Did Con Edison beat expectations and change its guidance?

The company reported Q3 2025 adjusted EPS of $1.90, and it narrowed its full-year 2025 adjusted EPS guidance to $5.60–$5.70 from $5.50–$5.70. The lower end was raised, so the range now sits in the upper half of the original guidance. The filing does not include analyst consensus estimates, so a direct comparison to expectations cannot be made from this document alone.

What does the CECONY rate proposal mean for future earnings?

The joint proposal, if approved, would set a 9.40% ROE and 48% equity ratio for 2026–2028. It projects base rate increases of about $222 million in 2026, $473 million in 2027, and $329 million in 2028 for electric service, plus gas increases. Average electric rate base is forecast to grow from about $32.9 billion in 2026 to $39.2 billion in 2028. Final approval by the NYSPSC is required, and the outcome could differ from the proposal.

What drove the earnings growth in the third quarter?

The main drivers were higher electric rate base at CECONY (+$0.11 per share), lower effective income tax for certain items (+$0.05), lower commercial paper interest expense (+$0.04), and lower stock-based compensation (+$0.04). These were partly offset by dilution from issuing common shares (-$0.08 per share).

What are the main risks or uncertainties highlighted?

Key items include the pending regulatory approval of the rate plans, the timing of the MVP and Honeoye strategic alternatives review (which could create year-end adjustments), and tariff-related increases in material costs. Affordability concerns are rising, with CLCPA bill-share forecasts reaching 9.4% for CECONY residential customers by 2029, and New York regulators expanded energy affordability programs in 2025. The company also flagged a New York City electric reliability need starting in summer 2026.

How is Con Edison funding its growth, and what is the balance sheet position?

The company says it has no long-term holding company debt and a simplified capital structure. As of September 30, 2025, consolidated capitalization was about 51% parent and other debt and 49% equity. CECONY is rated A3/A-/A- and the parent is rated Baa1/A-/BBB+, all with stable outlooks. For 2025, the company planned up to $1.75 billion of long-term debt and up to $1.35 billion of common equity, with $250 million of debt and about $1.3 billion of equity issued through September.

ED 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.

Consolidated Edison (ED) reported third-quarter 2025 GAAP net income for common stock of $688 million^a, or $1.91 per share, up from $588 million, or $1.70 per share, in Q3 2024.

Adjusted EPS (non-GAAP) was $1.90^b versus $1.68 a year earlier. For the first nine months, GAAP EPS was $4.84 (vs. $4.37) and adjusted EPS was $4.82 (vs. $4.42). Growth was driven mainly by higher electric rate base at CECONY, lower commercial paper interest expense, and lower stock-based compensation, partly offset by dilution from common share issuance (about $0.08 per share in the quarter and $0.14 year-to-date).

The company narrowed its 2025 adjusted EPS guidance to $5.60^c–$5.70 from $5.50–$5.70, moving it to the upper half of the original range. Management is guiding to the top of that range, with the remaining adjustments (MVP accretion, HLBV effects, Clean Energy Businesses items, and strategic-alternatives impacts for MVP and Honeoye) to be determined at year-end. The most significant development for investors is CECONY's November 5, 2025 joint proposal with New York State regulators for electric and gas rate plans covering January 2026 through December 2028.

It proposes a 9.40% return on equity and a 48% equity ratio, with base rate increases of roughly $222 million^d in 2026 (electric and gas combined), $473 million in 2027, and $329 million in 2028 for electric, plus gas increases. The plan supports about $17 billion of investment over three years and is subject to NYSPSC approval.

The company also reiterated a $72 billion capital investment plan for 2025–2034 and will update its forecast through 2030 in February 2026. Investors should note that the proposal still requires regulatory approval, and the company's earnings outlook depends on that outcome.

02—Key points

Key Highlights

Q3 2025 GAAP EPS of $1.91 vs. $1.70 in Q3 2024 (+12%); adjusted EPS of $1.90 vs. $1.68 (+13%)
Nine-month 2025 GAAP EPS of $4.84 vs. $4.37; adjusted EPS of $4.82 vs. $4.42 (+9%)
2025 adjusted EPS guidance narrowed to $5.60–$5.70, the upper half of the prior $5.50–$5.70 range
CECONY electric and gas joint proposal (Jan 2026–Dec 2028) seeks a 9.40% ROE and 48% equity ratio, with ~$17 billion of investment over three years, pending NYSPSC approval
Capital plan of $72 billion for 2025–2034, with 14 new substations planned by 2030; Con Edison will update its forecast through 2030 in February 2026
Q3 2025 quarterly dividend of $0.85 per share declared October 16, 2025; the company has 51 consecutive years of dividend increases
Dilution from share issuance (about $0.14 per share year-to-date) partly offset earnings growth; net debt-financed rate base growth remains the main driver

03—Questions

Frequently Asked Questions

Did Con Edison beat expectations and change its guidance?
The company reported Q3 2025 adjusted EPS of $1.90, and it narrowed its full-year 2025 adjusted EPS guidance to $5.60–$5.70 from $5.50–$5.70. The lower end was raised, so the range now sits in the upper half of the original guidance. The filing does not include analyst consensus estimates, so a direct comparison to expectations cannot be made from this document alone.
What does the CECONY rate proposal mean for future earnings?
The joint proposal, if approved, would set a 9.40% ROE and 48% equity ratio for 2026–2028. It projects base rate increases of about $222 million in 2026, $473 million in 2027, and $329 million in 2028 for electric service, plus gas increases. Average electric rate base is forecast to grow from about $32.9 billion in 2026 to $39.2 billion in 2028. Final approval by the NYSPSC is required, and the outcome could differ from the proposal.
What drove the earnings growth in the third quarter?
The main drivers were higher electric rate base at CECONY (+$0.11 per share), lower effective income tax for certain items (+$0.05), lower commercial paper interest expense (+$0.04), and lower stock-based compensation (+$0.04). These were partly offset by dilution from issuing common shares (-$0.08 per share).
What are the main risks or uncertainties highlighted?
Key items include the pending regulatory approval of the rate plans, the timing of the MVP and Honeoye strategic alternatives review (which could create year-end adjustments), and tariff-related increases in material costs. Affordability concerns are rising, with CLCPA bill-share forecasts reaching 9.4% for CECONY residential customers by 2029, and New York regulators expanded energy affordability programs in 2025. The company also flagged a New York City electric reliability need starting in summer 2026.
How is Con Edison funding its growth, and what is the balance sheet position?
The company says it has no long-term holding company debt and a simplified capital structure. As of September 30, 2025, consolidated capitalization was about 51% parent and other debt and 49% equity. CECONY is rated A3/A-/A- and the parent is rated Baa1/A-/BBB+, all with stable outlooks. For 2025, the company planned up to $1.75 billion of long-term debt and up to $1.35 billion of common equity, with $250 million of debt and about $1.3 billion of equity issued through September.

04—Continue

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