Edison International (EIX) reaffirms EPS growth targets after CPUC ruling

Rhea-AI Filing Summary

Edison International and Southern California Edison report that the California Public Utilities Commission has issued a final decision on SCE’s 2026 cost of capital, keeping the existing mechanism and capital structure of 43% long‑term debt, 5% preferred equity and 52% common equity. For 2026, SCE is authorized a 10.03% return on common equity and a 7.59% overall rate of return, compared with a 10.33% return on equity and 7.66% rate of return for 2025.

Following this decision, Edison International reaffirms its long‑term outlook, targeting a 5–7% compound annual growth rate in 2025–2028 core EPS, implying 2028 core EPS of $6.74–$7.14, and 7–8% annual rate base growth. The company plans $28–$29 billion of capital spending in 2025–2028 and indicates no annual equity needs over that period. It also reaffirms 2025 basic EPS guidance of $8.05–$8.30 and core EPS of $5.95–$6.20, with $2.10 per share of non‑core items already recorded through September 30, 2025. Management highlights core EPS as its primary non‑GAAP performance measure.

Insights

Utility sector and regulatory analyst

CPUC cost-of-capital decision and reaffirmed growth plan support Edison International’s long-term earnings outlook.

The CPUC’s final decision sets SCE’s 2026 authorized capital structure at 43% long-term debt, 5% preferred equity and 52% common equity, with a 10.03% return on equity and 7.59% overall rate of return. This is modestly below the 2025 authorized 10.33% return on equity and 7.66% rate of return, but maintains the same capital mix and the existing cost-of-capital mechanism.

Edison International uses this stable framework to reaffirm its long-term plan: a 2025–2028 core EPS compound annual growth rate of 5–7%, leading to 2028 core EPS of $6.74–$7.14, and a 2024–2028 rate base growth of 7–8%. It also outlines a $28–$29 billion capital plan for 2025–2028 with no annual equity needs, which, if executed as described, indicates reliance on internal cash flow and other financing sources. The reaffirmed 2025 core EPS guidance of $5.95–$6.20 and basic EPS of $8.05–$8.30 provides a concrete near-term anchor for this strategy.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 18, 2025

Commission File Number

Exact Name of Registrant as specified in its charter

State or Other Jurisdiction of Incorporation or Organization

IRS Employer Identification Number

1-9936

EDISON INTERNATIONAL

California

95-4137452

1-2313

SOUTHERN CALIFORNIA EDISON COMPANY

California

95-1240335

2244 Walnut Grove Avenue

2244 Walnut Grove Avenue

(P.O. Box 976)

(P.O. Box 800)

Rosemead,

CA

91770

Rosemead,

CA

91770

(Address of principal executive offices)

(Address of principal executive offices)

(626) 302-2222

(626) 302-1212

(Registrant's telephone number, including area code)

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ☐ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ☐ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ☐ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ☐ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Edison International:
Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, no par value			EIX			NYSE			LLC

Southern California Edison Company: None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company			Edison International			☐
Emerging growth company			Southern California Edison Company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Edison International			☐
Southern California Edison Company			☐

This current report includes forward-looking statements. Edison International and Southern California Edison Company ("SCE") based these forward-looking statements on their current expectations and projections about future events in light of their knowledge of facts as of the date of this current report and their assumptions about future circumstances. These forward-looking statements are subject to various risks and uncertainties that may be outside the control of Edison International and SCE. Edison International and SCE have no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events, or otherwise. This current report should be read with Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q. Additionally, Edison International and SCE provide direct links to Edison International and SCE presentations, documents and other information at edisoninvestor.com (Presentations and Updates) in order to publicly disseminate such information.

Item 8.01    Other Events

The information furnished in this Item 8.01 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933.

2026 Cost of Capital Final Decision

On December 18, 2025, the California Public Utilities Commission (the “CPUC”) issued a final decision authorizing Southern California Edison's ("SCE") cost of capital for 2026. The decision extends the cost of capital mechanism in its current form through this cycle. SCE’s capital structure and rate of return for 2025 and 2026 are set forth in the table below:

			2026 CPUC Authorized Capital Structure			2026 CPUC Authorized Cost of Capital			2025 CPUC Authorized Capital Structure			2025 CPUC Authorized Cost of Capital
Long-Term Debt			43.00		%	4.71		%	43.00		%	4.58		%
Preferred Equity			5.00		%	6.89		%	5.00		%	6.42		%
Common Equity			52.00		%	10.03		%	52.00		%	10.33		%
Rate of Return						7.59		%				7.66		%

Long-term Guidance

Following the CPUC decision described above, EIX is also reaffirming its guidance as follows:

•2025–2028 Core Earnings per Share (EPS) compound annual growth rate of 5–7%, resulting in 2028 Core EPS of $6.74–$7.14;

•2024–2028 compound annual rate base growth of 7–8%;

•2025–2028 capital plan of $28–29 billion;

•No annual equity needs for 2025–2028.

“With a dividend yield of approximately 6% and our long‑term core EPS growth target of 5% to 7%, Edison International offers a compelling case for total shareholder returns in the range of 11% to 13%. This combination of income and growth reflects the strength of our regulated business model and our commitment to delivering sustainable value for customers and investors,” said Pedro J. Pizarro, president and CEO of Edison International.

2025 Earnings Guidance

The company is also reaffirming its earnings guidance range for 2025, as summarized in the following chart.

			2025 Earnings Guidance																		2025 Earnings Guidance
			as of Oct. 28, 2025																		as of Dec. 18, 2025
			Low									High									Low									High
EIX Basic EPS			$			8.05						$			8.30						$			8.05						$			8.30
Less: Non-core Items*						2.10									2.10									2.10									2.10
EIX Core EPS			$			5.95						$			6.20						$			5.95						$			6.20
*There were $808 million, or $2.10 per share, of non-core items recorded for the nine months ending Sept. 30, 2025. Basic EPS guidance only incorporates non-core items until Sept. 30, 2025.

Use of Non-GAAP Financial Measures

Our management uses core earnings per share (EPS) internally for financial planning and for analysis of performance of Edison International and Southern California Edison. We also use core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to as basic EPS or core EPS also apply to the description of earnings or earnings per share.

Core EPS is a non-GAAP financial measure and may not be comparable to those of other companies. Core EPS is defined as basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EDISON INTERNATIONAL

(Registrant)

/s/ Kara G. Ryan

Kara G. Ryan

Vice President, Chief Accounting Officer and Controller

Date: December 18, 2025

SOUTHERN CALIFORNIA EDISON COMPANY

(Registrant)

/s/ Kara G. Ryan

Kara G. Ryan

Vice President, Chief Accounting Officer and Controller

Date: December 18, 2025

FAQ

What did the CPUC decide about Southern California Edison’s 2026 cost of capital?

The CPUC issued a final decision for 2026 that keeps Southern California Edison’s cost of capital mechanism and capital structure unchanged at 43% long-term debt, 5% preferred equity and 52% common equity. For 2026, SCE is authorized a 10.03% return on common equity and a 7.59% overall rate of return.

What long-term earnings growth guidance did Edison International (EIX) reaffirm?

Edison International reaffirmed a 2025–2028 core EPS compound annual growth rate of 5–7%, which corresponds to 2028 core EPS of $6.74–$7.14. It also reaffirmed 2024–2028 rate base growth of 7–8% annually.

How much does Edison International plan to invest in capital spending from 2025 to 2028?

The company projects a capital plan of $28–$29 billion for 2025–2028. It also states that it expects no annual equity needs during this period, indicating the plan is not based on new common equity offerings.

What is Edison International’s 2025 earnings guidance for basic and core EPS?

For 2025, Edison International reaffirms basic EPS guidance of $8.05–$8.30. After excluding non-core items of $2.10 per share recorded for the nine months ended September 30, 2025, the company’s core EPS guidance is $5.95–$6.20.

How does Edison International define core EPS as a non-GAAP measure?

Core EPS is defined as basic EPS excluding income or loss from discontinued operations and significant discrete items that management does not consider representative of ongoing earnings. Management uses core EPS for internal planning and to discuss performance with analysts and investors.

What does Edison International say about potential total shareholder returns?

Pedro J. Pizarro, president and CEO, highlights that with a dividend yield of approximately 6% and a long-term core EPS growth target of 5–7%, Edison International sees a case for total shareholder returns in the range of 11–13%, reflecting its regulated business model and focus on sustainable value.