Edison International: Sticking to a "Wait-and-See" View on Potential CA Wildfire Policy Reform; No Material Eaton Fire Update; 2Q Beat; 2026 EPS + LT CAGR Guidance Reaffirmed

Research evidence excerpt

Edison International: Sticking to a "Wait-and-See" View on Potential CA Wildfire Policy Reform; No Material Eaton Fire Update; 2Q Beat; 2026 EPS + LT CAGR Guidance Reaffirmed

J P M O R G A N North America Equity Research

30 July 2026

Edison International

Sticking to a 'Wait-and-See’ View on Potential CA Neutral

Wildfire Policy Reform; No Material Eaton Fire Update; EIX, EIX US

2Q Beat; 2026 EPS + LT CAGR Guidance Reaffirmed Price (30 Jul 26):$78.73

North American Utilities

• No material updates on Eaton Fire investigation; over $375mm paid so far Aidan C Kelly AC

in WRCP. Management reiterated limited visibility on the timing and scope of (1-212) 622-4912

the Eaton Fire investigation with no estimated potential losses at this time. aidan.x.kelly@jpmchase.com

Notably, EIX’s disclosures now feature language that confirms SCE’s Jeremy Tonet, CFA

equipment “was associated” with the ignition, an incremental tweak versus the (1-212) 622-4915

prior “could have been associated” language. Management characterized this jeremy.b.tonet@jpmorgan.com

change as a measured move to streamline the disclosures and recognize the Diana Niles

passage of time. The company also affirmed SCE is crossing the $1bn (1-212) 622-3328

diana.niles@jpmorgan.com

insurance coverage threhsold, but has access to a pre-funding mechanism to J.P. Morgan Securities LLC

mitigate any cash outflows. Overall, although SCE’s ~$4bn reimbursement

cap provides meaningful protection even under an imprudence finding, we

acknowledge that uncertainty around potential economic damages and the risk

of stakeholder pushback remain key overhangs absent wildfire policy reform

that directly applies to prior or unresolved events, including the Eaton Fire.

• All eyes on prospects for wildfire policy reform into Aug session-end.