Exelon's Q3 Net Income Jumps 24% Amid Revenue Growth

TL;DR

**Exelon's Q3 numbers are solid, showing strong earnings growth and strategic capital deployment, making it a buy for stability.**

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, representing 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 electric operating revenues of $6,690 million and natural gas operating revenues of $235 million. Operating income also saw a substantial rise, reaching $1,500 million for the quarter compared to $1,196 million in the same period last year. Capital expenditures for the nine months ended September 30, 2025, were $6,095 million, a notable increase from $5,161 million in the prior year, indicating significant investment in infrastructure. The company issued $4,925 million in long-term debt during the nine-month period, while retiring $807 million, reflecting active capital management. Regulatory assets decreased to $1,489 million in current assets from $1,940 million at December 31, 2024, but increased in deferred debits and other assets to $8,881 million from $8,710 million. Risks include unfavorable legislative and regulatory actions, environmental liabilities, and supply chain disruptions, as highlighted in the cautionary statements.

Why It Matters

Exelon's strong financial performance, with a 23.76% increase in Q3 net income, signals robust operational efficiency and effective revenue management within the utility sector. This positive trend could attract investors seeking stable, dividend-paying stocks, potentially boosting EXC's share price. For employees, continued growth and significant capital expenditures, such as the $6,095 million in the last nine months, suggest job security and potential for new projects. Customers might see continued investment in infrastructure, leading to improved service reliability, though regulatory actions and rate adjustments remain a key factor. In a competitive landscape, Exelon's ability to navigate regulatory environments and increase profitability positions it favorably against peers like Duke Energy or Southern Company.

Risk Assessment

Risk Level: medium — The risk level is medium due to significant exposure to 'unfavorable legislative and/or regulatory actions' and 'uncertainty as to outcomes and timing of regulatory approval proceedings,' as stated in the cautionary statements. While financial performance is strong, the highly regulated nature of the utility business means external policy changes could materially impact future results, despite current positive trends in operating income of $1,500 million for the quarter.

Analyst Insight

Investors should consider holding or initiating a position in Exelon (EXC) given the strong Q3 net income growth of 23.76% and consistent capital investment. Monitor regulatory developments closely, as these remain a primary risk factor for future profitability and operational stability.

Financial Highlights

revenue

$18,846M

operating Margin

21.03%

net Income

$2,174M

eps

$2.15

cash Position

$2,098M

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)
• $2.174B — Net income attributable to common shareholders (YTD 2025) (Increased 19.91% from $1.813 billion in YTD 2024)
• $6.705B — Total operating revenues (Q3 2025) (Increased from $6.154 billion in Q3 2024)
• $1.500B — Operating income (Q3 2025) (Increased from $1.196 billion in Q3 2024)
• $6.095B — Capital expenditures (YTD 2025) (Increased from $5.161 billion in YTD 2024)
• $4.925B — Issuance of long-term debt (YTD 2025) (Part of active capital management)
• $1,010,290,316 — Exelon Common Stock outstanding (As of September 30, 2025)
• $2,098M — Cash, restricted cash, and cash equivalents (As of September 30, 2025, up from $1,233 million at beginning of period)

Key Players & Entities

• Exelon Corporation (company) — Registrant and parent company
• PEPCO HOLDINGS LLC (company) — Registrant and subsidiary of Exelon
• Commonwealth Edison Company (company) — Registrant and subsidiary of Exelon
• PECO Energy Company (company) — Registrant and subsidiary of Exelon
• Baltimore Gas and Electric Company (company) — Registrant and subsidiary of Exelon
• Potomac Electric Power Company (company) — Registrant and subsidiary of Exelon
• Delmarva Power & Light Company (company) — Registrant and subsidiary of Exelon
• Atlantic City Electric Company (company) — Registrant and subsidiary of Exelon
• SEC (regulator) — United States Securities and Exchange Commission
• Nasdaq Stock Market LLC (regulator) — Exchange where Exelon common stock is registered

FAQ

Risk Factors

• Unfavorable Legislative and Regulatory Actions [high — regulatory]: The company faces risks from potential unfavorable legislative and regulatory actions that could impact its operations, financial condition, and results. These actions can include changes in environmental regulations, rate-setting decisions, and other policy shifts that affect the energy industry.
• Supply Chain Disruptions [medium — operational]: Disruptions in the supply chain can affect the company's ability to procure necessary materials and equipment for operations and capital projects. This could lead to delays, increased costs, and impact service reliability.
• Interest Rate Fluctuations [medium — financial]: The company's financial results are sensitive to changes in interest rates, as evidenced by the $1,560 million in net interest expense for the nine months ended September 30, 2025. Rising interest rates can increase borrowing costs and impact profitability.
• Environmental Liabilities [medium — legal]: The company is exposed to potential environmental liabilities arising from its operations. These can include costs associated with remediation, compliance with environmental laws, and potential litigation, which could be substantial.

Industry Context

The utility sector, particularly for regulated electric and gas companies like Exelon's subsidiaries, is characterized by stable demand but faces increasing pressure from environmental regulations, grid modernization needs, and evolving energy sources. Companies are investing heavily in infrastructure to ensure reliability and adapt to cleaner energy trends, while navigating complex rate-setting processes with regulatory bodies.

Regulatory Implications

The company operates under significant regulatory oversight, with potential for unfavorable legislative and regulatory actions posing a key risk. Changes in rate structures, environmental mandates, and compliance requirements can materially impact financial performance and operational strategies.

What Investors Should Do

1. Monitor regulatory developments
2. Analyze capital expenditure effectiveness
3. Evaluate debt management strategy
4. Assess operational efficiency and cost control

Key Dates

• 2025-09-30: End of Nine Months Reporting Period — Key financial results for the year-to-date period are reported, including net income of $2,174 million and capital expenditures of $6,095 million.
• 2025-09-30: Exelon Common Stock Outstanding — 1,010,290,316 shares outstanding as of this date, relevant for EPS calculations.
• 2025-09-30: Cash, restricted cash, and cash equivalents — $2,098 million reported, an increase from the beginning of the period, indicating improved liquidity.
• 2025-09-30: Regulatory Assets — Decreased to $1,489 million in current assets from $1,940 million at December 31, 2024.
• 2025-09-30: Deferred Debits and Other Assets — Increased to $8,881 million from $8,710 million at December 31, 2024.

Glossary

Operating income

Profitability from a company's core business operations before accounting for interest and taxes. (Increased to $1,500 million for Q3 2025, showing strong operational performance.)

Capital expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, and equipment. (Significant increase to $6,095 million for YTD 2025, indicating substantial investment in infrastructure.)

Long-term debt

Financial obligations that are due more than one year from the balance sheet date. (The company issued $4,925 million and retired $807 million in YTD 2025, demonstrating active management of its debt structure.)

Regulatory assets

Costs that have been incurred by a regulated utility but have not yet been recovered through customer rates, recognized as assets on the balance sheet. (Decreased to $1,489 million in current assets, suggesting progress in recovering past costs.)

Deferred debits and other assets

A broad category of assets that represent future economic benefits but do not fit into more specific asset classifications. (Increased to $8,881 million, potentially reflecting ongoing investments or regulatory treatments.)

Comprehensive income

The total change in a company's equity over a period from non-owner sources, including net income and other gains/losses not recognized in the income statement. (Reported at $2,179 million for YTD 2025, reflecting net income plus other adjustments like pension and hedge valuations.)

Year-Over-Year Comparison

Exelon Corporation demonstrated robust financial performance compared to the prior year. Total operating revenues for the nine months ended September 30, 2025, increased by 7.34% to $18,846 million from $17,557 million in 2024. Net income attributable to common shareholders saw a significant rise of 19.91%, reaching $2,174 million from $1,813 million. Capital expenditures also grew substantially by 18.06% to $6,095 million, indicating a strong commitment to infrastructure investment. While not explicitly detailed in the provided text, the increase in operating income suggests improved operational efficiency or favorable market conditions.

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

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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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