Latest News

Edison International's profits beat estimates due to lower costs and rate increases

Edison International exceeded Wall Street expectations for the first quarter profit on Tuesday as it benefited from lower expenses for operating and interest and higher rates.

Low interest rates can reduce the borrowing costs of power companies. These companies need to borrow more money for their expenses, such as upgrading and maintaining the electric grid.

Edison's interest expenses decreased by 32.2% in the first quarter to $301 millions, while operating expenses dropped 56.2% to $1.72 billion.

As the demand for power from AI data centres, domestic manufacturing, and extreme weather conditions such as wildfires increases, it is expected that electricity bills will rise.

Southern California Edison, Edison's subsidiary, is facing numerous lawsuits alleging that its electrical equipment caused one of the largest wildfires to occur in the Los Angeles region - the Eaton Fire.

Pedro Pizarro, CEO of the company, said: "We're working closely with leaders from the state and county and communities in Altadena and Malibu on rebuilding areas affected by wildfires."

Pizarro said that the grid hardening will improve reliability by reducing exposure to extreme weather conditions such as high winds and storms.

The company confirmed its forecast of adjusted earnings for the full year 2025 in a range between $5.94 and $6.34. Analysts estimated that they would be $6.01 a share.

According to data compiled and analyzed by LSEG, the Rosemead-based California company reported an adjusted profit per share of $1.37 for the quarter ending March 31 compared with analysts’ estimates of $1.20. Reporting by Pooja menon in Bengaluru, Editing by Shailesh kuber

(source: Reuters)