01—Abstract
Summary
Summary of the 10-Q filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Edison International (EIX) reported a decrease in net income for the first quarter of 2026 compared to the same period in 2025.
This decline was primarily driven by a significant reduction in Southern California Edison's (SCE) earnings, largely due to non-core items related to wildfire recoveries. While core earnings showed a slight improvement, the substantial decrease in wildfire-related recoveries in the prior year's quarter heavily impacted the year-over-year comparison. Despite the overall dip in net income, the company continues to manage significant wildfire liabilities.
The Eaton Fire remains a major concern, with substantial losses recorded and more anticipated due to ongoing litigation, though SCE is pursuing settlements and expects some recovery through self-insurance and the Wildfire Fund. The company's capital expenditure plan for grid modernization and wildfire mitigation remains substantial, with SCE forecasting significant investments over the next five years. Liquidity appears adequate, supported by operating cash flows and access to credit facilities.
02—Key points
Key Highlights
- Edison International reported a year-over-year decrease in net income available to common shareholders, primarily due to a significant reduction in wildfire-related recoveries in the prior year's quarter.
- SCE's core earnings increased slightly, driven by the adoption of the 2025 GRC final decision, but this was offset by the absence of prior-year benefits from the TKM Settlement Agreement.
- Wildfire liabilities, particularly from the Eaton Fire, continue to be a major focus, with significant losses recorded and further material losses anticipated due to ongoing litigation.
- SCE has recorded substantial losses related to the Eaton Fire settlements, with expected recoveries from self-insurance and the Wildfire Fund partially offsetting these costs.
- The company maintains a substantial capital expenditure program, with forecasts indicating significant investments in grid infrastructure and wildfire risk mitigation through 2030.
- Liquidity remains adequate for both Edison International and SCE, supported by operating cash flows and available credit facilities.
- SCE is actively managing regulatory proceedings, including the 2024 Multi-year Wildfire Mitigation and Catastrophic Events Filing and the Advanced Metering Infrastructure (AMI) 2.0 Program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 28, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.10B$3.81B | +7.7% |
| Operating Expenses | $3.03B$1.68B | +80.6% |
| Operating Income | $1.07B$2.13B | −49.7% |
| Net Income | $570.00M$1.49B | −61.8% |
| EPS (Basic) | $1.38$3.73 | −63.0% |
| EPS (Diluted) | $1.37$3.72 | −63.2% |
| Shares Outstanding (Basic) | 385.00M385.00M | 0.0% |
| Shares Outstanding (Diluted) | 387.00M386.00M | +0.3% |
05—Questions
Frequently Asked Questions
What caused the significant decrease in net income for the first quarter of 2026 compared to the first quarter of 2025?
The primary driver for the decrease in net income was a significant reduction in 'non-core items,' specifically wildfire-related recoveries. In the first quarter of 2025, SCE recognized substantial earnings from wildfire cost recoveries and insurance reimbursements related to past wildfire events. In contrast, the first quarter of 2026 saw much lower wildfire-related recoveries, creating a large year-over-year variance.
What is the current status and financial impact of the Eaton Fire?
The Eaton Fire, which occurred in January 2025, continues to present significant financial challenges. As of March 31, 2026, SCE had recorded $1.3 billion in losses related to settlements, with expected recoveries from self-insurance ($917 million) and the Wildfire Fund ($295 million). However, Edison International and SCE anticipate incurring additional material losses due to pending litigation, and the full range of potential losses remains difficult to estimate.
What are Edison International's future capital expenditure plans?
SCE forecasts total capital expenditures ranging from $37.5 billion to $40.6 billion for the period 2026-2030. These investments are focused on grid modernization, wildfire risk mitigation, and meeting electrification needs, as informed by regulatory decisions and the company's Wildfire Mitigation Plan (WMP).
How is Edison International managing its wildfire liabilities and regulatory frameworks?
Edison International and SCE are actively engaged with California's wildfire legislation (AB 1054 and SB 254) and regulatory bodies like the CPUC and OEIS. They are implementing Wildfire Mitigation Plans, seeking cost recovery through regulated rates, and utilizing the Wildfire Fund and customer-funded self-insurance programs. However, ongoing litigation and the potential for significant uninsured losses remain key risks.
06—Continue