NYSE:ED
CONSOLIDATED EDISON INC
A stable NYSE-listed utility giant offering essential electric and gas services across New York with a diversified revenue model backed by strong cash flows.
Key Metrics
Investment Thesis
Bull Case
ED offers an attractive dividend yield supported by consistent cash generation from regulated utility operations, providing downside protection during market volatility. The company's ongoing capital expenditure programs to modernize its grid for electrification and renewable integration position it well for long-term growth in the energy transition landscape.
Bear Case
The utility sector faces headwinds from rising interest rates that increase borrowing costs for capital-intensive projects, potentially compressing operating margins. Additionally, regulatory uncertainty surrounding rate adjustments and environmental compliance costs could impact future earnings stability and return on equity.
About CONSOLIDATED EDISON INC
Consolidated Edison Inc (ED) serves as a leading investor-owned electric utility company primarily operating in New York State, providing reliable electricity and gas services to residential, commercial, and industrial customers. The company operates through regulated distribution, generation, and transmission segments while investing heavily in infrastructure modernization and renewable energy integration.
Analysis
Management Discussion
Consolidated Edison reported a net profit of $2.02B in 2025, reflecting resilient performance despite revenue growth challenges seen in previous years where earnings dipped to $1.82B in 2024 before recovering. The company generated robust operating cash flow of $4.80B and maintained a healthy balance sheet with $1.63B in cash and equivalents while managing significant debt obligations totaling $25.55B.
Industry Overview
The electric utility industry is characterized by high capital intensity, regulated returns on invested capital, and a critical role in supporting economic growth through reliable energy infrastructure. Market trends favor companies that can successfully integrate distributed energy resources and transition to cleaner generation sources while maintaining service reliability.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $15.67B | $14.66B | $15.26B | $16.92B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $15.67B | $14.66B | $15.26B | $16.92B |
| Operating Expenses | $13.05B | $11.47B | $12.59B | $13.98B |
| Operating Income | $2.62B | $3.20B | $2.67B | $2.94B |
| R&D | $27.0M | — | — | — |
| Stock-Based Comp | $64.0M | $53.0M | $35.0M | $55.0M |
| D&A | $2.06B | $2.03B | $2.15B | $2.32B |
| Amortization | $71.0M | — | — | — |
| Other OpEx | $13.02B | — | — | — |
| Non-Operating Income | $-526.0M | $-193.0M | $-532.0M | $-338.0M |
| Interest Expense | $852.0M | $1.02B | $1.19B | $1.23B |
| Pre-Tax Income | $2.10B | $3.00B | $2.14B | $2.60B |
| Income Tax | $498.0M | $487.0M | $318.0M | $574.0M |
| Continuing Ops | $1.60B | $2.52B | $1.82B | $2.02B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.60B | $2.52B | $1.82B | $2.02B |
| Minority Interest | $-60.0M | $-3.0M | $0 | $0 |
| Net to Common | $1.66B | $2.52B | $1.82B | $2.02B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $12.97B | $6.54B | $6.66B | $6.75B |
| Cash & Equivalents | $1.28B | $1.19B | $1.32B | $1.63B |
| Accounts Receivable | $2.19B | $2.42B | $2.44B | $2.58B |
| Other Current Assets | $9.50B | $2.93B | $2.90B | $2.54B |
| Long-Term Assets | $56.09B | $59.79B | $63.90B | $67.85B |
| PP&E (Net) | $46.77B | $49.61B | $52.16B | $55.40B |
| Intangibles | $0 | — | — | — |
| Goodwill | $408.0M | $408.0M | $408.0M | $406.0M |
| Operating Leases | $568.0M | $533.0M | $493.0M | $489.0M |
| LT Investments | $841.0M | $999.0M | $1.13B | $1.21B |
| Other LT Assets | $7.51B | $8.25B | $9.71B | $10.34B |
| Total Assets | $69.06B | $66.33B | $70.56B | $74.60B |
| Current Liabilities | $11.34B | $6.46B | $6.43B | $6.61B |
| Accounts Payable | $1.96B | $1.77B | $1.68B | $1.95B |
| Current Debt | $1.00B | $251.0M | $0 | $250.0M |
| Current Leases | $103.0M | $116.0M | $118.0M | $123.0M |
| Other Current Liab | $8.28B | $4.32B | $4.64B | $4.29B |
| Long-Term Liabilities | $36.84B | $38.71B | $42.17B | $43.80B |
| Long-Term Debt | $22.44B | $21.99B | $24.71B | $25.55B |
| LT Operating Leases | $476.0M | $429.0M | $386.0M | $377.0M |
| Other LT Liab | $11.29B | $14.01B | $14.90B | $17.87B |
| Total Liabilities | $48.18B | $45.17B | $48.60B | $50.41B |
| Shareholders' Equity | $20.89B | $21.16B | $21.96B | $24.19B |
| Paid-In Capital | — | — | — | $11.44B |
| Retained Earnings | — | — | — | $14.86B |
| AOCI | $22.0M | $22.0M | $29.0M | $15.0M |
| Total L&E | $69.06B | $66.33B | $70.56B | $74.60B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.60B | $2.52B | $1.82B | $2.02B |
| Non-Cash Adjustments | $-148.0M | $-1.77B | $574.0M | $1.94B |
| Working Capital Changes | $2.48B | $1.42B | $1.22B | $833.0M |
| Cash from Operations | $3.94B | $2.16B | $3.61B | $4.80B |
| Capital Expenditures | $4.46B | — | — | — |
| Cash from Investing | $-4.57B | $-1.00B | $-5.27B | $-5.25B |
| Debt Issuances | $800.0M | $2.05B | $2.98B | $1.15B |
| Debt Repayments | $406.0M | $710.0M | $477.0M | $0 |
| Share Buybacks | — | $1.00B | $0 | $0 |
| Dividends Paid | $1.09B | $1.10B | $1.10B | $1.17B |
| Cash from Financing | $1.01B | $-1.49B | $1.80B | $746.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $384.0M | $-335.0M | $138.0M | $297.0M |
| Beginning Cash | $1.15B | $1.53B | $1.20B | $1.33B |
| Ending Cash | $1.53B | $1.20B | $1.33B | $1.63B |
Frequently Asked Questions
How does CONSOLIDATED EDISON INC make money?
The company derives its primary revenue from regulated distribution services for electricity and natural gas, alongside competitive generation and transmission operations that include renewable energy development and battery storage projects.
What are the main risks for ED?
Investors must consider exposure to volatile natural gas commodity prices affecting operational margins, potential delays or cost overruns in major infrastructure projects like the Greenway transmission line, regulatory changes regarding renewable energy standards, and inflation-driven increases in fuel and maintenance costs.
What is ED's competitive advantage?
ED benefits from long-term regulatory rate cases that provide predictable returns on capital investments, a dominant market position in New York State with high barriers to entry, and a diversified customer base across residential, commercial, and industrial sectors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.