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

TL;DR

**ComEd is powering up, with Q3 net income surging 24% and massive capital investments signaling a strong, stable outlook for investors.**

AI Summary

COMMONWEALTH EDISON Co (ComEd) reported a net income of $875 million for the three months ended September 30, 2025, a significant increase from $707 million in the same period of 2024, representing a 23.76% rise. For the nine months ended September 30, 2025, net income attributable to common shareholders was $2,174 million, up from $1,813 million in 2024, an increase of 19.91%. Total operating revenues for the three months ended September 30, 2025, reached $6,705 million, compared to $6,154 million in 2024, marking an 8.96% increase. This was driven by electric operating revenues of $6,690 million, up from $6,012 million, and natural gas operating revenues of $235 million, up from $196 million. However, revenues from alternative revenue programs decreased to $(220) million from $(54) million. Operating expenses also rose, with purchased power increasing to $2,645 million from $2,349 million, and operating and maintenance expenses decreasing slightly to $1,172 million from $1,275 million. Capital expenditures for the nine months ended September 30, 2025, were $6,095 million, a substantial increase from $5,161 million in 2024, indicating significant investment in infrastructure. The company's cash and cash equivalents increased to $1,533 million as of September 30, 2025, from $357 million at December 31, 2024.

Why It Matters

ComEd's robust financial performance, with a nearly 24% increase in Q3 net income and significant capital expenditures, signals strong operational health and continued investment in its utility infrastructure. This is crucial for investors seeking stable, regulated utility returns, as it suggests effective rate recovery and demand. For customers, these investments in property, plant, and equipment, totaling $6,095 million, could translate to improved service reliability and grid modernization, though potentially higher rates. In the broader market, ComEd's growth within the Exelon Corporation portfolio reinforces the stability of the utility sector amidst economic fluctuations, providing a competitive edge through consistent earnings and strategic capital deployment.

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 from $5,161 million could expose the company to regulatory scrutiny regarding rate base recovery and potential disallowances, impacting future profitability. Additionally, 'adverse impact of the activities associated with the past DPA and now-resolved SEC investigation on Exelon's and ComEd's reputation' remains a stated risk.

Analyst Insight

Investors should consider ComEd's strong earnings growth and substantial capital investment as a positive indicator for long-term stability and dividend potential. However, they should closely monitor upcoming regulatory filings and decisions, particularly concerning rate cases and cost recovery for the increased capital expenditures, as these will directly impact future profitability and shareholder returns.

Financial Highlights

revenue

$18,846M

operating Margin

21.03%

net Income

$2,174M

eps

$2.15

cash Position

$1,533M

revenue Growth

+7.34%

Revenue Breakdown

Key Numbers

• $875M — Net Income (Q3 2025) (Increased 23.76% from $707M in Q3 2024)
• $2.17B — Net Income (9M 2025) (Increased 19.91% from $1.81B in 9M 2024)
• $6.71B — Total Operating Revenues (Q3 2025) (Increased 8.96% from $6.15B in Q3 2024)
• $6.09B — Capital Expenditures (9M 2025) (Increased from $5.16B in 9M 2024, indicating significant investment)
• $1.53B — Cash and Cash Equivalents (Sept 30, 2025) (Increased from $357M at Dec 31, 2024, improving liquidity)
• 1,010,290,316 — Exelon Common Stock Outstanding (As of September 30, 2025)
• 127,021,419 — ComEd Common Stock Outstanding (As of September 30, 2025)
• $0.87 — Basic EPS (Q3 2025) (Increased from $0.70 in Q3 2024)
• $2.15 — Basic EPS (9M 2025) (Increased from $1.81 in 9M 2024)
• $1,212M — Dividends Paid (9M 2025) (Increased from $1,142M in 9M 2024)

Key Players & Entities

• COMMONWEALTH EDISON Co (company) — Registrant and utility company
• Exelon Corporation (company) — Parent company and large accelerated filer
• SEC (regulator) — United States Securities and Exchange Commission
• $875 million (dollar_amount) — Net income for three months ended September 30, 2025
• $707 million (dollar_amount) — Net income for three months ended September 30, 2024
• $2,174 million (dollar_amount) — Net income for nine months ended September 30, 2025
• $1,813 million (dollar_amount) — Net income for nine months ended September 30, 2024
• $6,705 million (dollar_amount) — Total operating revenues for three months ended September 30, 2025
• $6,095 million (dollar_amount) — Capital expenditures for nine months ended September 30, 2025
• $5,161 million (dollar_amount) — Capital expenditures for nine months ended September 30, 2024

FAQ

Risk Factors

• Rate Case Outcomes [high — regulatory]: The company's financial performance is heavily dependent on the outcomes of regulatory rate cases. Unfavorable decisions could limit the recovery of costs and capital investments, impacting profitability. For example, the recent rate filings and their outcomes will be critical.
• Infrastructure Modernization [medium — operational]: Significant capital expenditures are being made for infrastructure upgrades. Delays or cost overruns in these projects, such as the Smart Grid initiatives, could negatively affect financial results and operational efficiency.
• Energy Price Volatility [medium — market]: Fluctuations in energy commodity prices, particularly for natural gas and electricity, can impact purchased power costs and revenue. The company's hedging strategies aim to mitigate this, but extreme volatility can still pose a risk.
• Interest Rate Sensitivity [medium — financial]: The company carries substantial debt, making it sensitive to changes in interest rates. An increase in interest rates, as seen in the rising interest expense from $(1,560)M in 9M 2025 from $(1,428)M in 9M 2024, could increase financing costs.
• Environmental Regulations [medium — regulatory]: Increasingly stringent environmental regulations related to emissions and climate change could necessitate significant capital investments in pollution control and cleaner energy sources, impacting operating costs.
• Cybersecurity Threats [high — operational]: As a critical infrastructure provider, the company is a target for cyberattacks. A successful breach could disrupt operations, compromise sensitive data, and lead to significant financial and reputational damage.

Industry Context

Commonwealth Edison operates within the highly regulated electric and gas utility sector in Illinois. The industry is characterized by significant capital intensity, long asset lives, and a strong reliance on regulatory approvals for rate setting and cost recovery. Key trends include the ongoing transition to cleaner energy sources, grid modernization efforts, and increasing investments in infrastructure resilience.

Regulatory Implications

The company's operations are subject to extensive regulation by the Illinois Commerce Commission (ICC). Changes in regulatory frameworks, rate decisions, and environmental mandates can significantly impact financial performance and strategic planning. The company's ability to recover its substantial capital investments through approved rates is a critical factor.

What Investors Should Do

1. Monitor ICC rate case decisions and outcomes.
2. Analyze capital expenditure plans and execution.
3. Evaluate the impact of energy commodity price volatility.
4. Assess the company's debt levels and interest rate sensitivity.

Key Dates

• 2025-09-30: End of Q3 2025 and Nine Months Reporting Period — Provided updated financial performance, showing increased revenues and net income, and significant capital investments.
• 2025-09-30: Cash and Cash Equivalents Balance — Reported $1,533M, a substantial increase from $357M at year-end 2024, indicating improved liquidity.
• 2025-09-30: Capital Expenditures — Totaled $6,095M for the nine months, up from $5,161M in 2024, highlighting commitment to infrastructure modernization.

Glossary

Operating revenues

The total income generated from the company's primary business activities, such as selling electricity and natural gas. (Key indicator of top-line performance and market demand.)

Purchased power

The cost incurred by the company to buy electricity from wholesale markets to meet customer demand. (A major operating expense, directly impacting profitability, especially with fluctuating market prices.)

Depreciation and amortization

The systematic allocation of the cost of tangible (depreciation) and intangible (amortization) assets over their useful lives. (Represents the expensing of long-term assets used in operations, impacting net income and reflecting capital investment.)

Interest expense, net

The cost of borrowing money, net of any interest income earned. (A significant non-operating expense that affects net income, particularly for debt-heavy utilities.)

Basic earnings per share (EPS)

The net income attributable to common shareholders divided by the weighted-average number of common shares outstanding. (A fundamental measure of profitability on a per-share basis for common stockholders.)

Comprehensive income

Includes net income plus other comprehensive income (loss), which are unrealized gains or losses not yet recognized in net income. (Provides a broader view of the company's financial performance, including items like currency translation adjustments and unrealized investment gains/losses.)

Revenues from alternative revenue programs

Revenue generated from specific programs that may have different regulatory structures or performance incentives compared to standard utility services. (Indicates the company's engagement with and financial results from non-traditional or regulated incentive programs.)

Year-Over-Year Comparison

Commonwealth Edison Co. has demonstrated robust year-over-year growth in its reported financials. For the nine months ended September 30, 2025, total operating revenues increased by 7.34% to $18,846 million compared to $17,557 million in the same period of 2024. Net income attributable to common shareholders saw a significant rise of 19.91%, reaching $2,174 million from $1,813 million. This improved profitability is reflected in the basic EPS, which grew from $1.81 to $2.15. Capital expenditures also saw a substantial increase, indicating continued investment in infrastructure. The company's cash position has also strengthened considerably, improving liquidity.

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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