01—Abstract
Summary
Summary of the 8-K filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison reported first-quarter 2026 GAAP net income for common stock of $924 milliona, or $2.55 per share, up from $791 million, or $2.26 per share, in the first quarter of 2025.
Adjusted earnings, which exclude the gain on the sale of its Mountain Valley Pipeline (MVP) stake and related items, were $790 millionb, or $2.18 per share, roughly flat in dollar terms and down $0.08 from $2.26 a year earlier. The GAAP increase came almost entirely from the one-time after-tax MVP gain of $134 million ($0.37 per share). The underlying utility business was softer: CECONY's adjusted earnings fell $0.11 per share, driven by higher operations and maintenance expense, dilution from the February 2026 equity issuance, and higher interest expense.
Management reaffirmed its 2026 adjusted EPS guidance of $6.00 to $6.20c. The company completed the MVP sale for $357.5 million before closing adjustments and settled a forward sale for 7 million shares (about $776 million) to fund its capital plan. It also repaid a $500 million 364-day term loan in March and entered into a new $3.5 billion revolving credit facility.
The forecast is for an 8.8% five-year compound annual growth rate in the average utility rate base, supported by electrification-driven load growth and new New York rate plans approved in January 2026. Investor watch items include Moody's negative outlook on Con Edison and CECONY, the pending CECONY steam rate case (a $66 milliond request against NYSPSC staff testimony of $18 million), New York City reliability needs identified by NYISO, and rising aged customer receivables at CECONY ($1,352 million over 60 days at March 31, 2026, versus $1,427 million at year-end 2025). The quarter also included a $205 million reduction in the CAMT credit carryforward following IRS Notice 2026-7.
02—Key points
Key Highlights
- GAAP EPS rose to $2.55 from $2.26 and GAAP net income for common stock rose to $924 million from $791 million, but the increase reflects a one-time after-tax gain of $134 million ($0.37 per share) on the MVP sale.
- Adjusted EPS fell to $2.18 from $2.26 (adjusted net income of $790 million versus $792 million), with CECONY down $0.11 per share on higher O&M expense (-$0.08), dilution from the equity issuance (-$0.08), and higher interest expense (-$0.03).
- Full-year 2026 adjusted EPS guidance of $6.00 to $6.20 was reaffirmed; the GAAP guidance equivalent cannot be provided because excluded items such as HLBV effects and transaction costs are not determinable until year-end.
- The MVP stake sale closed for $357.5 million before adjustments, and a 7 million share forward sale settled in March for about $776 million, funding the 2026 equity plan (up to $1.1 billion).
- The company forecasts an 8.8% five-year CAGR in average utility rate base (2025 to 2030), rising from $46.4 billion in 2025 to $67.2 billion in 2030, supported by new CECONY electric and gas rate plans effective January 2026.
- Moody's placed Con Edison and CECONY on negative outlook in Q1 2026, while S&P and Fitch outlooks remain stable; the Moody's downgrade threshold for Con Edison is CFO pre-WC to debt below 15%.
- The quarterly dividend was declared at $0.8875 per share (annualized $3.55, a 4.4% increase), extending the company's streak to 52 consecutive years of dividend increases.
03—Questions
Frequently Asked Questions
Why did GAAP EPS increase while adjusted EPS declined?
The GAAP increase was driven by the one-time $134 million after-tax ($0.37 per share) gain on the sale of Con Edison's MVP interest. Adjusted EPS excludes this gain, along with MVP basis accretion and transaction costs. Excluding these items, adjusted EPS fell to $2.18 from $2.26, mainly due to CECONY's higher O&M expense, dilution from new shares issued in February 2026, and higher interest expense.
Is the 2026 earnings guidance changing?
No. Management reaffirmed 2026 adjusted EPS guidance of $6.00 to $6.20. The company cannot provide a GAAP equivalent because it expects to exclude items such as the MVP gain (-$0.37 per share after tax), MVP basis accretion (-$0.01), transaction costs, and HLBV accounting effects, the amounts of which will not be determinable until year-end.
Why did the company issue equity, and how much dilution should investors expect?
The company settled a February 2026 forward sale for 7 million shares of common stock, raising about $776 million to fund its utility capital program. This issuance was the main driver of the $0.08 per share dilution at CECONY in the quarter. The 2026 financing plan allows for up to $1.1 billion of common equity issuance, excluding shares issued under dividend reinvestment, employee stock purchase, and long-term incentive plans.
What are the main regulatory and credit risks highlighted in the filing?
Key risks include the pending CECONY steam rate case, where the company requested a $66 million increase while NYSPSC staff supports $18 million; NYISO's identification of New York City reliability needs beginning in summer 2026; and rising aged customer receivables at CECONY ($1.35 billion over 60 days at March 31, 2026). On the credit side, Moody's negative outlook on Con Edison and CECONY adds pressure, and the CAMT credit carryforward was reduced by $205 million under IRS Notice 2026-7.
What is the long-term growth outlook for the utility business?
Management forecasts average utility rate base growing from $46.4 billion in 2025 to $67.2 billion in 2030, an 8.8% CAGR. Growth is driven by electrification, new substations (CECONY plans 9 and O&R plans 13 between 2026 and 2034), and the new CECONY and O&R rate plans approved in 2025 and January 2026. Capital investment forecasts also show CECONY and O&R utility capex rising to about $8.6 billion by 2030.
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