01—Abstract
Summary
Summary of the 8-K filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison (NYSE: ED) reported first-quarter 2025 GAAP net income for common stock of $791 milliona, or $2.26 per share, up from $720 million, or $2.08 per share, in the first quarter of 2024.
Adjusted non-GAAP earnings were $792 millionb, or $2.26 per share, versus $742 million, or $2.15 per share, a year earlier. The 2025 adjustments exclude MVP basis-difference accretion and HLBV accounting effects, while the 2024 adjustments exclude Clean Energy Businesses sale effects. Growth was driven mainly by higher rate base and the steam rate plan at CECONY, plus a contribution from O&R's rate increases, partly offset by higher stock-based compensation and dilution from share issuance.
Management reaffirmed 2025 adjusted EPS guidance of $5.50 to $5.70c and said the more than $1.3 billion of common equity issued in the quarter, including settlement of a December 2024 equity forward, satisfies its anticipated 2025 equity needs. The company also disclosed a 10-year capital plan of nearly $72 billion and a forecast of $38 billion in capital investments for 2025-2029, with an 8.2% utility rate base growth target.
Key regulatory items include the March 2025 NYSPSC approval of O&R's electric and gas rate plans at a 9.75% ROE and 48% equity ratio, and CECONY's pending January 2026 electric and gas rate requests, updated in April 2025, which seek roughly $1.6 billiond and $349 million in first-year increases at a 10% ROE. Investors should monitor the outcome of these cases, the stop-work order affecting the Empire Wind 1 project, the NYSPSC's decision on the NYC public policy transmission need, and the pending strategic alternatives review for MVP and Honeoye Storage.
02—Key points
Key Highlights
- Q1 2025 GAAP EPS of $2.26, up from $2.08 (+8.7%); adjusted EPS of $2.26 vs. $2.15 in Q1 2024 (+5.1%)
- GAAP net income for common stock of $791 million vs. $720 million, driven by CECONY base rate increases (steam, electric, gas rate base growth)
- 2025 adjusted EPS guidance reaffirmed at $5.50 to $5.70 per share
- Over $1.3 billion of new common equity issued in Q1 2025, satisfying anticipated 2025 equity needs; 2025 financing plan equity of up to $1,350 million
- CECONY requested electric and gas rate increases for January 2026 of $1,608 million and $349 million, respectively, at a 10% ROE and 48% equity ratio, in updated April 2025 filings
- Approximately $72 billion of 10-year capital investments identified; $38 billion forecast for 2025-2029 with 8.2% rate base CAGR target
- Empire Wind 1 (810 MW) marine construction suspended in April 2025 under a BOEM stop-work order; project was expected to enter service in 2027
03—Questions
Frequently Asked Questions
Did Con Edison's first-quarter 2025 earnings beat the prior year?
Yes. GAAP EPS rose to $2.26 from $2.08, and adjusted EPS rose to $2.26 from $2.15. Net income for common stock increased to $791 million from $720 million. Growth came mainly from CECONY rate base increases and the steam rate plan, partly offset by higher stock-based compensation and share dilution.
Is Con Edison maintaining its 2025 earnings guidance?
Yes. The company reaffirmed its 2025 adjusted EPS forecast range of $5.50 to $5.70 per share. Its forecast excludes MVP basis-difference accretion (about $(0.03) per share after tax), HLBV effects, Clean Energy Businesses sale impacts, and any effects from the strategic alternatives review for MVP and Honeoye, which cannot be determined until year-end.
Does Con Edison need to raise more equity in 2025?
Management says its 2025 equity needs are fully met. The company issued more than $1.3 billion of common equity in Q1 2025, including $677 million from settling a December 2024 equity forward for 7 million shares, and completed its planned 2025 equity issuance in March.
What are the main regulatory risks and catalysts ahead?
The key items are CECONY's pending January 2026 electric and gas rate cases, which request about $1.6 billion and $349 million in first-year increases, and the NYSPSC's decision on whether to continue the NYC public policy transmission need, expected in spring 2025. Investors should also watch the Empire Wind 1 stop-work order and the outcome of the MVP and Honeoye strategic review.
What is the long-term growth outlook?
Con Edison forecasts about $38 billion of capital investment for 2025 to 2029 and targets an 8.2% annual utility rate base growth rate over that period. It has also identified roughly $72 billion of investments over 2025 to 2034, funded through a simplified capital structure with no long-term holding company debt.
04—Continue