What are EIX's 2026 and 2027 Core EPS guidance ranges, and how do they compare to prior expectations?

EIX introduced 2026 Core EPS guidance of $5.90–6.20 and 2027 guidance of $6.25–6.65, based on 385 million shares. Management describes 2026 as roughly 3.5% growth versus the original 2025 midpoint plus the TKM interest benefit, with the shortfall attributed mainly to one-time or non-recurring variances such as the 2025 regulatory true-ups, depreciation and property tax changes, and a lower CPUC ROE. The 2027 outlook is given because of visibility through the GRC cycle.

How much financial exposure does the Eaton Fire pose to Edison International?

The presentation states that SCE cannot currently estimate potential losses from the Eaton Fire. SCE believes its equipment could have been associated with the ignition, although causation is not conclusively determined. Management argues that clear funding sources mitigate balance sheet exposure: the Wildfire Fund's claim-paying capacity exceeds $21 billion, SCE's shareholder liability cap for 2025 is about $4.3 billion, customer-funded self-insurance covers the first $1 billion, and SB 254 allows securitization of costs above Wildfire Fund capacity, subject to CPUC approval.

Is the dividend at risk, and what is the dividend policy?

EIX has grown its dividend for 22 consecutive years, with 2026 dividends at $3.51 per share annualized, a 7% CAGR since 2004, and a current yield of about 5% based on February 17, 2026 prices. The company targets a dividend payout of 45–55% of SCE core earnings. Dividends are subject to approval by the EIX Board. The 2026–2030 financing plan projects $7–9 billion in dividends, funded from operating cash flow and incremental debt without equity issuance.

What are the main credit rating risks?

S&P rates both SCE and EIX BBB- with a Negative outlook, which is one notch above speculative grade and is the main credit concern in the presentation. Moody's rates SCE Baa1 and EIX Baa2, both Stable, and Fitch rates both BBB with a Stable outlook. Management targets an EIX long-term FFO-to-debt ratio of 15–17% and cites credit-supportive measures under AB 1054 and SB 254, along with the expected Woolsey securitization, as offsetting factors. Any downgrade from S&P or Fitch, or a further negative action, would be a material risk for investors to monitor.

How does this filing relate to the 10-K, and what should investors take from it?

The 8-K furnishes a Regulation FD presentation and contains no new audited financial statements; it is not deemed 'filed' under the Exchange Act. It should be read with the 2025 combined Form 10-K. Investors should treat the projections (EPS, rate base, capex, and financing plan) as forward-looking management expectations, subject to CPUC and legislative decisions, wildfire outcomes, affordability constraints, and credit actions, all of which the presentation lists as risk factors.

EIX 8-K: Regulation FD — Feb 19, 2026

01—Abstract

Summary

Summary of the 8-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.

Edison International (EIX) filed an 8-K on February 19, 2026 furnishing a February 18, 2026 Business Update presentation (Exhibit 99.1) for use with institutional investors, analysts, and at investor conferences.

The filing contains no new financial statements; its substance is management's updated outlook. The headline items are new 2026 Core EPS guidance of $5.90^a–6.20 and 2027 guidance of $6.25–6.65, reaffirmed 2028 guidance of $6.74–7.14, and a 2026–2030 capital plan of roughly $38–41 billion. Management reiterates a 5–7% Core EPS CAGR through 2030, with a 2030 target of $7.45–8.20, and states that the plan requires no equity issuance.

The main investor debate remains wildfire liability. The Eaton Fire, which SCE believes its equipment could have been associated with, is described as not yet estimable in terms of potential losses. Management points to identified funding sources: the Wildfire Fund (claim-paying capacity above $21 billion^b), SCE's roughly $4.3 billion liability cap for 2025, customer-funded self-insurance, and securitization authority under SB 254.

SB 254 also creates a new $18 billion^c continuation account and allows securitization of about $6 billion of wildfire mitigation capex (SCE share about $2.9 billion). Management characterizes this as constructive for potential Eaton Fire losses. Credit ratings are a watch point: S&P has BBB- with a Negative outlook at both SCE and EIX, while Moody's and Fitch are Stable.

For investors, the update combines a more defined near-term earnings path, a rate base CAGR of about 7%^d (2025–2030), and a dividend policy targeting 45–55% payout of SCE core earnings, with 22 consecutive years of dividend growth. Against this sit unresolved wildfire exposure, affordability pressure on rates, and the negative S&P outlook. The presentation is largely a forward-looking investor deck, so its projections are subject to the regulatory, legislative, and wildfire risks it lists.

02—Key points

Key Highlights

2026 Core EPS guidance of $5.90–6.20 (about 3.5% growth versus the original 2025 midpoint adjusted for TKM interest benefit); 2027 guidance introduced at $6.25–6.65, with management expecting the high end of its 5–7% long-term growth range.
2028 Core EPS guidance reaffirmed at $6.74–7.14, representing 5–7% growth; 2030 Core EPS target of $7.45–8.20 (5–7% CAGR 2026–2030).
2026–2030 capital expenditure plan of about $38–41 billion, with over 85% in the distribution grid; rate base projected to grow about 7% CAGR from $50.8 billion in 2026 to roughly $66 billion by 2030 (weighted average figures).
Eaton Fire: SCE cannot yet estimate potential losses and believes its equipment likely could have been associated with the ignition; funding sources cited include the Wildfire Fund, SCE's ~$4.3 billion liability cap, customer self-insurance, and SB 254 securitization.
SB 254 (signed September 19, 2025) enhances wildfire liability framework: liability cap is now based on year of ignition, a new $18 billion continuation account is established, and securitization of ~$6 billion of wildfire mitigation capex is allowed (SCE share ~$2.9 billion).
Regulatory clarity improved: CPUC final decision on 2026 cost of capital sets ROE at 10.03% with a 7.59% overall return; Woolsey securitization (~$2.0 billion) targeted for mid-2026; no equity issuance forecast for 2026–2030.
Credit watch: S&P rates SCE and EIX BBB- with Negative outlook, while Moody's (Baa1/Baa2) and Fitch (BBB) are Stable; dividend growth continues with a ~5% current yield and a 45–55% target payout of SCE core earnings.

03—Questions

Frequently Asked Questions

What are EIX's 2026 and 2027 Core EPS guidance ranges, and how do they compare to prior expectations?
EIX introduced 2026 Core EPS guidance of $5.90–6.20 and 2027 guidance of $6.25–6.65, based on 385 million shares. Management describes 2026 as roughly 3.5% growth versus the original 2025 midpoint plus the TKM interest benefit, with the shortfall attributed mainly to one-time or non-recurring variances such as the 2025 regulatory true-ups, depreciation and property tax changes, and a lower CPUC ROE. The 2027 outlook is given because of visibility through the GRC cycle.
How much financial exposure does the Eaton Fire pose to Edison International?
The presentation states that SCE cannot currently estimate potential losses from the Eaton Fire. SCE believes its equipment could have been associated with the ignition, although causation is not conclusively determined. Management argues that clear funding sources mitigate balance sheet exposure: the Wildfire Fund's claim-paying capacity exceeds $21 billion, SCE's shareholder liability cap for 2025 is about $4.3 billion, customer-funded self-insurance covers the first $1 billion, and SB 254 allows securitization of costs above Wildfire Fund capacity, subject to CPUC approval.
Is the dividend at risk, and what is the dividend policy?
EIX has grown its dividend for 22 consecutive years, with 2026 dividends at $3.51 per share annualized, a 7% CAGR since 2004, and a current yield of about 5% based on February 17, 2026 prices. The company targets a dividend payout of 45–55% of SCE core earnings. Dividends are subject to approval by the EIX Board. The 2026–2030 financing plan projects $7–9 billion in dividends, funded from operating cash flow and incremental debt without equity issuance.
What are the main credit rating risks?
S&P rates both SCE and EIX BBB- with a Negative outlook, which is one notch above speculative grade and is the main credit concern in the presentation. Moody's rates SCE Baa1 and EIX Baa2, both Stable, and Fitch rates both BBB with a Stable outlook. Management targets an EIX long-term FFO-to-debt ratio of 15–17% and cites credit-supportive measures under AB 1054 and SB 254, along with the expected Woolsey securitization, as offsetting factors. Any downgrade from S&P or Fitch, or a further negative action, would be a material risk for investors to monitor.
How does this filing relate to the 10-K, and what should investors take from it?
The 8-K furnishes a Regulation FD presentation and contains no new audited financial statements; it is not deemed 'filed' under the Exchange Act. It should be read with the 2025 combined Form 10-K. Investors should treat the projections (EPS, rate base, capex, and financing plan) as forward-looking management expectations, subject to CPUC and legislative decisions, wildfire outcomes, affordability constraints, and credit actions, all of which the presentation lists as risk factors.

04—Continue

← View all 8-K filings