Consolidated Edison Reports 2025 Full Year and Q4 Results – Key Highlights for Investors

Overview

Consolidated Edison, Inc. (“Con Edison”) has released its financial results for the fourth quarter and full year ended December 31, 2025. Alongside its results, the company has provided forward-looking statements, regulatory updates, and details on its ongoing capital investments and dividend policy.

Key Financial Highlights

• Q4 2025 Net Income for Common Stock: \$297 million, representing earnings per share (EPS) of \$0.82 (basic and diluted).
• Q4 2024 Comparative Net Income: \$310 million and EPS of \$0.90 (basic); \$0.89 (diluted).
• Full Year 2025 Net Income for Common Stock: \$2,023 million, or \$5.66 per share (basic) and \$5.64 per share (diluted).
• Full Year 2024 Comparative Net Income: \$1,820 million, or \$5.26 per share (basic) and \$5.24 per share (diluted).
• Adjusted (Non-GAAP) Earnings Per Share, Q4 2025: \$(0.09), reflecting key adjustments for one-time and non-recurring items.
• Adjusted (Non-GAAP) EPS, Full Year 2025: \$0.21, after adjustments for gains/losses on asset sales and other non-operational items.

Major Factors Affecting Earnings

• Higher Electric Rate Base: Contributed \$97 million in additional net income for the year (EPS impact: \$0.28), and \$15 million for Q4 (EPS impact: \$0.04).
• Allowance for Funds Used During Construction (AFUDC): Added \$20 million for the year (EPS impact: \$0.06).
• Lower Other Corporate Expenses: Added \$3 million for the year (EPS impact: \$0.01).
• Higher Interest Expense: Detracted \$52 million from net income (EPS impact: \$(0.15)).
• Corporate and Parent Company Expenses: Other items, including parent company and tax equity investments, contributed \$72 million for the year (EPS impact: \$0.21).
• Gains/Losses on Asset Sales: Adjustments include the impacts from the sale of Clean Energy Businesses, with a \$51 million gain added back for the year (EPS impact: \$0.14), along with a \$3 million gain on the sale of a solar electric project (EPS impact: \$0.01).
• Impairment Losses: \$7 million impairment related to Honeoye (EPS impact: \$(0.02)).
• Transaction Costs: \$12 million in transaction costs related to the strategic alternatives review of investments in MVP and Honeoye (EPS impact: \$(0.03)).

Items Potentially Affecting Share Value

• Dividend Growth: Con Edison announced a 4.4% annualized dividend increase for 2026, marking its 52nd consecutive year of dividend growth with a 5.56% CAGR. This reaffirms the company’s status as a “Dividend King” and is highly relevant for income-focused investors.
• Regulatory Environment: The company highlights a constructive relationship with state regulators, revenue decoupling mechanisms for electric and gas operations, and formulaic approaches to return on equity, supporting revenue predictability and investment stability.
• Capital Investments: Large-scale capital investments and financing plans through 2030 are pending approval from the New York State Public Service Commission. Deviations in approval or timing could materially affect future earnings and cash flow.
• Non-GAAP Adjustments: Investors should note that reported results include several non-recurring items (e.g., asset sales, impairments, transaction costs) that significantly affect both GAAP and non-GAAP EPS. The company advises using adjusted earnings to better assess ongoing performance.
• Forward-Looking Risks: The company’s forward guidance and performance may be affected by regulatory changes, capital market access, commodity costs, supply chain disruptions, inflation, health epidemics, and other factors outside management’s control.

Other Notable Details

• Form 10-K and Investor Materials: The company’s 2025 Form 10-K and an earnings release presentation are available on its website. Investors are strongly encouraged to review the full filings for additional context, including detailed reconciliations of GAAP to non-GAAP results.
• Guidance & Outlook: Management reiterates its disciplined approach to long-term investment and steady performance, emphasizing the essential nature of reliable energy delivery in New York’s economically vital region.

Summary Table – Selected Financials

Conclusion

Con Edison’s 2025 earnings show robust full-year growth, benefiting from rate base increases and efficient financial management, while absorbing higher interest costs and one-off charges. The company’s enhanced dividend, strong regulatory standing, and ongoing infrastructure investments are positives for shareholders and potential investors. However, attention is warranted regarding regulatory approvals, non-recurring items, and broader economic risks that could influence future results and share value.

Disclaimer: This article is a summary and interpretation of Con Edison’s official SEC filings and earnings presentation. It is not investment advice. Investors should review the company’s full filings and consult their financial advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties as detailed in the company’s disclosures.

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