10-QPeriod: Q2 FY2026

EDISON INTERNATIONAL Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 30, 2026For Securities:EIX

Summary

Edison International (EIX) reported its financial results for the second quarter and first half of 2026, showing a significant increase in net income for the quarter compared to the prior year, primarily driven by Southern California Edison's (SCE) improved core earnings. However, for the six-month period, net income decreased year-over-year, largely due to a substantial non-core benefit related to wildfire claims recoveries recognized in the prior year. The company continues to navigate significant wildfire liabilities, with substantial accruals and ongoing litigation, particularly concerning the 2025 Eaton Fire, where settlement losses have reached $1.6 billion. Despite these challenges, SCE's capital expenditures remain robust, with a significant five-year forecast for infrastructure investments. Liquidity remains adequate, supported by operating cash flows and revolving credit facilities for both Edison International and SCE. The company is actively managing its capital structure and debt levels, remaining in compliance with financial covenants. The report highlights ongoing efforts to mitigate wildfire risk through operational plans and regulatory engagement, with ongoing uncertainties regarding future legislative actions and their impact on wildfire liability frameworks and credit ratings. Investors should monitor the resolution of wildfire claims and the company's ability to recover costs through regulated rates.

Key Highlights

  • 1Edison International reported a $191 million increase in net income for the three months ended June 30, 2026, compared to the same period in 2025, driven by SCE's improved core earnings and a lower non-core loss.
  • 2For the six months ended June 30, 2026, Edison International's net income decreased by $714 million year-over-year, primarily due to a significant non-core benefit from wildfire claims recoveries in the prior year.
  • 3Southern California Edison (SCE) has recorded $1.6 billion in losses related to settlements for the 2025 Eaton Fire as of June 30, 2026, with expectations of further material losses.
  • 4Total capital expenditures for SCE were $3.1 billion for both the six months ended June 30, 2026 and 2025, with a forecast of $37.5 billion to $40.6 billion for 2026-2030.
  • 5SCE has approximately $2.6 billion available under its revolving credit facility as of June 30, 2026, following an extension of the facility.
  • 6Edison International Parent and Other reported a decrease in net loss available to common shareholders for the six months ended June 30, 2026, due to lower wildfire claims insured by EIS and reduced preferred stock dividends, partially offset by the Trio disposition loss.
  • 7The company continues to manage significant wildfire-related claims and litigation, particularly concerning the Eaton Fire, where a bellwether jury trial is set for January 2027.

Frequently Asked Questions

The primary driver for the $191 million increase in net income for Edison International in the second quarter of 2026 compared to the same period in 2025 was an increase in Southern California Edison's (SCE) earnings, specifically $198 million in higher core earnings, partially offset by a $2 million reduction in SCE's non-core loss.

As of June 30, 2026, SCE has recorded $1.6 billion in losses related to settlements for the 2025 Eaton Fire. The company anticipates incurring additional material losses due to pending litigation and is currently unable to estimate a range of total potential losses. Expected recoveries include $917 million from customer-funded self-insurance and $645 million from the Wildfire Fund.

SCE plans capital expenditures ranging from $37.5 billion to $40.6 billion for 2026-2030. As of June 30, 2026, SCE had approximately $2.6 billion available under its revolving credit facility, and Edison International Parent had $1.3 billion available. Both entities are expected to fund their cash requirements through operating cash flows and market financings.

Wildfires remain a significant risk due to climate change and development in high-risk areas. SCE is implementing its Wildfire Mitigation Plan (WMP), utilizing Public Safety Power Shutoffs (PSPS), and has obtained safety certifications. Legislative efforts are ongoing to address wildfire liability frameworks. The company has accrued substantial losses for past and ongoing wildfire events and is actively engaged in litigation and settlement processes. The Wildfire Fund, established under AB 1054 and expanded under SB 254, provides a mechanism for cost recovery, subject to certain conditions and limitations.