Edison International Reports Significant Decline in Q1 2026 Financial Performance

Edison International and its subsidiary, Southern California Edison Company (SCE), reported a significant decline in financial performance for the first quarter of 2026 compared to the same period in 2025. The consolidated net income available to Edison International shareholders fell to $531 million, down from $1.436 billion in the prior year, reflecting a decrease of $905 million. This decline was primarily driven by a $948 million drop in SCE's net income, which was partially offset by a reduction in losses from Edison International Parent and Other. SCE's core earnings increased slightly to $635 million from $620 million, but this was overshadowed by a substantial decrease in non-core earnings, which fell from $947 million in 2025 to a loss of $16 million in 2026.

In terms of operational metrics, SCE's total operating revenue increased to $4.096 billion from $3.802 billion, a rise of $294 million. This increase was largely attributed to the final decision of the 2025 General Rate Case (GRC), which allowed for higher revenue recovery. However, SCE's operating income decreased significantly to $1.085 billion from $2.198 billion, primarily due to increased operating expenses, including a notable rise in interest expenses and depreciation costs. The company also recorded a substantial decrease in wildfire-related claims recoveries, which fell from $1.351 billion in 2025 to just $13 million in 2026.

Strategically, SCE continues to focus on wildfire risk mitigation, implementing a customer-funded wildfire self-insurance program initiated in 2023. This program is designed to cover costs associated with wildfire claims, which have been a significant financial burden for the company. As of March 31, 2026, SCE had recorded $1.3 billion in losses related to settlements from the Eaton Fire, which occurred in January 2025. The company anticipates seeking reimbursements from the Wildfire Fund for eligible claims related to this event, with the fund's claims-paying capacity reported to exceed $21 billion.

SCE's customer base remains stable, serving approximately 50,000 square miles across Southern California. The company reported a slight increase in customer counts, reflecting ongoing demand for electricity. However, the financial outlook remains cautious due to the potential for increased wildfire activity and associated liabilities, which could impact future earnings and operational stability. Edison International and SCE are actively engaging with stakeholders to address wildfire-related risks and are closely monitoring regulatory developments that may affect their financial recovery strategies. The company expects to continue navigating these challenges while maintaining its commitment to providing reliable electricity to its customers.