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CONSOLIDATED EDISON INC (ED)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered steady regulated performance: revenue rose to $3.595B and GAAP EPS to $0.68; adjusted EPS was $0.67, both up YoY, with revenue and EPS modestly above S&P Global consensus estimates (revenue beat ≈ $0.15B; adjusted EPS beat ≈ $0.01) . Estimates from S&P Global: Revenue consensus $3.446B*, Primary EPS consensus $0.658*.
  • Guidance maintained: FY 2025 adjusted EPS reaffirmed at $5.50–$5.70; quarterly dividend declared at $0.85 per share, underscoring confidence in rate plan execution and capital program .
  • Positive regulatory/strategic developments: NYSPSC approved ~$440M for five grid projects supporting electrification; ED highlighted a forecast 8.2% utility rate base CAGR (2025–2029) and ~$38B capital investments over 2025–2029 .
  • Key YoY drivers: higher electric rate base and AFUDC (+$0.07 EPS combined), offset by higher interest expense and O&M; a notable $0.11 EPS uplift tied to NYSPSC’s 2024 billing system order accounting treatment .
  • Near-term catalysts: pending 2026 CECONY electric/gas rate outcomes (company asks: +$1.608B elec, +$349M gas; Staff testimony supports +$319M elec and -$45M gas), continued electrification investment approvals, and clarity on MVP/honeoye strategic alternatives .

What Went Well and What Went Wrong

What Went Well

  • “Strong execution of our rate plans” drove higher YoY earnings with adjusted EPS $0.67 (vs. $0.59) and GAAP EPS $0.68 (vs. $0.58); management reaffirmed FY 2025 adjusted EPS guidance .
  • CEO emphasized electrification-driven investment opportunities and completion of major transmission projects in Brooklyn and Staten Island: “These…support long-term reliability… and deliver continued strong, stable returns” .
  • Regulatory support: NYSPSC approved ~$440M urgent proactive planning projects for electrification; energy affordability program expansion ordered; Staff testimony filed on rate cases, progressing the 2026 rate setting timeline .

What Went Wrong

  • Headwinds included higher interest expense (-$0.05 EPS) and O&M related to health care and injuries/damages (-$0.02 EPS); share issuance was dilutive (-$0.03 EPS) .
  • CET variance included prior-year AFUDC tax adjustment at MVP (-$0.02 adjusted EPS YoY), partially offset by MVP accretion .
  • Customer receivables remain elevated (aged >60 days: CECONY $1.530B, O&R $26M at 6/30/25), with implications for collections strategy and liquidity despite surcharge mechanisms and caps .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Billions)$3.220 $4.798 $3.595
Reported EPS (GAAP) ($)$0.58 $2.26 $0.68
Adjusted EPS (non-GAAP) ($)$0.59 $2.26 $0.67
Operating Income ($USD Billions)$0.320 $1.125 $0.355
Net Income ($USD Billions)$0.202 $0.791 $0.246
Operating Margin (%)9.9% 23.4% 9.9%
Net Income Margin (%)6.3% 16.5% 6.8%

Segment revenue breakdown

Segment Revenue ($USD Billions)Q2 2024Q2 2025
CECONY Electric$2.370 $2.581
CECONY Gas$0.538 $0.653
CECONY Steam$0.088 $0.106
O&R Electric$0.180 $0.196
O&R Gas$0.044 $0.058
Con Edison Transmission$0.001 $0.001
Consolidated Total$3.220 $3.595

KPIs and returns

KPIQ2 2025
Authorized/Actual ROE – CECONY (Overall)9.25% / 9.75%
Authorized/Actual Equity Ratio – CECONY48.0% / 46.15%
Authorized/Actual ROE – O&R (Overall)9.49% / 10.56%
Authorized/Actual Equity Ratio – O&R48.0% / 47.65%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPS (non-GAAP)FY 2025$5.50–$5.70 (Feb 2025) (reaffirmed Q1) $5.50–$5.70 (reaffirmed Q2) Maintained
Dividend per share (quarterly)Q3 2025 payable Sept 15$0.85 (declared Jul 17, 2025) $0.85 (no change) Maintained
Capital investments (Utilities)2025–2029~$38B plan (rate-base CAGR 8.2%) ~$38B plan (rate-base CAGR 8.2%) Maintained
2025 Capex (company plan)FY 2025$5.122B (disclosed Feb 20, 2025) Ongoing execution; financing plan updated (common equity up to $1.35B in 2025; long-term debt up to $1.75B) Maintained program; financing updated

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document catalog; themes reflect press release, 8-K exhibits, and 10-Q.

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Electrification & grid investmentEmphasis on long-term capex; ~$72B 10-year plan; reliability and clean energy transition . Q1 reaffirmed electrification demand and capital intensity .NYSPSC approval of ~$440M urgent grid projects; $38B capex 2025–2029; rate base CAGR 8.2% .Strengthening regulatory support; accelerating project approvals
Rate cases & ROE2026 rate plan setup; authorized ROEs stable; dividend continuity .Company filings: +$1.608B electric, +$349M gas (Jan/Apr); Staff testimony: +$319M electric, -$45M gas; authorized vs actual ROE disclosed .Moving through testimony; outcomes a key catalyst
Customer affordability & receivablesFocus on affordability programs; receivables increased post-COVID .14% of customers enrolled in EAP; aged receivables remain elevated; EAP expansion ordered .Continued attention; program expansions underway
Regulatory/macro (tariffs, CAMT)IRA/CAMT monitored; macro/tariff risks noted .OBBBA enacted; CAMT accrual; tariff risk monitored, limited direct electricity impact to date .Policy fluid; manageable near term
MVP/Honeoye strategic alternativesMentioned as ongoing .Considering alternatives; MVP accretion noted; CET YoY variance includes prior AFUDC tax item .Evaluation ongoing

Management Commentary

  • CEO Tim Cawley: “We continue to execute on our strategy with disciplined investments…strengthen grid resilience…[electrification] presents continuing opportunities…We are optimistic about the future of our region and company.”
  • CEO on projects: “We completed construction of major transmission projects in Brooklyn and Staten Island…support long-term reliability…strong, stable returns for investors.”
  • CFO Kirk Andrews: “We secured approval to invest $440 million in five key projects that advance building and transportation electrification…provides a strong foundation for our reaffirmed 2025 earnings guidance.”

Q&A Highlights

  • A Q2 2025 earnings call transcript was not available in our document set. Management materials emphasize electrification investment approvals, disciplined capital execution, and reaffirmed EPS guidance; regulatory rate case status and customer affordability programs were highlighted across press release, 8-K exhibits, and the 10-Q .

Estimates Context

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Billions)$3.446*$3.595
Primary EPS ($)$0.658*$0.67 (adjusted EPS)

Values retrieved from S&P Global.*

Interpretation: ED posted a modest beat on revenue (≈ $0.15B) and slightly above consensus on adjusted EPS by ≈ $0.01, supportive of guidance reaffirmation.

Key Takeaways for Investors

  • Regulated growth intact: YoY EPS improvement and reaffirmed FY guidance reflect consistent execution under rate plans; electrification approvals and $38B 5-year capex pipeline support multi-year rate base growth .
  • Estimate momentum: Q2 revenue/EPS beats versus consensus, while modest, reduce downside risk and align with a maintained FY EPS range .
  • Regulatory watch: 2026 CECONY rate outcomes are pivotal (Staff supports smaller electric increase and a gas decrease); timing suggests resolution over the coming quarters—key stock driver .
  • Cost/interest headwinds: Higher interest expense and O&M pressures weighed on EPS but were offset by rate base growth and AFUDC; continued balance-sheet/funding discipline is critical (2025 financing plan completed for equity) .
  • Customer affordability & receivables: Elevated aged receivables persist; expanding EAP mitigates burden and regulatory risk—monitor collection trends and surcharge caps .
  • Strategic options at CET: MVP/Honeoye evaluations introduce optionality; MVP contributed earnings but tax/AFUDC prior-year items affected YoY; limited exposure in consolidated results .
  • Trading lens: Near-term catalysts include investor-day messaging, ongoing electrification approvals, and rate case developments; narrative skews constructive on regulated growth/returns with manageable macro-regulatory risks .

Citations: Press release and 8-K exhibits ; Q2 2025 10-Q ; Q1 2025 materials ; 2024 press release ; Dividend press .