Edison International Surpasses Q4 Estimates, Provides Upbeat Guidance
EDISON INTERNATIONAL (NYSE:EIX) reported fourth-quarter and full-year 2025 financial results that exceeded analyst expectations, driven by regulatory decisions and wildfire settlement recoveries. The parent company of Southern California Edison (SCE) also issued earnings guidance for the next two years that aligns with or exceeds current Street estimates, contributing to positive investor sentiment in after-hours trading.
Quarterly Performance Versus Estimates
The company's performance for the final quarter of 2025 was robust, with both top and bottom-line results coming in ahead of forecasts. The core earnings metric, which management uses to gauge ongoing performance, showed significant year-over-year growth.
- Revenue: Reported Q4 revenue of $5.21 billion, substantially above the analyst consensus estimate of $4.40 billion.
- Earnings Per Share (Core): Reported core EPS of $1.86, beating the estimate of $1.49.
The strong quarterly results were attributed primarily to SCE, which benefited from revenue recognition tied to the final decision in its 2025 General Rate Case (GRC) and interest expense benefits related to cost recoveries authorized under wildfire settlement agreements.
Full-Year Results and Key Press Release Highlights
For the full year 2025, Edison International reported net income of $4.46 billion ($11.58 per share), a significant increase from $1.28 billion ($3.33 per share) in 2024. On a core basis, earnings were $2.52 billion ($6.55 per share), up from $1.90 billion ($4.93 per share) the prior year.
Beyond the financial figures, the earnings release emphasized several critical operational and strategic points:
- Wildfire Mitigation Progress: CEO Pedro J. Pizarro highlighted that SCE has installed over 7,000 miles of covered conductor in high fire risk areas, representing over 90% of its planned grid hardening effort.
- Customer Affordability: The company noted that SCE recently implemented rate decreases of 2.3% for residential customers and 5.3% for small and medium-sized businesses, starting from what it claims is the lowest system average rate among California's major utilities.
- Dividend Declaration: The board declared a quarterly common stock dividend of $0.8775 per share, payable in April 2026.
Forward Guidance and Comparison to Analyst Estimates
A focal point for investors was the introduction of formal earnings guidance for 2026 and 2027. The company's outlook appears confident, with ranges that meet or surpass current analyst expectations.
- 2026 Core EPS Guidance: $5.90 to $6.20.
- 2027 Core EPS Guidance: $6.25 to $6.65.
This guidance compares favorably to the provided analyst sales estimate of $19.27 billion for 2026. While a direct EPS consensus for 2026 was not provided in the context, the company's stated range offers a clear benchmark for future performance. For the upcoming first quarter of 2026, analysts are estimating revenue of $4.13 billion and EPS of $1.84.
Market Reaction and Price Action
The market responded positively to the earnings beat and the forward-looking guidance. Following the earnings release, the stock showed an after-market gain of approximately 1.65%. This builds on positive momentum from recent weeks, with the stock up roughly 16.3% over the past month.
The reaction suggests investors are encouraged by the resolution of regulatory uncertainties, the visible progress on cost recovery from past wildfire liabilities, and the clear, growth-oriented financial path outlined for the next two years. The guidance provides a level of earnings visibility that is particularly valued in the regulated utility sector.
For a detailed look at historical earnings, future estimates, and analyst projections for EDISON INTERNATIONAL, you can review the data here.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. The information presented should not be construed as a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
