EIXMEDIUM SIGNALFINANCIAL10-K

Edison International substantially increased earnings driven by higher non-core items while implementing significant changes to its wildfire self-insurance program accounting treatment.

The company's earnings grew notably in 2025, with $3.2 billion of the increase coming from non-core items related to wildfire insurance adjustments. The removal of language about not recasting pre-2023 periods suggests the company has fully transitioned to its new wildfire accounting framework, potentially providing more consistent earnings comparability going forward.

Comparing 2026-02-18 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

EIX's balance sheet strengthened with stockholders' equity growing 12.9% to $17.6 billion despite meaningfully reduced share buybacks from $200 million to $32 million. Operating cash flow improved modestly to $5.8 billion while interest expense increased substantially to $1.6 billion, reflecting higher debt levels as total liabilities grew to $74.8 billion. The significant reduction in accounts receivable alongside higher current liabilities suggests improved collection efficiency but increased near-term obligations.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
-84%
$200.0M→$32.0M

Buyback activity reduced 84% — capital being redeployed elsewhere or cash conservation underway.

Interest Expense
P&L
+37.9%
$1.2B→$1.6B

Interest expense surged 37.9% — significant debt increase or rising rates materially impacting earnings.

Accounts Receivable
Balance Sheet
-32.5%
$2.2B→$1.5B

Receivables declined — improved collection efficiency or conservative revenue recognition.

Current Liabilities
Balance Sheet
+24.8%
$8.4B→$10.5B

Current liabilities rose 24.8% — increased short-term obligations, watch current ratio.

Cash & Equivalents
Balance Sheet
-18.1%
$193.0M→$158.0M

Cash decreased 18.1% — monitor burn rate and upcoming capital needs.

Operating Cash Flow
Cash Flow
+15.7%
$5.0B→$5.8B

Operating cash flow grew 15.7% — strong conversion of earnings to cash, healthy business fundamentals.

Stockholders Equity
Balance Sheet
+12.9%
$15.6B→$17.6B

Equity base grew 12.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Liabilities
Balance Sheet
+10.2%
$67.8B→$74.8B

Liabilities increased 10.2% — monitor debt-to-equity ratio and interest coverage.

LANGUAGE CHANGES
NEW — 2026-02-18
PRIOR — 2025-02-27
ADDED
iv Table of C ontents GLOSSARY The following terms and abbreviations appearing in the text of this report have the meanings indicated below.
SCE implemented a customer-funded wildfire self-insurance program in July 2023.
With the commencement of this program, Edison International and SCE no longer consider wildfire-related claim losses to be representative of ongoing earnings and treat such costs as non-core items.
Edison International's 2025 earnings increased $3,175 million, driven by an increase in SCE's earnings of $3,270 million, partially offset by an increase in Edison International Parent and Other loss of $95 million.
SCE's higher net income consisted of $679 million of higher core earnings and $2,591 million of higher non-core earnings.
Edison International Parent and Other's higher net loss consisted of $59 million of higher core loss and $36 million of higher non-core loss.
In January and December 2025, the CPUC approved the TKM Settlement Agreement and the Woolsey Settlement Agreement, respectively.
As a result, in the year ended 2025, SCE recorded cost recoveries through CPUC electric rates authorized under both the TKM Settlement Agreement and the Woolsey Settlement Agreement.
These cost recoveries are reflected either as core earnings or non-core items, as discussed below.
This classification is consistent with the original classification when the respective costs were incurred.
REMOVED
iv Table o f Content s GLOSSARY The following terms and abbreviations appearing in the text of this report have the meanings indicated below.
Beginning July 1, 2023, SCE implemented a customer-funded wildfire self-insurance program.
With the commencement of this program, Edison International and SCE no longer consider claims-related losses for wildfires to be representative of ongoing earnings and treat such costs as non-core items.
Core earnings in periods before the third quarter of 2023 have not been recast to exclude these charges.
2 SCE and Edison International Parent and Other non-core items are tax-effected at an estimated statutory rate of approximately 28%; customer revenues (claims) for EIS insurance contract are tax-effected at the federal statutory rate of 21%.
Edison International's 2024 earnings increased $87 million, driven by an increase in SCE's earnings of $145 million, offset by an increase in Edison International Parent and Other loss of $58 million.
SCE's higher net income consisted of $97 million of higher core earnings and $48 million of lower non-core loss.
Edison International Parent and Other's higher loss consisted of $22 million of higher core loss and $36 million of lower non-core earnings.
The increase in SCE's core earnings was primarily due to higher revenue authorized in Track 4 and an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism, partially offset by higher interest expense.
The increase in Edison International Parent and Other's core loss was primarily due to higher interest expense.
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