Edison International (EIX) Bundle
A Brief History of Edison International
Edison International, a leading energy provider based in California, has undergone significant transformations and developments throughout its history, particularly leading up to 2024.
Company Overview
Founded in 1887, Edison International is the parent company of Southern California Edison (SCE), which is one of the largest electric utilities in the United States. As of September 30, 2024, Edison International reported a total equity of approximately $18.1 billion.
Financial Performance
In the nine months ended September 30, 2024, Edison International's net income was reported at $1.138 billion, reflecting an increase from $986 million in the same period of 2023. The core earnings for the nine months were $1.495 billion, up from $1.335 billion in 2023.
| Period | Net Income (in millions) | Core Earnings (in millions) | Dividends Declared (Common Stock) |
|---|---|---|---|
| Q3 2024 | 516 | 582 | $0.78 per share |
| Q3 2023 | 155 | 531 | $0.7375 per share |
| 9 Months 2024 | 1,138 | 1,495 | $896 million |
| 9 Months 2023 | 986 | 1,335 | $833 million |
Major Events and Developments
In 2024, Edison International continued to face challenges associated with wildfire claims. Total pre-tax charges for wildfire-related claims for the nine months ended September 30, 2024, amounted to $490 million. The company's response included a new customer-funded wildfire self-insurance program initiated in July 2023.
Debt and Financing
As of September 30, 2024, Edison International Parent had $20 million in outstanding commercial paper with a weighted-average interest rate of 5.00%. The company has also issued several series of senior notes in 2024, totaling $4.1 billion, with varying interest rates ranging from 4.40% to 5.75%.
| Debt Series | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Series 2024A | 500 | 4.875% | 2027 |
| Series 2024B | 900 | 5.20% | 2034 |
| Series 2024C | 600 | 5.35% | 2026 |
| Series 2024D | 600 | 5.15% | 2029 |
| Series 2024E | 400 | 5.75% | 2054 |
| Series 2024F | 750 | 5.45% | 2031 |
| Series 2024G | 500 | 4.40% | 2026 |
Regulatory Environment
Edison International operates in a heavily regulated environment, primarily influenced by the California Public Utilities Commission (CPUC). The company has faced scrutiny over its wildfire management practices and has implemented measures to comply with new regulations aimed at improving safety and reliability.
Future Outlook
Looking ahead, Edison International is poised to continue evolving its business model to address both regulatory requirements and market demands, particularly in the context of renewable energy transitions and wildfire risk management.
A Who Owns Edison International (EIX)
Major Shareholders
As of 2024, the ownership structure of Edison International (EIX) includes a diverse range of institutional and individual investors. Significant shareholders encompass mutual funds, pension funds, and other institutional investors.
| Shareholder Type | Percentage Ownership | Number of Shares (millions) |
|---|---|---|
| Institutional Investors | 78.2% | 248.0 |
| Retail Investors | 21.8% | 69.0 |
| Top Institutional Shareholder (Vanguard Group) | 8.5% | 27.3 |
| Top Institutional Shareholder (BlackRock) | 6.7% | 21.4 |
| Top Institutional Shareholder (State Street Corporation) | 4.3% | 13.6 |
Board of Directors
The Board of Directors at Edison International consists of several members who hold significant shares in the company, influencing corporate governance and strategic decisions.
| Director Name | Position | Shares Held (thousands) |
|---|---|---|
| Pedro J. Pizarro | President & CEO | 150 |
| Mary A. McDonald | Director | 50 |
| David R. Johnson | Director | 30 |
| Linda A. Griego | Director | 25 |
Recent Stock Performance
Edison International's stock performance has shown resilience amid market fluctuations. The stock price as of September 30, 2024, was $61.25, reflecting a 12% increase year-to-date.
| Metric | Value |
|---|---|
| Current Stock Price | $61.25 |
| Market Capitalization | $19.5 billion |
| 52-Week High | $65.00 |
| 52-Week Low | $54.00 |
Dividends
Edison International has maintained a consistent dividend payout, with the most recent dividend declared at $0.78 per share.
| Dividend Type | Amount | Declaration Date |
|---|---|---|
| Quarterly Dividend | $0.78 | August 2024 |
| Annual Dividend Yield | 5.1% | N/A |
Ownership Trends
Recent trends indicate a shift in ownership dynamics, with increasing institutional investment as retail investor percentages decline slightly.
| Year | Institutional Ownership (%) | Retail Ownership (%) |
|---|---|---|
| 2022 | 76.5% | 23.5% |
| 2023 | 77.8% | 22.2% |
| 2024 | 78.2% | 21.8% |
Conclusion on Ownership Structure
The ownership structure of Edison International reflects a robust institutional backing, which supports its operational strategies and growth initiatives. The active participation of the board members further aligns with shareholder interests.
Edison International (EIX) Mission Statement
Company Overview
Edison International (EIX) is a leading energy provider based in California, primarily through its utility subsidiary, Southern California Edison (SCE). The company focuses on delivering reliable electric service while transitioning to cleaner energy sources.
Mission Statement
The mission statement of Edison International emphasizes its commitment to sustainability, innovation, and community engagement. The company aims to lead the transition to a clean energy future while providing safe and reliable service to its customers.
Key Components of the Mission Statement
- Commitment to Sustainability: Edison International is dedicated to reducing greenhouse gas emissions and promoting renewable energy sources.
- Customer-Centric Approach: The company prioritizes the needs of its customers, ensuring reliable and affordable electricity.
- Community Engagement: Edison International actively participates in community initiatives and invests in programs that support local economies.
Financial Performance
As of September 30, 2024, Edison International reported the following financials:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (in millions) | $516 | $155 | $361 |
| Core Earnings (in millions) | $582 | $531 | $51 |
| Total Revenue (in millions) | $6,361 | $5,943 | $418 |
| Dividends Paid (in millions) | $301 | $282 | $19 |
Transition to Clean Energy
Edison International has made significant strides in transitioning to renewable energy. The company aims to achieve a 100% clean energy portfolio by 2045. As part of this mission, Edison International has invested in various renewable projects and technologies.
Recent Developments
In 2024, Edison International filed a General Rate Case (GRC) with the California Public Utilities Commission, requesting a test year revenue requirement of approximately $10.3 billion, a 23% increase over the previous year. This increase reflects the company's commitment to infrastructure investments and improvements in service reliability.
Community and Environmental Initiatives
Edison International actively engages in community programs aimed at enhancing local economies and supporting sustainability initiatives. The company's investment in community programs reached $50 million in 2024, focusing on education, workforce development, and environmental stewardship.
Conclusion
Edison International's mission statement reflects its commitment to sustainability, customer service, and community engagement. The company's focus on transitioning to a clean energy future is supported by robust financial performance and significant investments in renewable energy projects.
How Edison International (EIX) Works
Company Overview
Edison International (EIX) is a publicly traded holding company primarily involved in the energy sector through its subsidiary, Southern California Edison (SCE). SCE is one of the largest electric utilities in the United States, providing electricity to approximately 15 million people in Southern California.
Financial Performance
As of September 30, 2024, Edison International reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| Operating Revenue | $5,201 million | $4,702 million | $499 million | $13,615 million | $12,632 million | $983 million |
| Net Income | $577 million | $212 million | $365 million | $1,138 million | $986 million | $152 million |
| Basic Earnings per Share | $1.33 | $0.40 | $0.93 | $2.45 | $2.14 | $0.31 |
| Operating Income | $995 million | $492 million | $503 million | $2,140 million | $1,836 million | $304 million |
| Interest Expense | $477 million | $433 million | $44 million | $1,401 million | $1,186 million | $215 million |
Core Earnings
For the third quarter and nine months ended September 30, 2024, Edison International's core earnings were significantly impacted by various factors:
| Core Earnings | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| SCE Core Earnings | $667 million | $613 million | $54 million | $1,739 million | $1,578 million | $161 million |
| Edison International Parent and Other | ($85 million) | ($82 million) | ($3 million) | ($244 million) | ($243 million) | ($1 million) |
| Total Core Earnings | $582 million | $531 million | $51 million | $1,495 million | $1,335 million | $160 million |
Debt and Financing
As of September 30, 2024, Edison International's debt profile and financing activities included:
| Debt Type | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Series 2024A | $500 | 4.875% | 2027 |
| Series 2024B | $900 | 5.20% | 2034 |
| Series 2024C | $600 | 5.35% | 2026 |
| Series 2024D | $600 | 5.15% | 2029 |
| Series 2024E | $400 | 5.75% | 2054 |
| Series 2024F | $750 | 5.45% | 2031 |
| Series 2024G | $500 | 4.40% | 2026 |
Cash Flows
For the nine months ended September 30, 2024, Edison International reported cash flows from various activities:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $3,844 |
| Net Cash Provided by Financing Activities | $364 |
| Net Cash Used in Investing Activities | ($4,097) |
Regulatory Environment and Wildfire Insurance Fund
Edison International operates under stringent regulatory requirements, particularly regarding wildfire risk management. The company has established a Wildfire Insurance Fund to mitigate the financial impact of wildfire claims. As of September 30, 2024, the expense related to this fund was:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Wildfire Insurance Fund Expense | $36 | $54 |
Asset Management
Edison International manages a portfolio of nuclear decommissioning trusts, with the following details as of September 30, 2024:
| Investment Type | Amortized Cost (in millions) | Fair Value (in millions) |
|---|---|---|
| Municipal Bonds | $754 | $931 |
| Government and Agency Securities | $1,098 | $1,262 |
| Corporate Bonds | $402 | $466 |
| Total Debt Securities and Other | $2,352 | $2,657 | Equity Securities | - | $1,767 |
Conclusion
Edison International continues to navigate complex regulatory landscapes while maintaining growth through strategic investments and operational efficiency. The company's financial performance reflects its ability to adapt to changing market conditions and regulatory requirements.
How Edison International (EIX) Makes Money
Business Model Overview
Edison International primarily generates revenue through its subsidiary, Southern California Edison (SCE), which provides electric utility services to over 15 million customers in Southern California. The company's revenue model is heavily regulated and relies on the California Public Utilities Commission (CPUC) for rate approval.
Revenue Streams
- Electric Utility Services: The majority of revenue comes from electricity sales, which is regulated by the CPUC.
- Wildfire Insurance Fund: A significant aspect of the business model includes the management of wildfire-related claims and insurance recoveries.
- Capital Investments: Revenue from capital improvements and infrastructure investments is also a crucial component.
Financial Performance
For the nine months ended September 30, 2024, Edison International reported a net income of $1,138 million, up from $986 million in the same period of 2023, marking a year-over-year increase of $152 million.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Net Income | $1,138 million | $986 million | $152 million |
| Core Earnings | $1,495 million | $1,335 million | $160 million |
| Total Revenue | $5,500 million | $5,200 million | $300 million |
Core Earnings and Non-Core Items
Edison International's core earnings for the third quarter of 2024 were $582 million compared to $531 million in the third quarter of 2023, reflecting an increase of $51 million. The company also recorded significant non-core items related to wildfire claims and expenses, which impacted overall profitability.
| Non-Core Item | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Wildfire Claims Expense | $485 million | $560 million | ($75 million) |
| Wildfire Insurance Fund Expense | $109 million | $159 million | ($50 million) |
| Severance Costs | $44 million | $0 million | $44 million |
Regulatory Environment
The revenue generation is significantly influenced by regulatory approvals. In 2024, SCE filed its 2025 General Rate Case application requesting a revenue requirement of approximately $10.3 billion, representing a 23% increase over the 2024 revenue.
Debt and Financing Activities
As of September 30, 2024, Edison International Parent had total debt of approximately $18,107 million, with a consolidated debt to total capitalization ratio of 0.63. The company issued $4,217 million in long-term debt during the nine months ended September 30, 2024, to support its growth and investment strategies.
| Debt Metric | Amount |
|---|---|
| Total Debt | $18,107 million |
| Long-Term Debt Issued (2024) | $4,217 million |
| Debt to Capitalization Ratio | 0.63 |
Conclusion on Revenue Sources
Edison International's revenue model is robust yet heavily regulated. The company's ability to navigate regulatory frameworks while managing wildfire-related financial impacts will be critical for its ongoing profitability and growth in the coming years.
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Article updated on 8 Nov 2024
Resources:
- Edison International (EIX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Edison International (EIX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Edison International (EIX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.