Edison International (EIX.N): Intentionally Vague on Potential Corporate Action if No Wildfire Bill

研报英文原文证据摘录

Edison International (EIX.N): Intentionally Vague on Potential Corporate Action if No Wildfire Bill

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31 Jul 2026 06:50:46 ET │ 12 pages

Edison International (EIX.N)

Intentionally Vague on Potential Corporate Action if No Wildfire Bill

CITI'S TAKE

Into the final month of Cali. legislative session, EIX indicated its equipment

is likely associated with Eaton fire, suggested potential corporate actions if

no wildfire legislation is passed, and continued to work through the RAMP Buy

to solidify 1/3 of 2029 GRC capex. Final legislative push underway. Price (30 Jul 26 16:00) US$78.73

Target price US$86.00

Plan B if No Wildfire Legislation — In our view, EIX sent the message that the

company could cut some non-safety/reliability related capex in 2029 and beyond Expected share price return 9.2%

through the GRC filing next May if favorable legislation does not pass by the end of Expected dividend yield 4.5%

session, which was similar to peer. While we think near-term earnings impact of a Expected total return 13.7%

no legislation scenario is relatively small as Edison has capex authorized through

2028, there are long-term implications. Edison also mentioned the possibility of a Market Cap US$30,295M

partial legislative solution in 2026 and further remedy in 2027, which we think is less

likely given Governor Newsom’s term limits and expected changes to key posts.

Legislative Timeline Differences Between 2026 and 2025 — Last year, an odd year Price Performance

(2025), the California legislature effectively can change the end of session. This year, (RIC: EIX.N, BB: EIX US)

an even year (2026), the legislative calendar is set by the California constitution and

therefore can't be changed without a constitution reform (very unlikely, in our view).