Exelon Corporation
EXC · Nasdaq
Next quarter
Reports Nov 3, 2026.
Consensus is $0.86 EPS for Sep 2026 across 4 estimates, ranging $0.76 to $0.91.
EXC Jun 2026
- 0.00%
- +0.53%
- $0.43
- $0.43
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Highlights
- Adjusted earnings: Second-quarter adjusted operating EPS was $0.43, exactly matching consensus and up from $0.39 a year earlier.
- GAAP result: Net income was $396 million, or $0.39 per diluted share, versus $391 million and $0.39 in Q2 2025; cost-management charges reduced earnings by $42 million after tax.
- Utility earnings: ComEd adjusted earnings rose to $249 million from $228 million and BGE to $70 million from $55 million, while PECO fell to $130 million from $136 million and PHI to $126 million from $144 million.
- Rate base contribution: Distribution and transmission rates added $41 million to adjusted earnings year over year, led by ComEd's $17 million, PHI's $14 million and BGE's $12 million.
- Guidance: Exelon reaffirmed 2026 adjusted operating EPS guidance of $2.81-$2.91 and expects annualized EPS growth near the top end of its 5%-7% 2025-2029 target.
- Capital funding: Exelon had executed approximately 86% of its planned 2026 debt financings, including $1.425 billion from ComEd, $925 million from BGE and $130 million from Pepco during the quarter.
- Regulatory pipeline: BGE filed for a $156 million annual electric distribution rate increase at a requested 10.40% ROE, with a decision expected in Q1 2027.
- Operations and investment: All utilities are projecting top-quartile reliability, with ComEd and PHI in the top decile; first-half capital expenditures were $4.558 billion, up from $3.959 billion a year earlier.
Analysis
Exelon's second quarter was an in-line, rate-base-driven utility print. Adjusted operating EPS of $0.43 matched the $0.43 consensus and increased from $0.39 in Q2 2025, while GAAP EPS was $0.39. Net income rose modestly to $396 million from $391 million, and operating income increased to $979 million from $927 million. The sequential comparison was seasonally weaker: revenue declined to $5.967 billion from $7.24 billion in Q1, operating income fell from $1.60 billion and net income from $919 million, with Q1 EPS benefiting from the utility earnings cadence.
The main earnings story was higher regulated distribution and transmission returns, particularly at ComEd and BGE, partly offset by depreciation, interest and tax headwinds. ComEd and BGE together contributed $36 million of the $46 million year-over-year increase in adjusted operating earnings, while PECO and PHI declined by a combined $24 million. Exelon also used the quarter to reinforce its forward funding and regulatory setup: it reaffirmed $2.81-$2.91 of 2026 adjusted EPS, said 86% of planned debt financing was complete, and filed BGE's $156 million rate case. First-half adjusted EPS was $1.33 versus $1.31 a year earlier, supporting management's view that the full-year plan remains on track.
Earnings and guidance
The quarter met the company's operating benchmark rather than resetting it. Adjusted operating earnings rose $46 million year over year to $438 million, or $0.43 per diluted share, while GAAP net income increased $5 million to $396 million. The adjusted figure excludes $42 million after tax of cost-management charges, primarily severance, concentrated in the utilities. Exelon reaffirmed its 2026 adjusted EPS range of $2.81-$2.91 and its expectation for annualized EPS growth near the top end of 5%-7% from 2025 through 2029.
- First-half progress: Adjusted EPS was $1.33 for the first six months versus $1.31 in the prior-year period; GAAP EPS was $1.28 versus $1.29.
- Dividend: The board declared a quarterly dividend of $0.42 per share, payable September 15, 2026.
Utility earnings drivers
- ComEd: Adjusted earnings increased to $249 million from $228 million, driven by higher distribution and transmission rate base from customer investment and higher AFUDC. The unit's rate-base contribution was $17 million, partly offset by $19 million of higher operating and maintenance expense and $21 million of higher depreciation.
- PECO: Adjusted earnings declined to $130 million from $136 million. The absence of customer surcharge credits and favorable weather helped, but higher depreciation, interest expense and tax expense outweighed those benefits.
- BGE: Adjusted earnings rose to $70 million from $55 million as approved distribution rates recovered investment costs. The $12 million rate contribution was partly offset by higher credit-loss expense.
- PHI: Adjusted earnings decreased to $126 million from $144 million. Approved distribution and transmission rates added $14 million, but higher depreciation was the principal offset.
Reliability and rate cases
Exelon tied the quarter's rate-base earnings to continued reliability performance. Management said all utilities are projecting top-quartile reliability, with ComEd and PHI in the top decile, and described the associated investment recovery as supporting grid reliability and avoiding outage costs. The regulatory pipeline also moved forward, most notably at BGE.
- BGE filing: BGE requested a $156 million annual increase in electric distribution rates and a 10.40% ROE in its Maryland case filed July 2; the company expects a decision in Q1 2027 but does not assume approval as filed.
- Storage proposal: ACE filed a transmission-connected battery storage proposal with the New Jersey Board of Public Utilities.
- Demand context: ComEd large commercial and industrial deliveries increased 13.5% year over year in the quarter, although total ComEd electric deliveries rose only 1.4%.
Financing and investment
Exelon continued funding a large regulated utility investment program without changing its 2026 earnings outlook. The company said approximately 86% of planned 2026 debt financings had been executed by quarter-end. First-half capital expenditures were $4.558 billion, up $599 million from $3.959 billion in the comparable period, while operating cash flow increased to $3.669 billion from $2.711 billion.
- Debt issuance: ComEd issued $1.425 billion of first-mortgage bonds, BGE issued $925 million of notes and Pepco issued $130 million of first-mortgage bonds during the quarter.
- Balance sheet: Long-term debt was $50.313 billion at June 30, 2026, up from $47.413 billion at December 31, 2025; cash and cash equivalents were $1.813 billion versus $626 million at year-end.
- Funding gap: First-half capital expenditures exceeded operating cash flow by $889 million before financing, underscoring the role of debt issuance in supporting the investment plan.
Revenue and cost mix
Consolidated operating revenue was $5.967 billion, up from $5.427 billion in Q2 2025 but below the $7.24 billion reported in Q1. The revenue increase reflected higher utility rates and recoverable costs, though much of the top-line change was accompanied by higher purchased power and fuel. At the consolidated level, operating expenses increased to $4.988 billion from $4.502 billion, including depreciation and amortization of $968 million versus $902 million and net interest expense of $574 million versus $531 million.
- Revenue by utility: ComEd revenue rose 8.1% to $1.985 billion, PECO rose 6.2% to $1.062 billion, BGE rose 18.4% to $1.218 billion and PHI rose 8.4% to $1.712 billion.
- Operating cash flow: Six-month operating cash flow increased $958 million year over year, helped by a $787 million working-capital benefit from accounts receivable versus a $460 million use in the prior-year period.
