Exelon's Q3 Net Income Jumps 24% on Strong Revenue Growth

TL;DR

**Exelon's Q3 earnings are a clear buy signal, showing strong revenue growth and operational cash flow that will fuel future dividends.**

AI Summary

Exelon Corporation reported a significant increase in net income attributable to common shareholders, reaching $875 million for the three months ended September 30, 2025, up from $707 million in the prior year, a 23.76% increase. For the nine months ended September 30, 2025, net income rose to $2,174 million from $1,813 million, an increase of 19.91%. Total operating revenues for the three-month period increased to $6,705 million from $6,154 million, driven by a rise in electric operating revenues to $6,690 million and natural gas operating revenues to $235 million. However, revenues from alternative revenue programs showed a negative impact of $(220) million for the quarter. Operating expenses also increased, with purchased power rising to $2,645 million and operating and maintenance costs decreasing slightly to $1,172 million. The company's cash flows from operating activities significantly improved, providing $5,010 million for the nine months ended September 30, 2025, compared to $4,143 million in the same period of 2024. Capital expenditures increased to $(6,095) million, reflecting ongoing investments in infrastructure. The balance sheet shows total assets growing to $113,539 million from $107,784 million at December 31, 2024, with property, plant, and equipment increasing to $82,100 million.

Why It Matters

Exelon's robust financial performance, marked by a 23.76% increase in Q3 net income, signals strong operational efficiency and effective revenue management within the regulated utility sector. This positive trend could lead to increased investor confidence and potentially higher dividend payouts, benefiting shareholders. For customers, continued investment in property, plant, and equipment, which grew to $82,100 million, suggests improved infrastructure reliability and service quality, though it also implies ongoing capital recovery through rates. In a competitive landscape, Exelon's ability to grow revenues and manage expenses positions it favorably against peers, potentially attracting more capital for future growth and grid modernization efforts.

Risk Assessment

Risk Level: medium — While Exelon shows strong financial performance, the filing highlights significant risks including 'unfavorable legislative and/or regulatory actions' and 'uncertainty as to outcomes and timing of regulatory approval proceedings.' These regulatory risks are inherent to the utility sector and can directly impact revenue programs, as evidenced by the $(220) million in negative revenues from alternative revenue programs for the quarter.

Analyst Insight

Investors should consider increasing their exposure to EXC, given the strong Q3 net income growth of 23.76% and robust operating cash flow of $5,010 million. The company's continued investment in PP&E, totaling $82,100 million, suggests long-term stability and potential for sustained dividend growth, making it an attractive option for income-focused portfolios.

Financial Highlights

revenue

$18,846M

operating Margin

21.03%

total Assets

$113,539M

net Income

$2,174M

eps

$2.15

revenue Growth

+7.34%

Revenue Breakdown

Key Numbers

• $875M — Net income attributable to common shareholders (Q3 2025) (Increased 23.76% from $707 million in Q3 2024)
• $2,174M — Net income attributable to common shareholders (YTD Sep 2025) (Increased 19.91% from $1,813 million in YTD Sep 2024)
• $6,705M — Total operating revenues (Q3 2025) (Increased from $6,154 million in Q3 2024)
• $5,010M — Net cash flows provided by operating activities (YTD Sep 2025) (Increased from $4,143 million in YTD Sep 2024)
• $6,095M — Capital expenditures (YTD Sep 2025) (Increased from $5,161 million in YTD Sep 2024)
• $113,539M — Total assets (Sep 30, 2025) (Increased from $107,784 million at Dec 31, 2024)
• $82,100M — Property, plant, and equipment, net (Sep 30, 2025) (Increased from $78,182 million at Dec 31, 2024)
• $1,010,290,316 — Exelon Corporation Common Stock outstanding (Sep 30, 2025) (Represents total shares outstanding for the parent company)

Key Players & Entities

• EXELON CORPORATION (company) — Registrant and parent company
• COMMONWEALTH EDISON COMPANY (company) — Subsidiary utility registrant
• PECO ENERGY COMPANY (company) — Subsidiary utility registrant
• BALTIMORE GAS AND ELECTRIC COMPANY (company) — Subsidiary utility registrant
• PEPCO HOLDINGS LLC (company) — Subsidiary utility registrant
• POTOMAC ELECTRIC POWER COMPANY (company) — Subsidiary utility registrant
• DELMARVA POWER & LIGHT COMPANY (company) — Subsidiary utility registrant
• ATLANTIC CITY ELECTRIC COMPANY (company) — Subsidiary utility registrant
• United States Securities and Exchange Commission (regulator) — Regulatory body for filing
• The Nasdaq Stock Market LLC (regulator) — Exchange where EXC common stock is registered

FAQ

Risk Factors

• Regulatory Environment Changes [high — regulatory]: Changes in laws, regulations, and policies governing the energy industry, including environmental regulations and rate-setting, can significantly impact Exelon's operations and financial performance. For instance, the company operates under various regulatory frameworks that dictate how it can recover costs and earn returns on its investments.
• Energy Market Volatility [high — market]: Fluctuations in energy prices, including electricity and natural gas, directly affect Exelon's revenues and profitability. The company is exposed to market risks associated with commodity prices and the demand for energy, which can be influenced by economic conditions and weather patterns.
• Infrastructure Reliability and Security [high — operational]: Exelon's extensive network of generation facilities and transmission and distribution systems are critical to its operations. Disruptions due to extreme weather events, cyberattacks, or equipment failures can lead to significant financial losses and reputational damage. The company invests heavily in maintaining and upgrading its infrastructure to mitigate these risks.
• Interest Rate and Debt Management [medium — financial]: As a capital-intensive company, Exelon relies on debt financing. Changes in interest rates can increase the cost of borrowing and impact the company's financial flexibility. The company's total debt was substantial, requiring careful management of its debt obligations and credit facilities.
• Litigation and Legal Proceedings [medium — legal]: Exelon is subject to various legal proceedings and potential litigation that could result in significant financial liabilities or operational restrictions. These can arise from environmental matters, contractual disputes, or regulatory enforcement actions.

Industry Context

Exelon operates in the highly regulated utility sector, facing evolving demands for cleaner energy and grid modernization. The industry is characterized by significant capital investments in infrastructure and a growing emphasis on renewable energy sources and grid resilience. Competition exists from other utilities, independent power producers, and increasingly, distributed energy resources.

Regulatory Implications

Exelon's operations are heavily influenced by state and federal regulatory bodies. Changes in rate-setting policies, environmental mandates, and energy market regulations can significantly impact profitability and strategic decisions. The company must navigate complex compliance requirements to maintain its operating licenses and financial stability.

What Investors Should Do

1. Monitor regulatory developments
2. Assess capital expenditure effectiveness
3. Analyze revenue diversification
4. Evaluate operating expense management

Key Dates

• 2025-09-30: End of Third Quarter and Nine-Month Period — Key period for financial reporting, showing increased net income and revenues, alongside significant capital expenditures.
• 2025-09-30: Consolidated Balance Sheet Date — Reflects total assets of $113,539 million, an increase from year-end 2024, indicating asset growth.
• 2025-09-30: Consolidated Statements of Operations and Comprehensive Income — Details the 23.76% increase in net income for Q3 2025 to $875 million and a 19.91% increase year-to-date to $2,174 million.
• 2025-09-30: Consolidated Statements of Cash Flows — Shows a significant improvement in operating cash flows to $5,010 million for the nine months, supporting increased capital expenditures of $6,095 million.

Glossary

Revenues from alternative revenue programs

Revenue streams that are not directly tied to traditional electricity or natural gas sales, often related to specific regulatory programs or services. (This category showed a significant negative impact of $(220) million for Q3 2025, impacting overall revenue growth.)

Purchased power

The cost incurred by Exelon to purchase electricity from external sources to meet customer demand, which it then transmits and distributes. (This is a major operating expense, increasing to $2,645 million in Q3 2025, reflecting higher energy costs or demand.)

Operating income

Profitability from core business operations before accounting for interest, taxes, and other non-operating income/expenses. (Increased to $1,500 million in Q3 2025, indicating improved operational performance.)

Net income attributable to common shareholders

The portion of the company's profit that belongs to its common stockholders after all expenses, taxes, and preferred dividends have been paid. (A key profitability metric, showing a strong increase of 23.76% to $875 million in Q3 2025.)

Capital expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plant, and equipment. (Increased to $6,095 million for the nine months, reflecting ongoing investments in infrastructure modernization and expansion.)

Property, plant, and equipment, net

The net book value of a company's tangible long-term assets used in its operations, after deducting accumulated depreciation. (Increased to $82,100 million, showing continued investment in the company's asset base.)

Basic earnings per average common share

The net income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. (Increased to $0.87 in Q3 2025, reflecting improved profitability on a per-share basis.)

Year-Over-Year Comparison

Exelon Corporation demonstrated robust financial performance compared to the prior year. Total operating revenues for the nine months increased by 7.34% to $18,846 million, driven by strong growth in electric and natural gas revenues, though partially offset by negative impacts from alternative revenue programs. Net income attributable to common shareholders saw a substantial 19.91% increase year-over-year, reaching $2,174 million for the nine-month period. Operating income also improved significantly, reflecting effective cost management despite rising purchased power costs. The company's commitment to infrastructure investment is evident in the increased capital expenditures and growth in total assets.

Key Financial Figures

• $12.50 — mmonwealth Edison Company Common Stock, $12.50 par value 127,021,419 PECO Energy Comp
• $0.01 — ac Electric Power Company Common Stock, $0.01 par value 100 Delmarva Power & Light C
• $2.25 — rva Power & Light Company Common Stock, $2.25 par value 1,000 Atlantic City Electric
• $3.00 — tic City Electric Company Common Stock, $3.00 par value 8,546,017 TABLE OF CONTENTS

Filing Documents

• exc-20250930.htm (10-Q) — 9182KB
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FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 9 Exelon Corporation Consolidated Statements of Operations and Comprehensive Income 10 Consolidated Statements of Cash Flows 11 Consolidated Balance Sheets 12 Consolidated Statements of Changes in Shareholders' Equity 14 Commonwealth Edison Company Consolidated Statements of Operations and Comprehensive Income 16 Consolidated Statements of Cash Flows 17 Consolidated Balance Sheets 18 Consolidated Statements of Changes in Shareholders' Equity 20 PECO Energy Company Consolidated Statements of Operations and Comprehensive Income 21 Consolidated Statements of Cash Flows 22 Consolidated Balance Sheets 23 Consolidated Statements of Changes in Shareholder's Equity 25 Baltimore Gas and Electric Company 26 27 Balance Sheets 28 30 Pepco Holdings LLC Consolidated Statements of Operations and Comprehensive Income 31 Consolidated Statements of Cash Flows 32 Consolidated Balance Sheets 33 Consolidated Statements of Changes in Member's Equity 35 1 Page No. Potomac Electric Power Company 36 37 Balance Sheets 38 40 Delmarva Power & Light Company 41 42 Balance Sheets 43 45 Atlantic City Electric Company Consolidated Statements of Operations and Comprehensive Income 46 Consolidated Statements of Cash Flows 47 Consolidated Balance Sheets 48 Consolidated Statements of Changes in Shareholder's Equity 50 Combined Notes to Consolidated Financial Statements 1. Significant Accounting Policies 51 2. Regulatory Matters 52 3. Revenue from Contracts with Customers 60 4. Segment Information 6

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 109 Exelon Corporation 109 Executive Overview 109 Financial Results of Operations 109 Significant 2025 Transactions and Developments 111 Other Key Business Drivers and Management Strategies 114 Critical Accounting Policies and Estimates 115 Results of Operations By Registrant 116 Commonwealth Edison Company 116 PECO Energy Company 119 Baltimore Gas and Electric Company 123 Pepco Holdings LLC 126 Potomac Electric Power Company 127 Delmarva Power & Light Company 130 Atlantic City Electric Company 135 Liquidity and Capital Resources 138 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 147 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 148 PART II. OTHER INFORMATION 148 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 148 ITEM 1A.

RISK FACTORS

RISK FACTORS 148 ITEM 5. OTHER INFORMATION 148 ITEM 6. EXHIBITS 149

SIGNATURES

SIGNATURES 152 Exelon Corporation 152 Commonwealth Edison Company 153 PECO Energy Company 154 Baltimore Gas and Electric Company 155 Pepco Holdings LLC 156 Potomac Electric Power Company 157 Delmarva Power & Light Company 158 Atlantic City Electric Company 159 3 Table of Contents GLOSSARY OF TERMS AND ABBREVIATIONS Exelon Corporation and Related Entities Exelon Exelon Corporation ComEd Commonwealth Edison Company PECO PECO Energy Company BGE Baltimore Gas and Electric Company Pepco Holdings or PHI Pepco Holdings LLC Pepco Potomac Electric Power Company DPL Delmarva Power & Light Company ACE Atlantic City Electric Company Registrants Exelon, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE, collectively Utility Registrants ComEd, PECO, BGE, Pepco, DPL, and ACE, collectively BSC Exelon Business Services Company, LLC Exelon Corporate Exelon in its corporate capacity as a holding company PCI Potomac Capital Investment Corporation and its subsidiaries PECO Trust III PECO Energy Capital Trust III PECO Trust IV PECO Energy Capital Trust IV PHI Corporate PHI in its corporate capacity as a holding company PHISCO PHI Service Company Former Related Entities Constellation Constellation Energy Corporation Generation Constellation Energy Generation, LLC (formerly Exelon Generation Company, LLC, a subsidiary of Exelon prior to separation on February 1, 2022) 4 Table of Contents GLOSSARY OF TERMS AND ABBREVIATIONS Other Terms and Abbreviations Note - of the 2024 Form 10-K Reference to specific Combined Note to Consolidated Financial Statements within Exelon's 2024 Annual Report on Form 10-K ABO Accumulated Benefit Obligation AFUDC Allowance for Funds Used During Construction AMI Advanced Metering Infrastructure AOCI Accumulated Other Comprehensive Income (Loss) ARO Asset Retirement Obligation ATM At the market BGS Basic Generation Service BSA Bill Stabilization Adjustment CEJA Climate and Equitable Jobs Act; Illinoi

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 9 Table of Contents Exelon Corporation and Subsidiary Companies Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2025 2024 2025 2024 Operating revenues Electric operating revenues $ 6,690 $ 6,012 $ 17,872 $ 16,379 Natural gas operating revenues 235 196 1,595 1,207 Revenues from alternative revenue programs ( 220 ) ( 54 ) ( 621 ) ( 29 ) Total operating revenues 6,705 6,154 18,846 17,557 Operating expenses Purchased power 2,645 2,349 6,640 6,483 Purchased fuel 47 34 471 301 Operating and maintenance 1,172 1,275 3,840 3,756 Depreciation and amortization 912 908 2,717 2,681 Taxes other than income taxes 429 395 1,216 1,127 Total operating expenses 5,205 4,961 14,884 14,348 Gain on sale of assets — 3 1 12 Operating income 1,500 1,196 3,963 3,221 Other income and (deductions) Interest expense, net ( 531 ) ( 490 ) ( 1,560 ) ( 1,428 ) Interest expense to affiliates, net ( 7 ) ( 6 ) ( 18 ) ( 18 ) Other, net 68 57 185 196 Total other income and (deductions) ( 470 ) ( 439 ) ( 1,393 ) ( 1,250 ) Income before income taxes 1,030 757 2,570 1,971 Income taxes 155 50 396 158 Net income attributable to common shareholders $ 875 $ 707 $ 2,174 $ 1,813 Comprehensive income, net of income taxes Net income $ 875 $ 707 $ 2,174 $ 1,813 Other comprehensive income (loss), net of income taxes Pension and non-pension postretirement benefit plans: Actuarial losses reclassified to periodic benefit cost 5 5 16 15 Pension and non-pension postretirement benefit plans valuation adjustments — — 5 ( 26 ) Unrealized (loss) gain on cash flow hedges ( 2 ) ( 29 ) ( 16 ) 1 Other comprehensive income (loss) 3 ( 24 ) 5 ( 10 ) Comprehensive income attributable to common shareholders $ 878 $ 683 $ 2,179 $ 1,803 Average shares of common stock outstanding: Basic 1,011 1,003 1,010 1,002 Assumed exercise and

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