Edison International (EIX) Q2 2024 earnings summary

Executive summary

• Q2 2024 core EPS was $1.23, up $0.22 year-over-year, with YTD core EPS at $2.37 and 2024 guidance reaffirmed at $4.75–$5.05.

• 10-year load growth forecast increased 35% over prior estimates, driven by electrification and policy trends.

• 84% of planned grid hardening in high fire risk areas is complete, reducing wildfire loss probability by 85–90% since 2018.

• 2025 GRC proceeding is on track with partial settlements reached; capital program of $38–43 billion for 2023–2028.

• Sustainability remains central, with 52% carbon-free power delivered in 2023 and a large energy storage portfolio.

Financial highlights

• Q2 2024 net income was $439 million, up from $354 million in Q2 2023; operating revenue was $4.34 billion, up from $3.96 billion.

• Q2 2024 core EPS grew by $0.22 year-over-year, driven by higher authorized revenue, rates of return, and favorable regulatory decisions.

• Non-core items, mainly wildfire-related, reduced reported EPS by $0.09 in Q2 and $1.26 YTD.

• Cash flow strengthened by ~$4.3B in memo account recovery and $1.6B in securitizations; $1.9B in recoveries expected through 2026.

• Interim rate recovery approval enables collection of $210 million in customer rates starting October.

Outlook and guidance

• 2024 core EPS guidance reaffirmed at $4.75–$5.05; 2025 core EPS guidance range of $5.50–$5.90.

• 5–7% core EPS CAGR targeted for both 2021–2025 and 2025–2028; 6–8% rate base growth projected for 2023–2028.

• System average rate growth projected at 2.6% through 2028, consistent with inflation.

• Minimal equity needs and manageable debt financing anticipated for 2025–2028 capital plan.

• SCE updated its 2025 revenue requirement request to $10.5 billion, a 23% increase over 2024.