Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 6 of last 7 quarters
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Edison's reaffirmed capital plan and 7% rate base growth signal continued investment in grid infrastructure, wildfire mitigation, and electrification, which are foundational to supporting AI-driven load growth in California. The company's increasing use of AI for operational efficiency and risk management highlights the broader trend of AI adoption across utility infrastructure, potentially creating demand for AI-enabled grid technologies and services.
Edison International reported Q2 2026 GAAP EPS of $1.54, up from $0.97 a year ago, benefiting from the 2025 GRC decision and lower interest expense from Woolsey cost recovery. Core EPS was $1.04, bringing year-to-date core EPS to $2.97. SCE has hardened about 90% of its high fire risk distribution line miles, deployed ~800 miles of covered conductor and ~90 miles of undergrounding since January 2025, and extended over 2,200 WRCP offers totaling over $775 million. The company completed a ~$2 billion Woolsey securitization and reaffirmed its 2026 guidance.
Management reaffirmed 2026 core EPS guidance of $5.90–$6.20 and long-term core EPS growth of 5%–7%, supported by SCE's ~7% rate base growth and a capital plan through 2030 with no new equity needs. They highlighted ongoing legislative discussions in Sacramento on wildfire reform and affordability, noting that the outcome remains uncertain and could influence future capital allocation and financing costs. SCE filed its RAMP application in May, outlining ~450 miles of covered conductor and ~190 miles of targeted undergrounding for 2029–2032, with RAMP-related investments translating to about one-third of the total capital requested in the GRC. Management emphasized continued focus on operational excellence, including AI-enabled design and permitting automation expected to accelerate cycles by 20–30%, and reiterated that a durable legislative framework is critical to maintaining access to lower-cost capital.
“Advances in AI will be among the most important tools available for utilities over the next decade.”
on AI as a strategic enabler
“A durable and financeable framework will help maintain access to lower-cost capital supporting affordability for customers, and continued infrastructure investment.”
on Legislative wildfire reform
“Two quarters does not make a year, and we are focused on delivering on our guidance for the year.”
on Earnings guidance
Can you talk about what is on the table from the utility side regarding a financeable solution, and are there scenarios where we could expect a new plan come third quarter?
Pedro Pizarro noted that SCE has a GRC in hand with visibility through 2028 and no equity needs through 2030. He said the outcome in Sacramento is uncertain, with four weeks left and no language seen yet. He acknowledged the possibility of a partial answer or work left for 2027, and said that if the market views the outcome unfavorably, they would be thoughtful about avoiding negative NPV decisions while upholding safety and reliability obligations.
Do you have any view on timing to cross the $1 billion threshold for wildfire fund reimbursement, and what options are on the table if reform does not move forward?
Pedro Pizarro said that between subrogation and WRCP settlements, they are crossing the $1 billion threshold and have worked out a prefunding mechanism with the CEA to avoid coming out of pocket. On reform, he reiterated that they don't know what will happen, but if the outcome significantly impacts the cost of equity, it could influence future investments, with flexibility in areas beyond safety and reliability obligations.
How does the affordability conversation stand right now, and how has the tone changed over the past few months?
Pedro Pizarro said affordability colors everything across the country, but in California energy is not the main driver—housing costs dominate. He noted that if there is insufficient action in 2026, credit rating downgrades for California IOUs could occur, increasing the cost of debt passed through to customers. Aaron Moss added that SCE's rating is BBB-, so there is nowhere to go in investment grade, and they will evaluate the totality of any legislative package.