Exelon (EXC -0.60%), a regulated utility serving over 10 million customers across the Mid-Atlantic and Midwest, reported its second quarter 2025 earnings on July 31, 2025. The company posted adjusted (non-GAAP) earnings per share of $0.39, beating analyst expectations of $0.37 (non-GAAP EPS), and GAAP revenue of $5,427 million. Still, GAAP net income declined year over year, with adjusted (non-GAAP) EPS falling 17.0% and segment results mixed. Management maintained its full-year outlook, highlighting progress on regulatory and infrastructure goals, but noted that higher storm-related costs and operating expenses weighed on results.
| Metric | Q2 2025 | Q2 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.39 | $0.37 | $0.47 | (17.0%) |
| Revenue (GAAP) | N/A | $5.38 billion | $5.36 billion | N/A |
| EPS – ComEd Segment (Non-GAAP) | $228 million | $285 million | (20.0%) | |
| EPS – PECO Segment (Non-GAAP) | $136 million | $93 million | 46.2% | |
| EPS – BGE Segment (Non-GAAP) | $55 million | $45 million | 22.2% | |
| EPS – PHI Segment (Non-GAAP) | $144 million | $162 million | (11.1%) |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategic Focus
Exelon is a major electric and gas utility group, operating through multiple regulated subsidiaries including ComEd in Illinois, PECO in Pennsylvania, BGE in Maryland, and Pepco Holdings (PHI) in the mid-Atlantic. The company’s core business is the distribution and transmission of electricity and gas to residential, commercial, and industrial customers.
Recently, Exelon has focused on strengthening grid infrastructure, engaging proactively with regulators, and supporting clean energy goals. Key success factors are securing favorable regulatory frameworks, executing a large capital investment program, maintaining reliable service, and managing cost recovery through rate mechanisms such as revenue decoupling and formula rates.
Quarterly Highlights and Segment Results
Exelon posted GAAP revenue of $5,427 million, narrowly surpassing consensus by $0.02 (5.4%) on non-GAAP EPS. Adjusted (non-GAAP) earnings per share were $0.39, beating the $0.37 analyst estimate (non-GAAP). but falling from $0.47 per share in Q2 2024 (adjusted [non-GAAP] operating earnings). The company attributed the earnings decline to a mix of higher storm costs, interest expenses, and timing impacts in its regulated utility segments.
The segment breakdown highlights varied performance. ComEd (Northern Illinois electricity distribution) reported adjusted (non-GAAP) operating earnings of $228 million. This represented a 20.0% decrease from the second quarter of 2024, primarily due to lower transmission peak load and the timing of distribution earnings. PECO (electricity and gas in southeastern Pennsylvania) reported GAAP net income of $136 million. Adjusted (non-GAAP) operating earnings increased by 46.2% to $136 million compared to the second quarter of 2024, driven by increased distribution rate recovery and higher revenues despite the impact of severe June storms. BGE (Baltimore Gas & Electric) delivered a 22.2% rise in adjusted (non-GAAP) earnings to $55 million compared to the second quarter of 2024, assisted by rate increases, even as it adjusted regulatory accounting in Maryland under the state’s Next Generation Energy Act. PHI (Pepco Holdings, covering parts of Maryland, Delaware, and New Jersey) reported an 11.1% decline in adjusted (non-GAAP) operating earnings to $144 million compared to the second quarter of 2024, as rate gains were offset by higher credit losses, interest cost, and reduced regulatory settlements.
Electricity deliveries across service areas held steady or declined slightly. For instance, at PECO, total electric delivery volumes fell 4.1%. Severe weather was a notable driver of higher operating costs, with PECO experiencing one of its most significant recent storms, affecting over 325,000 customers. The company intends to seek regulatory deferral of extraordinary storm costs for later recovery. Exelon’s regulated frameworks, including revenue decoupling, help insulate earnings from usage swings due to weather or customer demand patterns.
Beyond operations, Exelon continued major infrastructure investments, with capital spending reaching $3.96 billion in the first half of 2025. The company is midway through a $38 billion, four-year plan (2025–2028) aimed at grid modernization, capacity expansion for new business load (such as data centers), and supporting the clean energy transition. By the end of the period, Exelon had completed approximately 80% of its planned 2025 debt financing and fully priced all of its intended 2025 equity raises, reducing future financing risks.
On the regulatory front, no significant new rate cases were settled in the quarter, but ongoing proceedings in New Jersey and Delaware remain on track. In Maryland, the implementation of the Next Generation Energy Act signals a shift in how utilities recover costs and pursue grid updates, with new requirements for battery storage procurement and amended plan reconciliations. Overall, rate base growth and constructive policy engagement continue to underpin financial and operational performance. BGE, PECO, and PHI sustained top quartile or better performance in gas odor response.
Dividend payments remained a focus. The quarterly dividend was $0.40 per share. No new dividend change was declared in the quarter. The balance sheet remained solid with $27.6 billion in equity and $1.25 billion in cash on hand.
Looking Ahead: Guidance and Emerging Issues
Exelon management reaffirmed its full-year outlook for adjusted (non-GAAP) operating earnings. The company guided for a full-year adjusted (non-GAAP) operating earnings range of $2.64 to $2.74 per share. It continues to target 5–7% annual operating EPS growth through 2028. Leadership cited robust regulatory frameworks, a strong pipeline of grid investments, and timely progress on planned funding as reasons for confidence in hitting these targets. The company is also monitoring increased grid investment needs in response to rapid growth in large customer loads, such as data centers, and expects $10 to $15 billion in additional transmission opportunities may materialize in the coming years.
For investors, continued focus is warranted on the pace and regulatory recovery of storm-related and operating costs, potential shifts in regulatory policy (especially in Maryland and the East Coast), and evolving cost of capital as debt balances rise. Earnings quality and cash flows—impacted by storm expenses, changing customer demand, and cost pressures—will remain key areas for monitoring as Exelon executes its massive capital plan. Exelon continues to pay a quarterly dividend of $0.40 per share, as declared on July 29, 2025.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
