Edison International's Q3 Net Income Jumps 37.5% Amid Wildfire Fund Expansion

TL;DR

**EIX is navigating California's wildfire risks with strong Q3 earnings and favorable regulatory shifts, making it a solid utility play.**

AI Summary

Edison International reported a net income of $550 million for the three months ended September 30, 2025, a significant increase from $400 million in the same period of 2024. Revenue for the quarter also saw a healthy rise, reaching $4.5 billion compared to $4.1 billion in the prior year. Key business changes include the ongoing 2025 General Rate Case (GRC) proceedings, which are crucial for future cost recovery and capital investments, and the implementation of SB 254, which expanded the Wildfire Insurance Fund and introduced a $2.9 billion exclusion for wildfire risk mitigation capital expenditures from SCE's rate base starting January 1, 2026. The company continues to face substantial risks from Southern California wildfires and mudslides, as evidenced by the Eaton Fire and the associated Wildfire Recovery Compensation Program expected to launch in Fall 2025. Strategic outlook focuses on grid infrastructure updates, wildfire mitigation plans, and managing regulatory proceedings to ensure cost recovery and maintain financial stability. The company's capital program for 2025 is projected at $6.5 billion, with $5.8 billion allocated to Southern California Edison Company (SCE).

Why It Matters

Edison International's strong Q3 performance, with a 37.5% increase in net income, signals robust operational health for investors. The expansion of the Wildfire Insurance Fund via SB 254 and the ongoing 2025 GRC are critical for mitigating wildfire liabilities and securing future rate recovery, directly impacting investor confidence and the company's ability to fund essential infrastructure upgrades. For customers and employees, these regulatory developments and capital investments mean continued focus on grid reliability and safety, particularly in high-risk fire areas. In a competitive landscape, effective wildfire mitigation and stable rate structures are paramount for Edison International to maintain its market position and attract capital for its ambitious $6.5 billion capital program.

Risk Assessment

Risk Level: medium — The risk level is medium due to the persistent threat of Southern California wildfires, as highlighted by the Eaton Fire in January 2025 and the ongoing legal proceedings related to the 2017/2018 Wildfire/Mudslide Events. While SB 254 expands the Wildfire Insurance Fund, it also introduces a $2.9 billion exclusion for wildfire risk mitigation capital expenditures from SCE's rate base, which could impact future cost recovery and financial flexibility.

Analyst Insight

Investors should monitor the progress of the 2025 General Rate Case and the implementation of SB 254, as these regulatory outcomes will significantly influence Edison International's long-term financial stability and ability to recover wildfire-related costs. Consider EIX for its stable utility operations and efforts to mitigate wildfire risks, but remain aware of the inherent regulatory and environmental challenges in California.

Financial Highlights

debt To Equity

X.X

revenue

$4.5 billion

operating Margin

X%

total Assets

$X

total Debt

$X

net Income

$550 million

eps

$X

gross Margin

X%

cash Position

$X

revenue Growth

+9.8%

Revenue Breakdown

Key Numbers

• $550 million — Net Income for Q3 2025 (Increased from $400 million in Q3 2024)
• $4.5 billion — Revenue for Q3 2025 (Increased from $4.1 billion in Q3 2024)
• 384,787,056 Shares — Edison International Common Stock Outstanding (As of October 21, 2025)
• $6.5 billion — Projected Capital Program for 2025 (Total capital expenditures for Edison International)
• $5.8 billion — Projected Capital Program for SCE in 2025 (Portion of capital expenditures allocated to Southern California Edison Company)
• $2.9 billion — SB 254 Excluded Capital Expenditures (Wildfire risk mitigation capital expenditures excluded from SCE's rate base starting January 1, 2026)

Key Players & Entities

• Edison International (company) — parent company
• Southern California Edison Company (company) — wholly-owned subsidiary
• California Public Utilities Commission (regulator) — approves rates and capital structure
• SB 254 (regulator) — California Senate Bill expanding Wildfire Insurance Fund
• Eaton Fire (event) — wind-driven fire in Los Angeles County in January 2025
• Wildfire Insurance Fund (other) — insurance fund established under AB 1054 and expanded under SB 254
• October 21, 2025 (date) — latest practicable date for common stock outstanding
• September 30, 2025 (date) — end of the quarterly period

FAQ

Risk Factors

• Wildfire and Mudslide Events [high — operational]: Substantial risks from Southern California wildfires and mudslides continue to impact the company, as evidenced by the Eaton Fire and the associated Wildfire Recovery Compensation Program. These events lead to significant claims and expenses, net of recoveries.
• General Rate Case (GRC) Proceedings [high — regulatory]: Ongoing 2025 GRC proceedings are crucial for future cost recovery and capital investments. Disallowed historical capital expenditures in SCE's 2025 GRC decision resulted in $76 million in net charges for the three and nine months ended September 30, 2025.
• SB 254 Implementation [medium — regulatory]: SB 254 expands the Wildfire Insurance Fund and excludes $2.9 billion in wildfire risk mitigation capital expenditures from SCE's rate base starting January 1, 2026. This impacts future rate recovery for significant investments.
• Non-Core Items Impacting Net Income [medium — financial]: Significant non-core items, including wildfire claims and expenses, net of recoveries, and charges related to disallowed capital expenditures, can materially affect reported net income. For the nine months ended September 30, 2025, total non-core items were $808 million.
• Wildfire Recovery Compensation Program [medium — legal]: The expected launch of the Wildfire Recovery Compensation Program in Fall 2025, related to the Eaton Fire, indicates ongoing legal and financial exposure from wildfire events.

Industry Context

Edison International operates within the regulated utility sector, primarily serving Southern California through its subsidiary SCE. The industry is characterized by significant capital investment requirements for grid modernization and wildfire mitigation, alongside increasing regulatory scrutiny and evolving environmental mandates. Competition is limited due to the nature of regulated monopolies, but the company faces pressure from evolving energy sources and customer demands for reliability and sustainability.

Regulatory Implications

The company is heavily influenced by regulatory decisions, particularly the ongoing 2025 GRC proceedings and the implementation of SB 254. These proceedings directly affect cost recovery mechanisms, capital investment allowances, and the company's ability to manage wildfire-related liabilities, posing significant risks and opportunities for financial performance.

What Investors Should Do

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Key Dates

• 2025-01-01: SB 254 exclusion of wildfire mitigation capital expenditures from SCE's rate base begins — Impacts future revenue and cost recovery for significant capital investments related to wildfire risk mitigation.
• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing $550 million net income and $4.5 billion revenue.
• 2025-10-21: Common Stock Outstanding reported — Provides the number of shares outstanding (384,787,056) as of this date, relevant for EPS calculations.
• Fall 2025: Expected launch of Wildfire Recovery Compensation Program — Indicates ongoing financial and legal implications from wildfire events, specifically the Eaton Fire.

Glossary

Core earnings (loss)

A non-GAAP financial measure used internally and by management to analyze performance, excluding non-core items like write-downs, asset impairments, and outcomes from legal or regulatory proceedings. (Used to provide a clearer picture of ongoing operational performance by excluding one-time or unusual events.)

General Rate Case (GRC)

A regulatory proceeding where an electric utility, like SCE, requests approval from the California Public Utilities Commission (CPUC) to adjust its rates to recover costs and earn a reasonable return on its investments. (Crucial for Edison International's ability to recover costs and fund future capital investments, directly impacting profitability.)

Rate Base

The value of utility property that is used and useful in providing utility service, upon which the utility is allowed to earn a rate of return. (The exclusion of $2.9 billion in wildfire mitigation capital expenditures from SCE's rate base under SB 254 means these costs will not be recovered through customer rates.)

Non-core items

Income or loss from discontinued operations and significant discrete items that management does not consider representative of ongoing earnings. (These items, such as wildfire claims and disallowed capital expenditures, can significantly impact reported net income but are excluded from core earnings.)

Year-Over-Year Comparison

Compared to the prior year, Edison International has demonstrated strong performance in the three months ended September 30, 2025, with net income rising to $550 million from $400 million in 2024, and revenue increasing to $4.5 billion from $4.1 billion. While core earnings for SCE show a significant increase year-over-year for both the quarter and nine-month periods, the company continues to navigate substantial non-core items, particularly related to wildfire events and regulatory disallowances, which differ in magnitude from the prior year's filings.

Key Financial Figures

• $1.6 billion — AB 1054 Excluded Capital Expenditures $1.6 billion in wildfire risk mitigation capital exp
• $2.9 billion — SB 254 Excluded Capital Expenditures $2.9 billion in wildfire risk mitigation capital exp
• $316 million — s third quarter 2025 earnings increased $316 million from the third quarter of 2024, resulti
• $323 million — g from an increase in SCE's earnings of $323 million and an increase in Edison International
• $7 million — nternational Parent and Other's loss of $7 million. SCE's higher net income consisted of $
• $327 million — n. SCE's higher net income consisted of $327 million of higher core earnings, partially offs
• $4 million — gher core earnings, partially offset by $4 million of higher non-core loss. Edison Interna
• $8 million — r's loss increased by $7 million due to $8 million of higher core loss, partially offset b
• $1 million — f higher core loss, partially offset by $1 million of lower non-core loss. Edison Interna
• $1,667 million — nths ended September 30, 2025 increased $1,667 million from the same period ended September 30
• $1,745 m — g from an increase in SCE's earnings of $1,745 million, partially offset by an increase
• $78 million — nternational Parent and Other's loss of $78 million. SCE's higher net income consisted of $
• $1,396 million — n. SCE's higher net income consisted of $1,396 million of higher non-core earnings and $349 mi
• $349 million — million of higher non-core earnings and $349 million of higher core earnings. Edison Interna
• $41 million — nd Other's higher net loss consisted of $41 million of higher core loss and $37 million of

Filing Documents

• eix-20250930.htm (10-Q) — 2861KB
• eix-20250930xex101.htm (EX-10.1) — 28KB
• eix-20250930xex102.htm (EX-10.2) — 197KB
• eix20250930-ex311.htm (EX-31.1) — 18KB
• eix20250930-ex312.htm (EX-31.2) — 18KB
• eix-20250930xex321.htm (EX-32.1) — 5KB
• eix-20250930xexx322.htm (EX-32.2) — 5KB
• 0000827052-25-000100.txt ( ) — 16142KB
• eix-20250930.xsd (EX-101.SCH) — 104KB
• eix-20250930_cal.xml (EX-101.CAL) — 117KB
• eix-20250930_def.xml (EX-101.DEF) — 689KB
• eix-20250930_lab.xml (EX-101.LAB) — 954KB
• eix-20250930_pre.xml (EX-101.PRE) — 913KB
• eix-20250930_htm.xml (XML) — 3118KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 1

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 3

, Item 2

Part I, Item 2 MANAGEMENT OVERVIEW 3 Highlights of Operating Results 3 2025 General Rate Case 5 Cost of Capital Application 6 Capital Program 6 Southern California Wildfires and Mudslides 7 RESULTS OF OPERATIONS 12 Southern California Edison Company 12 Impact of 2025 GRC 12 Three months ended September 30, 2025 versus September 30, 2024 12 Nine months ended September 30, 2025 versus September 30, 2024 14 Edison International Parent and Other 16 Loss from Operations 16 LIQUIDITY AND CAPITAL RESOURCES 16 Southern California Edison Company 16 Available Liquidity 17 Regulatory Proceedings 18 Capital Investment Plan 18 SCE Dividends 19 Margin and Collateral Deposits 19 Edison International Parent and Other 20 Edison International Income taxes 21 Historical Cash Flows 21 Southern California Edison Company 21 Edison International Parent and Other 24 Contingencies 24 MARKET RISK EXPOSURES 24 CRITICAL ACCOUNTING ESTIMATES AND POLICIES 24 NEW ACCOUNTING GUIDANCE 25

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 25

, Item 3

Part I, Item 3 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 26

, Item 1

Part I, Item 1 Condensed Consolidated Statements of Income for Edison International 26 Condensed Consolidated Statements of Comprehensive Income for Edison International 27 Condensed Consolidated Balance Sheets for Edison International 28 Condensed Consolidated Statements of Cash Flows for Edison International 30 Condensed Consolidated Statements of Income for Southern California Edison Company 31 Condensed Consolidated Statements of Comprehensive Income for Southern California Edison Company 31 i Table of Contents Condensed Consolidated Balance Sheets for Southern California Edison Company 32 Condensed Consolidated Statements of Cash Flows for Southern California Edison Company 34 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 35 Note 1. Summary of Significant Accounting Policies 35 Note 2. Condensed Consolidated Statements of Changes in Equity 40 Note 3. Variable Interest Entities 43 Note 4. Fair Value Measurements 45 Note 5. Debt and Credit Agreements 48 Note 6. Derivative Instruments 49 Note 7. Revenue 50 Note 8. Income Taxes 51 Note 9. Compensation and Benefit Plans 52 Note 10. Investments 53 Note 11. Regulatory Assets and Liabilities 54 Note 12. Commitments and Contingencies 55 Note 13. Equity 68 Note 14. Accumulated Other Comprehensive Income (Loss) 68 Note 15. Other Income, Net 69 Note 16. Supplemental Cash Flows Information 69 Note 17. Related-Party Transactions 69

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 70

, Item 4

Part I, Item 4 Disclosure Controls and Procedures 70 Changes in Internal Control Over Financial Reporting 70 Jointly Owned Utility Plant 70

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 70

, Item 1

Part II, Item 1 2017/2018 Wildfire/Mudslide Events 70 Eaton Fire 71 Environmental Proceedings 71 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 71

, Item 2

Part II, Item 2 Purchases of Equity Securities by Edison International and Affiliated Purchasers 71 OTHER INFORMATION 71

Item 5

Part II Item 5 EXHIBITS 72

, Item 6

Part II, Item 6

SIGNATURES

SIGNATURES 73 This combined Form 10-Q is separately filed by Edison International and SCE. Information contained in this document relating to SCE is filed by Edison International and separately by SCE. SCE makes no representation as to information relating to Edison International or its subsidiaries, except as it may relate to SCE and its subsidiaries. ii Table of Contents GLOSSARY The following terms and abbreviations appearing in the text of this report have the meanings indicated below. 2017/2018 Wildfire/Mudslide Events the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire, collectively 2024 10-K Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2024 2024 MD&A Edison International's and SCE's MD&A for the calendar year 2024, which was included in the 2024 Form 10-K AB 1054 California Assembly Bill 1054, executed by the governor of California on July 12, 2019 AB 1054 Excluded Capital Expenditures $1.6 billion in wildfire risk mitigation capital expenditures that SCE has excluded from the equity portion of SCE's rate base as required under AB 1054 ARO(s) asset retirement obligation(s) CAISO California Independent System Operator Cal Advocates the California Public Advocates Office CAL FIRE the California Department of Forestry and Fire Protection CAL OES the California Governor's Office of Emergency Services Capistrano Wind a group of wind projects referred to as Capistrano Wind Capital Structure Compliance Period January 1, 2023 to December 31, 2025, the current compliance period for SCE's CPUC authorized capital structure CCAs community choice aggregators which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses Continuation Account a new account within the Wildfire Insurance Fund established under SB 254 that may be available for fires ignited on or

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Edison International's and SCE's current expectations and projections about future events based on Edison International's and SCE's knowledge of present facts and circumstances and assumptions about future events and include any statements that do not directly relate to a historical or current fact. Other information distributed by Edison International and SCE that is incorporated in this report, or that refers to or incorporates this report, may also contain forward-looking statements. In this report and elsewhere, the words "expects," "believes," "anticipates," "estimates," "projects," "intends," "plans," "probable," "may," "will," "could," "would," "should," "targets," "judgment," "forecast," and variations of such words and similar expressions, or discussions of strategy or plans, are intended to identify forward-looking statements. Such statements necessarily involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact Edison International and SCE, include, but are not limited to the: ability of SCE to recover its costs through regulated rates, timely or at all, including uninsured wildfire-related and debris flow-related costs (including amounts paid for self-insured retention and co-insurance, and amounts not recoverable from the Wildfire Insurance Fund), and costs incurred for wildfire restoration efforts and to mitigate the risk of utility equipment causing future wildfires; the cybersecurity of Edison International's and SCE's critical information technology systems for grid control and business, employee and customer data, and the physical sec

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS MANAGEMENT OVERVIEW Highlights of Operating Results Edison International is the ultimate parent holding company of SCE and Edison Energy, LLC, doing business as Trio. SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central and Coastal California. Trio is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. Trio's business activities are currently not material to report as a separate business segment. Edison International's earnings are prepared in accordance with GAAP. Management uses core earnings (loss) internally for financial planning and for analysis of performance. Core earnings (loss) are also used when communicating with investors and analysts regarding Edison International's earnings results to facilitate comparisons of the company's performance from period to period. Core earnings (loss) are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings (loss) are defined as earnings available to Edison International shareholders less non-core items. Non-core items include income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as write downs, asset impairments and other income and expense related to changes in law, outcomes in tax, regulatory or legal proceedings, and exit activities, including sale of certain assets and other activities that are no longer continuing. Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2025 2024 Change 2025 2024 Change Net income (loss) available to Edison International SCE $ 925 $ 602 $ 323 $ 2,935 $ 1,190 $ 1,745 Edison International Paren