01—Abstract
Summary
Summary of the 8-K filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Edison International (EIX) reported second-quarter 2026 GAAP EPS of $1.39a (net income of $534 million) and core EPS of $1.54, up from $0.97 in the second quarter of 2025.
The year-over-year improvement was driven mainly by SCE's 2025 GRC final decision, which was adopted in the third quarter of 2025, along with lower preferred stock dividends at the parent. Year-to-date core EPS is $2.97b versus $2.34 a year earlier. Management reaffirmed 2026 core EPS guidance of $5.90-$6.20 and its 5-7% core EPS CAGR outlook for 2025-2030, and it provided a 2027 core EPS guidance range of $6.25-$6.65.
GAAP basic EPS guidance was lowered to $5.70c-$6.00 from $5.86-$6.16, reflecting roughly $0.20 per share of non-core items recorded in the first half of 2026, mostly Trio disposition losses and wildfire-related items. The filing also highlights several balance sheet and financing developments. SCE completed a roughly $2 billion Woolsey Fire cost recovery securitization shortly before the report, with proceeds to be used to recover claims and retire related debt.
Management says the company expects no equity issuance from 2026 through 2030. The Eaton Fire remains the key open risk: EIX said it cannot currently estimate potential losses, while noting that SCE has identified funding sources for claims resolution. Wildfire Recovery Compensation Program offers have reached more than $775 milliond, and SCE says it believes its equipment was likely associated with the ignition of the Eaton Fire, though causation has not been conclusively determined.
The bigger near-term swing factor for investors is California wildfire legislation. Management said the outcome is uncertain and could affect SCE's cost of capital and future investment prioritization. SCE has also filed its RAMP application ahead of the next GRC, which covers 2029-2032 with preliminary estimates of about 450 miles of covered conductor and about 190 miles of targeted undergrounding.
Management characterizes its wildfire mitigation approach as increasingly location-specific and consequence-informed. Rate base growth is projected at about 7% CAGR, and the five-year capital plan is roughly $38-$41 billion.
02—Key points
Key Highlights
- Q2 2026 core EPS of $1.54 vs. $0.97 a year ago; GAAP basic EPS of $1.39 vs. $0.89, with the increase driven by the 2025 GRC final decision adopted in Q3 2025
- Full-year 2026 core EPS guidance reaffirmed at $5.90-$6.20; GAAP basic EPS guidance lowered to $5.70-$6.00 due to roughly $0.20 per share of non-core items in H1 2026
- 2027 core EPS guidance of $6.25-$6.65 and 2028 core EPS guidance of $6.74-$7.14, implying 5-7% long-term growth; management expects the high end of the range
- Woolsey Fire cost recovery securitization completed for approximately $2 billion in proceeds; no equity issuance forecasted from 2026-2030
- Five-year capital plan of roughly $38-$41 billion (2026-2030) with about 7% SCE rate base CAGR; roughly 90% of HFRA distribution system hardened, including nearly 7,200 miles of covered conductor
- Eaton Fire liability remains unquantified: management cannot estimate potential losses, though it cites clear funding sources and says SCE's equipment is likely associated with the ignition
- California wildfire legislation outcome is uncertain and could influence SCE's cost of capital and future investment prioritization
03—Questions
Frequently Asked Questions
Why did Edison's core earnings rise sharply in the second quarter of 2026?
The main driver was SCE's adoption of the 2025 GRC final decision in the third quarter of 2025, which lifted revenue and reduced O&M relative to the prior year. Lower preferred stock dividends at the parent also helped, partially offset by higher interest expense. Management also cited the ongoing reduction in interest expense tied to the Woolsey cost recovery.
Did Edison change its 2026 earnings guidance?
Core EPS guidance was reaffirmed at $5.90-$6.20. However, GAAP basic EPS guidance was lowered to $5.70-$6.00 from $5.86-$6.16, because about $0.20 per share of non-core items (including Trio disposition losses and wildfire-related items) were recorded in the first half of 2026.
What are the main risks investors should monitor?
The biggest risks are the outcome of California wildfire legislation, which could affect SCE's cost of capital and investment priorities, and the Eaton Fire, for which management cannot yet estimate potential losses. Other factors include affordability pressure on customer rates, potential credit rating actions, and the possibility of future non-core charges that could widen the gap between GAAP and core EPS.
What does the financing outlook look like?
Management's 2026-2030 financing plan calls for about $36-$38 billion from operating cash flow and $9-$12 billion of incremental debt, with no equity issuance forecasted. The Woolsey securitization of roughly $2 billion was completed, and management expects about $11 billion or more of historical cost recovery by the end of 2027, which should support the balance sheet and credit metrics.
What is the outlook for SCE's wildfire mitigation spending and rate base?
SCE has hardened about 90% of its roughly 16,800 HFRA distribution line miles and is continuing grid hardening under the 2025 GRC through 2028, with about 970 miles remaining. The RAMP application filed in May proposes about 450 miles of covered conductor and about 190 miles of targeted undergrounding for 2029-2032. Management projects about 7% rate base growth, with the five-year capital plan at roughly $38-$41 billion.
04—Continue