Consolidated Edison (ED) Financials

Consolidated Edison’s latest quarter shows a mixed picture: revenue and earnings improved sharply versus the prior year, but cash flow remained weak and leverage is still elevated for a utility. For retail investors, ED still looks like a classic regulated utility: steady earnings power and dividends, but limited balance-sheet flexibility and some quarter-to-quarter volatility in operating cash.

• Q1 2026 revenue rose to $5.10 billion from $4.80 billion in Q1 2025, reflecting solid top-line growth of about 6% year over year.
• Net income climbed to $924 million from $791 million a year ago, showing improved bottom-line performance.
• Operating income increased to $1.18 billion from $1.13 billion in Q1 2025, indicating better core profitability.
• EPS improved, with diluted EPS at $2.54 versus $2.25 in Q1 2025.
• Equity grew to $25.6 billion from $23.8 billion in Q3 2025, helped by stronger retained earnings and common stock balances.
• Cash on hand improved modestly to $147 million from $181 million in Q3 2025 and well above the very low levels seen in early 2024.
• Depreciation remains large at $572 million in Q1 2026, which is normal for a capital-intensive utility but continues to weigh on accounting profits.
• Dividend coverage appears stable but not overly abundant; Q1 2026 dividends were $0.89 per share versus diluted EPS of $2.54, which is manageable, but utilities are expected to keep paying out heavily.
• Shares outstanding remain elevated at about 364 million diluted shares, limiting per-share growth unless earnings continue to outpace dilution.
• Operating cash flow dropped sharply to just $174 million in Q1 2026 from $1.48 billion in Q4 2025 and $837 million in Q1 2025, pressured by working-capital swings.
• Free cash flow pressure remains a concern, as capital-intensive utilities like ED consistently spend heavily on plant and equipment while operating cash can be lumpy quarter to quarter.
• Debt is still substantial, with long-term debt at $25.55 billion and short-term debt at $1.12 billion in Q1 2026.
• Liabilities remain high at $49.1 billion versus $25.6 billion in equity, leaving the company meaningfully leveraged.
• Investing cash outflows were large at $936 million in Q1 2026, including a significant “other investing activities” outflow, which kept total cash change negative.

Longer-term trend: ED’s revenue and earnings have been resilient over the last several years, but the balance sheet shows the familiar utility profile of heavy assets, heavy debt, and persistent capital spending. The company appears to be growing earnings, but investors should expect modest growth, dividend support, and sensitivity to interest rates and financing costs rather than fast expansion.

Bottom line: Consolidated Edison’s latest quarter was encouraging on earnings, but the weak operating cash flow and still-heavy leverage mean the stock remains best suited for income-focused investors who are comfortable with slower growth and utility-style balance-sheet risk.