01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison's third-quarter 2025 10-Q shows steady regulated-utility earnings growth, driven mainly by CECONY.
Con Edison reported Q3 2025 net income for common stock of $688 milliona ($1.90 diluted EPS), up from $588 million ($1.69) a year earlier, and nine-month net income of $1,726 million ($4.83 diluted EPS) versus $1,510 million ($4.35). Operating revenues rose 11% for the quarter to $4,530 million, and CECONY accounted for about 93% of earnings. The primary drivers were higher electric rate base, lower commercial paper interest expense, and the favorable NYSPSC order on the customer billing system, partly offset by dilution from the equity issuance.
The balance sheet strengthened materially. Shareholders' equity rose to $24,168 millionb from $21,962 million at year-end 2024, aided by a March 2025 common stock offering that raised about $1.3 billion, and the common equity ratio improved to 49.2% from 47.1%. Short-term borrowing fell sharply, with commercial paper dropping to $552 million from $2,170 million, and operating cash flow rose to $3,320 million from $2,304 million.
Capital expenditures remain heavy at about $3.5 billionc for the nine months, funded largely by utility rate recovery. The most important forward-looking item is the November 5, 2025 joint proposal for CECONY's electric and gas rate plans covering 2026 through 2028.
It would provide base rate increases, a 9.40% authorized ROE, a 48% common equity ratio, and roughly $4.5 billiond per year of electric capital spending, subject to NYSPSC approval. Risks flagged include aged customer receivables of $1.5 billion over 60 days, an open NYSPSC investigation into gas main weld practices with no accrual, a continuing income tax regulatory asset audit of about $1.0 billion, and asbestos and manufactured-gas-plant environmental liabilities.
02—Key points
Key Highlights
- Q3 2025 net income for common stock was $688M ($1.90 diluted EPS), up 17% from $588M ($1.69) in Q3 2024.
- Nine-month 2025 net income reached $1,726M ($4.83 diluted EPS), up 14% from $1,510M ($4.35).
- Operating revenues rose 11% in Q3 to $4,530M, led by electric revenues (+10%) and higher purchased power pass-throughs.
- Shareholders' equity increased to $24.2B from $22.0B, supported by a ~$1.3B common stock offering; common equity ratio rose to 49.2%.
- Commercial paper outstanding fell to $552M from $2,170M, and operating cash flow improved to $3.3B for the nine months (vs. $2.3B).
- CECONY filed a November 2025 joint proposal for 2026–2028 electric and gas rates, with a 9.40% ROE and 48% equity ratio, pending NYSPSC approval.
- Key risks include $1.5B of customer receivables over 60 days at CECONY, an open NYSPSC weld-practices investigation, and a ~$1.0B income tax regulatory asset under audit.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $4.57B$4.22B | +8.1% |
| Operating Expenses | $3.56B$3.23B | +10.3% |
| Operating Income | $968.00M$862.00M | +12.3% |
| Interest Expense | $309.00M$306.00M | +1.0% |
| Net Income | $688.00M$588.00M | +17.0% |
| EPS (Basic) | $1.91$1.70 | +12.4% |
| EPS (Diluted) | $1.90$1.69 | +12.4% |
| Shares Outstanding (Basic) | 360.70M346.20M | +4.2% |
| Shares Outstanding (Diluted) | 361.90M347.50M | +4.1% |
05—Questions
Frequently Asked Questions
What drove the increase in Con Edison's earnings this quarter?
Growth came mainly from CECONY, which contributed $639M of Q3 net income versus $537M a year earlier. Drivers included higher electric rate base (+$37M), lower commercial paper interest expense (+$14M), lower stock-based compensation (+$13M), and a lower effective tax rate on certain items (+$16M). These gains were partly offset by dilution from the 2025 share issuance, which reduced EPS by about $0.08 in the quarter.
How significant is the proposed CECONY rate plan for 2026–2028?
It is highly significant because it sets the earnings trajectory for the Utilities over three years. The proposal includes electric base rate increases of $222M, $473M and $329M in years 1 to 3, a 9.40% authorized ROE, a 48% common equity ratio, and capital expenditures of about $4.5B to $4.7B per year. It remains subject to NYSPSC approval, and the timing of approval and billing will affect near-term revenue.
Has the company's liquidity and funding position improved?
Yes. Operating cash flow rose to $3,320M from $2,304M for the nine months, and the company reduced short-term debt sharply, with notes payable falling to $552M from $2,170M. It also raised about $1.3B of equity and $250M of long-term debt, and has a $2.5B revolving credit facility with no borrowings outstanding. Cash fell to $181M, however, and aged receivables remain a liquidity drag.
What are the main legal and regulatory risks disclosed?
The most notable items are: (1) a NYSPSC investigation into CECONY's gas and steam main weld practices, following criminal indictments of contractors in August 2025, with the company unable to estimate potential loss; (2) a NYSPSC focused audit of income tax accounting, under which about $1.0B of regulatory assets could be written off if the commission so orders; and (3) manufactured gas plant and asbestos liabilities, with environmental exposure estimated up to $3.4B. The company has not accrued liabilities for the weld or tax matters.
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