Consolidated Edison (ED 0.91%), a major regulated utility serving New York and parts of New Jersey, reported Q2 2025 earnings on August 7, 2025. The key headline was that adjusted earnings per share (non-GAAP) reached $0.67, exceeding analyst forecasts of $0.64. Net income (GAAP) increased to $246 million, representing a sizable year-over-year gain. Despite ongoing regulatory and cost pressures, the company maintained its full-year 2025 adjusted (non-GAAP) profit outlook and reinforced progress on infrastructure investments and clean energy projects. Overall, the quarter showed steady earnings momentum, as reflected in Con Edison’s adjusted earnings (non-GAAP) of $0.67 per share with effective management of both operational challenges and regulatory decisions.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.67 | $0.64 | $0.59 | 13.6% |
| Net Income – Adjusted (Non-GAAP) | $240 million | $203 million | 18.2% | |
| EPS (GAAP) | $0.68 | $0.58 | 17.2% | |
| Net Income (GAAP) | $246 million | $202 million | 21.8% |
Source: Analyst estimates provided by FactSet. Management expectations based on management’s guidance, as provided in Q1 2025 earnings report.
Company Overview and Key Success Factors
Consolidated Edison is a regulated energy company that supplies electricity, gas, and steam to millions of customers across New York City, Westchester County, and areas of northern New Jersey. Its core business is operating utility infrastructure, which includes the maintenance and upgrade of power lines, substations, and gas systems to ensure reliable day-to-day service.
The business is shaped by regulation, with the New York State Public Service Commission (NYSPSC) and the Federal Energy Regulatory Commission (FERC) setting the company’s allowed rates and profit margins. Regulatory decisions are central to its ability to recover costs and earn a return on investments. Investment and upgrades to the electric grid, improvements to reliability, and support for clean energy are currently the company’s main areas of focus. Its success depends heavily on navigating regulatory changes and maintaining strong system performance as it pursues grid modernization, electrification, and clean energy transition initiatives.
Quarterly Review: Key Developments and Performance
Results for Q2 2025 showed meaningful earnings growth on both a reported (GAAP) and adjusted (non-GAAP) basis. Adjusted earnings per share (non-GAAP) were $0.67, up from $0.59 in Q2 2024 and $0.03 above market expectations. Net income (GAAP) grew to $246 million, up 21.8% from Q2 2024, while Adjusted net income was $240 million, also showing a strong increase. Growth was largely driven by the Consolidated Edison Company of New York, Inc. (CECONY) regulated utility segment. According to management, CECONY’s adjusted (non-GAAP) earnings impact was $0.08 per share higher, driven by rate increases, higher returns on construction investments, and the one-time impact of a regulatory order on cost capitalization.
Within the quarter, the company finalized several major capital projects. It completed key transmission upgrades in Brooklyn and Staten Island. These infrastructure investments are designed to support both reliability and the broader transition to a cleaner electric grid. Management noted CECONY secured approval to invest $440 million in five major projects aimed at electrifying buildings and transportation—critical to New York’s clean energy goals.
Regulation played a major role in financial performance this period. A significant item was a May 2024 NYSPSC order that disallowed capitalization of certain billing system costs. This decision resulted in a $0.11 per share ($37 million) positive impact. The company also benefited from higher income from allowance for funds used during construction, but these were offset by increased expense from rising interest rates and higher operation and maintenance costs—mainly health care and insurance. On the negative side, the company continued to absorb an increase of $0.05 per share ($17 million) in long-term debt interest and $0.02 per share ($6 million) in ongoing operational expenses.
Outside its primary segment, Orange & Rockland Utilities contributed a modest gain of $0.01 per share, driven by rate increases, while the Con Edison Transmission segment posted a minor decline related to prior period tax adjustments and a small after-tax charge from its investment in the Mountain Valley Pipeline.
Clean Energy and Product Initiatives
The company’s infrastructure programs and energy transition activities were highlighted this quarter. Con Edison’s ongoing capital spending targets transmission projects, overhead line upgrades, and investments to enable higher levels of electrification. Building and transportation electrification initiatives received an additional $440 million in regulatory approval, underpinning further clean energy infrastructure work. Electrification means converting equipment—like building heating and vehicles—to run on electricity instead of fossil fuels, supporting both carbon reduction and new grid usage patterns.
Renewable investments and grid enhancements together support New York State’s clean energy framework. The company refers to major transmission projects—such as those in Brooklyn and Staten Island—as critical to future reliability and customer needs. Meanwhile, distributed energy resources like rooftop solar panels and battery storage are increasingly part of the company’s planning. The pace of these projects is largely governed by the regulatory environment, which continued to support clean energy investments this period.
Looking Ahead: Management Guidance and Focus Areas
Management reaffirmed its full-year 2025 adjusted (non-GAAP) earnings per share guidance of $5.50–$5.70, reflecting continued visibility into its regulatory landscape and planned capital investments. This outlook does not incorporate potential earnings from certain one-off accounting effects, such as its investment in the Mountain Valley Pipeline or results from previously sold business units.
The most significant risks flagged by management are changing regulatory interpretations—such as the NYSPSC’s recent order—and possible increases in operating costs that are not fully recoverable. Clean energy investments and electrification projects remain front and center, with the company continuing to pitch itself as a key enabler of New York’s energy system transition.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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