Edison International Reaffirms 2026 EPS Guidance Amid Wildfire Liability and Capital Spending Challenges

EIX reaffirmed its 2026 core earnings-per-share guidance of $5.90 to $6.20 on its third-quarter earnings call, holding its outlook despite regulatory pressure in California.

The main risk management flagged is the delay in California wildfire liability reform. Without it, the company says financing costs could rise and its utility, Southern California Edison (SCE), could be forced to curb clean energy investment during its 2029 rate case. For a utility whose growth depends on putting capital to work at allowed returns, a higher cost of capital feeds directly into earnings.

On the operating side, SCE has hardened 90% of its distribution network in high fire areas, which reduces the likelihood that its equipment starts a fire. The company plans $38-41 billion of capital spending through 2030 and says it can fund it without issuing common stock, while targeting 5-7% annual earnings growth.

What to watch: progress on wildfire liability legislation in Sacramento, how regulators treat financing costs in the 2029 rate case, and whether the capital plan stays equity-free if reform slips further.