Exelon's Q3 Net Income Jumps 23.8% on Strong Revenue Growth

TL;DR

**Exelon is powering up, with Q3 net income surging 24% – a clear buy signal for utility investors.**

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 23.8% increase. For the nine months ended September 30, 2025, net income rose to $2,174 million from $1,813 million, an increase of 19.9%. Total operating revenues for the three-month period increased to $6,705 million from $6,154 million, driven by electric operating revenues of $6,690 million and natural gas operating revenues of $235 million. Operating expenses also increased, with purchased power at $2,645 million and operating and maintenance at $1,172 million for the quarter. Capital expenditures for the nine months ended September 30, 2025, were substantial at $6,095 million, compared to $5,161 million in the prior year, indicating significant investment in infrastructure. The company's cash and cash equivalents significantly increased to $1,533 million as of September 30, 2025, from $357 million at December 31, 2024. Regulatory assets, both current and long-term, remain a key component of the balance sheet, totaling $1,489 million and $8,881 million respectively, reflecting the regulated nature of the utility business.

Why It Matters

Exelon's robust financial performance, with a nearly 24% increase in Q3 net income, signals strong operational execution and effective management within a regulated utility environment. This positive trend could lead to increased investor confidence, potentially impacting dividend stability and stock valuation for EXC. For customers, continued investment in capital expenditures, totaling over $6 billion, suggests ongoing infrastructure improvements and reliability enhancements across its utility subsidiaries like Atlantic City Electric. In a competitive landscape, Exelon's ability to grow revenues and manage expenses effectively positions it favorably against other large regulated utilities, demonstrating resilience and strategic growth in a capital-intensive industry.

Risk Assessment

Risk Level: medium — The filing highlights 'unfavorable legislative and/or regulatory actions' and 'uncertainty as to outcomes and timing of regulatory approval proceedings' as significant risks. While the company shows strong financial performance, its heavy reliance on regulatory approvals for revenue programs and capital recovery, as evidenced by substantial regulatory assets totaling $10,370 million, introduces inherent risk. Additionally, 'extreme weather events' and 'disruptions or cost increases in the supply chain' could impact the $6,095 million in capital expenditures and overall operational stability.

Analyst Insight

Investors should consider Exelon's consistent earnings growth and significant capital investments as a sign of stability and future potential in the utility sector. Monitor regulatory developments closely, as these will directly influence future revenue streams and profitability. Given the strong cash position and increased net income, Exelon appears well-positioned for continued dividend payments and potential long-term capital appreciation.

Financial Highlights

revenue

$18,846M

operating Margin

21.0%

net Income

$2,174M

eps

$2.15

cash Position

$1,533M

revenue Growth

+7.3%

Revenue Breakdown

Key Numbers

• $875M — Net Income (Q3 2025) (Increased 23.8% from $707M in Q3 2024)
• $2.17B — Net Income (YTD 2025) (Increased 19.9% from $1.81B in YTD 2024)
• $6.71B — Total Operating Revenues (Q3 2025) (Increased from $6.15B in Q3 2024)
• $6.09B — Capital Expenditures (YTD 2025) (Increased from $5.16B in YTD 2024, indicating significant investment)
• $1.53B — Cash and Cash Equivalents (Sep 30, 2025) (Significantly up from $357M at Dec 31, 2024)
• $10.37B — Total Regulatory Assets (Comprises current and deferred regulatory assets, highlighting regulated business model)
• 1,010,290,316 — Exelon Common Stock Outstanding (As of September 30, 2025)
• $0.86 — Diluted EPS (Q3 2025) (Increased from $0.70 in Q3 2024)

Key Players & Entities

• Exelon Corporation (company) — Parent company and primary registrant
• Atlantic City Electric Company (company) — Subsidiary registrant
• $875 million (dollar_amount) — Net income attributable to common shareholders for Q3 2025
• $707 million (dollar_amount) — Net income attributable to common shareholders for Q3 2024
• $2,174 million (dollar_amount) — Net income attributable to common shareholders for nine months ended September 30, 2025
• $6,705 million (dollar_amount) — Total operating revenues for Q3 2025
• $6,095 million (dollar_amount) — Capital expenditures for nine months ended September 30, 2025
• $1,533 million (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• SEC (regulator) — United States Securities and Exchange Commission
• Nasdaq Stock Market LLC (regulator) — Exchange where Exelon common stock is registered

FAQ

Risk Factors

• Regulatory Environment Changes [high — regulatory]: Changes in laws, regulations, or regulatory policies, including environmental regulations and energy policies, can impact operating costs, revenue, and profitability. The company operates in a heavily regulated industry where rate decisions and approvals are critical.
• Energy Price Volatility [medium — market]: Fluctuations in the prices of electricity and natural gas can affect operating revenues and the cost of purchased power and fuel. For the nine months ended September 30, 2025, purchased power was $6,640 million and purchased fuel was $471 million.
• Infrastructure Reliability and Security [high — operational]: The company's operations are subject to risks associated with the reliability of its infrastructure, including potential disruptions from extreme weather events, cyberattacks, or physical security threats. Significant capital expenditures of $6,095 million for the nine months ended September 30, 2025, are being made to enhance infrastructure.
• Interest Rate Fluctuations [medium — financial]: Changes in interest rates can impact the company's interest expense. For the nine months ended September 30, 2025, net interest expense was $1,560 million, an increase from $1,428 million in the prior year.
• Environmental Liabilities and Litigation [medium — legal]: The company may face liabilities related to environmental compliance and potential litigation. The company's operations are subject to various environmental laws and regulations.

Industry Context

The utility sector is characterized by stable, regulated revenues but faces increasing pressure from decarbonization efforts, grid modernization, and evolving customer demands. Companies are investing heavily in infrastructure upgrades and renewable energy sources to meet these challenges and maintain reliability. Competition exists from other utilities in overlapping service territories and from alternative energy providers.

Regulatory Implications

Atlantic City Electric operates under strict regulatory oversight, primarily from the New Jersey Board of Public Utilities. Changes in rate-setting methodologies, environmental mandates, or energy policies can significantly impact financial performance and require substantial compliance investments. The company's significant regulatory assets highlight its reliance on regulatory approvals for cost recovery.

What Investors Should Do

1. Monitor regulatory filings and rate case outcomes.
2. Assess capital expenditure effectiveness.
3. Analyze trends in operating expenses, particularly purchased power.
4. Evaluate the company's liquidity and cash management.

Key Dates

• 2025-09-30: End of Q3 and Nine-Month Period — Reporting period for the financial results, showing increased net income and revenues, and substantial capital expenditures.
• 2025-09-30: Cash and Cash Equivalents Balance — Reported at $1,533 million, a significant increase from $357 million at December 31, 2024, indicating improved liquidity.
• 2025-09-30: Capital Expenditures — YTD expenditures reached $6,095 million, up from $5,161 million in the prior year, signaling ongoing investment in infrastructure.

Glossary

Regulatory Assets

Costs that have been incurred by a regulated utility but have not yet been recovered through customer rates. These are typically recognized as assets on the balance sheet and amortized over time as they are recovered. (A significant portion of the company's balance sheet, totaling $10,370 million ($1,489M current + $8,881M long-term), reflecting the regulated nature of the utility business.)

Purchased Power

The cost incurred by an electric utility to buy electricity from other generators or wholesale suppliers to meet customer demand. (A major operating expense, totaling $2,645 million for Q3 2025 and $6,640 million for the nine months ended September 30, 2025.)

Operating Income

Revenue minus operating expenses, excluding interest and taxes. It represents the profit generated from the company's core business operations. (Reported at $1,500 million for Q3 2025 and $3,963 million for the nine months ended September 30, 2025, showing strong operational performance.)

Diluted EPS

Earnings per share calculated after accounting for all potential dilutive common shares, such as stock options and convertible securities. (Reported at $0.86 for Q3 2025, an increase from $0.70 in the prior year, indicating improved profitability on a per-share basis.)

Comprehensive Income

Includes net income plus all other gains and losses that are not recognized in net income, such as unrealized gains or losses on certain investments and foreign currency translation adjustments. (For Q3 2025, comprehensive income attributable to common shareholders was $878 million, slightly higher than net income, due to other comprehensive income items.)

Year-Over-Year Comparison

Exelon Corporation demonstrated robust year-over-year performance for the nine months ended September 30, 2025. Total operating revenues grew by 7.3% to $18,846 million, driven by increases in both electric and natural gas segments. Net income attributable to common shareholders saw a significant 19.9% rise to $2,174 million, with diluted EPS increasing from $1.81 to $2.15. Capital expenditures also increased by 18.1% to $6,095 million, indicating continued investment in infrastructure. The company's cash position strengthened considerably, more than quadrupling to $1,533 million from $357 million at year-end 2024.

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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