Con Edison Earnings Climb as Infrastructure Spend Ramps Up

Consolidated Edison posted net income for common stock of $2.02 billion, or $5.66 per share, for 2025, up from $1.82 billion, or $5.26 per share, in 2024. On an adjusted basis, earnings rose to $5.70 per share from $5.40 a year earlier.

The utility’s performance was underpinned by rate base growth at its core subsidiaries – Consolidated Edison Company of New York (CECONY) and Orange and Rockland Utilities (O&R) – as well as continued infrastructure investment tied to grid reliability and clean energy integration.

Fourth-quarter results were softer year over year. Net income for the quarter came in at $297 million, or $0.82 per share, compared with $310 million, or $0.90 per share, in the prior-year period. Adjusted fourth-quarter EPS declined to $0.89 from $0.98, reflecting higher operating and maintenance costs, increased corporate expenses, and dilution from share issuance.

For 2026, Con Edison expects adjusted earnings per share in a range of $6.00 to $6.20. The company is targeting a five-year adjusted EPS compound annual growth rate of 6% to 7%, using the midpoint of its 2026 guidance as a baseline.

That growth outlook is anchored by a substantial capital spending program. Con Edison plans to invest approximately $6.6 billion in 2026 and $6.8 billion in 2027. Between 2028 and 2030, the company expects to deploy an additional $24.3 billion, bringing total planned capital investment through 2030 to more than $37 billion.

The spending will focus on electric transmission and distribution upgrades, gas system modernization, and projects that support electrification of buildings and transport—core pillars of New York State’s climate policy framework.

To fund the buildout, Con Edison expects to rely on a mix of internally generated cash, long-term debt issuance, and equity offerings.

The company plans to issue up to $3.2 billion in long-term debt in 2026 and up to $3.0 billion in 2027, including refinancing of maturing securities. Equity issuance is also expected, with up to $1.1 billion in common equity planned for 2026 and roughly $1.2 billion in 2027, alongside additional issuance through dividend reinvestment and employee plans.

While the capital plan supports rate base expansion and earnings growth, it also implies continued balance sheet management and potential dilution—key variables for investors monitoring returns in a higher interest-rate environment.

Operating revenues climbed to $16.9 billion in 2025 from $15.3 billion in 2024, driven primarily by higher electric and gas revenues. Operating income increased to $2.94 billion from $2.67 billion.

At CECONY, higher electric and gas rate bases and increased allowance for funds used during construction were significant contributors to year-over-year earnings growth. These gains were partially offset by higher interest expense and the dilutive impact of common share issuance.

O&R benefited from a gas base rate increase, though higher borrowing costs weighed on results.

The company also recorded charges tied to its investment in Honeoye Storage and transaction costs related to a strategic review of its interests in the Mountain Valley Pipeline and Honeoye. These items were excluded from adjusted results.

Following the 2023 sale of its Clean Energy Businesses, Con Edison has sharpened its focus on regulated transmission and distribution. Recent regulatory approvals in New York—including investment plans that increased the authorized return on equity—provide improved earnings visibility and underpin the company’s multiyear growth trajectory.

Con Edison also marked its 52nd consecutive annual dividend increase, reinforcing its appeal to income-focused investors.

As electrification accelerates across the Northeast and grid resilience becomes a policy priority, Con Edison is positioning itself as a capital-intensive but steady-growth utility, leveraging predictable rate structures to deliver mid-single-digit earnings expansion through the end of the decade.

By Charles Kennedy for Oilprice.com

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