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EXELON CORP 8-K Report, Financial Results (Oct 30, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed October 30, 2024
Period End
October 30, 2024
Security
EXC
In the record · 2016–202610-K1110-Q328-K189

EXC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 189 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Feb ’18Feb ’18
  2. Impairment8-K · Apr ’21Apr ’21
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed October 30, 2024. Cited figures are marked; the original filing is the authoritative source.

Exelon (EXC) reported third-quarter 2024 results on October 30, 2024.

GAAP net income was $0.70a per diluted share (about $707 million), roughly flat versus $0.70 in Q3 2023. Adjusted (non-GAAP) operating earnings rose to $0.71 per share from $0.67, or $708 million from $671 million. The improvement was driven mainly by distribution and transmission rate increases at BGE and PHI, timing of distribution earnings and higher return on regulatory assets at ComEd, and lower storm costs at PHI.

These gains were partly offset by higher interest expense, higher credit loss expense at PECO and BGE, higher depreciation, and lower CMC carrying-cost recovery at ComEd. PECO was the main drag, with adjusted earnings falling to $118 millionb from $149 million. Management reaffirmed full-year 2024 adjusted operating EPS guidance of $2.40-$2.50 and a 5-7% EPS compound annual growth target through 2027.

Nine-month adjusted operating EPS was $1.86c, which implies a strong run-rate toward the guidance range. The company cited top-quartile reliability at all utilities, with ComEd and Pepco Holdings in the top decile for SAIFI and SAIDI. Management also highlighted a $34.5 billion four-year capital plan for 2024-2027, expected to grow rate base about 7.5%, along with a planned $1.6 billion equity program.

About $150 milliond was issued in Q3 2024 through the ATM program, with the balance to be issued ratably over 2025-2027. Key near-term regulatory catalysts include ComEd's revised Grid Plan and multi-year rate plan (a proposed order was issued October 18, 2024, with a final order expected in December 2024), several pending rate cases in Pennsylvania, Maryland, DC, and Delaware, and DPL's new Delaware gas case filed September 2024.

Balance sheet metrics remain a focus: management is managing to stay above downgrade thresholds, with its 2024-2027 average FFO/debt estimated around 13-14%. The company also declared a $0.38 quarterly dividend, payable December 13, 2024.

02—Key points

Key Highlights

  1. GAAP EPS of $0.70 was flat year over year; adjusted operating EPS rose 6% to $0.71 from $0.67.
  2. Full-year 2024 adjusted operating EPS guidance of $2.40-$2.50 was reaffirmed, and the 5-7% EPS CAGR target through 2027 was maintained.
  3. A $34.5B capital plan for 2024-2027 underpins expected rate base growth of about 7.5%.
  4. All utilities reported top-quartile reliability; ComEd and Pepco Holdings were top decile for SAIFI and SAIDI.
  5. PECO was the weak spot, with adjusted earnings down to $118M from $149M on higher credit loss, interest, and depreciation expense.
  6. ComEd's revised Grid Plan and multi-year rate plan (proposed order issued October 18, 2024) has a final order expected by December 2024, a key regulatory catalyst.
  7. Quarterly dividend of $0.38 declared, payable December 13, 2024; a ~60% payout ratio is targeted, with dividend growth in line with EPS growth.

03—Questions

Frequently Asked Questions

  1. Did Exelon meet expectations in Q3 2024?

    Adjusted operating EPS of $0.71 rose from $0.67 a year earlier, driven by rate increases at BGE and PHI and lower storm costs at PHI. GAAP EPS was flat at $0.70. Results were broadly consistent with a company on track for its full-year guidance.

  2. Is Exelon still on track for its 2024 earnings guidance?

    Yes. Management reaffirmed 2024 adjusted operating EPS guidance of $2.40-$2.50. Nine-month adjusted EPS of $1.86 supports that range, though management noted regulatory outcomes, such as the ComEd grid plan decision, can shift results.

  3. What are the main risks to the growth outlook?

    Key risks include regulatory outcomes in Illinois (ComEd's Grid Plan and rate plan), the pace of rate case decisions across PA, MD, DC, and DE, rising interest expense and credit losses, and the balance sheet impact of the capital plan and equity issuance. The company's ability to keep FFO/debt near 13-14% is also a watch item.

  4. How will Exelon fund its growth?

    The $34.5B 2024-2027 capital plan is funded with a mix of debt and about $1.6B of equity, with approximately $150M issued in 2024 and the rest issued ratably in 2025-2027 (about $475M per year). Q3 2024 saw PECO issue $575M of 5.25% mortgage bonds, and ACE issued $175M of bonds in August.

  5. Is the dividend safe?

    Management expects a payout ratio of about 60% and plans for dividend growth in line with the 5-7% operating EPS CAGR through 2027. The $0.38 quarterly dividend was declared October 29, 2024, and is supported by the company's earnings and rate base growth.

04—Continue

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