Exelon Corporation (EXC) Earnings & Analysis

Latest quarter

Exelon reported Q3 FY2026 revenue of $7.3 billion, above the $6.9 billion consensus and up from $6.7 billion a year earlier. Adjusted earnings of $0.87 per share also exceeded the $0.80 consensus.

Exelon’s diluted earnings fell to $0.70 per share from $0.86 a year earlier. The company attributed the decline primarily to higher storm costs at PECO, including the absence of storm-cost deferrals recognized in the prior-year quarter. Its filing said approved rate increases at ComEd, BGE and PHI partly offset the decrease.

The filing said ComEd’s quarterly net income increased as investment raised its distribution and transmission rate base, while PECO’s net income declined amid higher storm and other costs. Exelon’s operating margin fell to 18.8% from 22.4%, while gross margin was 60.1% compared with 59.9% a year earlier. Free cash flow was −$506.0 million, compared with $163.0 million in the prior-year quarter.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CFO Robert Kleczynski said quarterly adjusted earnings were ahead of the company’s expectations, primarily because of favorable weather and the timing of operating and maintenance spending. He said approved distribution and transmission rates and lower costs contributed to the year-over-year increase in adjusted earnings, while storm activity and interest and tax expenses offset much of those gains.

CEO Calvin Butler said Exelon had responded to approximately 31 significant weather events during the year to date. He estimated that grid investments prevented 6.6 million customer outages across those events and said crews restored service to 94% of customers in less than 48 hours. Butler also said PJM-driven supply costs had increased and that regional solutions were moving too slowly.

On investment, Kleczynski said Exelon had identified $12 billion to $17 billion of transmission opportunities over the next decade and $3 billion to $7 billion of potential storage investment beyond its current plan. He said regulated storage could help address supply needs alongside competitive development. Exelon expects a regulatory order late in the first quarter of 2027 on Atlantic City Electric’s proposed 500-megawatt New Jersey battery project, he said.

Asked about a reduction in the large-load cluster study from 25 to 23 gigawatts, Kleczynski said projects fall out during review for reasons including community issues or the absence of an end customer. Butler said transmission security agreements were intended to screen out speculative load and protect existing customers from costs associated with large-load development.

For the fourth quarter, Kleczynski said Exelon’s outlook assumed approved rates, normal weather and storm activity, reasonable regulatory outcomes and the reversal of spending timing. He said the company had completed its planned 2026 debt financing and priced all of its 2026 equity needs.

Guidance

Exelon narrowed its 2026 adjusted operating earnings guidance to $2.85 to $2.91 per share from $2.81 to $2.91. CFO Robert Kleczynski said the company aims to deliver at the midpoint or better.