01—Abstract
Summary
Summary of the 10-Q filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison, Inc. (Con Edison) reported first-quarter 2025 net income for common stock of $791 milliona, or $2.25 per diluted share, up from $720 million, or $2.08 per diluted share, in the prior-year quarter.
Growth was driven mainly by CECONY, whose net income rose to $745 millionb from $694 million, reflecting steam and electric rate base increases and lower operations and maintenance expense, partly offset by higher stock-based compensation. Operating revenues rose 12% to $4.80 billion, though the Clean Energy Businesses sale loss of $30 million in the prior year and higher taxes other than income taxes (up $139 million, mainly property taxes) weighed on the comparison. Per-share earnings also benefited from a $22 million after-tax swing related to the Clean Energy Businesses sale adjustment.
The balance sheet and cash flow picture is more mixed. Operating cash flow was $837 millionc, up from $573 million, but capital expenditures of $1.16 billion were largely funded by a $1.31 billion public common stock offering and $1.82 billion of net short-term debt repayment, leaving cash at $360 million versus $1.33 billion at year-end 2024. Customer accounts receivable grew to $2.75 billion, with CECONY's aged receivables over 60 days at $1.51 billion, a continuing liquidity concern management acknowledges.
The common equity ratio improved to 49.1% from 47.1%, and shareholder equity rose to $23.8 billiond. Regulatory and policy developments are central to the outlook. CECONY filed updated requests for electric and gas rate increases of $1.608 billion and $349 million effective January 2026, with a 10% return on equity and 48% equity ratio, and the NYSPSC decision will drive future earnings.
Management also flagged risks from federal tariffs on Canadian electricity imports, April 2025 federal executive actions affecting state climate policies, and a stop-work order that suspended marine activities for the 810 MW Empire Wind 1 project. Unresolved items include the NYSPSC audit regarding income tax regulatory assets of $1.06 billion, the gas and steam weld investigation, and asbestos litigation.
02—Key points
Key Highlights
- Net income for common stock rose 10% to $791 million ($2.25 diluted EPS) versus $720 million ($2.08) a year earlier, with CECONY contributing $745 million.
- Total operating revenues increased 12% to $4.80 billion, driven by electric ($2.90 billion, up 10%), gas ($1.54 billion, up 14%), and steam ($354 million, up 23%) revenues.
- Operating cash flow more than doubled proxy-wise to $837 million from $573 million, but was offset by heavy capital spending of $1.16 billion in utility capital expenditures.
- Con Edison raised $1.31 billion through a March 2025 public offering of 13 million common shares, and repaid $1.82 billion of net short-term debt, reducing notes payable to $350 million.
- Customer accounts receivable rose to $2.75 billion, and CECONY's balances over 60 days reached $1.51 billion, a continuing liquidity pressure acknowledged by management.
- CECONY filed revised rate requests for January 2026 of $1.608 billion (electric) and $349 million (gas), reflecting a 10% ROE and 48% equity ratio; NYSPSC approval is pending.
- Empire Wind 1 (810 MW) marine construction was suspended in April 2025 under a federal stop-work order, and tariff and federal policy uncertainty persist for electricity imports and clean energy programs.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 1, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $4.89B$4.28B | +14.2% |
| Operating Expenses | $3.67B$3.24B | +13.4% |
| Operating Income | $1.13B$1.01B | +11.3% |
| Interest Expense | $313.00M$289.00M | +8.3% |
| Net Income | $791.00M$720.00M | +9.9% |
| EPS (Basic) | $2.26$2.08 | +8.7% |
| EPS (Diluted) | $2.25$2.08 | +8.2% |
| Shares Outstanding (Basic) | 350.10M345.50M | +1.3% |
| Shares Outstanding (Diluted) | 351.30M346.80M | +1.3% |
05—Questions
Frequently Asked Questions
Why did Con Edison's earnings increase in the first quarter of 2025?
Net income for common stock rose to $791 million from $720 million. CECONY's earnings increased $51 million, reflecting higher steam and electric rate base, higher steam base rate revenue, and lower operations and maintenance expense, partly offset by higher stock-based compensation. Con Edison Transmission was roughly flat, and the prior-year $22 million after-tax loss related to the Clean Energy Businesses sale did not recur.
How is Con Edison funding its large capital program and why did cash fall so sharply?
Utility capital expenditures were $1.16 billion in the quarter. Funding came from $1.31 billion in common stock proceeds, a $200 million term loan borrowing, and operating cash flow of $837 million. Cash declined from $1.33 billion to $360 million mainly because the company repaid $1.82 billion of net short-term debt, which had been used to finance capital spending before the equity issuance.
What is the status of CECONY's pending rate case and why does it matter?
CECONY's updated requests seek January 2026 increases of $1.608 billion for electric and $349 million for gas, with illustrative 2027 and 2028 increases. The filings assume a 10% return on common equity and a 48% equity ratio. The NYSPSC's decision will determine the utility's future earnings and cash flows, so investors should watch the outcome closely.
What are the main regulatory or legal risks disclosed in this filing?
Key risks include an NYSPSC audit into the understatement of income tax expense, which created $1.06 billion of unrecovered-return regulatory assets at CECONY; a NYSPSC investigation into non-conforming gas and steam main welds, for which no loss is accrued; asbestos suits where a reasonable possibility of loss exceeds accruals; and a $1.03 billion accrued Superfund liability, with potential manufactured gas plant remediation costs of up to $3.39 billion for Con Edison. Most of these costs are expected to be recoverable through rates, but the outcomes are not yet determinable.
Are there new federal policy or tariff risks affecting the company?
Yes. A 10% federal tariff on certain Canadian energy imports took effect March 4, 2025, though no tariffs were being applied to electricity as of March 31. Separate executive orders and an April 2025 order targeting state climate policies create uncertainty, and the Empire Wind 1 project faces a federal stop-work order. Management states that the Utilities recover electricity costs from customers and earn no margin on commodity sales, which limits direct earnings exposure but does not eliminate regulatory or timing risk.
06—Continue