What Edison International (EIX) Said on Its Q3 Earnings Call

Key Points

• Edison International reaffirmed its 2026 core EPS guidance of $5.90–$6.20, reporting third-quarter core EPS of $1.92 and maintaining its 2027–2028 outlook and 5%–7% long-term growth target.
• Delayed California wildfire-liability reform could raise customer costs and financing pressure; Edison estimates elevated credit spreads could add roughly $300 million to customers’ costs on debt issued in 2027 and potentially constrain future grid investments.
• Southern California Edison says its equipment caused the Eaton Fire ignition but disputes potential findings of utility misconduct; the company has extended more than 3,200 claims offers totaling about $1.1 billion, while saying it is too early to estimate a liability reserve.

Edison International NYSE: EIX reaffirmed its 2026 earnings outlook while warning that delayed California wildfire-liability reform could raise customer costs, constrain future grid investment and increase financing pressure.

During the company’s third-quarter 2026 financial teleconference, President and Chief Executive Officer Pedro Pizarro said Edison reported third-quarter core earnings per share of $1.92 and year-to-date core EPS of $4.89. The company maintained its 2026 core EPS guidance range of $5.90 to $6.20.

Executive Vice President and Chief Financial Officer Aaron Moss said the company’s quarterly core EPS was below $2.34 in the prior-year period, which included a 55-cent true-up associated with Southern California Edison’s general rate case final decision. Excluding that item, Moss said core operations remained stable. Edison also reaffirmed its 2027 and 2028 core EPS guidance ranges and its long-term EPS growth target of 5% to 7% through 2030.

Wildfire reform remains central focus

Pizarro said California’s legislative session ended without a durable, long-term wildfire-liability solution, an outcome he said disappointed Edison and capital providers. Edison and other California investor-owned utilities are engaging policymakers and stakeholders in support of a special legislative session.

The company is seeking a framework that includes a durable liquidity source for claims resolution and a shareholder liability cap that is not tied to the state’s Wildfire Fund. Pizarro said any bill from a special session would need to be sent to the governor by the constitutional deadline of Nov. 15, ahead of the end of the current legislative term.

“Delay into 2027 will have significant and costly consequences,” Pizarro said, adding that Edison remains confident policymakers will ultimately act.

Moss estimated that elevated credit spreads could add approximately $300 million in costs to customers over the life of bonds Southern California Edison expects to issue in 2027 alone. He said those costs could remain embedded for years because the company finances long-lived infrastructure investments.

Pizarro said that if Edison’s credit rating were to fall below investment grade, financing costs would rise further. Southern California Edison is expected to file its 2029 general rate case in about six months, and higher financing costs could affect its requested investment levels. The utility would prioritize safety, reliability and compliance work, potentially leaving less capital for electrification, clean-energy transition projects, load growth and economic-development-related investments.

Capital plan and financing outlook

Southern California Edison’s five-year capital plan calls for approximately $38 billion to $41 billion in capital expenditures from 2026 through 2030. The plan is intended to support roughly 7% rate-base growth from 2025 through 2030, which management identified as the primary driver of long-term earnings growth.

Moss said the company has no long-term variable-rate debt and expects approximately $2 billion to $4 billion of long-term debt to mature annually from 2027 through 2030. Edison has no common equity issuance forecast through 2030 and continues to target a funds-from-operations-to-debt ratio of 15% to 17%.

The company also maintained its dividend policy targeting a payout ratio of 45% to 55% of Southern California Edison core earnings, subject to board approval. Moss said the policy has supported 22 consecutive years of dividend growth.

Grid hardening and wildfire mitigation

Pizarro said Southern California Edison has hardened approximately 90% of its distribution system in high-fire-risk areas and has installed more than 7,200 miles of covered conductor. The utility is using targeted infrastructure investment, inspections, remediation, vegetation management, weather data, high-definition cameras and advanced modeling to reduce wildfire risk.

The company said its approved 2025 general rate case investments, including covered conductor, targeted undergrounding and asset replacement, are intended to improve safety and resilience. Pizarro said current conditions for the balance of 2026 appear consistent with a normal year, with potential for El Niño to contribute to earlier rainfall, though the utility retains flexibility to increase inspections and remediation if conditions change.

The Office of Energy Infrastructure Safety, in approving Southern California Edison’s 2026-2028 Wildfire Mitigation Plan, described the utility’s transmission high-fire-risk-area inspection program as the most comprehensive among the large investor-owned utilities, according to Pizarro. The company conducts annual detailed ground and aerial inspections on about 77% of its transmission assets in high-fire-risk areas, with frequency tailored to location-specific risk.

Eaton Fire claims and legal process

Pizarro said the Los Angeles County Fire Department’s redacted investigative reports concluded that Southern California Edison equipment caused the Eaton Fire ignition. He said the determination of ignition differs from separate processes involving legal liability, utility prudence and potential reimbursement from the Wildfire Fund.

Southern California Edison continues to believe it can make a good-faith showing that its conduct was consistent with that of a reasonable utility, Pizarro said. He also said the company sees no basis for felony liability or for a finding of conscious or willful disregard of others’ rights and safety.

The company’s Wildfire Recovery Compensation Program has extended more than 3,200 offers totaling approximately $1.1 billion. Pizarro said October had already become the largest month for claims submissions during the year, with the program’s application deadline set for Nov. 30.

Management said it was too early to estimate a reserve related to Eaton Fire claims, citing the number of unresolved claims, potential personal-injury claims ahead of a January 2027 statute-of-limitations deadline, property-damage claims that may be filed through January 2028, and potential insurance subrogation and government claims.

About Edison International (NYSE:EIX)

Edison International NYSE: EIX is an electric power holding company based in California. Its principal subsidiary, Southern California Edison (SCE), is one of the largest electric utilities in the United States and delivers electricity across central, coastal and Southern California. SCE serves millions of residential, commercial and industrial customers through an extensive transmission and distribution network.

Edison International's operations are focused on the generation, transmission and distribution of electricity, as well as supporting the transition to cleaner energy.

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