01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison's second-quarter 2026 results show a solid quarter and a strong first half, helped by a one-time gain.
For the three months ended June 30, 2026, net income for common stock rose to $308 milliona ($0.83 per diluted share) from $246 million ($0.68) a year earlier. For the six months, net income was $1,232 million ($3.36 diluted EPS) versus $1,038 million ($2.92), with the first half including a $189 million pre-tax ($134 million after-tax, or $0.37 per share) gain on the sale of its ~6.6% stake in Mountain Valley Pipeline. Excluding that gain, underlying growth is driven mainly by higher electric and gas rate base at CECONY, though operating income growth was partly offset by higher property taxes and lower pension-related credits in other income.
Balance sheet and financing activity were significant. Total assets grew to $76.5 billion, and shareholders' equity rose to $25.7 billionb, aided by roughly $1.7 billion of common equity raised through public offerings and forward sales under a new $2.0 billion at-the-market program. The common equity ratio improved to 48.9% at Con Edison.
Long-term debt increased to $26.8 billionc after CECONY issued $1.3 billion of debentures, and commercial paper and term loan balances were paid down. Operating cash flow fell to $1,971 million from $2,816 million, mainly due to swings in payables, receivables and taxes receivable, while capital expenditures remained high at $2.5 billion for the first half. Investors should weigh continued regulatory and affordability pressures.
Aged customer receivables at CECONY remain elevated at $1.385 billiond over 60 days. New York enacted Chapter 58, which introduces budget-constrained rate plans and affordability-linked ROE adjustments for filings after January 1, 2027.
CECONY also has a pending steam rate case seeking a $66 million increase, and a $1.0 billion income tax regulatory asset remains subject to a potential NYSPSC audit outcome. Management reports no material changes to risk factors.
02—Key points
Key Highlights
- Q2 2026 net income for common stock of $308 million ($0.83 diluted EPS), up from $246 million ($0.68) in Q2 2025, a 25% increase.
- First-half 2026 net income of $1,232 million ($3.36 diluted EPS), up from $1,038 million ($2.92), including a $134 million after-tax ($0.37 per share) gain on the MVP stake sale.
- Total operating revenues rose 13% in Q2 to $4.07 billion, led by electric revenue growth at CECONY and higher purchased power costs that pass through to customers.
- Equity financing of roughly $1.7 billion in the first half, including a $776 million forward settlement in March and a new $2.0 billion ATM program, lifted shareholders' equity to $25.7 billion.
- CECONY issued $1.3 billion of long-term debentures in June 2026 (5.15% due 2036 and 5.875% due 2056), while term loan and short-term debt were reduced, bringing total long-term debt to $26.8 billion.
- Operating cash flow declined to $1.97 billion for the six months from $2.82 billion, driven by working capital swings in accounts payable, receivables and taxes; capital expenditures were $2.5 billion.
- Aged customer receivables at CECONY remain elevated at $1.385 billion (over 60 days), and New York's Chapter 58 introduces affordability-focused rate-case rules for filings after January 1, 2027.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $4.17B$3.63B | +14.8% |
| Operating Expenses | $3.52B$3.24B | +8.5% |
| Operating Income | $552.00M$355.00M | +55.5% |
| Interest Expense | $313.00M$300.00M | +4.3% |
| Net Income | $308.00M$246.00M | +25.2% |
| EPS (Basic) | $0.83$0.68 | +22.1% |
| EPS (Diluted) | $0.83$0.68 | +22.1% |
| Shares Outstanding (Basic) | 368.80M360.40M | +2.3% |
| Shares Outstanding (Diluted) | 370.00M361.70M | +2.3% |
05—Questions
Frequently Asked Questions
What drove the increase in Con Edison's earnings this quarter?
The main driver was higher earnings at CECONY, up $74 million on a net income basis (about $0.18 per share), reflecting higher electric and gas rate base and the timing of rate increase billings. Partly offsetting this were higher other interest expense and lower other income, while Con Edison Transmission and the parent contributed slightly negative variances.
How significant was the Mountain Valley Pipeline sale to first-half results?
It was material. Con Edison recorded a $189 million pre-tax gain ($134 million after tax, or $0.37 per diluted share) on selling its roughly 6.6% MVP equity interest for $357.5 million before adjustments. Excluding this gain, first-half EPS growth would have been considerably smaller, so investors should treat the reported 15% first-half EPS increase as flattered by this one-time item.
Is Con Edison's balance sheet becoming more leveraged or more equity-funded?
Equity funding has increased. Shareholders' equity rose to $25.7 billion from $24.2 billion at year-end 2025, and Con Edison's common equity ratio improved to 48.9% from 48.6%. Long-term debt also increased to $26.8 billion, but notes payable fell to $721 million from $1.58 billion, reflecting the use of equity proceeds and the June debt issuance to reduce short-term borrowings.
What regulatory risks could affect future earnings?
Several items warrant monitoring: CECONY's pending steam rate case (requesting $66 million, with staff recommending $18 million); New York's Chapter 58, which adds budget-constrained rate plan options and potential ROE adjustments tied to affordability for filings after January 1, 2027; a NYSPSC audit that could result in write-downs of about $1.0 billion of income tax regulatory assets at CECONY; and a NYSPSC show-cause proceeding on EV make-ready program reporting. Management says it cannot estimate the loss for several of these matters.
Why did operating cash flow decline so sharply?
Operating cash flow for the first half fell to $1.97 billion from $2.82 billion. Management cited a $264 million decrease in accounts payable, a $262 million increase in other receivables and current assets, $197 million higher taxes receivable, and higher prepayments. Some of this may reverse over time, but aged receivables and higher capital spending remain a liquidity focus.
06—Continue