10-QPeriod: Q2 FY2025

EDISON INTERNATIONAL Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 31, 2025For Securities:EIX

Summary

Edison International (EIX) reported its second quarter 2025 results, showing a decrease in net income available to common shareholders compared to the prior year quarter. This decline was primarily driven by lower earnings at Southern California Edison (SCE), influenced by increased operation and maintenance expenses and the net impact of wildfire-related regulatory decisions. For the six-month period, however, Edison International's net income saw a substantial increase, largely due to significant non-core earnings at SCE, primarily related to cost recoveries authorized under the TKM Settlement Agreement. The company continues to navigate significant wildfire risks, with the Eaton Fire in January 2025 being a major recent event. While investigations are ongoing, circumstantial evidence suggests SCE's transmission facilities could be associated with the ignition, leading Edison International and SCE to believe material losses are probable, though a specific range cannot yet be estimated. The company is working through various wildfire settlements and regulatory processes, including the Wildfire Insurance Fund and the AB 1054 framework, to manage these liabilities. From a regulatory perspective, the proposed decision for the 2025 General Rate Case (GRC) suggests a significant increase in SCE's revenue requirement. Additionally, SCE has filed an application for its 2026 cost of capital, seeking an increased return on equity. The company's capital expenditures remain substantial, focused on grid modernization and wildfire mitigation.

Financial Highlights

46 data points
Beta

Revenue

$4.54B

Net Income

$398.00M

8.8% Net Margin

EPS (Diluted)

$0.89

Total Assets

$88.81B

Cash & Equivalents

$140.00M

Free Cash Flow

-$830.00M

Financial Statements
Beta
Revenue$4.54B
Operating Expenses$3.77B
Operating Income$775.00M
Net Income$398.00M
EPS (Basic)$0.89
EPS (Diluted)$0.89
Shares Outstanding (Basic)385.00M
Shares Outstanding (Diluted)386.00M

Key Highlights

  • 1EIX's net income available to common shareholders decreased by $96 million year-over-year for the three months ended June 30, 2025, primarily due to lower earnings at SCE.
  • 2For the six months ended June 30, 2025, net income available to common shareholders significantly increased by $1,351 million, driven by substantial non-core earnings from wildfire cost recoveries via the TKM Settlement Agreement.
  • 3The Eaton Fire in January 2025 is a significant ongoing concern, with probable material losses anticipated by Edison International and SCE, though the exact range is currently unestimable.
  • 4SCE is proceeding with its Wildfire Mitigation Plan (WMP) and utilizes Public Safety Power Shutoffs (PSPS) to manage wildfire risks.
  • 5A proposed decision for SCE's 2025 General Rate Case (GRC) suggests an increase in the revenue requirement by approximately $1.2 billion for 2025, with further annual increases proposed.
  • 6SCE's capital expenditures for the first six months of 2025 totaled $3.1 billion, with a forecast range of $26.6 billion to $31.5 billion for 2025-2028.
  • 7The company's liquidity remains stable, with ample availability under its credit facilities for both Edison International and SCE.

Frequently Asked Questions

The primary driver was a decrease of $80 million in net income available to common shareholders at Southern California Edison (SCE), largely due to higher operation and maintenance expenses and the net impact of wildfire-related regulatory decisions received in the second quarter of 2025 and 2024.

Edison International and SCE believe material losses in connection with the Eaton Fire are probable, and they are conducting complex internal reviews. SCE has $1.0 billion in customer-funded self-insurance coverage, and potential losses exceeding this amount are covered by the Wildfire Insurance Fund, subject to fund administrator approval and capacity. The company is also implementing a program for expedited claims resolution. However, due to ongoing investigations and complexities, a precise range of estimated losses cannot yet be determined.

The proposed decision from the California Public Utilities Commission (CPUC) for the 2025 GRC suggests a base rate revenue requirement of $9.8 billion in 2025, an increase of approximately $1.2 billion over the 2024 authorized level. Further annual increases are proposed for 2026-2028, with potential adjustments for attrition and wildfire mitigation capital additions. SCE is currently collecting revenue based on the 2024 authorized level, adjusted for the 2025 authorized Return on Equity (ROE), pending a final GRC decision.

Edison International and SCE have significantly progressed in resolving liabilities from past wildfire events. The TKM Settlement Agreement, approved in January 2025, allowed for cost recoveries through CPUC electric rates, significantly impacting the six-month results. The company has entered into numerous settlements and continues to manage remaining claims and potential exposures, with substantial amounts having been paid and accrued for estimated losses.