• Core EPS for Q4 2024: $1.05
• Full Year 2024 Core EPS: $4.93, above the midpoint of guidance
• 2025 EPS Guidance: Revised range of $5.50 to $5.90, plus $0.44 from TKM settlement
• Dividend: First Quarter 2025 common stock dividend of $0.8275 per share
• Wildfire Claims Recovery: CPUC approval to recover about $1.6 billion or 60% of pre-AB 1054 wildfire claims
• Capital and Rate Base Forecast: 6% rate base growth expected
• Dividend Increase: 6.1% increase, marking the 21st consecutive annual increase
• 2025 Core EPS Growth Target: 5% to 7% CAGR through 2028
• Additional Capital Opportunities: Increase of at least $1 billion in capital deployment opportunities

• Warning! GuruFocus has detected 9 Warning Signs with EIX.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Edison International (NYSE:EIX) reported a core EPS of $4.93 for 2024, which was above the midpoint of their guidance.
• The company has a strong track record of meeting or exceeding annual EPS guidance over the last two decades.
• Edison International (NYSE:EIX) continues to make significant progress in wildfire mitigation, having installed over 6,400 miles of covered conductor.
• The CPUC's approval of the TKM settlement agreement allows SCE to recover about $1.6 billion, signaling a constructive cost recovery framework in California.
• Edison International (NYSE:EIX) declared a first-quarter 2025 common stock dividend of $0.8275 per share, demonstrating confidence in their financial outlook.

Negative Points

• The cost of the Eaton fire remains undetermined, and the investigation is complex and ongoing.
• There is uncertainty regarding potential liabilities from the Eaton fire, which could take a long time to resolve.
• The company faces several lawsuits related to the Eaton fire, adding to the uncertainty and potential financial impact.
• Rating agencies have placed Edison International (NYSE:EIX) on negative outlook due to climate risk concerns, which could impact financing costs.
• The potential impact of wildfires on the outcome of regulatory proceedings, such as the general rate case, remains a concern.

Q & A Highlights

Q: Can you provide any indication about the potential damages from the Eaton fire and when you expect to know more? A: Pedro Pizarro, President and CEO, stated that it is too early to determine potential liabilities. The investigation is ongoing, and it could take 12 to 18 months to receive an official report from fire authorities. Establishing liability depends on legal actions by plaintiffs, which can take time.

Q: How are the legislative discussions progressing regarding wildfire fund enhancements, and what solutions are being considered? A: Pedro Pizarro mentioned that discussions are in early stages, but there is a strong understanding among policymakers about the importance of financially healthy utilities. The administration has engaged experts for financial analysis, and discussions with legislative leaders are ongoing. Multiple levers could be employed to strengthen the AB 1054 framework.

Q: What steps are being taken to strengthen and standardize the bonding process after the Eaton fire? A: Pedro Pizarro explained that SCE is always learning and improving its practices. Immediate steps were taken after the fire, such as enhancing PSPS protocols. SCE is committed to transparency and will share learnings as appropriate while balancing litigation considerations.

Q: How might the wildfires impact the outcome of the General Rate Case (GRC) and the Woolsey cost recovery proceeding? A: Maria Rigatti, CFO, stated that the GRC process is well underway, with many items already settled with interveners. The Woolsey cost recovery application is also progressing on its own path, and both proceedings are expected to continue as planned.

Q: How will potential liabilities from the January 2025 events be financed, and what role does the wildfire fund play? A: Maria Rigatti explained that the wildfire fund is designed to support claims payments and the utility's balance sheet. After using customer-funded self-insurance, SCE would access the wildfire fund, which has a streamlined process for claims, eliminating the need for debt issuance like in pre-AB 1054 fires.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.