Edison International (EIX) Q3 2024 earnings summary

Executive summary

• Q3 2024 core EPS was $1.51, GAAP EPS $1.33, and net income $516 million, all up year-over-year, driven by higher SCE earnings and lower wildfire-related non-core losses.

• 2024 core EPS guidance narrowed to $4.80–$5.00, with reaffirmed 5%–7% EPS CAGR targets for 2021–2025 and 2025–2028, and confidence in long-term growth.

• SCE is finalizing major regulatory proceedings, including the TKM wildfire settlement (60% or $1.6B) and the 2025 GRC, both expected to impact financial outlook.

• Operational resilience improved with 85% of high-fire risk grid hardened and significant wildfire mitigation progress.

• Net-zero greenhouse gas emissions commitment by 2045 reaffirmed, supporting California’s clean energy transition.

Financial highlights

• Q3 2024 core EPS rose to $1.51 from $1.38 in Q3 2023; GAAP EPS increased to $1.33 from $0.40; net income was $516 million, up from $155 million.

• Year-to-date 2024 core EPS was $3.88, up from $3.48 in 2023, driven by higher authorized revenue and efficient O&M execution.

• Q3 2024 operating revenue was $5.20 billion, up from $4.70 billion in Q3 2023.

• Non-core items, mainly wildfire-related, reduced reported EPS by $0.18 in Q3 2024; nine-month non-core items totaled $(551) million.

• SCE has recovered about $4.5B since 2021, with further cash flow expected from TKM settlement securitization.

Outlook and guidance

• 2024 core EPS guidance narrowed to $4.80–$5.00, reflecting strong year-to-date performance.

• 2025 core EPS guidance is $5.50–$5.90, with a 5%–7% EPS CAGR targeted through 2028.

• The TKM settlement could add $0.44 to 2025 core EPS and $0.14 annually thereafter.

• SCE forecasts $32.2–$37.5 billion in capital expenditures and $43.0–$60.6 billion weighted average annual rate base for 2024–2028.

• Double-digit total return potential, supported by ~4% dividend yield and 20 years of dividend growth.