Exelon Q4 Earnings Beat Estimates, Sales Miss, Capex Plan Up

Exelon Corporation’s EXC fourth-quarter 2025 earnings of 59 cents per share surpassed the Zacks Consensus Estimate of 53 cents by 11.3%. The bottom line decreased 7.8% from the year-ago level of 64 cents.

Utility earnings were higher, primarily due to distribution and transmission rates at ComEd and PHI, distribution rates at PECO and BGE, higher AFUDC at ComEd, favorable weather at PECO, and impacts of the multi-year plan reconciliation at BGE. These positives were partially offset by higher income taxes, contracting costs, depreciation expense, and the absence of the storm cost deferral at PECO, higher contracting costs at PHI, higher interest expense at PECO and BGE and the timing of distribution earnings at ComEd.

On a GAAP basis, earnings were 58 cents per share, which decreased 9.4% from the year-ago quarter’s 64 cents.

Adjusted earnings per share in 2025 were $2.77 compared with $2.50 in 2024, which reflects a year-over-year increase of 10.8%.

Total Revenues of Exelon

Exelon reported revenues of $5.41 billion, which missed the Zacks Consensus Estimate of $5.54 billion by 2.3%. The top line also decreased 1.1% from the year-ago figure of $5.47 billion.

In 2025, total revenues were $24.26 billion, up 5.3% year over year.

Highlights of Exelon’s Q4 Release

In the reported quarter, the company served more customers than in the year-ago quarter. Total electric deliveries touched 86,585 gigawatt hours in 2025, up 2.7% from the year-ago period, primarily due to higher volumes sold to most of the customer group.

Due to revenue decoupling, Exelon’s distribution earnings were not affected by actual weather or customer usage patterns.

Exelon's total operating expenses decreased 3.3% year over year to $4.23 billion.

Operating income amounted to $1.19 billion, up 8% year over year.

Interest expenses totaled $550 million, up nearly 17.8% from the year-ago quarter’s level.

In the reported quarter, adjusted net income was $593 million compared with $647 million in the year-ago quarter.

Segmental Details of EXC

Commonwealth Edison Company (ComEd): Adjusted earnings in the fourth quarter were $252 million, up 3.7% from the year-ago quarter. The year-over-year rise was due to incremental investments to serve customers and an increase in allowance for funds used during construction (AFUDC).

PECO Energy Company (“PECO”): Adjusted operating earnings for the reported quarter decreased 17.3% year over year to $162 million, primarily due to an increase in income taxes due to tax repairs, the absence of the storm cost deferral, a rise in contracting costs, and an increase in depreciation and interest expenses.

Baltimore Gas and Electric Company (“BGE”): Adjusted earnings for the quarter improved 3.4% year over year to $181 million due to higher distribution rates associated with updated recovery of investments to serve customers and the impacts of the multi-year plan reconciliation.

Pepco Holdings LLC (“PHI”): Adjusted operating earnings for the quarter increased 29.5% year over year to $171 million due to higher distribution and transmission rates driven by updated recovery of investments to serve customers.

EXC’s Financial Highlights

Cash and cash equivalents totaled $626 million as of Dec. 31, 2025 compared with $357 million as of Dec. 31, 2024.

Long-term debt was $47.41 billion as of Dec. 31, 2025 compared with $42.95 billion as of Dec. 31, 2024.

Cash provided by operating activities in 2025 totaled $6.25 billion compared with $5.57 billion in the year-ago period.

Guidance by Exelon

Exelon expects earnings in the range of $2.81-$2.91 per share for 2026, implying more than 6% growth from the 2025 guidance. The Zacks Consensus Estimate for the same is pinned at $2.83, which is at the lower end of the company’s guided range. The company expects its adjusted (non-GAAP) operating EPS compounded annual growth near the top end of 5-7% through 2029.

Exelon will be making $41.3 billion of critical investments in its energy infrastructure during 2026-2029.

Zacks Rank of Exelon

Exelon has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

NextEra Energy, Inc. NEE reported fourth-quarter 2025 adjusted earnings of 54 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 1.9%. The bottom line was also up 1.9% year over year.

In the fourth quarter, NextEra Energy’s operating revenues were $6.5 billion, which missed the Zacks Consensus Estimate of $6.52 billion by 0.33%. The top line improved 20.7% year over year.

CMS Energy Corporation CMS reported fourth-quarter 2025 earnings per share of 95 cents, which topped the Zacks Consensus Estimate of 94 cents by 1.3%. The bottom line also increased 9.2% from 87 cents in the prior-year quarter.

Operating revenues totaled $2.23 billion, which outpaced the Zacks Consensus Estimate of $2.11 billion by 5.9%. The top line also increased 12.3% from $1.99 billion in the prior-year quarter.

WEC Energy Group WEC reported fourth-quarter 2025 earnings of $1.42 per share, which beat the Zacks Consensus Estimate of $1.38 by 2.9%. The bottom line decreased 0.7% and came a penny lower from the year-ago quarter’s $1.43.

Operating revenues of $2.54 billion surpassed the Zacks Consensus Estimate of $2.45 billion by around 3.7%. The top line also increased 11% from $2.28 billion recorded in the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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