Why did Con Edison's GAAP and adjusted EPS differ so much for the first half of 2026?

The difference comes from the $189 million pre-tax gain on the sale of Con Edison's equity interest in Mountain Valley Pipeline, which added $0.37 per share after tax to GAAP results. Adjusted EPS excludes this one-time gain, along with MVP basis accretion, strategic-review transaction costs, and HLBV effects. Adjusted EPS of $3.00 is the better measure of ongoing earnings power.

Is Con Edison on track to meet its 2026 earnings guidance?

Management reaffirmed 2026 adjusted EPS guidance of $6.00 to $6.20 and said year-to-date results are in line with expectations. First-half adjusted EPS of $3.00 is roughly half of the midpoint, consistent with the company's typical earnings pattern, but guidance excludes items that are not yet determinable, such as transaction costs and the final HLBV effects.

How will New York's new Chapter 58 law affect Con Edison's future earnings?

Chapter 58 applies to base rate filings made after January 1, 2027. It requires a budget-constrained plan that limits revenue increases to average CPI growth over the prior three years, directs revenues above the authorized ROE to customers (with up to 0.25% retention), limits rate-case expenses, and allows ROE adjustments tied to affordability. Management says it is still assessing the impact and the timing of upcoming filings, so the long-term effect on the rate base growth plan is uncertain.

Will Con Edison's share count continue to grow?

Yes, likely. The company has an ATM program of up to $2.0 billion, with about $1.8 billion still available as of June 30, 2026, and planned common equity issuance of up to $1.1 billion in 2026 and $1.2 billion in 2027. Equity forwards are expected to settle physically, which will dilute EPS over time as shares are delivered.

What are the main credit considerations for Con Edison bondholders and equity investors?

Con Edison's issuer ratings are Baa1/A-/BBB+, with Moody's maintaining a Negative outlook on the parent and CECONY, while S&P and Fitch have Stable outlooks. Moody's downgrade threshold for CFO pre-WC to debt is below 17%, and its current forecast is about 16%, leaving limited headroom. The company has no long-term holding company debt, and it issued $1.3 billion of CECONY debt in Q2 and refinanced its revolving credit facilities at $3.5 billion.

ED 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.

Consolidated Edison reported second-quarter 2026 GAAP net income for common stock of $308 million^a, or $0.83 per share, up from $246 million, or $0.68 per share, in the second quarter of 2025.

Adjusted EPS (non-GAAP) was $0.83^b versus $0.67 a year earlier, and the increase was driven mainly by higher electric and gas rate base at CECONY and the timing of billing for rate increases. Year-to-date GAAP EPS was $3.37 and adjusted EPS was $3.00, compared with $2.93 and $2.91 in the first half of 2025. The year-to-date GAAP figure is inflated by a $189 million pre-tax gain on the sale of Con Edison's MVP equity interest, which is excluded from adjusted results.

Management reaffirmed full-year 2026 adjusted EPS guidance of $6.00 to $6.20^c. The company stated that year-to-date results are in line with expectations. Guidance excludes the MVP gain (about $(0.37) per share after tax), MVP basis accretion, strategic-review transaction costs, and HLBV effects, which will be determined at year-end.

Regulatory developments were mixed: New Jersey approved a RECO electric rate increase at a 9.60% ROE, and New York's Chapter 58 introduces affordability-focused constraints on future rate filings starting in 2027. Con Edison also raised capital through equity forward settlements, a $3.5 billion^d revolving credit facility, and a $1.3 billion CECONY debt issuance. For investors, the quarter shows steady regulated growth with a constructive rate framework, but the outlook depends on several items.

These include the timing of the MVP sale and transaction costs, continued equity issuance (planned up to $1.1 billion in 2026), the new New York affordability regime, and a negative Moody's outlook on Con Edison and CECONY. The company also has a 4.4% dividend increase and a quarterly dividend of $0.8875 declared July 16, 2026.

02—Key points

Key Highlights

Q2 2026 GAAP EPS of $0.83 vs. $0.68 in Q2 2025 (+22%); adjusted EPS of $0.83 vs. $0.67, driven by CECONY rate base growth and timing of rate-increase billing (+$0.18 at CECONY).
First-half 2026 GAAP EPS of $3.37 includes a $189 million pre-tax ($134 million after-tax, or $0.37/share) gain on the sale of the MVP equity interest; adjusted EPS of $3.00 vs. $2.91 in 1H 2025.
Full-year 2026 adjusted EPS guidance reaffirmed at $6.00–$6.20; management says year-to-date results are in line with expectations.
New Jersey Board of Public Utilities approved a $15.25 million RECO electric rate increase effective July 1, 2026, with a 9.60% ROE and 48.51% equity ratio.
Equity financing: 7.0 million shares issued (~$776 million) in Q1 via forward settlement, plus 1.02 million ATM shares (~$108 million) in June; 2026 common equity issuance planned up to $1.1 billion.
New York Chapter 58 (effective for base rate filings after January 1, 2027) adds budget-constrained rate plans, revenue-above-ROE sharing, and affordability analyses, a regulatory headwind for future rate cases.
Credit watch: Moody's maintains a Negative outlook on Con Edison and CECONY; CECONY's $1.3 billion debt issuance in Q2 and the $3.5 billion revolving credit facility support liquidity.

03—Questions

Frequently Asked Questions

Why did Con Edison's GAAP and adjusted EPS differ so much for the first half of 2026?
The difference comes from the $189 million pre-tax gain on the sale of Con Edison's equity interest in Mountain Valley Pipeline, which added $0.37 per share after tax to GAAP results. Adjusted EPS excludes this one-time gain, along with MVP basis accretion, strategic-review transaction costs, and HLBV effects. Adjusted EPS of $3.00 is the better measure of ongoing earnings power.
Is Con Edison on track to meet its 2026 earnings guidance?
Management reaffirmed 2026 adjusted EPS guidance of $6.00 to $6.20 and said year-to-date results are in line with expectations. First-half adjusted EPS of $3.00 is roughly half of the midpoint, consistent with the company's typical earnings pattern, but guidance excludes items that are not yet determinable, such as transaction costs and the final HLBV effects.
How will New York's new Chapter 58 law affect Con Edison's future earnings?
Chapter 58 applies to base rate filings made after January 1, 2027. It requires a budget-constrained plan that limits revenue increases to average CPI growth over the prior three years, directs revenues above the authorized ROE to customers (with up to 0.25% retention), limits rate-case expenses, and allows ROE adjustments tied to affordability. Management says it is still assessing the impact and the timing of upcoming filings, so the long-term effect on the rate base growth plan is uncertain.
Will Con Edison's share count continue to grow?
Yes, likely. The company has an ATM program of up to $2.0 billion, with about $1.8 billion still available as of June 30, 2026, and planned common equity issuance of up to $1.1 billion in 2026 and $1.2 billion in 2027. Equity forwards are expected to settle physically, which will dilute EPS over time as shares are delivered.
What are the main credit considerations for Con Edison bondholders and equity investors?
Con Edison's issuer ratings are Baa1/A-/BBB+, with Moody's maintaining a Negative outlook on the parent and CECONY, while S&P and Fitch have Stable outlooks. Moody's downgrade threshold for CFO pre-WC to debt is below 17%, and its current forecast is about 16%, leaving limited headroom. The company has no long-term holding company debt, and it issued $1.3 billion of CECONY debt in Q2 and refinanced its revolving credit facilities at $3.5 billion.

04—Continue

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