Edison International

Edison International is a holding company whose principal operating subsidiary is Southern California Edison (SCE), a regulated electric utility serving about 50,000 square miles across Southern, Central and Coastal California. Its other subsidiary, Edison Energy, LLC (doing business as Trio), is described as not material enough to report as a separate segment. The filings present two stories. The first is regulated growth: SCE's planned capital program and rate base projections, along with the 2025 GRC decision, lifted core earnings. The second is wildfire exposure, which dominates reported results. Management uses core earnings, a non-GAAP measure, because wildfire-related claim losses have been treated as non-core items since SCE's self-insurance program began in 2023. That treatment explains why 2025 net income of $4.46 billion, about 3.5 times the $1.28 billion reported for 2024, is best read alongside core results rather than as a run-rate. Wildfire Fund amortization of $35 million in Q1 2026 and the Eaton Fire litigation are the items to track. The MD&A notes SCE could face material fines, penalties or restitution if it failed to comply with applicable laws. The OEIS approved SCE's 2026–2028 WMP in February 2026 and issued a safety certification valid until March 2, 2027. The April 2026 CEA report under SB 254 describes possible state roles in catastrophe financing and liability reform, but the filing states Edison cannot predict whether a comprehensive solution will arrive. Readers may want to look at the Note 12 Commitments and Contingencies disclosure referenced in the MD&A for the litigation detail.

Catalyst.According to the MD&A, SCE's earnings growth is tied to its capital program. SCE forecasts total capital expenditures of $37.5 billion to $40.6 billion for 2026 through 2030, with weighted average annual rate base of $50.8 billion to $67.9 billion. Q1 2026 core earnings rose to $546 million from $528 million, primarily because of the 2025 GRC final decision adopted in the third quarter of 2025. Revenues reached $19.32 billion in 2025, up from $17.6 billion in 2024, about 9.8% higher, and operating income rose to $7.09 billion from $2.93 billion. Capital spending was $1.5 billion in each of the first quarters of 2026 and 2025.

Hidden risk.Reported net income is far more volatile than core earnings. In Q1 2026, net income available to Edison International fell $905 million to $531 million, while core earnings rose $18 million. The gap came from non-core items, mainly $1,351 million of pre-tax wildfire-related recoveries in Q1 2025, primarily tied to the TKM Settlement Agreement, compared with $13 million in Q1 2026. The Eaton Fire remains unresolved, with a Los Angeles County origin investigation, an SED investigation, and an ongoing Los Angeles District Attorney criminal inquiry. The MD&A says any fines and penalties will not be recoverable from insurance, the Wildfire Fund, or electric rates, and a bellwether jury trial is set for January 2027.