Edison International

Edison International reported second-quarter 2026 core EPS of $1.04 and year-to-date core EPS of $2.97. Reported EPS was $1.54, versus $0.97 in the prior-year quarter. Management said the quarter benefited from last year’s regulatory decisions, including the GRC, plus lower interest expense tied to Woolsey cost recovery. For 2026, the company reaffirmed core EPS guidance of $5.90 to $6.20 and its long-term core EPS growth target of 5% to 7%.

Pedro Pizarro focused on three themes: legislation, wildfire resilience/recovery, and the clean energy transition. He said the company is actively engaged in Sacramento on wildfire reform and affordability, and emphasized that a durable, financeable framework matters for customers, capital access, and future investment. He also highlighted SCE’s evolving wildfire strategy, including more location-specific, consequence-informed mitigation, and said AI and analytics should become increasingly important tools for safety, reliability, affordability, and performance.

Aaron Moss said the quarter reflected continued stability in core operations, with results helped by the timing of last year’s GRC decision and lower interest expense from Woolsey recovery. He reaffirmed 2026 core EPS guidance of $5.90 to $6.20 and said SCE’s capital plan supports long-term rate base growth of about 7%. He also noted that the Woolsey securitization generated about $2 billion in proceeds, and said operational improvements using AI could accelerate design cycles by 20% to 30% and permit cycle times by about 20%.

Analysts pressed management on how pending California wildfire legislation could affect future capital plans, securitization, and equity needs. Pizarro said SCE has line of sight through 2028, does not see an equity need through 2030 under current assumptions, and would reassess if market conditions or the eventual legislative outcome significantly raised the cost of equity. Management also said a 10-Q wording change on Eaton Fire was mainly a streamlining update based on the information available today, and that there still are not enough WRCP or subrogation claims to estimate the low end of the GAAP liability range. On wildfire funding, Pizarro said the company is crossing the $1 billion threshold when combining WRCP and subrogation settlements and has a prefunding mechanism with the Wildfire Fund administrator so it does not have to outlay those dollars first.