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EXELON CORP 8-K Report, Financial Results (Feb 12, 2025)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed February 12, 2025
Period End
February 12, 2025
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 February 12, 2025. Cited figures are marked; the original filing is the authoritative source.

Exelon reported fourth-quarter 2024 GAAP EPS of $0.64a (flat with adjusted operating EPS of $0.64, up from $0.62 and $0.60 a year earlier) and full-year 2024 GAAP EPS of $2.45 and adjusted operating EPS of $2.50, up from $2.34 and $2.38 in 2023.

Full-year adjusted EPS landed at the top end of the $2.40b-$2.50 guidance range, the third straight year finishing above the guidance midpoint since Exelon became a transmission and distribution-only company. Net income attributable to common shareholders was $2.46 billion for 2024 versus $2.33 billion in 2023, and the company's operating ROE was 9.1%, slightly below its 9-10% target range. Management introduced 2025 adjusted operating EPS guidance of $2.64-$2.74 per share, implying roughly 5-7% annual growth, and declared a $0.40 quarterly dividend, an annualized $1.60 per share.

The more significant development is the capital plan. Exelon raised its four-year (2025-2028) capital investment outlook to about $38.0 billionc, up roughly 10% from the prior plan, with transmission driving more than 80% of the increase. Management projects 7.4% rate base growth and 5-7% adjusted operating EPS compound annual growth from 2024 to 2028, with a stated expectation of finishing at the midpoint or better.

Funding requires about $1.4 billiond of incremental equity (roughly $2.8 billion total through 2028, or about $700 million per year) plus about $3 billion of new corporate debt. Dilution from this issuance is the key tradeoff investors should weigh against the growth outlook. Credit and regulatory developments were supportive.

S&P upgraded Exelon's senior unsecured rating to BBB+ from BBB on February 7, 2025, and management said close to 90% of rate base now has cost recovery mechanisms through 2026-2027. Final orders in the fourth quarter included ComEd's Refiled Grid Plan and multi-year rate plan, PECO's electric and gas rate cases, and Pepco's D.C. multi-year plan. Risks remain, including the pace of regulatory outcomes in pending cases (such as ACE and DPL Delaware filings), potential PJM-related energy security decisions, and the financing needs created by the larger capital plan.

02—Key points

Key Highlights

  1. Q4 2024 GAAP and adjusted operating EPS both $0.64, up from $0.62 GAAP and $0.60 adjusted in Q4 2023
  2. FY 2024 adjusted operating EPS of $2.50 (GAAP $2.45), at the top end of the $2.40-$2.50 guidance range and up from $2.38 in 2023
  3. 2025 adjusted operating EPS guidance of $2.64-$2.74; 2024-2028 adjusted EPS CAGR target of 5-7%, with expectation of midpoint or better
  4. Four-year capital plan raised about 10% to ~$38.0B (2025-2028), with over 80% of the increase from transmission, supporting 7.4% rate base growth
  5. Equity needs rise to ~$2.8B through 2028 (~$700M per year), including ~$1.4B incremental equity, plus ~$3B of new corporate debt
  6. Quarterly dividend declared at $0.40 per share (~$1.60 annualized for 2025), targeting roughly a 60% payout of operating earnings
  7. S&P upgraded Exelon's senior unsecured rating to BBB+ (from BBB) on February 7, 2025; 2024 operating ROE of 9.1% sits just below the 9-10% target

03—Questions

Frequently Asked Questions

  1. Did Exelon meet its 2024 earnings guidance?

    Yes. Full-year 2024 adjusted operating EPS was $2.50, at the top end of the original $2.40-$2.50 guidance range. GAAP EPS was $2.45. This was the third consecutive year finishing above the guidance midpoint.

  2. What is Exelon's 2025 earnings outlook?

    Exelon guided 2025 adjusted operating EPS to $2.64-$2.74 per share, based on about 1,015 million expected average shares outstanding. No adjustments are currently projected between GAAP and adjusted earnings for 2025.

  3. Why is the company issuing more equity, and how does it affect shareholders?

    The capital plan increased by about $3.5 billion, and about 40% of that increment is funded with equity, consistent with the company's balanced funding approach. Total equity needs are about $2.8 billion through 2028 (~$700M per year), which could dilute per-share earnings growth if not offset by the rate base expansion. Management still expects 5-7% EPS growth.

  4. How secure is the dividend?

    The board declared a $0.40 quarterly dividend, payable March 14, 2025, to holders of record on February 24, 2025. Management targets a dividend payout of about 60% of adjusted operating EPS and expects dividend growth at the low end of the 5-7% EPS growth range through 2028.

  5. What are the main regulatory and credit risks?

    Key risks include uncertain timing and outcomes of pending rate cases (such as ACE's New Jersey filing and DPL's Delaware gas case), PJM market reform and energy security policy, and maintaining credit metrics at S&P's downgrade threshold of 13% FFO/debt. On the positive side, close to 90% of rate base is covered by established recovery mechanisms through 2026-2027, and S&P recently upgraded the parent's rating.

04—Continue

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