On February 27, 2025, Edison International (EIX, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2024. Edison International, the parent company of Southern California Edison, serves approximately 5 million customers across a 50,000-square-mile area in Southern California. The company also owns interests in nonutility businesses through Edison Energy.
Performance Overview and Challenges
For the fourth quarter of 2024, Edison International reported a GAAP earnings per share (EPS) of $0.88, falling short of the analyst estimate of $1.54. However, the company's core EPS was $1.05, which also did not meet the estimated EPS. The full-year 2024 GAAP EPS was $3.33, while the core EPS was $4.93, slightly surpassing the annual estimate of $4.92. The company's performance was impacted by higher operation and maintenance expenses and increased interest expenses, although these were partially offset by higher authorized revenue and an increased rate of return.
Financial Achievements and Industry Context
Edison International's financial achievements are significant in the regulated utilities industry, where stable earnings and cost recovery are crucial. The approval of the TKM settlement, authorizing $1.6 billion of cost recovery for pre-AB 1054 wildfire expenses, is a notable achievement, providing financial relief and stability. The company has revised its 2025 core EPS guidance to a range of $5.94 to $6.34, reflecting the impact of the settlement.
Income Statement and Key Metrics
For the full year, Edison International reported operating revenue of $17,599 million, an increase from $16,338 million in 2023. The company's net income available to common shareholders was $1,284 million, up from $1,197 million in the previous year. The increase in revenue was primarily driven by higher authorized revenue and an improved rate of return. However, the company faced challenges with increased operation and maintenance expenses, which rose to $5,172 million from $4,138 million in 2023.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Operating Revenue | $17,599 million | $16,338 million | +7.7% |
| Net Income | $1,284 million | $1,197 million | +7.3% |
| GAAP EPS | $3.33 | $3.12 | +6.7% |
| Core EPS | $4.93 | $4.76 | +3.6% |
Analysis and Commentary
The company's focus on grid resiliency and wildfire mitigation remains a priority, as highlighted by CEO Pedro J. Pizarro:
The catastrophic impact of the recent wildfires underscores the importance of grid resiliency and the actions SCE has taken to harden its system to support the communities it serves."This strategic focus is crucial for maintaining operational stability and customer trust in a region prone to natural disasters.
Despite the challenges, Edison International's ability to secure cost recovery and maintain a stable financial outlook is a positive indicator for investors. The company's revised earnings guidance and continued investment in infrastructure improvements position it well for future growth, albeit with ongoing regulatory and environmental challenges.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Edison International for further details.
