EDISON INTERNATIONALEIX

Edison International posted a staggering $11.55 in earnings per share for FY2025, supercharged by massive wildfire cost recoveries that offset years of catastrophic liability charges. While the utility’s core operations are expanding through authorized rate increases, its bottom line remains heavily distorted by the multibillion-dollar financial hangover of historic California wildfires.

The company's reported profitability radically shifted as earnings grew from $2.00 per share in FY2021 to a settlement-driven $11.55 per share by FY2025. In FY2021, non-core items like a $919 million after-tax charge for the 2017 and 2018 wildfire events severely depressed earnings. Fast forward to the first nine months of FY2025, and net income spiked to $2.611 billion, largely because the TKM Settlement Agreement allowed Southern California Edison to recover 60% of $2.7 billion in past wildfire losses. To modernize its grid and mitigate future ignition risks, the utility is deploying heavy capital, operating under a $29.3 billion expenditure plan for the 2025 to 2028 period.

Despite the headline earnings surge, the market priced in the ongoing threat of unrecoverable liabilities, punctuated by an estimated $1.6 billion in settlement losses accumulating by mid-2026 for the January 2025 Eaton Fire. Reflecting this persistent risk, the stock traded at $60.02 at the close of FY2025, commanding a highly compressed 5.2x earnings multiple and a $23.1 billion market cap.