Watt‘s the Q2‘26 number for EIX, PCG, and SRE?

研报英文原文证据摘录

Watt‘s the Q2‘26 number for EIX, PCG, and SRE?

Q2’26 Preview: EIX, PCG, SRE

Below are the takeaways from our earnings walks with Edison International (EIX), PG&E

(PCG), and Sempra (SRE) ahead of Q2’26 results. Beyond the quarterly bridges, California

legislation is the common thread across all three names: the Legislature is currently in

summer recess, reconvening in early August with an August 31 deadline to pass bills.

We are watching two items in August:

• SB 254: expanded the state wildfire fund and shored up the AB 1054 framework;

the question now is whether follow-on action – fund mechanics, liability standards,

cost allocation – moves before session ends.

• SB 905: the affordability and utility accountability push, with provisions spanning

returns on lower-risk investments, PBR frameworks by 2028, executive

compensation tied to rates, and lower-cost financing.

EIX: $0.85, clean GRC-basis quarter

We estimate Q2’26 core EPS of $0.85 vs $0.97 in Q2’25, with the decline entirely a

comparability artifact: last year’s quarter included a ~$0.13 one-time benefit from

regulatory decision (WM/VM, WMCE) and lacked 2025 GRC revenues. On an apples-to-

apples basis the quarter is modestly positive, with GRC-driven revenue growth offset the

2026 ROE reset and higher depreciation and property taxes. Rate base explains

substantially all of the earnings trajectory from here; other than potential California

legislation the calendar is quiet, with few proceedings expected to move earnings this

year. We reiterate our Buy rating on EIX.

• GRC revenue (+$0.10-0.11): first Q2 on 2025 GRC final decision rates; Q2’25

recognized 2024 authorized revenue

• Regulatory non-repeat (-$0.13): Q2’25 WM/VM decision and WMCE settlement

benefit does not recur