01—Abstract
Summary
Summary of the 8-K filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Exelon (EXC) reported second-quarter 2025 results on July 31, 2025, with GAAP net income and Adjusted (non-GAAP) operating earnings both at $0.39a per diluted share, down from $0.45 GAAP and $0.47 adjusted in Q2 2024.
The decline was driven mainly by timing of distribution earnings at ComEd, increased storm costs at PECO (peak outages above 325,000 customers during June storms), lower Maryland multi-year plan reconciliation impacts at PHI, higher credit loss and interest expense, and a one-time Customer Relief Fund contribution at the holding company. Partially offsetting these were distribution rate increases at PECO, BGE, ComEd and PHI. Consolidated operating revenues rose slightly to $5.43 billionb from $5.36 billion, while six-month GAAP net income grew to $1.30 billion from $1.11 billion, supported by rate increases and lower income taxes.
Management reaffirmed full-year 2025 Adjusted operating EPS guidance of $2.64c-$2.74 and the 5-7% operating EPS compound annual growth target for 2024-2028, with management expecting to land at or above the midpoint. The company also declared a regular quarterly dividend of $0.40 per share, payable September 15, 2025. Financing progress was strong: about 80% of planned 2025 debt financing was executed, and 100% of the $700 million 2025 annualized equity need was priced, alongside roughly 22% of 2026's need via an ATM program.
The company highlighted a 17+ GW large-load pipeline, primarily data centers, and a $38 billiond four-year capital plan supporting a 7.4% rate base growth outlook. Key watch items for investors include the weaker quarter relative to prior year, the timing dependence of ComEd distribution earnings, the pending base rate case orders (DPL Delaware gas and ACE New Jersey electric, with orders expected in the next 6-9 months), and the ComEd reconciliation request of approximately $268 million.
Credit metrics remain above downgrade thresholds, though Exelon's Moody's rating is Baa2 with a stable outlook and S&P rates it BBB+ stable. Exelon's business is entirely regulated transmission and distribution, which limits commodity exposure but makes earnings sensitive to regulatory outcomes and weather-driven storm costs.
02—Key points
Key Highlights
- Q2 2025 GAAP EPS and Adjusted operating EPS both $0.39, down from $0.45 GAAP and $0.47 adjusted in Q2 2024 (about 17% decline on an adjusted basis).
- Full-year 2025 Adjusted operating EPS guidance of $2.64-$2.74 reaffirmed; 2024-2028 operating EPS CAGR target of 5-7% reaffirmed with expectation of midpoint or better.
- Six-month 2025 GAAP net income of $1.30 billion (EPS $1.29) versus $1.11 billion (EPS $1.10) in 2024, up roughly 17%, with six-month adjusted EPS of $1.31 versus $1.16.
- Q2 2025 headwinds included ComEd timing of distribution earnings (about -$0.07 EPS), PECO storm costs, PHI credit loss and interest expense, and a one-time Customer Relief Fund contribution at the holding company.
- Financing progress: about 80% of 2025 debt financing executed; 100% of the $700 million 2025 equity need priced and about 22% of 2026's need priced via a $2.5 billion ATM program.
- Quarterly dividend of $0.40 per share declared, payable September 15, 2025 to holders of record as of August 11, 2025.
- Large-load pipeline of 17+ GW (largely data centers) and a $38 billion four-year capital plan support 7.4% rate base growth, with $10-15 billion of potential transmission opportunity beyond the plan.
03—Questions
Frequently Asked Questions
Why did Exelon's earnings decline in the second quarter of 2025?
Adjusted operating earnings fell to $0.39 per share from $0.47. The main drivers were lower ComEd distribution earnings due to timing, higher storm costs at PECO from June storms, lower Maryland multi-year plan reconciliation benefits at PHI, higher credit loss and interest expense, and a one-time Customer Relief Fund contribution at the holding company. Rate increases at PECO, BGE, ComEd and PHI partly offset these.
Is Exelon still on track to meet its 2025 earnings guidance?
Yes. Exelon reaffirmed its 2025 Adjusted operating EPS guidance of $2.64-$2.74 per share, based on about 1,014 million expected average shares. Six-month adjusted EPS of $1.31 provides a base, though management noted the storm and timing headwinds in the quarter.
What is the status of Exelon's equity and debt funding plan?
Exelon has priced 100% of its $700 million 2025 annualized equity need and about 22% of 2026's need, mainly through its ATM program, which was expanded to $2.5 billion in May 2025. About 80% of 2025 debt financing has been executed, and the company entered $0.6 billion of pre-issuance interest rate hedges.
What regulatory events could affect Exelon's near-term results?
Pending base rate cases include DPL Delaware gas (order expected Q1 2026) and ACE New Jersey electric (order expected December 2025). Management expects orders within 6-9 months. Other pending items include ComEd's reconciliation request of about $268 million, to be collected from January 2026 if approved, and a PECO petition to defer June storm costs, expected in Q3 2025.
What is the outlook for Exelon's long-term growth?
Exelon reaffirmed a 5-7% operating EPS CAGR from 2024 to 2028, with expectations of reaching the midpoint or better. Growth is driven by a $38 billion four-year capital plan and 7.4% rate base growth, with close to 90% of rate base covered by established recovery mechanisms through 2026-2027. Large-load demand, mainly data centers, provides additional upside, with a 17+ GW pipeline.
04—Continue