Con Edison Q2 Revenue Dips Amid Lower Electricity Sales

TL;DR

**Con Edison's revenue dip is a yellow flag, but cost controls show resilience in a challenging energy market.**

AI Summary

CONSOLIDATED EDISON CO OF NEW YORK INC reported a mixed financial performance for the second quarter and first six months of 2025. Total operating revenues for the three months ended June 30, 2025, decreased to $3.51 billion from $3.62 billion in the prior-year period, a 3.04% decline. This was primarily driven by a reduction in electricity revenues, which fell to $2.73 billion from $2.85 billion. For the six months ended June 30, 2025, total operating revenues also saw a slight decrease to $7.31 billion from $7.32 billion in the same period of 2024. Despite the revenue dip, the company managed its cost of purchased power and fuel effectively. The cost of purchased electricity for the three months ended June 30, 2025, decreased to $719 million from $748 million in 2024, and fuel costs dropped to $107 million from $119 million. The strategic outlook remains focused on maintaining reliable utility services in New York, with ongoing investments in infrastructure to support future demand and regulatory compliance.

Why It Matters

This filing reveals a slight revenue contraction for Con Edison, a critical utility provider for New York, which could signal broader economic softening or increased energy efficiency among consumers. For investors, a dip in electricity revenues, even with managed costs, warrants attention as it impacts the company's core earnings stability and dividend sustainability. Employees might see continued pressure on operational efficiency, while customers could benefit from stable or potentially lower energy costs if the trend continues. In a competitive context, other utilities might face similar demand challenges, making Con Edison's ability to adapt to changing energy consumption patterns crucial for its long-term market position.

Risk Assessment

Risk Level: medium — The risk level is medium due to the 3.04% decrease in total operating revenues for the three months ended June 30, 2025, falling to $3.51 billion from $3.62 billion in the prior year. While costs were managed, sustained revenue declines could impact profitability and future investment capacity. The slight decrease in total operating revenues for the six months ended June 30, 2025, to $7.31 billion from $7.32 billion, indicates a persistent, albeit minor, top-line challenge.

Analyst Insight

Investors should monitor Con Edison's upcoming earnings calls for management's commentary on demand trends and future capital expenditure plans. Consider holding existing positions but be cautious about new investments until a clear strategy for revenue growth or significant cost-cutting is articulated to offset the recent revenue declines.

Financial Highlights

revenue

$3.51B

revenue Growth

-3.04%

Revenue Breakdown

Key Numbers

• $3.51B — Q2 2025 Operating Revenues (Decreased by 3.04% from $3.62 billion in Q2 2024)
• $2.73B — Q2 2025 Electricity Revenues (Fell from $2.85 billion in Q2 2024)
• $7.31B — H1 2025 Operating Revenues (Slightly decreased from $7.32 billion in H1 2024)
• $719M — Q2 2025 Purchased Electricity Cost (Decreased from $748 million in Q2 2024, showing cost management)
• $107M — Q2 2025 Fuel Costs (Decreased from $119 million in Q2 2024, contributing to cost control)

Key Players & Entities

• CONSOLIDATED EDISON CO OF NEW YORK INC (company) — filer of the 10-Q
• $3.51 billion (dollar_amount) — total operating revenues for Q2 2025
• $3.62 billion (dollar_amount) — total operating revenues for Q2 2024
• $2.73 billion (dollar_amount) — electricity revenues for Q2 2025
• $2.85 billion (dollar_amount) — electricity revenues for Q2 2024
• $7.31 billion (dollar_amount) — total operating revenues for H1 2025
• $7.32 billion (dollar_amount) — total operating revenues for H1 2024
• $719 million (dollar_amount) — cost of purchased electricity for Q2 2025
• $748 million (dollar_amount) — cost of purchased electricity for Q2 2024
• $107 million (dollar_amount) — fuel costs for Q2 2025

FAQ

Industry Context

Consolidated Edison operates in the regulated utility sector, primarily serving New York City and Westchester County. The industry is characterized by high capital intensity, significant regulatory oversight, and a focus on maintaining reliable energy delivery. Trends include the transition to cleaner energy sources, grid modernization, and adapting to evolving customer demands and environmental regulations.

Regulatory Implications

As a heavily regulated utility, Consolidated Edison is subject to oversight from state and local agencies, such as the New York Public Service Commission. Changes in regulations regarding energy pricing, environmental standards, or infrastructure investment can significantly impact profitability and operational strategies. Compliance with these regulations is a critical aspect of the company's business model.

What Investors Should Do

1. Monitor regulatory filings and rate case decisions.
2. Analyze infrastructure investment plans and their impact on capital expenditures.
3. Assess the impact of energy transition trends on the company's business model.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This document is the 10-Q filing for Consolidated Edison Co. of New York Inc., providing the financial data analyzed.)

US GAAP

Generally Accepted Accounting Principles in the United States, the standard framework of guidelines for financial accounting. (The financial data presented in the 10-Q adheres to US GAAP standards.)

MWh

Megawatt-hour, a unit of energy equal to one million watts of power sustained for one hour. (Used to measure electricity generation and consumption, relevant to the company's core business.)

MMBTU

Million British Thermal Units, a unit of energy. (Used to measure fuel consumption, relevant to the company's energy production costs.)

Year-Over-Year Comparison

Compared to the prior-year period, Consolidated Edison reported a 3.04% decrease in Q2 2025 operating revenues, primarily driven by a decline in electricity revenues. Despite this revenue dip, the company demonstrated effective cost management by reducing purchased electricity and fuel costs. The overall financial picture for the quarter is mixed, with revenue challenges offset by controlled expenses.

Filing Documents

• ed-20250630.htm (10-Q) — 3160KB
• ed-20250630xex1011.htm (EX-10.1(1)) — 13KB
• ed-20250630xex1012.htm (EX-10.1(2)) — 11KB
• ed-20250630xex3111.htm (EX-31.1(1)) — 9KB
• ed-20250630xex3112.htm (EX-31.1(2)) — 9KB
• ed-20250630xex3121.htm (EX-31.2(1)) — 9KB
• ed-20250630xex3122.htm (EX-31.2(2)) — 9KB
• ed-20250630xex3211.htm (EX-32.1(1)) — 3KB
• ed-20250630xex3212.htm (EX-32.1(2)) — 3KB
• ed-20250630xex3221.htm (EX-32.2(1)) — 3KB
• ed-20250630xex3222.htm (EX-32.2(2)) — 3KB
• 0001047862-25-000069.txt ( ) — 14948KB
• ed-20250630.xsd (EX-101.SCH) — 88KB
• ed-20250630_cal.xml (EX-101.CAL) — 117KB
• ed-20250630_def.xml (EX-101.DEF) — 702KB
• ed-20250630_lab.xml (EX-101.LAB) — 906KB
• ed-20250630_pre.xml (EX-101.PRE) — 842KB
• ed-20250630_htm.xml (XML) — 2711KB

—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 25 Note D - Short-Term Borrowing 25 Note E - Pension Benefits 26 Note F - Other Postretirement Benefits 27 Note G - Environmental Matters 27 Note H - Material Contingencies 30 Note I - Leases 31 Note J - Income Tax 31 Note K - Revenue Recognition 33 Note L - Current Expected Credit Losses 34 Note M - Financial Information by Business Segment 36 Note N - Derivative Instruments and Hedging Activities 40 Note O - Fair Value Measurements 42 Note P - Related Party Transactions 45 Note Q - Dispositions 46

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 47

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk 80

Controls and Procedures

ITEM 4 Controls and Procedures 80

—Other Information

PART II—Other Information 82

Legal Proceedings

ITEM 1 Legal Proceedings 82

Risk Factors

ITEM 1A Risk Factors 82

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