Edison International Reaffirms 2026 Core EPS Guidance as Third-Quarter Core Earnings Dip to $1.92

Edison International reaffirmed its 2026 core earnings outlook of $5.90 to $6.20 a share as third-quarter core EPS fell to $1.92 from $2.34 a year earlier, a decline the utility holding company tied mainly to a one-time rate case catch-up in last year's results, according to the earnings release it filed with an 8-K on Thursday.

Net income available to common shareholders was $724 million, or $1.88 a share, down from $832 million, or $2.16, in the third quarter of 2025. Core earnings were $738 million, compared with $901 million. Operating revenue fell to $4.89 billion from $5.75 billion.

"California needs lasting wildfire reform to help protect customer affordability and support investment in a safer, more reliable grid," President and CEO Pedro J. Pizarro said in the release.

Why earnings fell

Southern California Edison's core EPS declined because last year's third quarter included earnings recognized when the utility implemented the final decision in its 2025 general rate case, which was retroactive to Jan. 1, 2025, the company said. Higher revenue from an escalation mechanism authorized in that decision partly offset the comparison.

In prepared remarks filed with the same 8-K, Chief Financial Officer Aaron Moss said the 2025 results reflected a 55-cent true-up from that decision. He said the company is reaffirming 2026 guidance "with a bias toward the middle of the range," along with its 2027 and 2028 core EPS ranges and a long-term core EPS growth target of 5% to 7% through 2030.

Year-to-date core EPS reached $4.89, Pizarro said in his remarks.

Wildfire reform and the Eaton Fire

Pizarro said the company was disappointed that California's legislative session ended without a durable, long-term wildfire liability solution. Edison is seeking a clear liquidity source for claims and a true shareholder liability cap not connected to the state's Wildfire Fund.

On the Eaton Fire, he said Los Angeles County Fire Department reports published during the quarter concluded that the ignition was caused by SCE equipment, and that SCE is continuing to analyze them. He said SCE remains confident it can show its conduct was consistent with that of a reasonable utility, and believes there is no basis for a finding of felony liability or willful disregard.

Under its Wildfire Recovery Compensation Program, SCE has extended more than 3,200 offers totaling about $1.1 billion, ahead of a Nov. 30 deadline, Pizarro said.

Capital plan and financing

SCE has hardened about 90% of its distribution system in high fire risk areas, including more than 7,200 miles of covered conductor, according to the remarks.

Moss said the five-year plan calls for about $38 billion to $41 billion of capital spending from 2026 through 2030, supporting projected rate base growth of about 7% a year. The company forecasts no common equity issuance through 2030. He estimated that currently elevated credit spreads could cost customers an extra $300 million over the life of bonds SCE expects to issue in 2027.

By the numbers

• $1.92: third-quarter core EPS, down from $2.34
• $1.88: GAAP EPS, down from $2.16
• $5.90 to $6.20: reaffirmed 2026 core EPS guidance
• About 90%: share of SCE distribution lines in high fire risk areas hardened
• About $1.1 billion: compensation offers extended under the wildfire recovery program

Sources

1. Edison International Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000827052-26-000072)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.