Executive Summary

Q1 2025 was defined by non-core wildfire items and regulatory progress: GAAP EPS $3.73 and Core EPS $1.37; core rose year-over-year on lower interest expense from the TKM settlement, while GAAP included $2.36 of non-core items .
2025 Core EPS guidance was affirmed at $5.94–$6.34; management reiterated 5–7% Core EPS CAGR through 2028 ($6.74–$7.14) and emphasized upcoming GRC decision and securitization as key milestones .
Operating revenue of $3.811B fell vs. $4.078B YoY, but operating income expanded to $2.134B on wildfire-related recoveries under the TKM settlement; CFO cautioned the YoY comparison is not particularly meaningful pending the 2025 GRC decision and true-up .
Near-term stock catalysts: issuance of ~$1.6B securitized bonds (TKM) by year-end 2025, WMCE settlement approval (adds ~$0.10/share true-up and ~$700MM rate base), and the 2025 GRC proposed/final decision that will refresh capital/rate base and guidance .

What Went Well and What Went Wrong

What Went Well

Core EPS increased to $1.37 (vs. $1.13) on lower interest expense and ~$0.30 benefit from the TKM settlement approval; management affirmed 2025 Core EPS guidance and 5–7% long-term growth .
Regulatory momentum: CPUC unanimously approved the TKM settlement; WMCE settlement reached (awaiting approval) would authorize 100% capex and 96% O&M, add ~$0.10/share true-up earnings, and ~$700MM rate base embedded in guidance .
Strategic grid hardening plan: SCE plans to underground >150 circuit miles in Palisades/Eaton Fire areas to enhance reliability and resilience in high-risk regions. “Once constructed, this grid hardening will increase reliability and reduce the exposure of electrical distribution infrastructure to high wind and other extreme weather events” — CEO Pedro Pizarro .

What Went Wrong

Ongoing wildfire exposure: Management stated it is probable EIX/SCE will incur material losses in connection with the Eaton Fire pending litigation and investigation outcomes .
Revenue softness and higher depreciation: Operating revenue declined YoY to $3.811B, while depreciation rose to $742MM; CFO highlighted 2025 revenues are booked at 2024 authorized levels (adjusted for lower ROE) until the GRC true-up is recorded, making YoY comparisons less meaningful .
Elevated financing needs and rate-related headwinds: Parent and other core loss per share widened on higher interest expense; affordability pressures and interest rates remain risk factors cited by management .

Financial Results

Consolidated Results vs. Prior Year

Metric	Q1 2024	Q1 2025
Operating Revenue ($USD Billions)	$4.078	$3.811
Operating Income ($USD Billions)	$0.245	$2.134
Operating Margin (%)	6.0%	56.0%
GAAP Basic EPS ($)	$(0.03)	$3.73
GAAP Diluted EPS ($)	$(0.03)	$3.72
Core EPS ($)	$1.13	$1.37

Notes: Operating margin derived from operating income divided by operating revenue; CFO noted YoY comparisons are not particularly meaningful due to pending 2025 GRC decision (true-up to follow) .

EPS Contributions (SCE vs. Parent & Other)

Metric	Q1 2024	Q1 2025
SCE Basic EPS ($)	$0.17	$4.07
Parent & Other Basic EPS ($)	$(0.20)	$(0.34)
SCE Core EPS ($)	$1.33	$1.61
Parent & Other Core EPS ($)	$(0.20)	$(0.24)
Total Core EPS ($)	$1.13	$1.37

KPIs and Cash Flow

KPI	Q1 2024	Q1 2025
Cash From Operating Activities ($USD Billions)	$1.043	$1.224
Capital Expenditures ($USD Billions)	$1.279	$1.408
Long-Term Debt Issued (Gross, $USD Billions)	$2.976	$3.501
Cash & Cash Equivalents ($USD Billions, period-end)	$1.287	$1.908

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
EIX Core EPS	FY 2025	$5.94–$6.34 (as of Feb 27, 2025)	$5.94–$6.34 (as of Apr 29, 2025)	Maintained
EIX Basic EPS	FY 2025	$5.94–$6.34 (implicit; non-core items not incorporated)	$8.30–$8.70 (incorporates $2.36 non-core items recorded through 3/31/25)	Raised (reflects non-core wildfire items)
WMCE Settlement True-Up	FY 2025	N/A	~$0.10/share true-up embedded	Raised
Rate Base Addition (WMCE)	FY 2025	N/A	~$700MM embedded	Raised
Financing (TKM Securitization)	FY 2025	N/A	~$1.6B securitization application to be filed in Q2; proceeds expected by year-end	New item
Dividend Policy	Multi-year	Target payout 45–55% of SCE core earnings	Target payout 45–55% of SCE core earnings	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Wildfire liabilities & AB 1054	Not available in dataset	Not available in dataset	CPUC approved TKM settlement; Woolsey recovery schedule underway; Eaton Fire probable losses noted; AB 1054 framework engagement continues	Increasing focus on resolution and framework confidence
Grid hardening/undergrounding	Not available	Not available	Plan to underground >150 circuit miles in impacted areas; continued covered conductor and targeted undergrounding	Acceleration
Cost of capital (ROE)	Not available	Not available	2026 application filed requesting 11.75% ROE; schedule targeting PD in November	Active proceeding
2025 GRC (base rates)	Not available	Record complete	Awaiting PD; final decision retroactive to Jan 1, 2025; guidance refresh planned 6 weeks after final decision	Decision pending
Capital plan & rate base growth	Not available	Not available	Capex forecast ~$38–$43B (2023–2028); rate base growth ~6–8% CAGR; minimal equity needs in financing plan	Constructive growth backdrop

Management Commentary

“We are working closely with state and county leaders and the communities of Altadena and Malibu to rebuild wildfire-impacted areas stronger than ever… Once constructed, SCE’s grid hardening in these areas will increase reliability and reduce the exposure… to high wind and other extreme weather events” — CEO Pedro Pizarro .
“Today, Edison International reported core earnings per share of $1.37 compared to $1.13 a year ago. However, this year-over-year comparison is not particularly meaningful because SCE has not received a decision in its 2025 General Rate Case… [revenues] largely based on 2024 authorized base revenue requirements, with 2025 adjusted for the lower authorized CPUC ROE” — CEO Pedro Pizarro .
“First quarter core EPS includes about 30 cents associated with the TKM settlement approval, partially offset by higher interest expense at EIX Parent and Other” — CFO Maria Rigatti .
“SCE recently reached a settlement agreement… WMCE… would authorize 100% of the capital expenditures along with 96% of the O&M… contribute about 10 cents per share of true-up earnings and about $700 million of rate base” — CFO Maria Rigatti .
Financing plan: EIX issued $550MM senior notes; SCE issued $1.5B long-term debt; securitization application to follow TKM settlement; proceeds expected by year-end 2025 .

Q&A Highlights

Full Q&A transcript was not available in the dataset for SCE-PG; prepared remarks and presentation materials were reviewed in full .
Guidance clarifications from management in prepared remarks/presentation include: YoY comparisons not meaningful pending GRC true-up; ~$0.44 EPS impact from TKM (30¢ one-time true-up + 14¢ run-rate interest reduction); affirmation of 2025 Core EPS and long-term growth ranges .

Estimates Context

Wall Street consensus (S&P Global) for SCE-PG quarterly EPS and revenue was unavailable for Q1 2025; therefore estimate comparisons cannot be provided. Values retrieved from S&P Global.*
Actual reported consolidations: GAAP EPS $3.73, Core EPS $1.37, Operating revenue $3.811B .

Key Takeaways for Investors

The quarter’s optics are dominated by non-core wildfire items and regulatory milestones; the fundamental trajectory (Core EPS and rate base growth) remains intact with 2025 Core EPS affirmed and 5–7% CAGR reiterated .
Watch the 2025 GRC PD/final decision as the decisive near-term catalyst; management plans to refresh capital, rate base, 2025 Core EPS range, and financing plan ~6 weeks post-decision .
The TKM settlement securitization (~$1.6B) is a meaningful de-risking and funding event; proceeds expected by year-end 2025, reducing normal-course issuances and supporting rate base growth .
WMCE settlement (pending CPUC approval) adds ~10¢ true-up earnings and ~$700MM rate base; constructive for 2025 results and long-term compounding .
Eaton Fire exposure persists; management disclosed probable material losses — monitor legal/regulatory developments and “Edison for the Record” updates .
Capital deployment and electrification tailwinds underpin medium-term thesis (6–8% rate base growth); financing plan shows minimal equity needs, supporting valuation and dividend policy stability .
Near-term trading: stock likely sensitive to GRC timeline headlines and securitization pacing; medium-term, thesis rests on regulatory execution (cost of capital, Woolsey recovery, WMCE) and delivery on grid hardening/undergrounding .

Citations:

SOUTHERN CALIFORNIA EDISON Co (SCE-PG)·Q1 2025 Earnings Summary