Edison International Holds 2026 Outlook As Third-Quarter Core EPS Drops To $1.92 From $2.34
Last year's rate-case true-up flattered the comparison, while the utility's parent presses California for wildfire liability reform by November 15.
Edison International, the Rosemead, California parent of Southern California Edison, said third-quarter core earnings fell to $738 million, or $1.92 per share, from $901 million, or $2.34, a year earlier. It reaffirmed its 2026 core EPS guidance of $5.90 to $6.20 and urged California lawmakers to act on wildfire liability.
A year-earlier true-up skews the comparison
Net income was $724 million, or $1.88 per share, against $832 million, or $2.16, in the third quarter of 2025, according to the company's 8-K. Core earnings are the company's adjusted measure, which strips out items management does not consider representative of ongoing results.
CFO Aaron Moss said the 2025 quarter included a 55-cent true-up from the final decision in SCE's general rate case, which was retroactive to the start of 2025. "Looking through that item," he said, the quarter reflects stability in core operations.
Operating revenue fell to $4,886 million from $5,750 million, and interest expense rose to $545 million from $488 million. For the first nine months, core EPS was $4.89, up from $4.68.
Guidance held, with a middle bias
The company reaffirmed 2026 core EPS guidance of $5.90 to $6.20, which Moss said carries a bias toward the middle of the range. Basic EPS guidance was trimmed to $5.66 to $5.96 from $5.70 to $6.00, because non-core items for the nine months were $0.24 per share rather than the $0.20 assumed in July.
Moss also reaffirmed 2027 and 2028 core EPS ranges and a 5% to 7% long-term growth target through 2030. SCE's capital plan calls for about $38 billion to $41 billion of spending from 2026 through 2030, supporting rate base growth of about 7% from 2025 through 2030. He said no common equity issuance is forecast through 2030.
Wildfire reform and the Eaton Fire
CEO Pedro Pizarro said the company was disappointed that California's legislative session ended without a durable solution, and that capital providers clearly felt the same "given the market reaction." Edison wants a clear liquidity source for claims and a shareholder liability cap not tied to the Wildfire Fund. The constitutional deadline to send a bill to the governor is November 15; otherwise the effort moves to a new governor and Legislature in 2027.
Moss said elevated credit spreads could cost customers an extra $300 million over the life of the bonds SCE expects to issue in 2027 alone. Pizarro warned that a drop below investment grade would add costs.
Los Angeles County Fire Department reports concluded SCE equipment caused the Eaton Fire ignition. SCE says it can show conduct consistent with a reasonable utility and sees no basis for felony liability or conscious or willful disregard. Settlements entered into total $1.8 billion, and the company says it cannot yet estimate a range of total losses.
SCE has extended more than 3,200 offers totaling about $1.1 billion through its Wildfire Recovery Compensation Program, whose claims deadline is November 30.
Sources
- 8-K Filing — EDISON INTERNATIONAL (EIX) — SEC EDGAR
- Exhibit eix-2026x0930exx991.htm — EDISON INTERNATIONAL 8-K exhibit — SEC EDGAR
- Exhibit eix-2026x0930exx992.htm — EDISON INTERNATIONAL 8-K exhibit — SEC EDGAR
- Exhibit eixq32026earningstelecon.htm — EDISON INTERNATIONAL 8-K exhibit — SEC EDGAR
- Edison International Set to Report Q3 Earnings: What's in the Cards? — Yahoo Finance
- Earnings Optimism Might Change The Case For Investing In Edison International Stock (EIX) — Yahoo Finance
- Edison International Reports Third Quarter 2026 Results — businesswire.com
