01—Abstract
Summary
Summary of the 8-K filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Edison International (EIX) filed an 8-K on April 29, 2026 furnishing an April 28, 2026 business update presentation (Exhibit 99.1) for use with institutional investors, analysts, and at investor conferences.
The deck is primarily a reaffirmation and extension of guidance rather than a discrete material event: EIX affirmed 2026 Core EPS guidance of $5.90a–6.20, introduced 2027 Core EPS guidance of $6.25–6.65, and reaffirmed 2028 Core EPS guidance of $6.74–7.14, all supporting a 5–7% long-term EPS growth framework off the 2025 base of $5.84, with the company now expecting to land at the high end of that range. The growth thesis rests on a $38–41 billion SCE capital plan for 2026–2030 and roughly 7% rate base CAGR (from ~$50.8 billion in 2026 to ~$58.4 billion by 2030 on a weighted basis), with the financing plan requiring no equity issuance through 2030. The most consequential disclosures for investors concern wildfire liability.
The Eaton Fire remains unquantified: management states it is currently unable to estimate potential losses, while acknowledging SCE believes its equipment could have been associated with the ignition. The company points to identified funding sources, including the first $1 billionb covered by customer-funded self-insurance, reimbursement from the state Wildfire Fund's initial account, and securitization authority under SB 254 for amounts above that. The deck also cites SB 254 (signed September 19, 2025) as credit-supportive, including a new $18 billion continuation fund, SCE's roughly 47.85% share of contributions, and about $2.9 billion of securitization for $6 billion of wildfire mitigation capex.
Investors should note that credit ratings are mixed: S&P has a Negative outlook on both SCE and EIX at BBB-, while Moody's and Fitch are Stable. The presentation is a reaffirmation-focused investor update, not a report of new financial results or a change in guidance. Its forward-looking statements carry material risk, particularly around wildfire liability, cost recovery, regulatory decisions, and the affordability constraints that could affect SCE's ability to execute its plan.
02—Key points
Key Highlights
- 2026 Core EPS guidance affirmed at $5.90–6.20; 2027 guidance introduced at $6.25–6.65 (SCE EPS $7.20–7.53), with 2027 growth expected at the high end of the 5–7% long-term range
- 2028 Core EPS guidance reaffirmed at $6.74–7.14, representing 5–7% CAGR from the 2025 base of $5.84; 2030 target range of $7.45–8.20 presented as achievable
- Five-year (2026–2030) capital plan of $38–41 billion, roughly 85%+ in the distribution grid, supporting ~7% rate base CAGR to ~$66 billion by 2030 (weighted average basis)
- No equity issuance forecasted for 2026–2030; financing plan relies on $36–38 billion operating cash flow and $9–12 billion incremental debt
- Eaton Fire losses remain unestimated; SCE states it is likely its equipment was associated with ignition and cites layered funding sources (customer self-insurance, Wildfire Fund, and SB 254 securitization)
- SB 254 framework (effective Sept. 19, 2025) enhances wildfire liability cap based on ignition year, creates an $18 billion continuation account, and enables securitization of ~$6 billion in wildfire mitigation capex (SCE share ~$2.9 billion)
- Credit ratings: Moody's Baa1/Baa2 and Fitch BBB (Stable) at SCE/EIX respectively; S&P BBB- Negative at both entities, a key watch item
03—Questions
Frequently Asked Questions
Did Edison International change its earnings guidance in this update?
No material change to 2026 guidance. EIX affirmed 2026 Core EPS of $5.90–6.20 and reaffirmed 2028 guidance of $6.74–7.14. The one new item is 2027 Core EPS guidance of $6.25–6.65, which the company says reflects visibility through the GRC cycle and is expected to land at the high end of its 5–7% long-term growth range.
How much exposure does EIX have from the Eaton Fire?
The company says it is currently unable to estimate potential losses. It states that SCE believes its equipment could have been associated with the ignition, based on information reviewed so far, though causation is not conclusively determined. Management identifies funding layers: the first $1 billion covered by customer-funded self-insurance, reimbursement from the Wildfire Fund up to its remaining capacity, and SB 254 securitization above that. Management says these sources mitigate balance sheet exposure, but a formal loss estimate is not provided.
What drives the long-term growth outlook?
Growth is primarily driven by approximately 7% rate base CAGR from 2025 to 2030, supported by a $38–41 billion capital plan focused on grid reliability, wildfire mitigation, and electrification. Management also expects load growth of about 30–40% by 2035 and nearly doubling by 2045 from electrification. Dividend growth is supported by a 45–55% target payout of SCE core earnings and 22 consecutive years of dividend increases.
Are there credit rating risks to be aware of?
Yes. S&P rates both SCE and EIX at BBB- with a Negative outlook, while Moody's (Baa1 for SCE, Baa2 for EIX) and Fitch (BBB) are Stable. The company targets a long-term EIX FFO-to-debt ratio of 15–17% and notes credit-supportive measures from AB 1054 and SB 254. Any downgrade or move to negative watch would be a risk to financing costs.
What should investors watch for near term?
Key items include the Eaton Fire loss estimate and Wildfire Fund reimbursement process, the CPUC proceedings on the 2029 GRC and cost of capital (the 2029 GRC filing is scheduled), the Woolsey and TKM securitization decisions, and the outcome of the NextGen ERP and Advanced Metering Infrastructure 2.0 applications. Regulatory recovery of approximately $11 billion of historical costs through 2027 is also a near-term watch item.
04—Continue