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CONSOLIDATED EDISON INC (ED)·Q3 2025 Earnings Summary

Executive Summary

  • Solid Q3 with clean beat on consensus: EPS $1.91 GAAP / $1.90 adj vs S&P Global consensus $1.75; revenue $4.53B vs $4.22B consensus; beat driven primarily by higher electric rate base at CECONY and lower financing/tax items. Guidance narrowed to $5.60–$5.70 (non‑GAAP), the upper half of the original range . Primary EPS and revenue consensus from S&P Global shown with asterisks; see disclaimer.
  • Regulatory momentum: CECONY entered into a Joint Proposal for 2026–2028 electric and gas rate plans (subject to NYSPSC approval) with 9.40% ROE and 48% equity ratio; shaped base-rate increases and ~$17B of three‑year capital investments underpin forward rate base growth .
  • Mix/variance: CECONY contributed +$0.22 EPS YoY on higher electric rate base, lower CP interest expense, lower stock‑based comp, and lower state/local taxes; dilution from equity issuance was a partial offset (−$0.08) .
  • Key watch items: thermal energy network pilot cost inflation, weld film remediation mechanism in gas plan, and tariff/supply chain cost pressure; none materially impacted Q3 but indicate execution and regulatory risk into 2026–2028 .

What Went Well and What Went Wrong

  • What Went Well

    • “Third quarter 2025 results reflect increase in electric rate base at CECONY” and narrowed FY25 adjusted EPS guidance to $5.60–$5.70 (upper half of range) .
    • CEO: “Landmark projects…highlight growing demand for reliable energy…position[s] us to deliver strong, stable returns for investors.” CFO: “Revenue predictability…strong balance sheet…make Con Edison an attractive option for investors” .
    • EPS variance tailwinds: +$0.11 from higher electric rate base, +$0.05 lower effective tax on certain items, +$0.04 lower CP interest expense, +$0.04 lower SBC; total CECONY +$0.22 YoY .

  • What Went Wrong

    • Equity dilution −$0.08 per share YoY, reflecting earlier common issuance to fund capex .
    • O&R contributed a small headwind (−$0.01 EPS) due to lower electric base rate change in the quarter .
    • Cost and execution risks rising: UTEN pilot budgets increased materially (CECONY $415M from $255M; O&R $112M from $46M); weld film quality/remediation led to a proposed $100M 2026–2028 recovery mechanism; tariffs increased materials costs and pose supply chain risk going forward .

Financial Results

Overall performance vs prior quarters and S&P Global consensus

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Billions)$4.798 $3.595 $4.530
Revenue Consensus Mean ($USD Billions)*$4.452$3.446$4.220
GAAP EPS ($)$2.26 $0.68 $1.91
Adjusted EPS (Non‑GAAP) ($)$2.26 $0.67 $1.90
EPS Consensus Mean ($)*$2.2066$0.6580$1.7547

*Values retrieved from S&P Global

Margins and profitability (calculated from company disclosures)

MetricQ1 2025Q2 2025Q3 2025
Operating Income ($USD Billions)$1.125 $0.355 $0.968
Operating Margin (%)23.5% (calc. from )9.9% (calc. from )21.4% (calc. from )
Net Income ($USD Billions)$0.791 $0.246 $0.688
Net Margin (%)16.5% (calc. from )6.8% (calc. from )15.2% (calc. from )

Segment breakdown (Q3 2025, quarterly)

SegmentOperating Revenues ($USD Millions)Operating Income ($USD Millions)
CECONY4,181 914
O&R349 57
CET1 (1)
Other(1) (2)
Total4,530 968

Selected KPIs / Regulatory metrics (12 months ended Sep 30, 2025)

UtilityAuthorized ROEActual ROEAuthorized Equity RatioActual Equity Ratio
CECONY (Overall)9.25% 10.12% 48.00% 46.51%
O&R (Overall)9.61% 9.93% 48.00% 47.86%

Non‑GAAP note: Q3 adjusted EPS excludes −$0.01 from MVP basis accretion; Q3 2024 adjustments included HLBV effects. See reconciliation in the company’s press release/exhibit .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPS (Non‑GAAP)FY 2025$5.50–$5.70 $5.60–$5.70 Narrowed to upper half
Dividend per Share (Quarterly)Q4 2025 payable Dec 15$0.85 (quarterly run-rate) [7: Press releases prior]$0.85 declared Oct 16Maintained
CECONY Rate Plan ParametersJan 2026–Dec 2028N/A (pending)9.40% ROE, 48% equity ratio; shaped base‑rate increases (subject to NYSPSC approval)New Joint Proposal

Earnings Call Themes & Trends

Note: The company did not furnish an earnings call transcript in our document corpus for Q3 2025; thematic evolution is drawn from the Q1–Q3 earnings materials and regulatory updates.

TopicPrevious Mentions (Q1 2025 and Q2 2025)Current Period (Q3 2025)Trend
Rate base growth and regulatory outcomesQ1: O&R rate plans approved; CECONY filed/updated 2026–2028 cases . Q2: Reaffirmed FY25 EPS; NYDPS staff proposed lower electric increase/gas decrease .CECONY Joint Proposal for 2026–2028 with 9.40% ROE/48% equity; shaped increases .Positive regulatory clarity; awaiting approval.
Clean energy/major projectsQ1–Q2: Transmission completions; proactive planning approvals; electrification projects .CEO cites first all‑electric skyscraper, Queens stadium, JFK redevelopment as demand drivers .Demand signals strengthening.
Customer affordabilityEAP expansion; 14% enrollment; budgets/surcharges 2026+ .Enhanced EAP order; bill impact metrics and CLCPA cost shares disclosed .Program scope expanding; cost recovery via surcharge.
Supply chain/tariffsNoted risk monitoring in Q2 .Tariffs increased materials costs in 2025; potential disruptions if tariffs persist .Headwind risk elevated.
Thermal Energy NetworksStage 2 filings; budget increases signaled .UTEN cost increases to $415M (CECONY) and $112M (O&R) pending approval .Cost inflation risk; execution focus.
Late payment/uncollectiblesAging receivables tracked Q1–Q2 .Proposed reconciliation/deferral mechanism in Joint Proposal .Risk management via rate design improving.

Management Commentary

  • CEO Tim Cawley (Q3): “Landmark projects…highlight growing demand for reliable energy. Our proven ability to manage large, complex projects positions us to deliver strong, stable returns for investors” .
  • CFO Kirk Andrews (Q3): “The revenue predictability that our business model provides, our strong balance sheet and our investments make Con Edison an attractive option for investors” .
  • Company (Q3): “Third quarter 2025 results reflect increase in electric rate base at CECONY” and FY25 adjusted EPS guidance narrowed to $5.60–$5.70 .

Q&A Highlights

  • No Q3 2025 earnings call transcript was found in the company’s furnished documents or our database; consequently, Q&A details (analyst topics, clarifications, tone) were not reviewable. We searched for “earnings-call-transcript” for ED between Oct 1 and Nov 20, 2025 and found none [ListDocuments results: 0 for earnings-call-transcript].

Estimates Context

  • Beat vs S&P Global consensus: Q3 EPS $1.90 adj vs $1.75 consensus; revenue $4.53B vs $4.22B consensus. Q2 and Q1 also modestly exceeded EPS and revenue expectations, underscoring consistent execution . Primary EPS and revenue consensus from S&P Global shown below with asterisks.
MetricQ1 2025Q2 2025Q3 2025
Adj EPS ($)$2.26 $0.67 $1.90
EPS Consensus ($)*$2.2066$0.6580$1.7547
Revenue ($B)$4.798 $3.595 $4.530
Revenue Consensus ($B)*$4.4523$3.4458$4.2204

*Values retrieved from S&P Global

Implications: Estimate revisions for FY25 likely drift toward the high end of the range given the narrowed guidance; modeling should also reflect regulatory mechanics (decoupling, surcharges) and lower CP interest expense tailwinds quantified in Q3 variance .

Guidance Changes

See table above; key points:

  • FY25 adjusted EPS narrowed to $5.60–$5.70 (non‑GAAP), excluding MVP accretion (~−$0.03), HLBV, Clean Energy Businesses sale impacts, and any MVP/Honeoye strategic alternative impacts .
  • Dividend maintained at $0.85 quarterly; 51 consecutive years of increases per investor materials .

Key Takeaways for Investors

  • Rate base growth remains the core driver; CECONY Joint Proposal (9.40% ROE/48% equity) provides multi‑year visibility pending NYSPSC approval; watch bill shaping and surcharge components .
  • Beats were quality-driven (CECONY rate base, lower CP interest, lower SBC/taxes); dilution offset is non‑recurring until further equity needs emerge .
  • Execution risk pockets: UTEN cost increases and weld film remediation mechanisms; these appear addressable within regulatory frameworks but merit tracking for timing/cash impacts .
  • Balance sheet/financing: 2025 equity completed; term loan and revolver in place; modest long‑term debt issuance YTD at O&R; CP access supported by facilities .
  • Near‑term catalysts: NYSPSC decision on the Joint Proposal; potential NYISO STAR‑related reliability projects; NY Transco ROE settlements improving transmission returns .
  • Trading setup: Defensive, regulated earnings with narrowed guide to upper half; positive estimate momentum likely; headline risk from regulatory approvals and policy/tariff shifts remains manageable under decoupling/true‑ups .
  • Medium‑term thesis: Electrification‑driven capex with customer affordability mechanisms (EAP/EEAP) and surcharge recovery supports sustained rate base CAGR; dividend reliability continues .

S&P Global estimates disclaimer: Consensus figures marked with an asterisk (*) are retrieved from S&P Global.