Q2 2026 Edison International Earnings Call Transcript
Key Points
- Edison International (EIX) reported strong Q2 2026 core EPS of $1.54, bringing year-to-date core EPS to $2.97, and reaffirmed its 2026 core EPS guidance of $5.90-$6.20 and long-term 5%-7% growth.
- SCE has made significant wildfire mitigation progress, hardening about 90% of distribution line miles in high fire risk areas, including nearly 7,200 miles of covered conductor, with no covered conductor failures.
- The company successfully completed the Woolsey Fire cost recovery securitization, generating approximately $2 billion in proceeds, strengthening its balance sheet.
- Edison International (EIX) is leveraging AI and advanced analytics to improve operational efficiency, with expected 20%-30% faster design cycles and 20% faster permit processing.
- SCE's capital plan supports long-term rate base growth of about 7%, with strong investment opportunities in infrastructure replacement, wildfire mitigation, and electrification, and no equity needs through 2030.
- The outcome of California wildfire legislation remains uncertain, with potential for a partial or delayed solution, which could increase financing costs and impact future capital deployment.
- Edison International (EIX) faces ongoing wildfire liability uncertainty, with the Eaton fire claims process still in early stages and insufficient data to estimate the low end of potential liability.
- The company acknowledged that a lack of a durable legislative framework could lead to credit rating downgrades, increasing the cost of debt and negatively impacting customer affordability.
- SCE's RAMP application includes significant future hardening costs (450 miles of covered conductor and 190 miles of undergrounding), which may face regulatory scrutiny and cost-benefit challenges.
- The sale of Trio, while not material, reflects a strategic divestiture amid ongoing financial and operational pressures, and the company remains exposed to potential downgrades if legislation is not credit-supportive.
Good afternoon, and welcome to the Edison International second-quarter 2026 financial teleconference. My name is Michelle, and I will be your operator today. (Operator Instructions) This call is being recorded.
I would now like to turn the call over to Sam Ramraj, Vice President of Investor Relations. Mr. Ramraj, you may begin your conference.
Thank you, Michelle, and welcome, everyone. Our speakers today are President and Chief Executive Officer, Pedro Pizarro; and Executive Vice President and Chief Financial Officer, Aaron Moss. Also on the call call are other members of the management team. Materials supporting today's call are available at www.edisoninvestor.com. These include our Form 10-Q, prepared remarks from Pedro and Aaron and the teleconference presentation.
Tomorrow, we will distribute our regular business update presentation. During this call, we will make forward-looking statements about
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