Edison International achieves steady profit growth due to rising electricity tariffs

Edison International (EIX.N) surpassed profit forecasts for the first quarter on Tuesday, benefiting from an increase in electricity rates.

American electricity companies are seeking to raise electricity rates charged to customers, due to the strong rise in demand from AI-focused data centers, increased national manufacturing production, and extreme weather phenomena, including forest fires.

Southern California Edison, a subsidiary of Edison International, posted a basic profit of $1.65 per share in the first quarter, thanks to the final decision regarding its general rate case for 2025.

Regulated utilities, such as Southern California Edison, determine rates charged to customers for services such as electricity, natural gas, private water, and steam through rate proceedings.

Electricity consumption in the United States reached a record level in 2025 and is expected to continue to rise until 2027, according to the EIA, primarily due to AI and cryptocurrency dedicated data centers, as well as the increasing electrification of homes, businesses, and transportation.

The Rosemead-based utility posted an adjusted profit of $1.42 per share for the quarter ended on March 31, beating analysts’ estimates of $1.31 per share, according to LSEG data.

Last month, Edison successfully dismissed a lawsuit brought by shareholders accusing the company of misleading investors by overestimating its ability to reduce the risk of forest fires before the fires that devastated the Los Angeles region in January 2025.

The utility company confirmed its adjusted profit forecast for 2026, ranging from $5.90 to $6.20 per share.