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Is Edison’s Lowered 2025 EPS Guidance Amid Clean Energy Spend Altering The Investment Case For EIX?

Simply Wall St·12/09/2025 20:16:02
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  • Earlier this year, Edison International reported stronger-than-expected Q3 adjusted EPS, helped by higher revenue following the 2025 GRC final decision.
  • At the same time, the company cut its fiscal 2025 core EPS guidance as higher interest expenses and heavy investment in clean energy projects weighed on its outlook.
  • Next, we’ll explore how Edison International’s lowered 2025 earnings guidance amid ambitious clean energy investments reshapes its existing investment narrative.

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Edison International Investment Narrative Recap

To own Edison International, you need to believe that long term electrification and California’s decarbonization push can offset near term earnings pressure and wildfire risk. The latest cut to 2025 core EPS guidance reinforces that higher interest costs and heavy clean energy spending are the key short term overhang, but it does not fundamentally change the central catalyst of policy supported grid and renewables investment.

Among recent announcements, the tender offers to buy back all Series A and B preferred stock stand out in light of Edison International’s rising interest expense. Retiring these higher coupon securities with on hand cash, alongside a modest common share repurchase program, ties directly into the immediate earnings story and could influence how investors weigh the trade off between elevated capex and balance sheet flexibility.

Yet against this long term decarbonization push, investors still need to be aware of the unresolved wildfire liabilities and…

Read the full narrative on Edison International (it's free!)

Edison International's narrative projects $20.4 billion revenue and $2.4 billion earnings by 2028. This requires 5.2% yearly revenue growth and a $0.2 billion earnings decrease from $2.6 billion.

Uncover how Edison International's forecasts yield a $67.37 fair value, a 20% upside to its current price.

Exploring Other Perspectives

EIX 1-Year Stock Price Chart
EIX 1-Year Stock Price Chart

Four fair value estimates from the Simply Wall St Community span roughly US$52 to US$101 per share, underscoring how far apart individual views can be. When you set these opinions against Edison International’s lower 2025 earnings guidance and heavy clean energy capex, it becomes clear why many readers may want to explore several alternative viewpoints before forming a view on the company’s longer term performance.

Explore 4 other fair value estimates on Edison International - why the stock might be worth as much as 81% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.