Exelon Corp (NASDAQ:EXC) reported its fourth quarter and full-year 2025 financial results, delivering a mixed performance against analyst expectations. The nation's largest utility holding company posted a slight revenue miss but exceeded earnings per share estimates, while also providing a forward-looking outlook that frames its growth trajectory for the coming years.
Quarterly Performance Versus Estimates
For the fourth quarter of 2025, Exelon reported adjusted (non-GAAP) operating earnings of $0.59 per share. This figure came in above the consensus analyst estimate of $0.55 per share. On the revenue front, the company reported sales of $5.41 billion, which narrowly missed the estimated $5.44 billion.
The quarterly results show a company navigating a complex regulatory and operational environment. While the earnings beat suggests effective cost management and the benefit of recently approved rate increases, the slight revenue shortfall may reflect factors like milder weather impacts in some service territories or timing differences in revenue recognition.
Full-Year Results and Operational Highlights
Zooming out to the full year, Exelon's performance was stronger. The company reported full-year 2025 adjusted operating earnings of $2.77 per share, a significant increase from $2.50 per share in 2024. This sustained performance led management to highlight a "100% track record of annual outperformance as a standalone utility."
The earnings growth was primarily driven by higher utility earnings across its six operating companies, stemming from several key factors:
- Approved distribution and transmission rate increases at ComEd, PECO, BGE, and PHI.
- Favorable weather conditions at PECO.
- The impacts of multi-year plan reconciliations, particularly at BGE.
These positives were partially offset by headwinds, including higher interest expense, increased depreciation, and elevated contracting costs across the portfolio.
Forward Guidance and Analyst Expectations
A focal point of the report was the initiation of formal guidance for 2026. Exelon introduced an adjusted operating earnings guidance range of $2.81 to $2.91 per share. This outlook can be compared to the current analyst consensus estimate of $2.87 per share for the full year 2026, which sits comfortably within the middle of the company's projected range.
Furthermore, Chief Financial Officer Jeanne Jones provided a longer-term growth forecast, stating the company is "well-positioned to deliver annualized earnings growth near the top end of 5% to 7% through 2029." This confidence is underpinned by a substantial $41.3 billion four-year capital plan aimed at modernizing energy infrastructure.
Market Reaction and Price Action
The market's initial reaction to the earnings report appears cautiously positive. In pre-market trading following the release, Exelon's stock showed an increase of approximately 2.2%. This upward move suggests investors are rewarding the earnings beat and the reaffirmation of a stable, regulated growth story.
The positive pre-market sentiment contrasts with a more muted recent performance, where the stock was roughly flat over the past month. The immediate positive reaction indicates the results and outlook may have alleviated some investor concerns and reinforced the stock's defensive, income-oriented characteristics in a volatile market.
Regulatory and Strategic Developments
The earnings release was packed with updates on critical regulatory proceedings, which are the lifeblood of a regulated utility:
- ComEd: Received a final order for a $243 million revenue requirement increase, effective January 2026.
- BGE: Approved to recover $77 million of under-collections, with rates effective February 2026.
- ACE: Approved for a $54 million annual electric distribution rate increase in New Jersey, effective December 2025.
- DPL: Filed for a $45 million electric rate increase in Delaware and received approval for a $22 million natural gas rate increase.
The company also announced a regular quarterly dividend of $0.42 per share, payable in March 2026, maintaining its appeal to income-focused investors.
For a detailed breakdown of future quarterly and annual estimates, you can review Exelon's earnings and estimates page here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
