Business Context and Reporting Period
Company: Consolidated Edison, Inc. (Con Edison) and its wholly-owned subsidiary, Consolidated Edison Company of New York, Inc. (CECONY).
Reporting Period: Fiscal year ended December 31, 2025.
Operations: Con Edison is a holding company owning regulated utilities (CECONY and Orange & Rockland Utilities, Inc. [O&R]) and Con Edison Transmission. CECONY provides electric, gas, and steam service in New York City and Westchester County. O&R serves southeastern New York and northern New Jersey. Con Edison Transmission invests in electric transmission projects and joint ventures.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Operating Revenues | $16,918 million | $15,256 million |
| Net Income for Common Stock | $2,023 million | $1,820 million |
| Earnings Per Share (Basic) | $5.66 | $5.26 |
| Adjusted Earnings (Non-GAAP) | $2,038 million | $1,868 million |
| Adjusted EPS (Non-GAAP) | $5.70 | $5.40 |
| Capital Expenditures | $4,996 million | $4,728 million |
| Long-Term Debt | $25,551 million | $24,651 million |
| Common Equity Ratio | 48.6% | 47.1% |
| Cash Flow from Operating Activities | $4,800 million | $3,614 million |
Material Changes vs. Prior Period
- Earnings Growth: Net income increased $203 million (11.2%) primarily driven by higher electric and gas rate bases at CECONY, higher income from allowance for funds used during construction (AFUDC), and lower corporate expenses. This was partially offset by higher interest expense.
- Revenue Increase: Operating revenues rose $1,662 million, largely due to higher purchased power and gas costs passed through to customers, as well as rate plan adjustments.
- Segment Performance:
- CECONY: Net income increased $158 million. Electric operating income rose $224 million due to rate plan increases and higher purchased power expenses. Gas operating income was relatively flat.
- O&R: Net income increased $4 million, driven by a gas base rate increase offset by higher interest expense.
- Con Edison Transmission: Net income decreased $31 million due to transaction costs for strategic alternatives reviews, impairment losses on the Honeoye investment, and tax remeasurements related to the Mountain Valley Pipeline (MVP) investment.
- Dividends: Quarterly dividends increased from 83 cents per share in 2024 to 85 cents per share in 2025. A quarterly dividend of 88.75 cents was declared in January 2026.
Guidance, Outlook, and Risks
Capital Requirements and Financing
Con Edison plans to meet capital requirements for 2026–2030 through internally generated funds, long-term debt, and common equity issuances.
- Capital Expenditures: Utilities expect to invest $6.5 billion to $8.6 billion annually from 2026 to 2030. Con Edison Transmission expects to invest $17 million to $213 million annually.
- Financing Plans: Plans include issuing up to $3.2 billion of long-term debt in 2026 and up to $1.1 billion of common equity in 2026. Aggregate long-term debt issuance is projected at $9.9 billion for 2028–2030.
Regulatory Developments
- Rate Plans: In January 2026, the NYSPSC approved new electric and gas rate plans for CECONY (2026–2028). Electric rates will increase by $222 million in 2026, $473 million in 2027, and $329 million in 2028. Gas rates will see a decrease of $46 million in 2026, followed by increases of $170 million and $93 million in 2027 and 2028.
- Steam Rates: CECONY filed a request for a $66 million steam rate increase effective November 1, 2026.
- Income Tax Audit: The NYSPSC continues an audit of the Utilities' financial accounting for income taxes regarding plant retirement-related cost of removal. The understatement amount may be material, but no liability has been accrued as management believes recovery is probable.
Strategic Transactions
- MVP Sale: Con Edison Transmission completed the sale of 40% of its interest in Mountain Valley Pipeline (MVP) in January 2026 and expects to sell the remaining interest in the first half of 2026 for total aggregate consideration of $357.5 million.
- Honeoye: Con Edison Transmission and CECONY are considering strategic alternatives for their investments in Honeoye Storage Corporation.
Risks and Contingencies
- Environmental Liabilities: Significant potential liabilities exist for Manufactured Gas Plant (MGP) sites, the Astoria site, and Superfund sites (Gowanus Canal, Newtown Creek). Estimated undiscounted potential liability for MGP sites ranges from $645 million to $2,550 million (CECONY) and $98 million to $160 million (O&R).
- Accounts Receivable: Aged accounts receivable (over 60 days) totaled $1,427 million for CECONY and $27 million for O&R at year-end 2025, impacting liquidity.
- Climate Change: Physical risks from extreme weather and transition risks from decarbonization mandates (CLCPA) require significant capital investment and may impact demand for gas and steam.
Investor Verification Checklist
- Rate Case Outcomes: Verify the final implementation of the 2026–2028 CECONY electric and gas rate plans and the status of the steam rate increase request.
- Income Tax Audit Resolution: Monitor the NYSPSC audit regarding income tax accounting for plant retirement costs to assess potential regulatory asset write-downs.
- Capital Expenditure Execution: Track actual capital spending against the $6.5 billion–$8.6 billion annual guidance for 2026–2030, particularly regarding grid modernization and clean energy transition.
- Accounts Receivable Recovery: Assess the trend in aged accounts receivable and the effectiveness of collection strategies to mitigate liquidity risks.
- Environmental Liabilities: Review updates on remediation costs for Gowanus Canal, Newtown Creek, and MGP sites, as estimates are subject to significant change.
- MVP and Honeoye Transactions: Confirm the closing of the remaining MVP interest sale and the outcome of strategic alternatives for Honeoye.