Consolidated Edison, Inc.
ED · NYSE
Next quarter
Reports Nov 5, 2026.
Consensus is $2.15 EPS for Sep 2026 across 4 estimates, ranging $2.10 to $2.24.
ED Jun 2026
- 12.16%
- -0.89%
- $0.74
- $0.83
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Highlights
- Earnings beat: Second-quarter GAAP and adjusted EPS were $0.83, above the $0.74 consensus estimate by 12.16%, while net income rose to $308 million from $246 million.
- Utility-led growth: Revenue increased 13.2% year over year to $4.07 billion, and operating income rose 55.5% to $552 million, driven primarily by CECONY rate-base growth and rate-increase timing.
- CECONY carried the quarter: CECONY contributed $74 million, or $0.18 per share, of year-over-year earnings growth; higher electric and gas rate base and billing timing added $25 million and $23 million, respectively.
- Underlying earnings improved: Adjusted EPS increased from $0.67 to $0.83 year over year, with adjusted six-month EPS reaching $3.00 versus $2.91, excluding the MVP sale gain and other special items.
- Guidance unchanged: Con Edison reaffirmed 2026 adjusted EPS guidance of $6.00-$6.20, and said year-to-date results remain in line with expectations.
- MVP gain is now in the comparison: The first six months included a $134 million after-tax gain, or $0.37 per share, from selling Con Edison Transmission’s 6.6% Mountain Valley Pipeline interest for $357.5 million.
- Capital investment continued: Six-month utility capital expenditures rose to $2.47 billion from $2.42 billion, while operating cash flow declined to $1.97 billion from $2.82 billion.
- Funding remains active: CECONY issued $1.30 billion of long-term debt in June, and Con Edison issued $108 million of net proceeds from partial settlement of equity forwards; average shares rose to 368.8 million from 360.4 million.
- Regulatory exposure remains material: CECONY has $1.02 billion of income-tax regulatory assets tied to an ongoing NYSPSC audit, and the company faces potential prudence proceedings over electric-vehicle program reporting.
Analysis
Con Edison’s second quarter was a clear earnings beat and a stronger operating quarter, although the comparison is seasonal and the first-half GAAP result includes a one-time asset-sale gain. EPS was $0.83 versus $0.74 expected and $0.68 a year ago, while net income rose 25% to $308 million. Revenue increased 13% to $4.07 billion and operating income rose 56% to $552 million. Against the prior quarter, however, EPS fell from $2.54 and net income from $924 million, reflecting the normal difference between the winter-heavy first quarter and the second quarter.
The print was defined by rate-base growth at CECONY, disciplined operating costs and continued investment. CECONY generated $74 million of incremental earnings, with electric and gas rate-base growth and billing timing contributing $25 million and $23 million. Six-month adjusted EPS rose 3% to $3.00, while reported EPS rose to $3.37 from $2.93 because of the $134 million after-tax gain on the Mountain Valley Pipeline sale. Management reaffirmed its $6.00-$6.20 full-year adjusted EPS range. The longer-term setup remains capital intensive: utility capital spending reached $2.47 billion through June, funded partly through $1.30 billion of debt and equity issuance, while regulatory reviews and $2.14 billion of CECONY regulatory assets not earning a return remain important watchpoints.
Earnings and guidance
The quarter exceeded expectations on both reported and underlying measures. GAAP net income rose to $308 million from $246 million, and GAAP EPS increased to $0.83 from $0.68. Adjusted earnings were also $308 million, or $0.83 per share, versus $240 million, or $0.67 per share, in the prior-year quarter. The small difference between reported and adjusted earnings reflected offsetting transaction costs, HLBV accounting effects and other excluded items.
- First-half progress: Six-month GAAP net income was $1.23 billion versus $1.04 billion, while adjusted earnings were $1.10 billion versus $1.03 billion.
- Guidance: The company maintained its 2026 adjusted EPS range of $6.00-$6.20 and said results through June remain in line with expectations.
- Seasonality: Second-quarter EPS of $0.83 was below the prior quarter’s $2.54, when winter-related utility earnings produced a much stronger result.
CECONY rate-base growth
CECONY was the main operating driver. Its operating income rose to $539 million from $347 million, while net income increased to $296 million from $222 million. The company attributed the improvement mainly to higher electric and gas rate base, the timing of rate-increase billing, lower other interest expense and lower electric operations and maintenance expense.
- Electric: Higher electric rate base and rate-increase timing added $25 million, or $0.07 per share, to year-over-year earnings; lower operations and maintenance expense added another $9 million.
- Gas: Higher gas rate base and rate-increase timing contributed $23 million, or $0.06 per share.
- Cost control: CECONY other operations and maintenance expense declined to $814 million from $826 million despite revenue growth.
- Other utilities: O&R’s quarterly earnings contribution was broadly flat year over year, as rate increases were offset by higher long-term-debt interest expense.
Capital and funding
The quarter reinforced Con Edison’s capital-intensive growth model. Utility plant and construction work in progress expanded as the company invested in reliability, resilience and electrification infrastructure. Management said it expects 28 new substations to be in service by 2035, alongside tens of billions of dollars of additional capital investment.
- Capital spending: Six-month utility capital expenditures were $2.47 billion, up from $2.42 billion; total capital expenditures were $2.66 billion versus $2.36 billion.
- Operating cash flow: Six-month operating cash flow fell to $1.97 billion from $2.82 billion, partly reflecting working-capital movements and pension-related payments.
- Debt issuance: CECONY issued $450 million of 5.15% debentures due 2036 and $850 million of 5.875% debentures due 2056.
- Equity issuance: Con Edison physically settled 1.02 million equity-forward shares for approximately $108 million of net proceeds, while the average basic share count increased to 365.6 million for the first half from 354.5 million.
Transmission portfolio changes
Con Edison Transmission is now a smaller and less prominent earnings contributor after the Mountain Valley Pipeline disposition. The company completed the sale of its approximately 6.6% MVP interest in the first quarter for $357.5 million before adjustments and expenses, recording a $189 million pretax, or $134 million after-tax, gain.
- Reported impact: The MVP gain added $0.37 per share to first-half reported earnings, lifting six-month GAAP EPS to $3.37.
- Underlying comparison: Adjusted results exclude the gain, as well as $3 million of after-tax transaction costs and $3 million of after-tax MVP basis accretion.
- Remaining review: Con Edison and CECONY agreed to sell their Honeoye Storage interests for $5 million in aggregate, subject to NYSPSC approval.
Regulatory and legal watchpoints
The filing continued to highlight risks that are not reflected in the quarterly earnings beat. CECONY and O&R face regulatory scrutiny over past tax calculations, electric-vehicle program reporting and gas and steam weld oversight, with outcomes not currently estimable.
- Tax audit: CECONY carried $1.02 billion of income-tax regulatory assets related to an NYSPSC audit of historical cost-of-removal tax calculations; management believes recovery through future rates remains probable.
- EV programs: In July, the NYSPSC ordered New York utilities to show cause why it should not begin a prudence review and penalty proceeding related to electric-vehicle make-ready data deficiencies.
- Weld investigation: CECONY’s gas and steam weld review continues, with $100 million of gas revenue requirement from 2026 through 2028 subject to refund and $0.5 million of steam revenue requirement potentially subject to refund.
- Regulatory assets: Total CECONY regulatory assets were $5.56 billion at June 30, including $2.14 billion that was not earning a return.
