EIX

Utilities

Edison International

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2007–2025(19yr)

Revenue

Net Income

Free CF

Metric	FY 2007	FY 2008	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	$12.9B	$14.1B	$12.4B	$12.4B	$12.8B	$11.9B	$12.6B	$13.4B	$11.5B	$11.9B	$12.3B	$12.7B	$12.3B	$13.6B	$14.9B	$17.2B	$16.3B	$17.6B	$19.3B	+9.8%
Operating Income	$2.5B	$2.6B	$1.4B	$2.1B	$320.0M	$2.3B	$1.7B	$2.5B	$2.0B	$2.1B	$1.5B	-$552.0M	$1.8B	$1.2B	$1.5B	$1.5B	$2.6B	$2.9B	$7.1B	+142.1%
Operating Margin	19.5%	18.2%	11.3%	17.1%	2.5%	19.3%	13.6%	18.4%	17.4%	17.6%	12.1%	-4.4%	14.4%	9.0%	9.9%	8.6%	16.1%	16.6%	36.7%	+20.1pp
Net Income	$1.1B	$1.2B	$849.0M	$1.3B	-$37.0M	-$183.0M	$915.0M	$1.6B	$1.1B	$1.4B	$565.0M	-$423.0M	$1.3B	$739.0M	$925.0M	$824.0M	$1.2B	$1.3B	$4.5B	+247.3%
Net Margin	8.5%	8.6%	6.9%	10.1%	-0.3%	-1.5%	7.3%	12.0%	9.7%	12.0%	4.6%	-3.3%	10.4%	5.4%	6.2%	4.8%	7.3%	7.3%	23.1%	+15.8pp
Free Cash Flow	$418.0M	-$563.0M	-$237.0M	-$1.1B	-$902.0M	-$815.0M	-$396.0M	-$658.0M	$284.0M	-$478.0M	-$241.0M	-$1.3B	-$5.2B	-$4.2B	-$5.5B	-$2.6B	-$2.0B	-$693.0M	-$715.0M	-3.2%
FCF Margin	3.2%	-4.0%	-1.9%	-8.6%	-7.1%	-6.9%	-3.1%	-4.9%	2.5%	-4.0%	-2.0%	-10.5%	-42.0%	-31.1%	-36.9%	-14.9%	-12.5%	-3.9%	-3.7%	+0.2pp
EPS (Diluted)	$3.31	$3.68	$2.58	$3.82	$-0.11	$-0.56	$2.78	$4.89	$3.10	$3.97	$1.72	$-1.30	$3.77	$1.98	$2.00	$1.60	$3.11	$3.31	$11.55	+248.9%

Total Debt$38.0B

Cash & Equiv.$158.0M

Net Debt$37.8B

4 min read

1. THE BIG PICTURE

Edison International is essentially a regulated proxy for California’s climate and legal environment. As a holding company with no operations of its own, its ability to pay its 5.0% dividend yield is entirely captive to Southern California Edison’s (SCE) ability to harden the power grid and recover those costs from a regulatory commission that recently denied half of its requested funding for grid readiness.

2. WHERE THE RISKS HIT HARDEST

Edison International’s infrastructure scale—including 7,000 miles of newly protected conductors—is threatened by regulatory disallowance. While Edison International is investing heavily in wildfire mitigation, the CPUC recently denied 50% of SCE’s request for upfront funding for its Transportation Electrification Grid Readiness program (10-K Item 1). This creates a dangerous lag between spending capital and recovering it.

Furthermore, the regulatory framework provided by California’s Wildfire Legislation (AB 1054) is undermined by the legal theory of inverse condemnation. Even if Edison International complies with all safety certifications, it can still be held strictly liable for property damage (10-K Item 1A). If wildfire claims exhaust the state-backed Wildfire Fund, Edison International’s "Liability Cap" disappears, leaving its $19.3 billion revenue stream vulnerable to uncapped legal claims.

3. WHAT THE NUMBERS SAY TOGETHER

Edison International operates with significantly higher efficiency than its peers, leading the group in gross margin (57.8%), operating margin (27.6%), and free cash flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin (2.9%) (XBRL). However, these superior margins are decoupled from its valuation. While it is the most efficient operator in the cohort, it carries a $37.9 billion net debt load, resulting in a net leverage ratio of 67.7x its annual FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders.

The most recent quarterly results show a massive jump in net income to $4.80 per share, up from $0.88 a year ago. This divergence is not structural; it was driven by one-time cost recoveries from the Woolsey Settlement and revenue recognition from the 2025 General Rate Case (8-K). Management’s long-term target of 5-7% core EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth is a more reliable indicator of Edison International's trajectory than this recent spike. Sentiment remains cautious, with short interest at 4.1% of the float, likely reflecting concerns over Edison International's dependency on upstream distributions from SCE to service its parent-level obligations.

4. IS IT WORTH IT AT THIS PRICE?

At a 10.9x 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, Edison International trades at a 39% discount to the peer median of 17.9x.

At this multiple, the market is pricing in approximately 0.5% long-term growth (CAPM analysis). This is a remarkably pessimistic valuation compared to management’s guidance of 5-7% core EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth through 2030 (8-K). The discount is "justified" by the existential nature of its risks; for the current price to be "right," one must assume that either the Wildfire Fund will be exhausted by prior claims or that regulators will become increasingly hostile toward cost recoveries. If Edison International successfully executes its Wildfire Mitigation Plans and maintains its safety certifications, the stock appears attractively valued relative to its peer-leading margins.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if the California Wildfire Fund is significantly depleted by claims from other state utilities, as SCE cannot benefit from the Liability Cap once the fund is exhausted.
Constructive if future General Rate Case decisions approve a higher percentage of requested capital expenditures, reducing the "regulatory lag" that currently pressures liquidity.
Cautious if credit ratings are downgraded, as Edison International relies on continuous access to capital markets to fund the remaining 10% of its planned grid hardening (8-K).

6. BOTTOM LINE

Structural Advantage: A regulated monopoly position in Southern California protected by a state-legislated "presumption of prudency" for wildfire costs, provided it maintains strict safety compliance.

Bottom Line: Edison International offers the best margins in its peer group and an attractive 5.0% yield, but it remains a high-risk play on California’s ability to manage its wildfire crisis without bankrupting its utilities.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Liquidity and Dividend Dependency: Edison International is a holding company with no material operations of its own; its ability to pay dividends and meet financial obligations depends entirely on SCE’s earnings, cash flows, and upstream distributions.
Wildfire Liability: SCE faces strict liability for property damage from wildfires under the theory of inverse condemnation, which can lead to significant damage claims that may not be fully covered by insurance or the Wildfire Fund.
Regulatory Cost Recovery: SCE’s financial results depend on the CPUC and FERC allowing the timely recovery of costs and a reasonable rate of return; regulators may deny recovery if they determine costs were not prudently incurred.
Wildfire Fund Exhaustion: The California Wildfire Legislation provides a fund to mitigate utility liability, but SCE will not benefit from this fund or the Liability Cap if the fund is exhausted by prior claims.
Capital Market Access: Both Edison International and SCE rely on access to bank and capital markets to fund operations and infrastructure; wildfire-related risks and credit rating downgrades can constrain this access or increase financing costs.

2. Company-Specific Risks

Nuclear Decommissioning: SCE faces execution and financial risks related to the decommissioning of San Onofre, including the potential insufficiency of nuclear decommissioning trust funds and the risk that additional contributions may not be recoverable through rates.
Catalina Island Operations: SCE operates water and propane gas distribution systems on Catalina Island; these systems involve hazardous risks, and the potential denial of CPUC approval to include these costs in electric rates could impact financial results.
Concentration Risk: Substantially all of Edison International’s business activities are concentrated in the electric utility industry within southern and central California, making performance uniquely sensitive to regional economic factors and California-specific judicial decisions.
Grid Modernization and Technology: SCE’s transition to a more network-connected grid increases the "threat surface" for cyber and physical attacks, and the failure of new technologies to perform as designed could disrupt critical business functions.

3. Regulatory/Legal Risks

CPUC Citation Authority: The CPUC can issue citations for safety violations with fines of up to $100,000 per violation per day, capped at $8 million, though the CPUC may issue fines exceeding this amount outside of the citation program.
Public Safety Power Shutoff (PSPS): SCE faces regulatory fines, penalties, and reputational harm if it is determined that Edison International placed excessive reliance on PSPS or failed to comply with notification and reporting requirements.
Nuclear Liability Limits: Federal law limits public liability for a nuclear incident to approximately $16.3 billion for Palo Verde and $560 million for San Onofre; there is no assurance that the CPUC would allow recovery of costs associated with loss-sharing programs if claims exceed private insurance limits.
Transportation Electrification Funding: In the 2025 GRC final decision, the CPUC denied 50% of SCE’s requested upfront funding for its Transportation Electrification Grid Readiness program, citing market uncertainty and customer affordability concerns.

4. Financial Impact Map

Liquidity and Dividend Dependency → Cash and Cash Equivalents / Retained Earnings → Edison International may be unable to pay dividends to shareholders or meet financial obligations if SCE does not make upstream distributions.

Wildfire Liability → Operating Expenses / Insurance Reserves → Uninsured wildfire-related costs that are not recoverable through rates or the Wildfire Fund could materially affect financial condition.

Regulatory Cost Recovery → Revenue / Net Income → The CPUC or FERC may disallow the recovery of costs if they are deemed not reasonably or prudently incurred, directly impacting earnings.

Wildfire Fund Exhaustion → Contingent Liabilities → If the Wildfire Fund is exhausted, SCE loses the benefit of the Liability Cap, potentially exposing Edison International to claims exceeding available insurance or rate-recovery mechanisms.

Capital Market Access → Long-term Debt / Interest Expense → Increased costs of accessing capital markets due to wildfire risk or credit rating downgrades can increase the cost of refinancing debt and funding infrastructure investments.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

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