Why did Con Edison's quarterly earnings increase compared with last year?

Q2 2025 net income for common stock rose to $246 million from $202 million. Key drivers included a $37 million benefit at CECONY from the absence of the May 2024 NYSPSC order that forced write-offs of billing-system costs, higher electric rate base ($15 million), and higher AFUDC income. Higher pension-related other income also contributed, partly offset by higher interest on long-term debt and a higher effective tax rate.

What is the status of CECONY's rate case and why does it matter?

CECONY filed in January 2025, updated in April 2025, for electric and gas increases of $1,608 million and $349 million effective January 1, 2026, using a 10% ROE and 48% equity ratio. In May 2025, NYSPSC staff recommended an electric increase of $319 million and a gas decrease of $45 million at a 9.30% ROE. The final outcome set by the NYSPSC will largely determine CECONY's earnings trajectory in 2026 and beyond, so the gap between the request and staff position is a key watch item.

Is Con Edison's balance sheet and funding position getting stronger or weaker?

On balance it strengthened in the near term. The March 2025 common stock issuances, totaling roughly $1.3 billion, boosted equity, and the common equity ratio rose to 49.1% from 47.1%. Short-term debt fell by $950 million, and long-term debt was essentially unchanged at $24.7 billion. However, utility capital expenditures of about $2.4 billion per half-year and growing aged receivables mean the company will likely need continued external capital.

What are the main risks flagged in the filing that investors should monitor?

Key risks include the outcome of the NYSPSC income tax audit, which could require writing off part of $1,054 million of CECONY income tax regulatory assets not earning a return; asbestos and environmental liabilities, with the company noting reasonably possible losses above amounts accrued; the investigation into non-conforming gas and steam main welds, with no accrual made; tariff effects on supply chain and Canadian electricity costs; and offshore wind project disruptions. The company reported no material changes to its Form 10-K risk factors.

How much of the increase in revenue is actually profit for shareholders?

Much of the revenue increase is pass-through. Gas purchased for resale rose $91 million in Q2 and purchased power rose $80 million at CECONY, and the Utilities generally recover these commodity costs from customers without earning margin on them. Earnings growth is driven more by rate base growth and specific items such as the billing-system cost reversal, so investors should focus on net income and rate base rather than headline revenue.

ED 10-Q Quarterly Report Q2 FY2025 — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Consolidated Edison's second-quarter 2025 10-Q shows a solid earnings quarter driven by utility rate base growth and a one-time comparison benefit.

Q2 2025 net income for common stock rose to $246 million^a ($0.68 per diluted share) from $202 million ($0.58) a year earlier, and first-half net income reached $1,038 million ($2.92 diluted EPS) versus $922 million ($2.66). Operating revenues increased 12% for the quarter to $3,595 million, while operating income rose to $355 million from $320 million. Much of the earnings improvement at CECONY came from the absence of the May 2024 NYSPSC order that had forced a $51 million expense write-off for the customer billing system, along with higher electric rate base and rising pension-related other income.

Taxes other than income taxes, which are largely property taxes, climbed sharply to $894 million^b in the quarter, a key cost pressure to watch. Balance-sheet and cash-flow developments are notable. Operating cash flow nearly rose by half to $2,816 million for the first six months, helped by a $144 million tax refund and a lower receivables build, though the company continues to carry elevated aged customer receivables ($1.53 billion at CECONY over 60 days).

Con Edison raised equity in March 2025, issuing roughly $1.3 billion^c in common stock including a forward-sale settlement, which lifted shareholders' equity to $23.8 billion and the common equity ratio to 49.1% from 47.1%. Short-term debt was reduced by $950 million, and capital expenditures remain heavy at about $2.4 billion for the half-year, keeping pressure on financing needs. The pivotal near-term catalyst is CECONY's pending rate case, which requests electric and gas increases of $1,608 million and $349 million effective January 1, 2026, at a 10% return on equity; the NYSPSC staff testimony, however, supports only $319 million for electric and a $45 million gas decrease at a 9.30% ROE.

The gap between the request and staff recommendation will heavily influence future earnings growth. Management also flagged risks including tariff-related cost increases, offshore wind project disruptions, an open NYSPSC audit regarding income tax regulatory assets, and an unquantified environmental and asbestos exposure, while the company stated there were no material changes to risk factors.

02—Key points

Key Highlights

Q2 2025 net income for common stock rose 22% to $246 million ($0.68 diluted EPS) from $202 million ($0.58) in Q2 2024; first-half EPS was $2.92 versus $2.66.
Total operating revenues increased 12% to $3,595 million in Q2 2025, led by electric and gas revenue growth and higher gas purchased-for-resale pass-throughs.
Taxes other than income taxes jumped to $894 million in Q2 2025 from $782 million, mainly higher property taxes, which pressures margins despite revenue growth.
Operating cash flow for the first half rose to $2,816 million from $1,912 million, aided by a $144 million taxes receivable refund and working-capital improvements.
Con Edison issued about $1.3 billion of common equity in March 2025, lifting shareholders' equity to $23.8 billion and the common equity ratio to 49.1%.
CECONY's pending January 2026 electric rate request of $1,608 million (10% ROE) faces a staff recommendation of only $319 million at 9.30% ROE, a major swing factor for future earnings.
Aged customer receivables remain elevated, with CECONY balances over 60 days at $1,530 million, creating liquidity pressure and an ongoing collections strategy.

03—One dollar

04—Financials

Financial Highlights

10-QQ2 FY2025filed August 7, 2025

Revenue$3.63B Net Income$246.00M6.8% Net Margin EPS (Diluted)$0.68 Total Assets$71.50B Cash & Equivalents$1.51B Free Cash Flow$1.98B

Financial Statements

Q2 FY2025 against Q2 FY2024

Line item	Q2 FY2025Q2 FY2024	Q2 FY2024	Change
Revenue	$3.63B$3.30B	$3.30B	+10.0%
Operating Expenses	$3.24B$2.90B	$2.90B	+11.7%
Operating Income	$355.00M$320.00M	$320.00M	+10.9%
Interest Expense	$300.00M$288.00M	$288.00M	+4.2%
Net Income	$246.00M$202.00M	$202.00M	+21.8%
EPS (Basic)	$0.68$0.58	$0.58	+17.2%
EPS (Diluted)	$0.68$0.58	$0.58	+17.2%
Shares Outstanding (Basic)	360.40M345.90M	345.90M	+4.2%
Shares Outstanding (Diluted)	361.70M347.10M	347.10M	+4.2%

05—Questions

Frequently Asked Questions

Why did Con Edison's quarterly earnings increase compared with last year?
Q2 2025 net income for common stock rose to $246 million from $202 million. Key drivers included a $37 million benefit at CECONY from the absence of the May 2024 NYSPSC order that forced write-offs of billing-system costs, higher electric rate base ($15 million), and higher AFUDC income. Higher pension-related other income also contributed, partly offset by higher interest on long-term debt and a higher effective tax rate.
What is the status of CECONY's rate case and why does it matter?
CECONY filed in January 2025, updated in April 2025, for electric and gas increases of $1,608 million and $349 million effective January 1, 2026, using a 10% ROE and 48% equity ratio. In May 2025, NYSPSC staff recommended an electric increase of $319 million and a gas decrease of $45 million at a 9.30% ROE. The final outcome set by the NYSPSC will largely determine CECONY's earnings trajectory in 2026 and beyond, so the gap between the request and staff position is a key watch item.
Is Con Edison's balance sheet and funding position getting stronger or weaker?
On balance it strengthened in the near term. The March 2025 common stock issuances, totaling roughly $1.3 billion, boosted equity, and the common equity ratio rose to 49.1% from 47.1%. Short-term debt fell by $950 million, and long-term debt was essentially unchanged at $24.7 billion. However, utility capital expenditures of about $2.4 billion per half-year and growing aged receivables mean the company will likely need continued external capital.
What are the main risks flagged in the filing that investors should monitor?
Key risks include the outcome of the NYSPSC income tax audit, which could require writing off part of $1,054 million of CECONY income tax regulatory assets not earning a return; asbestos and environmental liabilities, with the company noting reasonably possible losses above amounts accrued; the investigation into non-conforming gas and steam main welds, with no accrual made; tariff effects on supply chain and Canadian electricity costs; and offshore wind project disruptions. The company reported no material changes to its Form 10-K risk factors.
How much of the increase in revenue is actually profit for shareholders?
Much of the revenue increase is pass-through. Gas purchased for resale rose $91 million in Q2 and purchased power rose $80 million at CECONY, and the Utilities generally recover these commodity costs from customers without earning margin on them. Earnings growth is driven more by rate base growth and specific items such as the billing-system cost reversal, so investors should focus on net income and rate base rather than headline revenue.

06—Continue

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