Edison International’s SCE Trust VI Faces Financial Headwinds from Wildfire Liabilities

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As Edison International prepares to release its full-year 2025 financial results after today's market close, investor focus is split between near-term performance and the immense, long-term burden of wildfire-related costs. The core question for the California utility is whether its ongoing operations can sustainably offset billions in legal and regulatory liabilities.

Market experts anticipate fourth-quarter earnings per share (EPS) to fall within a range of $1.42 to $1.47. Revenue for the period is estimated at approximately $4.57 billion. This represents a sequential decline from the third quarter, which posted an EPS of $2.34 on revenue of $5.75 billion.

In a strategic move to manage debt at the utility level, the parent company has recently sought to securitize about $1.95 billion of expenses linked to wildfires. This financial maneuver is intended to help stabilize the balance sheet in the face of persistent financial pressures.

The Scale of Liability and Compensation Efforts

A significant portion of the liability stems from the Eaton fire. In an attempt to expedite resolution and avoid protracted litigation, a fast-track compensation program has been initiated. As of last Friday, more than 500 settlement offers had been extended to affected parties.

The collective value of these proposed settlements exceeds $165 million. Despite this proactive approach, the total exposure remains substantial. Industry estimates place the potential gross liability between $1.5 billion and $3.7 billion, highlighting the scale of the challenge.

• Parent Company: Edison International
• Report Date: Today (after market close)
• Dividend (Series L): $0.3125 (projected)
• Ex-Date: March 13, 2026 (estimated)

Operational Challenges: Infrastructure and Community Pushback

Beyond the balance sheet, subsidiary Southern California Edison is confronting operational hurdles. In Altadena, residents have voiced strong opposition this week to the high costs associated with undergrounding power lines. Reports suggest connection fees for homeowners could reach between $20,000 and $40,000.

Concurrently, the utility is advancing technical mitigation strategies. In the Santa Barbara area, specialized helicopter operations were recently completed to install fire-resistant poles and insulated conductors. This infrastructure is designed to minimize the risk of sparking in high-fire-risk zones.

Today’s financial disclosure will serve as a crucial indicator of whether the securitization strategy is sufficient to safeguard creditworthiness. With looming multibillion-dollar payments and community resistance to infrastructure upgrades, Edison International's management must demonstrate that core operational cash flows can durably support these wildfire-related risks.