EIX · Q1 2026 Earnings

Narrative arc: Q2 legislative defense → Q3 regulatory de-risking → Q4 multi-year reset → Q1 reaffirmation with leadership transition.

The tone this quarter is one of reaffirmation against a backdrop of leadership change. Pizarro and Rigotti reaffirmed FY2026 core EPS guidance, the 2027/2028/2030 targets, and the 5–7% long-term CAGR, while announcing that Rigotti will retire September 1 after transitioning the CFO role to Aaron Moss on July 3. Moss is internally promoted from SCE CFO, with prior tenure as EIX and SCE controller — a continuity-oriented succession that management framed around Moss's leadership of SCE's operational excellence efforts.

On SB 254, management's "singular focus" is on 2026 legislation. To Carly Davenport at Goldman Sachs, Pizarro framed the downside (paraphrasing his remarks) as follows: if legislation does not pass this year, he would expect credit rating impacts not only for utilities and insurance companies but in other sectors of the California economy, and Edison would need to revisit cost of capital and potentially reconsider capital allocation in future cycles. That is materially more candid about contingent risk than prior quarters' framing.

On Eaton, the disclosure pattern is consistent with Q4 but with more granularity in Q&A. Management to Greg Orrell at UBS: the company "cannot forecast ultimate participation," with 1,500 offers totaling $500M+ against 3,100 claims and ~30,000 plaintiffs. Anthony Crowdell at Mizuho asked when visibility would arrive; the answer was that Edison needs both a large enough volume of claims and stability or lack of volatility in the types of claims before extrapolating — a more concrete methodology than Q4's "lacks the confidence required under accounting standards," but with the same operational conclusion: no bounded estimate in 2026 H1.

The SB 254 positioning has firmed up. To Nick Campanella at Barclays, management spelled out three specific advocacy positions: broad risk-reduction incentives across California's economy, a fair and predictable process for cost recovery when catastrophes strike, and a return to the traditional cost-of-service model where investors can recover capital with appropriate returns if the utility is prudent, with further shareholder contributions reserved for cases of demonstrated management imprudence. The legislative-timing answer was the same as prior quarters: bills must be in print by August 28, session ends August 31, and the company cannot predict when legislation will resolve.