Edison International Q1 Earnings Call Highlights

Key Points

• Edison reported Q1 core EPS of $1.42 and reaffirmed its 2026 core EPS guidance of $5.90–$6.20 alongside a long-term target of 5%–7% core EPS growth.
• SCE’s wildfire mitigation is progressing, with distribution hardening in high‑risk areas about 93% complete, expanded AI/lidar/satellite inspection tools, and long‑term plans that include >7,100 miles of covered conductor and nearly 100 miles of undergrounding.
• The company reiterated a $38–$41 billion capital plan for 2026–2030 with rate base growth of ~7% CAGR (2025–2030) and plans to fund growth without issuing new common equity through 2030, targeting 15%–17% FFO-to-debt.

Edison International NYSE: EIX reported first-quarter 2026 core earnings per share of $1.42 and said it is reaffirming its 2026 core EPS guidance and long-term financial targets, citing regulatory visibility and continued progress on safety and operational execution.

Quarterly results and guidance reaffirmation

President and CEO Pedro Pizarro said the company was “pleased with our start to the year and the momentum across our business,” and highlighted that Edison reaffirmed its 2026 core EPS guidance and other targets, including “our 5%-7% core EPS growth over the long term.”

Executive Vice President and CFO Maria Rigatti said core earnings increased by $0.05 year over year, “primarily due to the adoption of the GRC decision last year,” and partially offset by “the absence of about $0.30 recorded in Q1 2025 related to the TKM cost recovery approval.” She added that parent and other core loss improved by $0.01, “driven primarily by lower financing costs following the redemption of preferred stock.”

Rigatti said the quarter reflected “the quality and durability of our earnings profile” and noted that 2026 represents a “cleaner regulatory slate,” with fewer open proceedings following the resolution of several major proceedings in 2025.

The company reaffirmed its 2026 core EPS range of $5.90 to $6.20, and Rigatti said it is also affirming previously provided core EPS targets for 2027, 2028, and 2030, as well as its long-term EPS growth rate.

Wildfire mitigation progress and operational tools

On safety and wildfire risk reduction, Pizarro said Southern California Edison’s (SCE) distribution hardening in high fire risk areas is “about 93% complete,” reflecting covered conductor and targeted undergrounding. He also said that in March, the Office of Energy Infrastructure Safety approved SCE’s annual safety certification after an independent assessment of SCE’s wildfire mitigation plan and implementation progress.

Pizarro outlined expanded tools being used in inspections and vegetation management. He said SCE has developed AI and machine learning models “capable of detecting nearly 100 unique object classes and dozens of defect conditions,” and is using lidar and satellite imagery for proactive vegetation management. He also pointed to early fault detection tools intended to identify abnormal grid conditions to support faster response.

In response to a question about wildfire risk heading into summer, SCE President and CEO Steve Powell said the company is focused on long-term mitigations such as deployment of “more than 7,100 miles of covered conductor” and “nearly 100 miles of undergrounding,” alongside seasonal work such as additional inspections and vegetation management. Powell said forecasting season-to-season conditions—particularly winds—remains difficult, and emphasized executing the activities in SCE’s wildfire mitigation plan.

Pizarro added that the company’s mitigation work is designed for long-term risk management, noting the expectation that extreme weather risk driven by climate change will increase “over the next several decades.”

Wildfire Recovery Compensation Program and Eaton fire claims

Pizarro provided an update on SCE’s Wildfire Recovery Compensation Program (WRCP) related to the Eaton fire. He said SCE has extended “over 1,500 offers totaling over $500 million” to impacted community members. During the Q&A, he said more than 3,100 claims have been filed in the program so far, and he described these figures as “very early stage,” noting that around 18,000 properties qualify for eligibility zones and that a property can have multiple claimants.

Management said it cannot yet estimate the ultimate scale of the program. Asked when the company might be able to provide a loss estimate, Pizarro said it would require both a large enough volume of claims and more stability in the types of claims being submitted, adding that past wildfire events showed how varied claims and new facts can complicate estimating an “estimable range.”

Rigatti added that the property-damage statute of limitations remains open for several years, stating it is a “three-year statute of limitations on property damage,” and said it would be difficult to generate an estimate until more information becomes available, including details around insurance coverage and claim specificity.

Capital plan, rate base outlook, and financing strategy

Rigatti said SCE’s capital and rate base outlook is unchanged, reiterating a $38 billion to $41 billion capital plan for 2026 through 2030. She said the plan is “driven by essential investments in the grid” supporting customer needs and California’s clean energy objectives, with a stated focus on affordability and cost discipline.

She also said SCE expects rate base compound annual growth of “approximately 7% from 2025 to 2030.”

Rigatti highlighted two significant standalone applications underway in addition to the approved general rate case framework: the NextGen ERP program and the AMI 2.0 filing. She said AMI 2.0 was filed in March and requests about $3.1 billion of capital investment through 2033, and that the associated capital is already incorporated into the company’s capital plan. In the Q&A, incoming CFO Aaron Moss said about half of the AMI 2.0 capital is in the current capital forecast and about half extends beyond 2030; he also said intervenor comments are expected later in the summer, with a commission decision following afterward.

On financing, Rigatti said the company plans to deliver its growth “without issuing new common equity for at least the next five years through 2030,” and reiterated its 15% to 17% funds from operations (FFO) to debt framework.

California legislative focus: wildfire reform and affordability

A significant portion of the call focused on California legislative developments following the California Earthquake Authority (CEA) study released earlier in the month. Pizarro said the report reinforces that wildfire risk requires a “whole-of-society approach” and called for urgency in legislative action. He said Edison is engaged with policymakers and stakeholders, with a focus on “safety, affordability, and long-term resilience.”

Asked what Edison is advocating for under the report’s potential pathways, Pizarro emphasized risk reduction across the state and a predictable recovery process after catastrophic events. He said it is important that California “return to an investor-owned utility cost of service model,” where investors can recover capital with a return if the utility has been prudent, and where shareholder contributions would occur if management is not demonstrated to have been prudent.

On timing, Pizarro said the legislative session ends August 31 and bills must be in print by August 28, but added he would not expect complex issues to be solved immediately. In another exchange, he said the company’s “singular focus today is on 2026,” while also warning that if legislation is not enacted in 2026, it could lead to “credit rating impacts” across multiple sectors and may require the company to reassess issues such as cost of capital and capital allocation in future cycles.

Rigatti said wildfire legislation “is inherently an affordability bill,” and noted other affordability-related proposals range from rate structures to reporting and auditing requirements.

Leadership transition

Pizarro noted that Rigatti will retire on September 1 and will transition the CFO role to Aaron Moss on July 3. He said Rigatti will focus her final months on “critical policy priorities, including the SB 254 process,” and supporting the transition.

Rigatti thanked employees and investors for their engagement and feedback, and concluded her remarks by reiterating confidence in the company’s ability to deliver on its commitments.

About Edison International NYSE: EIX

Edison International is a publicly traded utility holding company based in Rosemead, California, whose principal subsidiary is Southern California Edison (SCE). As an electric utility holding company, Edison International oversees the delivery of electricity through SCE's integrated network of generation procurement, transmission and distribution infrastructure, serving millions of customers across central, coastal and southern California. The company's operations focus on reliable energy delivery, customer service, regulatory compliance and long-term infrastructure planning for a complex and high-demand service territory.

The company's activities include procuring and managing a diverse resource mix, maintaining and upgrading transmission and distribution systems, and implementing grid modernization projects.

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