EDISON INTERNATIONAL (EIX)

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AI: Fair-priced

Price checkThe shares look cheap on recurring profit, but wildfire risks justify much of the discount.

The August 14 close was $71.41. Against 2026 core earnings guidance of $5.90–$6.20, management’s recurring measure excluding specified unusual items, the price is 11.5–12.1 times earnings. The $0.8775 quarterly dividend annualizes to $3.51, a 4.9% yield. Those figures look inexpensive for a stable utility, but not clearly mispriced given unbounded Eaton Fire losses and credit risk. Fair value assumes guidance holds, the dividend remains funded, and wildfire protections absorb substantial claims.

Big pictureA regulated utility provides steady demand, yet legal and regulatory events make reported profit uneven.

Revenue increased 42% from $13.58 billion in 2020 to $19.32 billion in 2025. Recurring earnings rose to $6.55 per share in 2025 from $4.93 in 2024, but 2026 guidance of $5.90–$6.20 signals some reversal of settlement-related interest and regulatory timing benefits. Supplied 2025 reported earnings of $11.55 per share therefore overstate durable profit. Electricity demand is economically defensive, but rate decisions, wildfire recoveries, weather, and financing make annual results far less steady than customer demand.

Business strengthCash generation is improving, but heavy investment and rising debt leave little financial cushion.

Operating cash reached $5.80 billion in 2025, up from $3.40 billion in 2023, but $6.52 billion of capital spending produced negative $715 million of free cash flow—cash left after running and investing in the business—before $1.27 billion of dividends. Debt climbed from $23.06 billion in 2020 to $40.39 billion in 2025; by March 2026 it was $41.55 billion against $17.32 billion of equity. Shares stayed near 385 million, and management forecasts no issuance through 2030, limiting dilution if financing assumptions hold.

What could change the storyWildfire reform and claim outcomes will decide whether regulated growth reaches shareholders.

The bull case is regulated asset growth: management projects its earning asset base rising from $50.8 billion in 2026 to $57.7–$58.1 billion in 2028, supporting 5%–7% recurring earnings growth through 2030 without planned share issuance. The bear case is Eaton: investigators attributed the fire to Edison equipment, while roughly 30,000 plaintiffs were represented in lawsuits by April 2026 and additional losses remained unquantifiable. State reform, investment-grade credit, settlements, and recovery through customer-funded self-insurance or the Wildfire Fund are the decisive variables.

$71.41 price considered

AI: News

Strong quarter, weak reactionQuarterly profit beat expectations, but wildfire financing fears overshadowed the strong operating result.

On July 30, Edison reported second-quarter recurring earnings of $1.54 per share, up from $0.97, and reaffirmed full-year guidance of $5.90–$6.20. Net income increased to $534 million from $343 million. Management also warned that absent California wildfire reform by August 31, credit downgrades could raise borrowing costs. Shares closed 6.81% lower on July 31. The timing suggests investors focused on wildfire financing, but it does not prove that warning alone caused the decline.

Investigators identify fire causeOfficials tied the Eaton Fire to Edison equipment, strengthening claims against the utility.

On August 4, Los Angeles County fire officials concluded that electrical arcing from an idle Edison transmission tower started the January 2025 Eaton Fire, which killed 19 people and destroyed more than 9,400 homes and businesses. Shares closed 3.35% lower on August 5 after falling intraday. The finding strengthens plaintiffs’ evidence on causation and potentially their settlement leverage. However, analyst actions and wildfire-reform concerns also occurred around this period, so the price move cannot be attributed solely to the report.

Tentative court reprieveA tentative court win delayed strict liability, but it did not remove Eaton losses.

On August 11, Reuters reported a tentative ruling favoring Edison against insurers seeking immediate property-loss liability without a trial. The judge declined to settle liability at that stage, preserving Edison’s argument that the disconnected tower was not infrastructure serving a public use. Shares gained 3.04% that day; the timing is consistent with relief, though not proof of causation. The ruling was preliminary and does not eliminate negligence claims, settlement costs, or the scheduled January 2027 trial process.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$19.32B	$17.60B	$16.34B	$17.22B	$14.90B	$13.58B	$12.35B	$12.66B	$12.32B	$11.87B	$11.52B	$13.41B	$12.58B	$11.86B	$10.59B	$10.00B	$12.36B	$14.11B	$12.87B
Operating income	$7.09B	$2.93B	$2.63B	$1.48B	$1.48B	$1.22B	$1.77B	−$552.0M	$1.46B	$2.06B	$2.01B	$2.47B	$1.72B	$2.29B	$2.06B	$1.82B	$1.40B	$2.56B	$2.51B
EBITDAderived	$10.33B	$5.80B	$5.26B	$4.12B	$3.77B	$3.25B	$3.58B	$1.39B	$3.57B	$4.16B	$3.93B	—	—	—	—	—	—	—	—
Net income	$4.46B	$1.28B	$1.20B	$824.0M	$925.0M	$739.0M	$1.28B	−$423.0M	$565.0M	$1.43B	$1.12B	$1.61B	$915.0M	−$183.0M	−$37.0M	$1.26B	$849.0M	$1.22B	$1.10B
Basic EPSper diluted share	$11.58	$3.33	$3.12	$1.61	$2.00	$1.98	$3.78	-$1.30	$1.73	$4.02	$3.13	$4.95	$2.81	-$0.56	-$0.11	$3.84	$2.59	$3.69	$3.33
Diluted EPSper diluted share	$11.55	$3.31	$3.11	$1.60	$2.00	$1.98	$3.77	-$1.30	$1.72	$3.97	$3.10	$4.89	$2.78	-$0.56	-$0.11	$3.82	$2.58	$3.68	$3.31

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)18$11.06M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Apr 13, 2026Form 4 · 10b5-1	Taylor Peter J.Director	SellCommon Stock	500	$75.30	$37.6K	34.2K
Mar 2, 2026Form 4	Anderson Jill CharlotteEXECUTIVE VICE PRESIDENT, SCE	SellCommon Stock	2.1K	$74.55	$157.4K	18.6K
Mar 2, 2026Form 4 · 10b5-1	Taylor Peter J.Director	SellCommon Stock	500	$74.54	$37.3K	34.7K
Feb 27, 2026Form 4	Anderson Jill CharlotteEXECUTIVE VICE PRESIDENT, SCE	SellCommon Stock	4.8K	$74.72	$356.7K	18.6K
Feb 23, 2026Form 4	Bowman Erica SVICE PRESIDENT	SellCommon Stock	1.3K	$73.88	$94.3K	3.2K

Review ownership filings at SEC.gov ↗

EDISON INTERNATIONAL (EIX)

Financial charts

Financial statements

Insider buys & sells