Executive Summary

Edison International reported Q2 2025 GAAP EPS of $0.89 and Core EPS of $0.97, down year over year on higher O&M and the net impact of regulatory decisions, while reaffirming 2025 Core EPS guidance of $5.94–$6.34 .
Operating revenue rose 4.8% YoY to $4.54B, but sequentially increased from Q1’s $3.81B as GAAP EPS fell sequentially due to the large non-core benefit booked in Q1 tied to TKM settlement accounting .
A CPUC proposed decision (PD) in SCE’s 2025 GRC would authorize $9.8B base revenue in 2025 (~93% of request) and >1,800 miles of grid hardening (shifting ~400 miles from undergrounding to covered conductor); SCE will seek revisions before a potential Aug 28 vote (earliest) .
Eaton Fire investigations remain ongoing; SCE plans a Wildfire Recovery Compensation Program to expedite community payments, with costs expected to be offset by customer-funded self-insurance and the Wildfire Fund (minimal P&L aside from small shareholder contribution), a key risk-management and liquidity point .
Catalysts: final GRC decision timing (as early as Aug 28), legislative action to enhance AB 1054, progress on TKM securitization (~$1.6B expected by year-end) and Woolsey cost recovery milestones .

What Went Well and What Went Wrong

What Went Well
- Reaffirmed 2025 Core EPS guidance ($5.94–$6.34) and 5–7% Core EPS CAGR through 2028, underpinned by rate base growth and capex visibility .
- Regulatory progress: WMCE settlement approved; final decision in WM/VM issued; GRC PD issued with $9.8B 2025 base revenue and recognition of grid-hardening effectiveness .
- Technology/operations: EEI Edison Award for SCE’s AWARE platform leveraging AI/ML to predict issues and improve restoration, supporting affordability and safety (“uses real-time grid sensor data, AI, and machine learning…”) .
What Went Wrong
- Core EPS declined YoY to $0.97 (from $1.23) principally on higher O&M and net impact of regulatory decisions; Parent & Other showed a larger loss on higher interest expense .
- The GRC PD scales back some scope (e.g., reduces targeted undergrounding by ~400 miles vs request), which SCE argues limits mitigation in the most vulnerable areas; will seek revisions .
- Eaton Fire remains an overhang: investigations ongoing; numerous lawsuits filed; no new ignition-cost disclosures; headline/legal risk persists despite expected cost recovery mechanisms .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Operating Revenue ($USD Billions)	$4.34	$3.81	$4.54
Operating Income ($USD Billions)	$0.90	$2.13	$0.78
Net Income ($USD Billions)	$0.51	$1.49	$0.40
Net Income Available to Common ($USD Billions)	$0.44	$1.44	$0.34
GAAP Basic EPS	$1.14	$3.73	$0.89
Core EPS	$1.23	$1.37	$0.97
Net Income Margin % (Computed)	11.7% (=$0.51B/$4.34B)	39.1% (=$1.49B/$3.81B)	8.8% (=$0.40B/$4.54B)

Notes: Q1 2025 included substantial non-core items from the TKM settlement, inflating GAAP metrics; revenue recognition in 2025 continues at 2024 authorized levels pending final GRC decision (true-up expected upon decision) .

Segment EPS contributions (per share)

Segment	Q2 2024	Q1 2025	Q2 2025
SCE – Basic EPS	$1.36	$4.07	$1.15
EIX Parent & Other – Basic EPS	$(0.22)	$(0.34)	$(0.26)
Total Basic EPS	$1.14	$3.73	$0.89
SCE – Core EPS	$1.45	$1.61	$1.23
EIX Parent & Other – Core EPS	$(0.22)	$(0.24)	$(0.26)
Total Core EPS	$1.23	$1.37	$0.97

KPIs and regulatory/financing datapoints

KPI	Q2 2025 Update
GRC PD – 2025 Base Revenue Requirement	$9.8B (93% of request)
Grid Hardening Scope	>1,800 miles authorized; ~400 miles shifted to covered conductor from undergrounding
WMP (2026–2028) Investment Plan	~$6.2B plan across covered conductor, targeted undergrounding, technology, vegetation management, PSPS
WMCE Settlement / WM-VM Decision	WMCE: >$300M O&M and $700M capex authorized; WM/VM: ~$290M O&M + $99M capex authorized; ~$65M O&M disallowed
TKM Securitization	~$1.6B securitization PD issued; final decision expected August; proceeds expected by year-end 2025
Capex Program (2023–2028)	~$38–$43B range case
Total Company Rate Base (PD vs SCE plan)	2025 PD $48.5B vs SCE $49.4B; 2028 PD $56.3B vs SCE $60.6B

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
EIX Core EPS	FY 2025	$5.94–$6.34 (Apr 29)	$5.94–$6.34 (Jul 31)	Maintained
EIX Basic EPS	FY 2025	$8.30–$8.70 (Apr 29)	$8.22–$8.62 (Jul 31)	Lowered ($0.08 at low/high), reflecting updated non-core to date
Non-Core Items (YTD reflected in guidance)	FY 2025	$2.36/sh (to 3/31/25)	$2.28/sh (to 6/30/25)	Reduced by $0.08/sh

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Eaton Fire	Investigation ongoing; probable losses; launched “Edison for the Record” for factual clarity	Investigations ongoing; no new ignition/cost disclosures; launch of Wildfire Recovery Compensation Program this fall to expedite claims	From assessment to execution of compensation program; continued uncertainty on costs
AB 1054 / Legislative	Engaging with Governor and legislators to enhance framework; confident in need to strengthen wildfire framework	“Confident that legislative action will ultimately enhance… AB 1054” in current session	Maintained confident tone; urgency reiterated
2025 GRC	Awaiting PD; optimistic first-half PD with true-up post decision	PD issued: $9.8B base revenue; >1,800 miles hardening; SCE will seek revisions; earliest vote Aug 28	Milestone achieved; advocacy phase before final vote
Affordability	General emphasis on cost management	Warns securitizing capital “may… raise customer costs” via credit impact; proposes right-sizing programs and streamlining siting/permitting	Sharper stance on affordability levers
Tech/AI (AWARE)	Not highlighted	EEI Edison Award for AWARE AI/ML predictive platform benefiting safety, reliability, affordability	New positive theme
Cost Recovery / TKM & Woolsey	TKM settlement approved; filing securitization; Woolsey schedule set	TKM securitization PD issued; final decision targeted Aug; Woolsey proceeding moving toward potential settlement/stipulations	Progress toward balance-sheet de-risking

Management Commentary

Pedro Pizarro (CEO) on AB 1054: “We remain confident that policymakers will act to strengthen and restore confidence in California’s wildfire framework during the current legislative session.”
On Eaton Fire/community support: “The program will provide direct payments to eligible individuals and businesses… [to] minimize overall cost by mitigating… interest expense and inflation.”
On GRC PD and investments: “The PD would authorize base revenue of $9.8 billion… [and] supports significant capital investments in wildfire mitigation, grid modernization, and infrastructure replacement.”
On AI/ML (AWARE): “AWARE… uses real-time grid sensor data, AI, and machine learning to proactively predict potential system issues and pinpoint where failures take place… Customers benefit from higher safety and reliability… and higher affordability.”
Maria Rigatti (CFO) on Eaton Fire accounting: “As SCE resolves claims, we would not expect to see actual or estimated costs run through the income statement… [offset by] customer-funded self-insurance… and the Wildfire Fund.”
On GRC PD trajectory: If adopted, 2025–2028 base rate revenue requirements would be ~$9.8B, $10.2B, $10.6B, and $11.0B, generally in line with the range case for rate base growth .

Q&A Highlights

A full Q&A transcript was not available in our source set; highlights above reflect prepared remarks (EX-99.2) furnished with the 8‑K .

Estimates Context

S&P Global consensus for SCE-PG was not available in our data pull; the reporting entity for consolidated results is Edison International (EIX), and Street estimates typically track EIX. As such, beat/miss versus consensus for SCE-PG cannot be assessed here. SCE management reaffirmed 2025 Core EPS guidance and long-term CAGR targets, which anchor investor expectations absent Street consensus .
We attempted to retrieve quarterly EPS and revenue consensus; no EPS consensus was returned, and the service returned actuals (not estimates) for revenue, confirming the lack of usable Street benchmarks for SCE-PG in this period.

Key Takeaways for Investors

Reaffirmed 2025 Core EPS and 5–7% long-term CAGR underpin the equity story; the GRC PD, while constructive, still requires revisions SCE deems necessary on undergrounding and infrastructure scope .
Near-term stock catalyst: final CPUC vote on the GRC PD (earliest Aug 28) and the magnitude of any revisions SCE secures in comments/oral argument .
Legislative overhang is two-sided: credible management confidence in AB 1054 enhancements, but timing and specifics remain a swing factor for valuation multiples and risk premiums .
Wildfire liabilities remain a headline risk, but the planned Recovery Compensation Program and AB 1054 mechanisms (self-insurance/Wildfire Fund) should limit P&L and liquidity impacts, contingent on efficient reimbursements .
Balance sheet and funding: TKM securitization (~$1.6B) expected by year-end 2025 would offset debt needs and support metrics; Woolsey recovery path is advancing, with potential settlement steps in August .
Strategic technology edge (AWARE) and sustained rate base investment (~6–8% growth 2023–2028) continue to support long-term earnings and dividend capacity, with affordability a focal constraint guiding CPUC outcomes .

Appendix: Source Documents Read

Q2 2025 8-K 2.02 including EX-99.1 (press release), EX-99.2 (prepared remarks), EX-99.3 (presentation) filed July 31, 2025 .
Q1 2025 8-K 2.02 including EX-99.1/2/3 filed April 29, 2025 for trend references .

SOUTHERN CALIFORNIA EDISON Co (SCE-PG)·Q2 2025 Earnings Summary