01—Abstract
Summary
Summary of the 8-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison (ED) reported 2025 GAAP net income for common stock of $2,023 milliona, or $5.66 per share, up from $1,820 million ($5.26) in 2024.
Adjusted (non-GAAP) EPS was $5.70b, up from $5.40, at the top end of the company's guidance range. For the fourth quarter, GAAP EPS fell to $0.82 from $0.90, and adjusted EPS fell to $0.89 from $0.98, mainly due to higher operations and maintenance expense and corporate expenses at CECONY, plus Con Edison Transmission charges tied to the MVP/Honeoye review and the Honeoye impairment. Management guided 2026 adjusted EPS to $6.00–$6.20 and targets 6%–7% five-year adjusted EPS CAGR (2026–2030), using the guidance midpoint as the base.
The growth case rests on an ~$38 billionc capital plan for 2026–2030 (about $6.6 billion in 2026 and $6.8 billion in 2027) and an 8.6% CAGR target for average earnings base. The New York PSC approved CECONY's three-year electric and gas rate plans in January 2026 with a 9.40% ROE and 48% equity ratio. The company also declared a 4.4% dividend increase to an annualized $3.55, its 52nd consecutive annual increase.
Key items for investors are the planned first-half 2026 sale of the remaining Mountain Valley Pipeline stake (about $357.5 milliond total consideration, with roughly 40% of its ~6.6% interest already sold in January), the strategic review of Honeoye, and a $1.1 billion 2026 common equity issuance plan. Pending items include the CECONY steam rate case (requested $66 million increase effective November 2026) and the New York City reliability need, which requires a contingency plan.
02—Key points
Key Highlights
- 2025 GAAP EPS of $5.66 (up from $5.26); adjusted EPS of $5.70 (up from $5.40), at the top end of guidance
- Q4 2025 GAAP EPS of $0.82 vs. $0.90 and adjusted EPS of $0.89 vs. $0.98, primarily reflecting higher O&M and corporate expenses at CECONY
- 2026 adjusted EPS guidance of $6.00–$6.20; 6%–7% five-year adjusted EPS CAGR target through 2030
- Approximately $38 billion of capital investment planned for 2026–2030, with an 8.6% CAGR target for the average earnings base
- NYPSC approved CECONY's three-year electric and gas rate plans (2026–2028) in January 2026 with a 9.40% ROE and 48% equity ratio
- Dividend raised 4.4% to an annualized $3.55 per share, marking 52 consecutive years of increases
- Pending MVP stake sale (about $357.5 million aggregate consideration, expected to close in 1H 2026) and strategic review of Honeoye investment; Honeoye impairment and transaction costs weighed on 2025 GAAP results
03—Questions
Frequently Asked Questions
Why did Con Edison's fourth-quarter 2025 earnings decline year over year?
Q4 2025 GAAP EPS was $0.82 versus $0.90, and adjusted EPS was $0.89 versus $0.98. The main drags were CECONY's higher electric, gas and steam O&M expense (-$0.10), higher corporate expenses (-$0.06), and the dilutive effect of share issuance (-$0.04). Con Edison Transmission also weighed on GAAP results through transaction costs, the Honeoye impairment and a deferred tax remeasurement. These were partly offset by lower accrued commitments to the Consolidated Edison Foundation and a gain on the solar project sale.
What is the 2026 earnings outlook and long-term growth target?
Con Edison guided 2026 adjusted EPS to $6.00–$6.20 and targets 6%–7% adjusted EPS compound annual growth over 2026–2030, using the guidance midpoint as the base. The company cannot provide a GAAP equivalent because items such as the MVP sale gain and MVP basis accretion are not yet determinable.
How much capital will Con Edison invest, and how will it be funded?
The company forecasts $6.6 billion of capital investment in 2026 and $6.8 billion in 2027, with about $24.3 billion more over 2028–2030 (roughly $38 billion total for 2026–2030). Funding will come from internally generated cash, debt (up to $3.2 billion in 2026, $3.0 billion in 2027, and about $9.9 billion over 2028–2030), and common equity (up to $1.1 billion in 2026, $1.2 billion in 2027, and up to $3.3 billion over 2028–2030, excluding DRIP, ESPP and LTIP issuance).
What regulatory developments could affect future earnings?
In January 2026, the NYPSC approved CECONY's three-year electric and gas rate plans, which include a 9.40% ROE, a 48% equity ratio, and electric base increases of about $234 million, $410 million and $421 million in 2026–2028. A CECONY steam rate case requests a $66 million increase effective November 1, 2026, at a 9.9% ROE. Separately, CECONY must file a New York City reliability contingency plan by June 2026, and an RFI for reliability solutions was issued in January 2026. The Utilities also face a gas main welds review that may result in refunds, with an estimated $100 million in aggregate revenue subject to refund from 2026 through 2028.
What are the implications of the MVP and Honeoye transactions?
Con Edison Transmission completed the sale of about 40% of its roughly 6.6% MVP interest in January 2026 and expects to sell the rest in the first half of 2026, for aggregate consideration of $357.5 million, subject to adjustments. The company is also reviewing strategic alternatives for its Honeoye investment. In 2025 it recorded a $13 million pre-tax ($10 million after-tax) impairment on Honeoye, along with $17 million pre-tax in transaction costs. These items are excluded from adjusted EPS, and the final gain on the MVP sale will be excluded from 2026 adjusted EPS guidance.
04—Continue