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Utilities

Consolidated Edison

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Market Data

Financials

XBRL · SEC EDGAR

2009–2025(17yr)

Revenue

Net Income

Free CF

Metric	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$13.0B	$13.3B	$12.9B	$12.2B	$12.4B	$12.9B	$12.6B	$12.1B	$12.0B	$12.3B	$12.6B	$12.2B	$13.7B	$15.7B	$14.7B	$15.3B	$16.9B	+10.9%
Operating Income	$1.9B	$2.1B	$2.2B	$2.3B	$2.2B	$2.2B	$2.4B	$2.6B	$2.6B	$2.7B	$2.7B	$2.7B	$2.8B	$2.6B	$3.2B	$2.7B	$2.9B	+9.9%
Operating Margin	14.6%	15.9%	17.3%	19.2%	18.2%	17.1%	19.3%	21.3%	21.7%	21.6%	21.3%	21.7%	20.7%	16.7%	21.8%	17.5%	17.3%	-0.2pp
Net Income	$879.0M	$1.0B	$1.1B	$1.1B	$1.1B	$1.1B	$1.2B	$1.2B	$1.5B	$1.4B	$1.3B	$1.1B	$1.3B	$1.7B	$2.5B	$1.8B	$2.0B	+11.2%
Net Margin	6.7%	7.5%	8.2%	9.4%	8.6%	8.5%	9.5%	10.3%	12.7%	11.2%	10.7%	9.0%	9.8%	10.6%	17.2%	11.9%	12.0%	+0.0pp
Free Cash Flow	$2.5B	$2.4B	$3.1B	$2.4B	$2.4B	$2.7B	$2.8B	$2.6B	$3.0B	-$2.6B	-$542.0M	-$1.9B	-$1.2B	-$530.0M	—	—	—	—
FCF Margin	18.9%	17.7%	23.6%	20.1%	19.0%	20.5%	22.2%	21.6%	24.5%	-20.7%	-4.3%	-15.4%	-9.0%	-3.4%	—	—	—	—
EPS (Diluted)	$3.14	$3.47	$3.57	$3.86	$3.61	$3.71	$4.05	$4.12	$4.94	$4.42	$4.08	$3.28	$3.85	$4.66	$7.21	$5.24	$5.64	+7.6%

Total Debt$25.8B

Cash & Equiv.$1.6B

Net Debt$24.2B

4 min read

1. THE BIG PICTURE

Consolidated Edison is essentially a massive, state-sanctioned construction project disguised as a utility. Its entire business model is now tethered to the Climate Leadership and Community Protection Act (CLCPA), a mandate that forces Consolidated Edison to overhaul its grid for a carbon-free future. While its monopoly status in New York and New Jersey provides a guaranteed customer base, Consolidated Edison’s financial health depends on a delicate bargain: it must spend $37,100 million over five years to build this "grid of the future" while convincing regulators to let it raise rates enough to pay for it (10-K Item 1).

2. WHERE THE RISKS HIT HARDEST

Consolidated Edison’s greatest physical asset is also its most concentrated liability. Consolidated Edison operates the "single longest underground electric delivery system in the United States," a unique infrastructure advantage that creates nearly insurmountable barriers to entry (Competitive Position). However, because these assets are located in "densely populated areas," any operational failure or damage from extreme weather can trigger "unrecoverable repair costs" and "substantial liability" that insurance may not fully cover (Risks).

Furthermore, the "Clean Energy Commitment" is threatened by Consolidated Edison’s own balance sheet requirements. To fund its $37,100 million capital program, Consolidated Edison must maintain constant access to capital markets. Any "fluctuations in credit ratings" or "changing financial market conditions" could spike the cost of the $9,900 million in long-term debt it plans to issue through 2030, potentially eroding the "dividend growth" that management cites as its primary value proposition (Risks, 8-K).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company in a high-spending transition phase. While revenue grew 10.9% over the last twelve months—outpacing peers like PG&E (+2.1%)—profitability is under pressure. Fourth-quarter 2025 net income fell to $297 million from $310 million a year earlier, and adjusted EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric dropped from $0.98 to $0.89 (8-K). This divergence between rising revenue and falling quarterly profit highlights the "rigorous cost discipline" management is attempting to maintain while scaling up capital investments (8-K).

The market’s sentiment is currently cautious, evidenced by a short interest of 8.5 million shares, representing 3.1% of the float (Yahoo Finance). While Consolidated Edison’s 13.6% net margin is respectable, it trails top-tier peers like PSEG (19.5%), suggesting that Consolidated Edison’s complex, underground urban operations are structurally more expensive to run than those of its peers (XBRL).

4. IS IT WORTH IT AT THIS PRICE?

At a Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 17.2x, Consolidated Edison is trading in line with the peer median of 17.9x (Peer Benchmarking). This valuation represents a modest discount to the broader group, which is justified by Consolidated Edison's lower operating margins (19.5% vs. PEG’s 26.1%) and its massive upcoming debt requirements.

At this 17.2x multiple, the market is pricing in approximately 0.6% long-term growth (CAPM analysis). This appears to be a significant disconnect from management’s own forecast of a "five-year compounded annual adjusted earnings per share growth rate of 6% to 7%" (8-K). For the current price to be "right," an investor would have to believe that regulatory friction or rising interest rates will almost entirely negate the earnings power of the $37 billion in new infrastructure Consolidated Edison is adding to its rate base. If Consolidated Edison can deliver even half of its 6% growth target, the current valuation is highly conservative.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if the New York State Public Service Commission (NYSPSC) issues a "material penalty" or denies cost recovery for major storm restoration, which management identifies as a recurring threat to liquidity (Competitive Position).
Constructive if Consolidated Edison successfully executes its plan to issue $9,900 million in long-term debt at favorable rates, or if the "recently approved investment plans" result in a higher-than-expected authorized return on equity (8-K).

6. BOTTOM LINE

Structural Advantage: A regulated natural monopoly over the nation’s most dense urban energy market, protected by the massive capital requirements of its unique underground delivery system.

Bottom Line: Consolidated Edison is a low-growth, high-reliability utility that is currently being priced for stagnation despite a massive, state-mandated expansion of its asset base.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Regulatory Penalties and Cost Recovery: Consolidated Edison is subject to extensive oversight by federal, state, and local agencies. Regulators may impose substantial penalties for violations or prohibit the recovery of costs—including energy and storm restoration expenses—if they are deemed imprudently incurred.
Facility Damage and Operational Failure: Because Consolidated Edison operates energy facilities in densely populated areas, any failure, operational error, or damage caused by natural disasters or climate change could lead to bodily injury, property damage, and extended service interruptions. Consolidated Edison may be held responsible for costs not covered by insurance.
Cybersecurity Threats: As an operator of critical infrastructure, Consolidated Edison faces increasing risks from sophisticated cyber attacks, including ransomware and state-sponsored threats. A significant incident could disrupt operations, cause substantial revenue loss, and lead to increased regulatory penalties.
Capital Market Access: Consolidated Edison requires access to capital markets to fund its $37,100 million five-year capital expenditure program. Changes in financial market conditions or credit ratings could increase the cost of capital or limit Consolidated Edison's ability to raise necessary funds.
Rate Plan Limitations: The Utilities’ rate plans do not guarantee the recovery of costs or a specific return on equity. Changes to these plans, or the inability to obtain favorable new plans, could adversely affect Consolidated Edison's financial condition and its ability to maintain service affordability.

2. Company-Specific Risks

Dividend Dependency: Con Edison’s ability to pay dividends on common shares or interest on debt depends primarily on distributions from its subsidiaries, which are limited by the NYSPSC to 100 percent of income available for dividends on a two-year rolling average basis.
Artificial Intelligence Deployment: The use of AI technologies by Consolidated Edison or its third-party vendors introduces risks of operational interruptions or reputational damage due to flawed algorithms, biased datasets, or inadequate security practices.
Supply Chain and Inflationary Pressures: Global supply chain disruptions and shortages of critical materials—such as transformers, microchips, and vehicles—have increased costs and lead times, potentially resulting in unrecovered costs for service interruptions.
Energy Transition Impacts: The implementation of the CLCPA and New York City’s Climate Mobilization Act is expected to decrease gas and steam usage, potentially impacting the value of existing energy delivery facilities.

3. Regulatory/Legal Risks

Incentive Compensation Audit: In February 2025, the NYSPSC ordered a state-wide audit of utilities' non-executive incentive compensation programs.
Environmental Compliance: Consolidated Edison faces potential penalties from environmental agencies for failure to comply with laws and permits, and is responsible for hazardous substances like PCBs, asbestos, and coal tar present in its facilities.
FERC Authority: The Federal Energy Regulatory Commission has the authority to impose substantial penalties for violations of the Federal Power Act, the Natural Gas Act, and various reliability and cybersecurity rules.

4. Financial Impact Map

Regulatory Disallowance of Costs → Cost of Service / Net Income → Regulators may prohibit recovery of energy or storm restoration costs deemed imprudently incurred. Facility Damage/Liability → Operating Expenses / Insurance Recoveries → Potential for substantial repair costs and compensation payments not covered by insurance policies. Cyber Attack → Revenue / Operating Expenses → Potential for substantial loss of revenues and incurrence of significant response costs. Capital Expenditure Funding → Cash Flows / Debt Obligations → $37,100 million in projected five-year capital expenditures requires ongoing access to external capital markets. Rate Plan Changes → Revenue / Return on Equity → Rate plans limit the rates charged to customers and do not guarantee the recovery of costs or a specific return on equity.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
8-K	Feb 2026	—
10-K	Feb 2026	Dec 2025
10-Q	Nov 2025	Sep 2025
14A	Apr 2025	—