Con Edison's Q3 Net Income Jumps 17% on Strong Revenue Growth

TL;DR

**ED is powering up, with strong revenue and income growth making it a solid bet for utility investors.**

AI Summary

Consolidated Edison, Inc. (ED) reported a significant increase in net income for the three months ended September 30, 2025, reaching $688 million, up from $588 million in the prior year, a 17% increase. For the nine months, net income rose to $1,726 million from $1,510 million, an increase of 14.3%. Total operating revenues for the quarter increased to $4,530 million from $4,092 million, driven by higher electric, gas, and steam revenues. Electric revenue alone grew by $371 million to $4,040 million. Operating expenses also rose, with purchased power increasing by $162 million to $905 million and taxes, other than income taxes, increasing by $96 million to $953 million. The company's balance sheet shows total assets of $71,844 million as of September 30, 2025, up from $70,562 million at December 31, 2024. Shareholder's equity increased to $24,168 million from $21,962 million, partly due to a public offering of common shares that raised $1,308 million. The company also saw a net payment of short-term debt of $1,618 million for the nine months ended September 30, 2025.

Why It Matters

This strong performance indicates robust demand for utility services in Con Edison's service areas, which is positive for investors seeking stable, dividend-paying stocks. The significant increase in shareholder's equity, partly from a $1.308 billion public offering, suggests investor confidence and provides capital for future investments in infrastructure. For customers, this could imply continued investment in grid reliability and modernization, though rising operating expenses might eventually translate to rate adjustments. In a competitive context, Con Edison's consistent growth reinforces its position as a dominant utility provider in its region, potentially attracting more capital to the sector.

Risk Assessment

Risk Level: medium — While net income is up, the company faces significant regulatory risks, as stated in the forward-looking statements: "the Utilities' rate plans may not provide a reasonable return" and "the Companies may be adversely affected by changes to the Utilities' rate plans." Additionally, operating expenses, particularly purchased power and taxes, are increasing, which could squeeze margins if not adequately recovered through rates.

Analyst Insight

Investors should consider holding or adding to positions in ED, given its consistent earnings growth and stable utility business model. Monitor regulatory developments closely, as rate plan changes could impact future profitability. The recent equity offering suggests a strong capital base for future infrastructure projects, which could drive long-term value.

Financial Highlights

debt To Equity

N/A

revenue

$4,530M

operating Margin

N/A

total Assets

$71,844M

total Debt

N/A

net Income

$688M

eps

$1.91

gross Margin

N/A

cash Position

N/A

revenue Growth

+10.7%

Revenue Breakdown

Key Numbers

• $688M — Net Income (Q3 2025) (Increased 17% from $588M in Q3 2024)
• $1,726M — Net Income (YTD 2025) (Increased 14.3% from $1,510M in YTD 2024)
• $4,530M — Total Operating Revenues (Q3 2025) (Up from $4,092M in Q3 2024)
• $4,040M — Electric Operating Revenues (Q3 2025) (Increased by $371M from Q3 2024)
• $1,308M — Common Share Public Offering (Increased shareholder's equity)
• $1.91 — Basic Net Income Per Share (Q3 2025) (Up from $1.70 in Q3 2024)
• $24,168M — Shareholders' Equity (Sept 30, 2025) (Increased from $21,962M at Dec 31, 2024)
• $1,618M — Net Payment of Short-Term Debt (YTD 2025) (Significant reduction in short-term liabilities)

Key Players & Entities

• Consolidated Edison, Inc. (company) — registrant
• Consolidated Edison Company of New York, Inc. (company) — wholly-owned subsidiary
• SEC (regulator) — U.S. Securities and Exchange Commission
• $688 million (dollar_amount) — Net income for Q3 2025
• $588 million (dollar_amount) — Net income for Q3 2024
• $1,726 million (dollar_amount) — Net income for nine months ended Sept 30, 2025
• $4,530 million (dollar_amount) — Total operating revenues for Q3 2025
• $1,308 million (dollar_amount) — Proceeds from issuance of common shares - public offering
• $1,618 million (dollar_amount) — Net payment of short-term debt for nine months ended Sept 30, 2025
• New York Stock Exchange (regulator) — exchange where ED is registered

FAQ

Risk Factors

• Regulatory Environment Changes [high — regulatory]: Changes in laws, regulations, and policies affecting the energy industry, including environmental regulations and rate-setting, can impact the company's operations and profitability. For example, new environmental standards could require significant capital expenditures.
• Infrastructure Reliability [high — operational]: The company's ability to provide reliable energy services depends on the integrity of its extensive infrastructure. Extreme weather events, cyberattacks, or equipment failures could lead to service disruptions and significant repair costs.
• Interest Rate Fluctuations [medium — financial]: As a capital-intensive business, ED relies on debt financing. Rising interest rates can increase borrowing costs, impacting net income and the cost of capital for new projects.
• Energy Price Volatility [medium — market]: Fluctuations in the prices of natural gas and electricity can affect operating revenues and the cost of purchased power, impacting margins if not adequately hedged or passed through.
• Climate Change Impacts [medium — operational]: The physical impacts of climate change, such as increased frequency and intensity of storms, can damage infrastructure and disrupt operations, leading to higher maintenance and capital costs.
• Environmental Liabilities [low — legal]: The company faces potential liabilities related to environmental contamination and remediation, which could result in significant cleanup costs and legal expenses.

Industry Context

Consolidated Edison operates in the regulated utility sector, providing essential electricity, gas, and steam services. The industry is characterized by high capital intensity, stable demand, and significant regulatory oversight. Trends include the transition to cleaner energy sources, grid modernization, and increasing focus on resilience against climate change impacts.

Regulatory Implications

As a heavily regulated utility, ED is subject to rate-setting decisions by state public utility commissions, which directly impact its revenue and profitability. Changes in environmental regulations and energy policies can also necessitate significant capital investments and operational adjustments.

What Investors Should Do

1. Monitor regulatory filings and rate case outcomes.
2. Analyze capital expenditure plans and their funding.
3. Evaluate the impact of energy price volatility and hedging strategies.
4. Assess the company's resilience to climate change and extreme weather.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing increased revenues and net income.
• 2025-12-31: End of Fiscal Year 2024 — Balance sheet comparison point for total assets.
• 2024-09-30: End of Q3 2024 — Prior year comparison period for Q3 revenue and net income.
• 2024-12-31: End of Fiscal Year 2024 — Prior year comparison point for shareholders' equity.

Glossary

Operating Revenues

The total income generated from the company's primary business activities before deducting expenses. (Key indicator of business activity and top-line performance, as seen in the $4,530 million for Q3 2025.)

Purchased Power

The cost incurred by the utility to buy electricity from wholesale suppliers to meet customer demand. (A significant operating expense, increasing by $162 million to $905 million in Q3 2025, impacting profitability.)

Taxes, other than income taxes

Includes property taxes, gross receipts taxes, and other taxes not based on income. (A substantial operating expense for utilities, increasing by $96 million to $953 million in Q3 2025.)

Shareholder's Equity

The residual interest in the assets of an entity after deducting liabilities; represents the owners' stake in the company. (Increased to $24,168 million, boosted by a $1,308 million common share offering, indicating capital raising.)

Short-Term Borrowing

Funds borrowed by the company that are due within one year. (A net payment of $1,618 million for the nine months ended September 30, 2025, suggests a reduction in short-term liabilities.)

Year-Over-Year Comparison

Consolidated Edison demonstrated strong performance in Q3 2025 compared to the prior year, with net income rising 17% to $688 million and total operating revenues increasing by 10.7% to $4,530 million, driven primarily by higher electric revenues. Operating expenses also rose, notably purchased power and taxes other than income taxes. The balance sheet shows growth in total assets and a significant increase in shareholder's equity, partly due to a $1,308 million common share offering, while short-term debt saw a net reduction of $1,618 million year-to-date.

Filing Documents

• ed-20250930.htm (10-Q) — 3278KB
• ed-20250930xex3111.htm (EX-31.1(1)) — 9KB
• ed-20250930xex3112.htm (EX-31.1(2)) — 9KB
• ed-20250930xex3121.htm (EX-31.2(1)) — 9KB
• ed-20250930xex3122.htm (EX-31.2(2)) — 9KB
• ed-20250930xex3211.htm (EX-32.1(1)) — 3KB
• ed-20250930xex3212.htm (EX-32.1(2)) — 3KB
• ed-20250930xex3221.htm (EX-32.2(1)) — 3KB
• ed-20250930xex3222.htm (EX-32.2(2)) — 3KB
• 0001047862-25-000138.txt ( ) — 15684KB
• ed-20250930.xsd (EX-101.SCH) — 95KB
• ed-20250930_cal.xml (EX-101.CAL) — 112KB
• ed-20250930_def.xml (EX-101.DEF) — 763KB
• ed-20250930_lab.xml (EX-101.LAB) — 953KB
• ed-20250930_pre.xml (EX-101.PRE) — 904KB
• ed-20250930_htm.xml (XML) — 2860KB

—Financial Information

PART I—Financial Information

Financial Statements (Unaudited)

ITEM 1 Financial Statements (Unaudited) Con Edison Consolidated Income Statement 7 Consolidated Statement of Comprehensive Income 8 Consolidated Statement of Cash Flows 9 Consolidated Balance Sheet 10 Consolidated Statement of Shareholders' Equity 12 CECONY Consolidated Income Statement 13 Consolidated Statement of Comprehensive Income 14 Consolidated Statement of Cash Flows 15 Consolidated Balance Sheet 16 Consolidated Statement of Shareholder's Equity 18 Notes to the Financial Statements (Unaudited) 19 Note A - Summary of Significant Accounting Policies 19 Note B - Regulatory Matters 21 Note C - Capitalization 28 Note D - Short-Term Borrowing 28 Note E - Pension Benefits 29 Note F - Other Postretirement Benefits 30 Note G - Environmental Matters 30 Note H - Material Contingencies 33 Note I - Leases 34 Note J - Income Tax 34 Note K - Revenue Recognition 36 Note L - Current Expected Credit Losses 37 Note M - Financial Information by Business Segment 39 Note N - Derivative Instruments and Hedging Activities 43 Note O - Fair Value Measurements 45 Note P - Related Party Transactions 48 Note Q - Dispositions 49 Note R - New Financial Accounting Standards 50

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 51

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk 84

Controls and Procedures

ITEM 4 Controls and Procedures 84

—Other Information

PART II—Other Information 85

Legal Proceedings

ITEM 1 Legal Proceedings 85

Risk Factors

ITEM 1A Risk Factors 85

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as "forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance," "potential," "goal," "consider" and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports the Companies have filed with the Securities and Exchange Commission, including, but not limited to: the Companies are extensively regulated and may be subject to substantial penalties; the Utilities' rate plans may not provide a reasonable return; the Companies may be adversely affected by changes to the Utilities' rate plans; the failure of, or damage to, the Companies' facilities could adversely affect the Companies; a cyber attack could adversely affect the Companies; the failure of processes and systems, the failure to retain and attract employees and contractors, and their negative performance could adversely affect the Companies; the Companies are exposed to risks from the environmental consequences of their operations, including increased costs related to climate change; Con Edison's ability to pay dividends or interest depends on dividends from its subsidiaries; changes to tax laws could adversely affect the Companies; the Companies require access to capital markets to satisfy funding requirements; a disruption in the wholesale energy markets, increased commodity costs

View Full Filing

View this 10-Q filing on SEC EDGAR