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

TL;DR

**Exelon's Q3 numbers are solid, showing strong revenue and profit growth, making it a reliable bet in a volatile market.**

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 same period of 2024, representing a 23.76% increase. For the nine months ended September 30, 2025, net income rose to $2,174 million from $1,813 million in 2024, an increase of 19.91%. Total operating revenues for the three months ended September 30, 2025, were $6,705 million, up from $6,154 million in 2024, a 8.96% increase, driven by higher electric operating revenues of $6,690 million and natural gas operating revenues of $235 million. Operating expenses also increased, with purchased power rising to $2,645 million from $2,349 million. 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. Capital expenditures for the nine months ended September 30, 2025, were $6,095 million, an increase from $5,161 million in 2024, indicating continued investment in infrastructure. Long-term debt due within one year increased to $2,168 million from $1,453 million, while short-term borrowings decreased to $1,080 million from $1,859 million.

Why It Matters

Exelon's robust financial performance, with a nearly 24% increase in Q3 net income, signals strong operational efficiency and effective revenue management in a regulated utility environment. This positive trend could lead to stable dividend payouts for investors, enhancing the company's attractiveness compared to competitors like Duke Energy or Southern Company. For customers, increased capital expenditures of $6,095 million suggest ongoing infrastructure improvements, potentially leading to more reliable service. Employees may see job security and growth opportunities as the company invests in its assets. The broader market benefits from a stable, well-performing utility, especially given its critical role in energy supply across multiple states.

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 key risks. While net income is up, the significant increase in capital expenditures to $6,095 million for the nine months ended September 30, 2025, from $5,161 million in 2024, coupled with an increase in long-term debt due within one year to $2,168 million, indicates substantial investment and associated financial obligations that could be impacted by regulatory shifts or economic downturns.

Analyst Insight

Investors should consider Exelon's consistent earnings growth and increased capital investments as a sign of stability and future potential. Monitor regulatory developments closely, particularly those affecting rate cases and environmental compliance, as these could impact future profitability. The company's strong cash position of $2,098 million at the end of the period suggests good liquidity for ongoing operations and investments.

Financial Highlights

revenue

$18,846 million

operating Margin

21.03%

net Income

$2,174 million

eps

$2.15

cash Position

$1,533 million

revenue Growth

+7.34%

Revenue Breakdown

Key Numbers

• $875M — Net income attributable to common shareholders (Q3 2025) (Increased by 23.76% from $707 million in Q3 2024)
• $2.174B — Net income attributable to common shareholders (YTD 2025) (Increased by 19.91% from $1.813 billion in YTD 2024)
• $6.705B — Total operating revenues (Q3 2025) (Increased by 8.96% from $6.154 billion in Q3 2024)
• $18.846B — Total operating revenues (YTD 2025) (Increased from $17.557 billion in YTD 2024)
• $6.095B — Capital expenditures (YTD 2025) (Increased from $5.161 billion in YTD 2024)
• $1.533B — Cash and cash equivalents (Sept 30, 2025) (Increased from $357 million at Dec 31, 2024)
• $2.168B — Long-term debt due within one year (Sept 30, 2025) (Increased from $1.453 billion at Dec 31, 2024)
• $1.080B — Short-term borrowings (Sept 30, 2025) (Decreased from $1.859 billion at Dec 31, 2024)
• 1,010,290,316 — Exelon Corporation Common Stock outstanding (As of September 30, 2025)
• $0.86 — Diluted EPS (Q3 2025) (Increased from $0.70 in Q3 2024)

Key Players & Entities

• BALTIMORE GAS & ELECTRIC CO (company) — Registrant in the 10-Q filing
• Exelon Corporation (company) — Parent company and primary registrant
• Commonwealth Edison Company (company) — Subsidiary registrant
• PECO Energy Company (company) — Subsidiary registrant
• Pepco Holdings LLC (company) — Subsidiary registrant
• Potomac Electric Power Company (company) — Subsidiary registrant
• Delmarva Power & Light Company (company) — Subsidiary registrant
• Atlantic City Electric Company (company) — Subsidiary registrant
• SEC (regulator) — United States Securities and Exchange Commission
• Nasdaq Stock Market LLC (company) — Exchange where Exelon common stock is registered

FAQ

Industry Context

The utility sector, particularly for regulated gas and electric providers like Baltimore Gas & Electric (a subsidiary of Exelon), is characterized by stable, albeit often slow, revenue growth driven by customer demand and infrastructure investment. Key trends include the ongoing transition to cleaner energy sources, significant capital expenditure requirements for grid modernization and renewable integration, and evolving regulatory landscapes that can impact pricing and operational flexibility. Competition is generally limited due to the nature of regulated monopolies, but companies face pressure from technological advancements and changing consumer preferences.

Regulatory Implications

As a regulated utility, Baltimore Gas & Electric operates under strict oversight from state and local regulatory bodies. Changes in rate structures, environmental regulations, and capital recovery mechanisms can significantly impact financial performance. The company's ability to secure timely rate increases to recover investments in infrastructure and comply with new environmental standards is a critical factor. Any adverse regulatory decisions or delays in approvals could pose a material risk to earnings and cash flows.

What Investors Should Do

1. Monitor regulatory filings and decisions
2. Analyze capital expenditure plans and execution
3. Evaluate debt management strategies
4. Assess operating expense trends, particularly purchased power

Glossary

Net income attributable to common shareholders

The portion of a company's profit that is available to be distributed to its common shareholders after all expenses, preferred stock dividends, and taxes have been paid. (This is a key profitability metric, showing the earnings available to the owners of the company. The increase from $1,813 million to $2,174 million for the nine months ended September 30, 2025, indicates improved profitability.)

Operating revenues

The total income generated from a company's primary business operations, excluding other income sources like interest or asset sales. (Represents the top-line performance of the company. The increase from $17,557 million to $18,846 million for the nine months ended September 30, 2025, shows growth in core business activities.)

Purchased power

The cost incurred by an electric utility to buy electricity from other generators or wholesale markets to meet customer demand. (A significant operating expense for electric utilities. The increase from $6,483 million to $6,640 million for the nine months ended September 30, 2025, impacts the company's profitability.)

Interest expense, net

The cost of borrowing money, minus any interest income earned, for a company. (A key component of non-operating expenses, impacting net income. The increase from $1,428 million to $1,560 million for the nine months ended September 30, 2025, suggests higher debt levels or interest rates.)

Diluted EPS

Earnings per share calculated after accounting for all potential dilutive common shares, such as stock options and convertible securities. (A crucial metric for investors, reflecting the profitability on a per-share basis, considering all potential shares outstanding. The reported diluted EPS of $0.86 for Q3 2025 increased from $0.70 in Q3 2024.)

Capital expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, and equipment. (Indicates investment in the company's infrastructure and future growth. The increase from $5,161 million to $6,095 million for the nine months ended September 30, 2025, shows continued investment.)

Cash and cash equivalents

Includes cash on hand, bank deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (Represents the company's immediate liquidity. The significant increase from $357 million at December 31, 2024, to $1,533 million as of September 30, 2025, indicates a much stronger cash position.)

Long-term debt due within one year

The portion of a company's long-term debt obligations that is scheduled to be repaid within the next 12 months. (This is a measure of short-term solvency and refinancing needs. The increase from $1,453 million to $2,168 million as of September 30, 2025, suggests a greater near-term repayment burden.)

Year-Over-Year Comparison

Exelon Corporation demonstrated robust year-over-year growth in the nine months ended September 30, 2025, compared to the same period in 2024. Total operating revenues increased by 7.34% to $18,846 million, while net income attributable to common shareholders saw a substantial rise of 19.91% to $2,174 million. This improved profitability is reflected in the diluted EPS, which rose to $2.15 from $1.81. The company also significantly boosted its cash position, more than quadrupling it to $1,533 million, while continuing to invest heavily in its infrastructure with capital expenditures up to $6,095 million. However, there was an increase in short-term debt obligations, with long-term debt due within one year rising to $2,168 million.

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
• exc-ex3101_20250930q31.htm (EX-31.01) — 9KB
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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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