Company Reports

The California legislative session is set to end with no incremental wildfire-related financial protections for the state's investor-owned utilities, including Edison International.

Edison International is well positioned to grow faster than most utilities as California pursues ambitious clean energy and electrification goals. However, past and future possible wildfire liabilities create more risk than most utilities face.

The Los Angeles County Fire Department published a long-awaited report on Aug. 4 concluding arcing on an out-of-service Southern California Edison transmission tower sparked the 2025 Eaton Fire, which killed 19 people and burned more than 9,000 structures.

Edison International reported $1.54 core earnings per share during the second quarter, up from $0.97 in the same year-ago period. Earnings are on track to meet our and management's full-year outlooks.

Edison International reported $1.42 core earnings per share during the first quarter. Earnings are on track to meet our and management's full-year outlooks.

Edison International is well positioned to grow faster than most utilities as California pursues ambitious clean energy and electrification goals. However, the Eaton wildfire in January 2025 that involved Edison's equipment creates legal and regulatory uncertainties that could take years to resolve.

Edison International reported $6.55 core earnings per share in 2025, up from $4.93 in 2024. Earnings exceeded our expectations and management's guidance primarily due to favorable timing of items late in the year.

Before the Southern California wildfires began in early January, Edison International was well positioned to grow faster than most utilities as California pursued ambitious clean energy targets. Now Edison faces legal, regulatory, and operational challenges related to the Eaton fire.

Edison International reported $2.34 core earnings per share during the third quarter, up from $1.51 in the third quarter of 2024, primarily due to catch-up revenue collected after regulators approved new customer rates in September.

On Sept. 19, Edison filed with California regulators a settlement that will allow it to collect $2 billion from customers to cover about 35% of Edison's losses and restoration costs related to the 2018 Woolsey Fire if regulators approve it.

The California Legislature passed Senate Bill 254 with large majorities on Sept. 13, effectively expanding the state's AB 1054 Wildfire Fund by $18 billion, among other provisions. We expect Gov. Gavin Newsom to sign the legislation.

The California Public Utilities Commission, at its meeting on Aug. 28, approved Edison's request to securitize the collection of proceeds for the TKM cost recovery settlement. The commission postponed its decision on Edison's general rate case until Sept. 18.

Before the Southern California wildfires began in early January, Edison International was well positioned to grow faster than most utilities as California pursued ambitious clean energy targets. Now Edison faces legal, regulatory, and operational challenges related to the fires. This could slow growth or impair shareholder value.

Edison International reported $0.97 core earnings per share during the second quarter of 2025, down from $1.23 in the second quarter of 2024, primarily due to regulatory timing delays and higher financing costs.

Edison International reported $1.37 core earnings per share during the first quarter of 2025, including a $0.30 per share benefit from the TKM settlement approved during the quarter. Excluding the one-time benefit, earnings would have been down 5% from the first quarter of 2024.

Before the Southern California wildfires began in early January, Edison International was well positioned to grow faster than most utilities as California pursued ambitious clean energy targets. Now Edison faces legal, regulatory, and operational challenges related to the fires. This could slow growth or impair shareholder value.

Utilities have limited direct exposure to tariffs announced by the Donald Trump administration, but falling energy demand or regulatory pushback to utilities' investment plans could slow earnings growth if economic conditions deteriorate.

Battery electric vehicle sales stalled in the US and Europe in 2024 after a postpandemic rise. With sales growing in China and globally, many companies throughout the EV supply chain stand to benefit from the transition to EVs.

Edison International reported $4.93 core earnings per share in 2024, in line with our outlook and management's $4.80-$5.00 EPS guidance. Investigations into the cause of the southern California wildfires in January will likely take most of 2025.

Several lawsuits allege Edison International's equipment might have been involved in the Eaton fire, one of the largest Southern California wildfires that started Jan. 7. The fire has destroyed more than 7,000 structures and was 65% contained as of Jan. 17, according to state officials.