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Consolidated Edison 8-K Report, Financial Results (Feb 20, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 20, 2025
Period End
February 20, 2025
Security
ED
In the record · 2016–202610-K1110-Q338-K143

ED filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jan ’18Jan ’18
  2. Material agreement8-K · Apr ’20Apr ’20
  3. Material agreement8-K · Jun ’22Jun ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.

Consolidated Edison (ED) reported 2024 GAAP net income for common stock of $1,820 milliona, or $5.26 per share, down from $2,519 million ($7.25) in 2023.

The decline reflects the 2023 gain on the sale of its Clean Energy Businesses, which did not recur. On an adjusted (non-GAAP) basis, earnings rose to $1,868 millionb, or $5.40 per share, from $5.07, a 6.5% increase, driven mainly by CECONY rate plan growth (electric rate base, steam rate plan) and O&R electric rates. Fourth-quarter adjusted EPS was $0.98 versus $1.00 a year earlier, with lower Con Edison Transmission income and higher interest expense offsetting utility gains.

For 2025, management guided adjusted EPS to $5.50 to $5.70c, implying a 6% to 7% five-year adjusted EPS CAGR target. The company forecasts $38 billion of capital investment for 2025-2029 and an 8.2% annual rate base CAGR, and it notes that the dividend was raised to an annualized $3.40 per share. Management also highlighted a December 2024 forward sale of 7 million shares, about $677 million of expected 2025 equity proceeds, which reduces pricing risk on part of the equity need.

Investors should watch several items. CECONY has filed for electric and gas rate increases of $1,612 milliond and $441 million effective January 2026, requesting a 10.1% ROE, and the outcome of the regulatory process is a key driver of post-2025 growth.

The company is also evaluating strategic alternatives for its stakes in Mountain Valley Pipeline and Honeoye Storage, with the results of that review, which could affect 2025 earnings, not yet determinable. Aged customer receivables at CECONY also rose meaningfully to about $1.65 billion, a credit and cash-flow item to monitor.

02—Key points

Key Highlights

  1. GAAP EPS of $5.26 for 2024 fell from $7.25 in 2023, largely because 2023 included a large gain on the sale of the Clean Energy Businesses; adjusted EPS rose 6.5% to $5.40 from $5.07.
  2. Q4 2024 GAAP EPS was $0.90 versus $0.97, and adjusted EPS was $0.98 versus $1.00, with CECONY up $0.09 offset by parent/other and CET declines.
  3. 2025 adjusted EPS guidance of $5.50 to $5.70, with a 6% to 7% five-year adjusted EPS growth target; GAAP guidance is not provided because of pending strategic alternative outcomes.
  4. Capital plan of $5.1 billion (2025) and $8.1 billion (2026), with $38 billion forecast for 2025-2029 and an 8.2% rate base CAGR target.
  5. CECONY requested electric and gas rate increases effective January 2026 ($1,612 million and $441 million) at a 10.1% ROE and 48% equity ratio, pending NYSPSC approval.
  6. Equity needs for 2025 are partly pre-funded by a December 2024 forward sale of 7 million shares (~$677 million), and the dividend was increased to an annualized $3.40, the 51st consecutive annual increase.
  7. Strategic alternatives review for MVP and Honeoye Storage could affect 2025 results, and the 2025 guidance excludes related impacts that are not yet determinable.

03—Questions

Frequently Asked Questions

  1. Why did reported earnings fall sharply in 2024 while adjusted earnings grew?

    Reported 2023 results included a large one-time gain of about $865 million pre-tax from the sale of the Clean Energy Businesses. That gain did not recur in 2024, so GAAP net income for common stock dropped to $1,820 million from $2,519 million. Adjusted earnings exclude that gain and other items, and on that basis they rose to $1,868 million from $1,762 million, driven by utility rate plan growth.

  2. What is the outlook for 2025 earnings and growth?

    Management guided 2025 adjusted EPS to $5.50 to $5.70 and a five-year adjusted EPS CAGR of 6% to 7%. The 2025 guidance excludes MVP-related accretion of about $(0.03) per share after tax and any impacts from the strategic alternatives review, whose amounts cannot be determined until year-end.

  3. How will Con Edison fund its large capital program?

    The company plans to use internally generated funds plus long-term debt and common equity. For 2025 it plans up to $1,750 million of long-term debt and up to $1,350 million of common equity, including the roughly $677 million from the December 2024 forward sale. For 2026 it plans up to $3,800 million of debt and about $1,850 million of equity.

  4. What regulatory events could materially affect future results?

    CECONY's January 2025 rate filing seeks $1,612 million of electric and $441 million of gas rate increases effective January 2026, with a proposed 10.1% ROE. O&R's joint proposal of a 9.75% ROE for 2025-2027 is pending NYSPSC approval. Outcomes of these proceedings will largely determine the rate base growth and earnings trajectory after 2025.

  5. Are there any risks or unresolved items investors should note?

    Yes. Con Edison is evaluating strategic alternatives for its MVP and Honeoye Storage investments, and the financial effect is undetermined. CECONY's aged customer receivables rose to about $1,652 million at year-end 2024 from $408 million in 2020, and the company has a $677 million forward equity position that depends on physical settlement by December 2025.

04—Continue

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