | | 13,711 | |
| Operating income | 7,093 | | 2,930 | | 2,627 | |
| Interest expense | (1,539) | | (1,869) | | (1,612) | |
| Other income, net | 438 | | 502 | | 500 | |
| Income before income taxes | 5,992 | | 1,563 | | 1,515 | |
| Income tax expense | 1,291 | | 17 | | 108 | |
| Net income | 4,701 | | 1,546 | | 1,407 | |
| Less: Preference stock dividend requirements of SCE | 144 | | 175 | | 123 | |
| Preferred stock dividend requirements of Edison International | 98 | | 87 | | 87 | |
| Net income available to Edison International common shareholders | $4,459 | | $1,284 | | $1,197 | |
| Basic earnings per share: | | | |
| Weighted average shares of common stock outstanding | 385 | | 386 | | 383 | |
| Basic earnings per common share available to Edison International common shareholders | $11.58 | | $3.33 | | $3.12 | |
| Diluted earnings per share: | | | |
| Weighted average shares of common stock outstanding, including effect of dilutive securities | 386 | | 388 | | 385 | |
| Diluted earnings per common share available to Edison International common shareholders | $11.55 | | $3.31 | | $3.11 | |
| December 31, |
|---|
| Consolidated Balance Sheets | Edison International |
| (in millions) | | 2025 | | 2024 |
| ASSETS | | |
| Cash and cash equivalents | $158 | | $193 | |
| Receivables, net of allowances for uncollectible accounts of $356 and $352 at respective dates | 1,463 | | 2,169 | |
| Accrued unbilled revenue | 1,238 | | 848 | |
| Inventory | 535 | | 538 | |
| Prepaid expenses | 119 | | 103 | |
| Regulatory assets | 3,290 | | 2,748 | |
| Wildfire Fund contributions | 138 | | 138 | |
| Other current assets | 745 | | 418 | |
| Total current assets | 7,686 | | 7,155 | |
| Nuclear decommissioning trusts | 4,535 | | 4,286 | |
| Other investments | 51 | | 57 | |
| Total investments | 4,586 | | 4,343 | |
| Utility property, plant and equipment, net of accumulated depreciation and amortization of $15,060 and $14,207 at respective dates | 63,131 | | 59,047 | |
| Nonutility property, plant and equipment, net of accumulated depreciation of $132 and $124 at respective dates | 197 | | 207 | |
| Total property, plant and equipment | 63,328 | | 59,254 | |
| Receivables, net of allowances for uncollectible accounts of $49 and $43 for at respective dates | 38 | | 62 | |
| Regulatory assets (include $3,092 and $1,512 related to a Variable Interest Entity ("VIE") at respective dates) | 12,960 | | 8,886 | |
| Wildfire Fund contributions | 1,740 | | 1,878 | |
| Operating lease right-of-use assets | 1,161 | | 1,180 | |
| Long-term insurance receivables | 359 | | 418 | |
| Other long-term assets | 2,168 | | 2,403 | |
| Total other assets | 18,426 | | 14,827 | |
| Total assets | $94,026 | | $85,579 | |
| December 31, |
|---|
| Consolidated Balance Sheets | Edison International |
| (in millions, except share amounts) | | 2025 | | 2024 |
| LIABILITIES AND EQUITY | | |
| Short-term debt | $2,390 | | $998 | |
| Current portion of long-term debt | 1,928 | | 2,049 | |
| Accounts payable | 2,344 | | 2,000 | |
| Wildfire-related claims | 585 | | 60 | |
| Accrued interest | 473 | | 422 | |
| Regulatory liabilities | 1,158 | | 1,347 | |
| Current portion of operating lease liabilities | 120 | | 124 | |
| Other current liabilities | 1,538 | | 1,439 | |
| Total current liabilities | 10,536 | | 8,439 | |
| Long-term debt (include $3,022 and $1,468 related to a VIE at respective dates) | 36,070 | | 33,534 | |
| Deferred income taxes and credits | 9,114 | | 7,180 | |
| Pensions and benefits | 370 | | 384 | |
| Asset retirement obligations | 2,583 | | 2,580 | |
| Regulatory liabilities | 10,627 | | 10,159 | |
| Operating lease liabilities | 1,041 | | 1,056 | |
| Wildfire-related claims | 721 | | 941 | |
| Other deferred credits and other long-term liabilities | 3,705 | | 3,566 | |
| Total deferred credits and other liabilities | 28,161 | | 25,866 | |
| Total liabilities | 74,767 | | 67,839 | |
| Preferred stock (50,000,000 shares authorized; 414,342 and 1,159,317 shares of Series A and 87,937 and 503,454 shares of Series B issued and outstanding at respective dates) | 497 | | 1,645 | |
| Common stock, no par value (800,000,000 shares authorized; 384,787,056 and 384,784,719 shares issued and outstanding at respective dates) | 6,362 | | 6,353 | |
| Accumulated other comprehensive income | 6 | | - | |
| Retained earnings | 10,714 | | 7,567 | |
| Total Edison International's shareholders' equity | 17,579 | | 15,565 | |
| Noncontrolling interests - preference stock of SCE | 1,680 | | 2,175 | |
| Total equity | 19,259 | | 17,740 | |
| Total liabilities and equity | $94,026 | | $85,579 | |
| Years ended December 31, |
|---|
| Consolidated Statements of Cash Flows | Edison International |
| (in millions) | | 2025 | | 2024 | | 2023 |
| Cash flows from operating activities: | | | |
| Net income | $4,701 | | $1,546 | | $1,407 | |
| Adjustments to reconcile to net cash provided by operating activities: | | | |
| Depreciation and amortization | 3,237 | | 2,866 | | 2,635 | |
| Equity allowance for funds used during construction | (189) | | (187) | | (157) | |
| Asset impairment | 106 | | - | | 1 | |
| Deferred income taxes | 1,208 | | 9 | | 108 | |
| Wildfire Fund amortization expense | 144 | | 146 | | 213 | |
| Other | 176 | | 154 | | 143 | |
| Nuclear decommissioning trusts | (123) | | (174) | | (180) | |
| Contributions to Wildfire Fund | (95) | | (95) | | (95) | |
| Changes in operating assets and liabilities: | | | |
| Receivables | 662 | | (278) | | (349) | |
| Inventory | (4) | | (14) | | (63) | |
| Accounts payable | 78 | | 53 | | (408) | |
| Other current assets and liabilities | (253) | | (85) | | 194 | |
| Derivative assets and liabilities, net | (11) | | 28 | | (174) | |
| Regulatory assets and liabilities, net | (3,445) | | 1,219 | | 576 | |
| Wildfire-related claims, net of insurance recoveries | (610) | | (314) | | (446) | |
| Other noncurrent assets and liabilities | 218 | | 140 | | (4) | |
| Net cash provided by operating activities | 5,800 | | 5,014 | | 3,401 | |
| Cash flows from financing activities: | | | |
| Long-term debt issued, net of discount and issuance costs of $60, $44, and $54 for the respective years | 5,133 | | 5,256 | | 5,121 | |
| Long-term debt repaid | (2,052) | | (2,701) | | (2,498) | |
| Short-term debt issued | 1,260 | | - | | 1,076 | |
| Short-term debt repaid | (230) | | (401) | | (2,407) | |
| Common stock repurchased | (32) | | (200) | | - | |
| Preferred and preference stock issued, net of issuance cost | - | | 345 | | 542 | |
| Preferred and preference stock repurchased and redeemed | (1,664) | | (656) | | (289) | |
| Commercial paper (repayments) borrowing, net | (346) | | 308 | | 1,102 | |
| Dividends and distribution to noncontrolling interests | (136) | | (168) | | (117) | |
| Common stock dividends paid | (1,274) | | (1,198) | | (1,112) | |
| Preferred stock dividends paid | (104) | | (88) | | (108) | |
| Other | 16 | | 177 | | 137 | |
| Net cash provided by financing activities | 571 | | 674 | | 1,447 | |
| Cash flows from investing activities: | | | |
| Capital expenditures | (6,515) | | (5,707) | | (5,448) | |
| Proceeds from sale of nuclear decommissioning trust investments | 6,219 | | 5,019 | | 4,597 | |
| Purchases of nuclear decommissioning trust investments | (6,098) | | (4,898) | | (4,417) | |
| Other | 59 | | 50 | | 35 | |
| Net cash used in investing activities | (6,335) | | (5,536) | | (5,233) | |
| Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 36 | | 152 | | (385) | |
| Cash and cash equivalents and restricted cash and cash equivalents at beginning of year | 684 | | 532 | | 917 | |
| Cash and cash equivalents and restricted cash and cash equivalents at end of year | $720 | | $684 | | $532 | |
Contacts
Investor Relations: Sam Ramraj, (626) 302-2540
Media Relations: (626) 302-2255
News@sce.com
When: Telephone Numbers: Telephone Replay: Webcast
Wednesday, Feb. 18, 1:30-2:30 p.m. (PST) · 1-888-673-9780 (U.S.) and 1-312-470-0178 (Int'l) - Passcode: Edison · 1-800-685-6667 (U.S.) and 1-203-369-3864 (Int’l) - Passcode: 1834 · Telephone replay available through Mar. 4 at 6 p.m. (PST) · edisoninvestor.com
Open the filing on EDGARPrepared Remarks of Edison International CEO and CFO
Fourth Quarter 2025 Earnings Teleconference
February 18, 2026, 1:30 p.m. (PT)
Pedro Pizarro, President and Chief Executive Officer, Edison International
Edison International’s 2025 core EPS of $6.55 was above our guidance range, extending our two-decade track record of meeting or exceeding annual EPS guidance. Importantly, this also marks the successful delivery of the long‑term core EPS growth target we established in 2021. Our performance reflects disciplined execution across the enterprise and continued focus on cost management, operational performance, and capital efficiency. Maria will provide more details in her remarks.
Today, I will focus on three themes: our commitments to customers, communities and investors, our strengthened regulatory visibility, and our confidence in our multi‑year plan.
Starting with the first theme, we are committed to the customers and communities who count on safe, reliable, and increasingly clean energy. Safety remains our top value, and SCE continues to carry out extensive work to strengthen the electric system and reduce wildfire risk. We are proud that in the Q4 2025 residential customer engagement survey by Escalent, SCE had the highest absolute brand trust score among large California IOUs. Customers and public trust remain the core of SCE’s mission.
The utility has now installed more than 7,000 miles of covered conductor in high fire risk areas, representing over 90% of its planned grid hardening effort. This work continues to play a critical role in reducing ignition risk and strengthening reliability for the communities we serve. SCE now has fast curve settings on 93% of its distribution circuits in high fire risk areas, a prime example of how it is using technology to reduce risk by detecting and addressing faults even more quickly. All of this work demonstrates SCE’s ongoing wildfire risk reduction leadership. This progress benefits not just the utility’s own customers and communities who fund this critical work, but also many peers across the nation.
Safety and affordability remain at the core of our commitment to customers. Earlier this year, SCE announced a 2.3% rate decrease for residential customers and a 5.3% decrease for small and medium-sized business customers. This is starting from a place of having the lowest system average rate - by a margin of 20% - among California’s major investor-owned utilities.
SCE has invested more than $12 billion for customers’ safety and reliability over the last two years. Currently, a typical non-CARE residential customer pays about $188 per month, which is modestly higher than the $180 paid two years ago. This reflects the utility’s disciplined cost management to support customer affordability. We will continue to work to keep rates affordable for customers.
We are also committed to the investors whose capital makes it possible to build the infrastructure that is essential to deliver safe, reliable, affordable electricity. Our commitment begins with a regulatory framework that enables SCE to consistently earn its authorized returns, which supports a strong investment‑grade balance sheet and lower financing costs for customers. Our capital contributors - including pension funds, mutual funds, and insurers - depend on stable, transparent long‑term performance. Credit rating agencies continue to evaluate California‑specific risk factors, underscoring the importance of maintaining a durable and predictable regulatory environment that provides confidence for long‑term investment and protects customers from higher costs. To that end, we are actively engaging with policymakers and state leaders to reinforce the value of a stable framework, and the SB 254 process will be a central venue in 2026 for strengthening the regulatory durability that supports both capital contributors and customers.
SCE remains committed to resolving wildfire-related claims fairly, prudently, and responsibly. To date, more than 2,300 claims have been submitted under the Wildfire Recovery Compensation Program, with associated payments underway. As always, we are guided by our commitment to transparency, accountability, and customer trust. Building upon this, today SCE announced enhancements to the program, providing stronger support for displaced renters and increasing coverage for legal expenses.
Regarding the Eaton Fire, as you see on page 4, the investigations remain ongoing. To recap our prior statements, while SCE has not conclusively determined that its equipment caused the ignition of the Eaton Fire, a viable explanation is that a de-energized idle SCE transmission facility in the preliminary area of origin was associated with the ignition of the fire, and SCE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SCE believes that it is likely that its equipment could have been associated with the ignition of the Eaton Fire. Given the complexities associated with estimating damages, we currently are unable to reasonably estimate a range of potential losses. Nonetheless, based on the information we have reviewed thus far, we remain confident that SCE will be able to make a good faith showing that its conduct with respect to its transmission facilities in the Eaton Canyon area was consistent with actions of a reasonable utility. The company continues to prioritize the recovery of impacted community members. Edison International is donating $2 million to the Pasadena Community Foundation to help meet the needs of community members in the Altadena area recovering from the Eaton Fire.
My second theme today is our strengthened regulatory visibility given 2025 was a significant regulatory year for SCE, which you see on page 5. With the GRC, cost of capital proceeding, TKM and Woolsey settlement agreements, and other wildfire proceedings concluded, SCE enters 2026 with substantially greater clarity into capital plans, revenue requirement, and operational priorities not only through the GRC period, but into the next decade. Our team members across Edison International and SCE continue to demonstrate their ability to execute through complexity, respond to evolving conditions, and stay focused on long-term goals.
Turning to the legislative front, the upcoming session will be pivotal for shaping the next phase of California’s energy and resiliency policy. A central focus this year is the SB 254 Natural Catastrophe Resiliency Study, being authored by the California Earthquake Authority, and subsequent legislation. Our focus remains on a whole-of-society solution to mitigate and respond to catastrophic wildfires that enhances public safety, improves affordability, and supports predictable, long-term investment in a clean, reliable energy system for California. In December, SCE and the other IOUs jointly submitted white papers along with dozens of other stakeholders providing input into the CEA’s process. We continue to be actively engaged with relevant stakeholders, the Governor’s Office, and legislative leaders about the potential for enhancements to the policy framework.
Moving on to my third theme today, our confidence in our multi-year financial outlook, we are introducing core EPS guidance for 2026 and 2027, reaffirming our 2028 outlook, and extending our expected core EPS growth rate target through 2030. Maintaining the 2028 target while extending the horizon underscores the growing clarity and stability in our multi-year plan, supported by a constructive regulatory foundation and a robust pipeline of necessary investments at the utility.
With an attractive dividend yield of approximately 5% and a long‑term core EPS growth target of 5% to 7%, EIX shares offer a compelling case for total shareholder returns of 10% to 12%. This combination of income and growth reflects the strength of our regulated business model and our commitment to delivering sustainable value for customers and capital providers.
Let me close where I began, with commitment. Our commitment to communities and customers, and to the capital contributors whose support makes our work possible. Our commitment to strengthening the grid, enhancing safety, improving reliability, and supporting affordability. Our commitment to clarity and transparency as we move into a period of greater regulatory stability. And our commitment to deliver on the objectives we have shared with you today.
We have the right strategy, the right plan, and the right team in place. We are confident in our ability to execute that plan through 2030.
Maria Rigatti, Executive Vice President and Chief Financial Officer, Edison International
In my comments today, I will discuss fourth quarter and full-year financial results, our focus areas for 2026, provide an update on our refreshed capital, rate base, and EPS growth guidance, and discuss other financial topics.
For the fourth quarter, EIX reported core EPS of $1.86. Full year 2025 core EPS of $6.55 exceeded the high end of our EPS guidance range. Pages 6 and 7 provide the year-over-year variance analysis. I would like to note two items embedded in our results. First, fourth quarter core EPS includes 6 cents of costs attributed to the preferred stock tender offers and redemption at EIX and SCE completed in December. Second, we recorded a 46-cent true-up following the final decision in the Woolsey cost recovery proceeding. Excluding the Woolsey true-up, EIX’s full year 2025 core EPS still exceeded the midpoint of our guidance.
I will echo Pedro’s comments that this marks the successful delivery of the long-term core EPS target we established for 2021 through 2025. Over that period, we successfully managed a number of unforeseen headwinds: record inflation, the first rising interest rate environment in over 15 years, growing wildfire claims-related debt, several changes to SCE’s authorized cost of capital, and additional cost pressures. Yet, we delivered on our commitment. Today, we are reaffirming our 2028 guidance and extending our 5% to 7% EPS growth target to 2030. You should share this leadership team’s confidence that we will continue to deliver on these commitments and build on your trust. You can see on page 8 that delivering strong financial results was just one accomplishment in another year of strong execution in 2025.
Page 9 summarizes the key management focus areas for 2026. SCE continues to execute its wildfire mitigation plan and its focus on operational excellence to reduce costs for customers. The utility also plans to execute on its $7 billion capital plan for the year to meet customers’ needs. As Pedro mentioned, the legislative process will be a major focus for the year. In the regulatory area, the utility will be driving toward a final decision on its NextGen ERP program and filing an application for its advanced metering infrastructure, or AMI, 2.0 program. Both of these are large programs that provide significant long-term customer benefits. Lastly, we look forward to another year of delivering on our annual core EPS guidance and executing efficient financings across the enterprise.
Let’s turn to SCE’s updated capital and rate base forecasts shown on pages 10 and 11. The extended capital plan of $38 to $41 billion from 2026 through 2030 continues the company’s essential work in load growth-driven programs, infrastructure replacement, and wildfire mitigation. Additionally, our updated forecast now includes nearly $1.5 billion of capital expenditures through 2030 from SCE’s upcoming AMI 2.0 application. The total request will exceed $3 billion, with spending expected to continue through 2033. We forecast a step-up in our capital deployment opportunities to as high as $9 billion per year in the next GRC cycle. This is driven by the essential investments in the grid to meet customer needs and support California’s clean energy objectives. The resulting projected rate base growth is approximately 7% from 2025 to 2030.
Page 12 shows our 2026 and 2027 core EPS guidance. We have also provided modeling considerations on page 15. Our core EPS guidance for 2026 is $5.90 to $6.20 and for 2027 it is $6.25 to $6.65. As you’re aware, Edison’s core EPS over the years has not been linear. Let me provide some additional insight into our outlook and trajectory toward achieving our longer-term targets.
You will see that 2026 core EPS represents growth of about 3.5% at the midpoint compared to the $5.84 baseline. We have provided a bridge on page 13 to help you understand the puts and takes. This muted growth is driven by three items, which amount to 25 cents. First, SCE has fewer regulatory decisions in 2026 than last year. Therefore, the associated earnings contribution from recognizing prior year earnings is about 11 cents lower. Second, asset mix differences versus the original GRC forecast create depreciation- and property tax-related variances of about 7 cents. Third, financing-related variances, tax law changes, and other items reduce core EPS by approximately 7 cents.
The drivers behind the 25-cent impact are baked into 2026 and thus are not expected to result in negative variances in later periods. Consequently, we expect EPS growth in 2027 to be at the high end of our 5% to 7% range. This is supported by SCE’s 7% rate base growth, and we do not expect any large discrete variances from the rest of SCE’s operations.
Turning to page 16, we are extending our 5% to 7% EPS growth target to 2030. We are also reaffirming our 2028 guidance, and both of these are measured from the $5.84 baseline for 2025.
On the financing front, I want to emphasize that we project no equity needs for the next five years, through 2030. Our balance sheet remains strong, and we continue to finance the business efficiently within our 15% to 17% FFO-to-debt framework. Last month, the utility filed its Woolsey securitization application with the CPUC. Once approved, the utility will securitize about $2 billion in costs associated with the approved Woolsey settlement agreement. SCE’s proposed schedule would allow for this transaction to close in mid-2026. As we have shared before, proceeds from this transaction would be used to offset normal course debt issuances at SCE, rather than paying down specific issuances.
I will conclude by echoing Pedro’s earlier comments about commitment and trust. Deploying capital for the resilience, reliability, and readiness of the grid helps deliver on our commitments to customers and maintain their trust. We are committed to collaborating with stakeholders to advance a clear, durable, and predictable framework. And, to our capital contributors, you have seen us deliver consistently on our annual and long-term commitments to earn your trust. This leadership team remains committed and confident in continuing to do just that going forward.