Edison International shares dropped 5.4% after CEO Pedro Pizarro warned that California lawmakers may not pass wildfire liability reforms before the legislative session ends on August 31. Pizarro said on the company's earnings call that failure to enact a credit-supportive framework could significantly raise the cost of debt passed to Southern California Edison customers, noting that SCE's BBB- rating leaves no room before falling to non-investment grade. The company faces substantial wildfire liabilities, including about $1.6 billion committed to victims of the 2025 Eaton Fire, and stated in a new 10-Q filing that it is likely its equipment was associated with the fire's ignition. Edison reported better-than-expected second-quarter adjusted earnings, with net income rising to $534 million from $343 million a year earlier, while reaffirming full-year 2026 EPS guidance of $5.90 to $6.20. Barclays downgraded the stock to Equal Weight from Overweight, citing a shift in management tone and the risk that the capital and growth outlook could change after the legislative outcome.
Edison InternationalCEO warns California may not pass wildfire liability reforms, raising debt costs and downgrade risk.
Barclays PLC