Edison International Reports Q2 Earnings Decline Amid Wildfire Challenges

Edison International reported a decline in its second-quarter 2025 earnings, with GAAP EPS falling to $0.89 and core EPS to $0.97, compared to higher figures last year. The drop is attributed to increased operational expenses, wildfire-related claims, and regulatory challenges, including ongoing investigations into the Eaton Fire and efforts to enhance California's wildfire regulatory framework. Despite these setbacks, the company reaffirmed its 2025 core EPS guidance of $5.94 to $6.34 and expressed confidence in achieving 5-7% core EPS growth through 2028. Analysts maintain a positive outlook, with a consensus 'Outperform' rating and price targets suggesting potential stock upside of over 27%. Edison is actively investing in wildfire mitigation and infrastructure resilience, while also engaging with legislative leaders to strengthen regulatory measures. Financial risks remain due to high leverage and negative free cash flow, but the company's strong valuation, dividend yield, and strategic initiatives support its long-term prospects.