Nasdaq:EXC
EXELON CORP
A diversified energy leader combining regulated electric/gas utilities with a robust nuclear generation portfolio to deliver reliable power across the U.S.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Exelon for its defensive characteristics within the energy sector, offering predictable dividends backed by regulated utility cash flows. The strategic shift towards nuclear power positions the company well against increasingly strict climate regulations and growing demand for clean baseload electricity. Strong balance sheet metrics with $1.20B in ending cash and consistent free cash flow generation provide ample flexibility for growth investments.
Bear Case
The heavy capital expenditure requirement of $8.53B could strain liquidity if regulatory returns do not keep pace with inflationary costs. Significant accumulated other comprehensive income loss of -$762.0M and a retained earnings deficit of $7.58B suggest historical volatility in accounting adjustments or past impairments. Regulatory uncertainty remains a persistent threat as public utility commissions may delay rate hikes needed to fund expensive infrastructure projects.
About EXELON CORP
Exelon Corporation is a leading U.S. energy company headquartered in Chicago, Illinois, providing electricity and natural gas to millions of customers across the Midwest and East Coast. The company operates through regulated electric and gas utility subsidiaries alongside its Exelon Generation segment focused on nuclear power production. Its business model combines stable regulated cash flows from distribution utilities with higher-return generation assets, serving both residential/commercial customers and wholesale markets.
Analysis
Management Discussion
Exelon reported strong operational performance with revenue growing to $24.26B in 2025, reflecting a steady upward trend from $19.08B in 2022 driven by customer growth and inflation-adjusted rates. Net income expanded consistently year-over-year, reaching $2.77B in 2025 compared to $2.17B in 2022, indicating effective cost management and solid utility margins. Cash flow from operations of $6.25B supports robust capital expenditures of $8.53B, demonstrating a commitment to infrastructure upgrades and fleet expansion.
Industry Overview
The U.S. energy industry is undergoing a structural transformation driven by the decarbonization mandate, where nuclear power is increasingly viewed as a critical clean energy source alongside renewables. Competition from intermittent renewable sources and battery storage is intensifying, yet the need for reliable baseload power ensures demand for nuclear generation remains resilient. Regulatory environments continue to evolve, with states implementing stricter emissions standards that favor low-carbon utility models.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $19.08B | $21.73B | $23.03B | $24.26B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $19.08B | $21.73B | $23.03B | $24.26B |
| Operating Expenses | $15.76B | $17.70B | $18.71B | $19.11B |
| Operating Income | $3.31B | $4.02B | $4.32B | $5.15B |
| D&A | $3.33B | — | — | — |
| Depreciation | $2.69B | $2.78B | $2.91B | $3.04B |
| Amortization | $-182.0M | $1.0M | $1.0M | $2.0M |
| Non-Operating Income | $-912.0M | $-1.32B | $-1.65B | $-1.86B |
| Pre-Tax Income | $2.40B | $2.70B | $2.67B | $3.29B |
| Income Tax | $349.0M | $374.0M | $207.0M | $523.0M |
| Continuing Ops | $2.05B | $2.33B | $2.46B | $2.77B |
| Discontinued Ops | $117.0M | $0 | $0 | $0 |
| Net Income | $2.17B | $2.33B | $2.46B | $2.77B |
| Minority Interest | $1.0M | $0 | $0 | $0 |
| Net to Common | $2.17B | $2.33B | $2.46B | $2.77B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $7.34B | $7.78B | $8.38B | $9.55B |
| Cash & Equivalents | $407.0M | $445.0M | $357.0M | $626.0M |
| Accounts Receivable | $2.22B | $2.34B | $2.74B | $3.30B |
| Other Current Assets | $4.71B | $4.99B | $5.29B | $5.62B |
| Long-Term Assets | $88.01B | $93.77B | $99.40B | $107.02B |
| PP&E (Net) | $69.08B | $73.59B | $78.18B | $84.32B |
| Goodwill | $6.63B | $6.63B | $6.63B | $6.63B |
| Operating Leases | — | — | — | $139.0M |
| LT Investments | $232.0M | $251.0M | $290.0M | $312.0M |
| Other LT Assets | $12.07B | $13.29B | $14.30B | $15.62B |
| Total Assets | $95.35B | $101.55B | $107.78B | $116.57B |
| Current Liabilities | $10.61B | $9.59B | $9.61B | $10.33B |
| Accounts Payable | $3.38B | — | — | — |
| Current Debt | $1.80B | $1.40B | $1.45B | $1.67B |
| Deferred Revenue | — | $133.0M | $127.0M | $119.0M |
| Other Current Liab | $4.20B | $6.68B | $6.56B | $6.96B |
| Long-Term Liabilities | $59.99B | $66.20B | $71.25B | $77.44B |
| Long-Term Debt | $35.27B | — | — | — |
| Other LT Liab | $24.72B | — | — | — |
| Total Liabilities | $70.61B | $75.79B | $80.86B | $87.77B |
| Shareholders' Equity | $24.74B | $25.75B | $26.92B | $28.80B |
| Retained Earnings | $4.60B | $5.49B | $6.43B | $7.58B |
| AOCI | $-638.0M | $-726.0M | $-720.0M | $-762.0M |
| Treasury Stock | $123.0M | $123.0M | $123.0M | $123.0M |
| Total L&E | $95.35B | $101.55B | $107.78B | $116.57B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $2.17B | $2.33B | $2.46B | $2.77B |
| Non-Cash Adjustments | $-785.0M | $1.96B | $2.11B | $1.22B |
| Working Capital Changes | $3.48B | $420.0M | $999.0M | $2.27B |
| Cash from Operations | $4.87B | $4.70B | $5.57B | $6.25B |
| Capital Expenditures | $7.15B | $7.41B | $7.10B | $8.53B |
| Cash from Investing | $-6.99B | $-7.38B | $-7.04B | $-8.53B |
| Debt Issuances | $6.31B | $5.83B | $4.97B | $6.08B |
| Debt Repayments | $2.07B | $1.71B | $1.56B | $1.31B |
| Dividends Paid | $1.33B | $1.43B | $1.52B | $1.62B |
| Cash from Financing | $1.59B | $2.68B | $1.31B | $2.53B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-529.0M | $11.0M | $-162.0M | $262.0M |
| Beginning Cash | $1.62B | $1.09B | $1.10B | $939.0M |
| Ending Cash | $1.09B | $1.10B | $939.0M | $1.20B |
Frequently Asked Questions
How does EXELON CORP make money?
The company's revenue is primarily driven by its Regulated Utilities segment, which includes electric distribution (PEPCO, BGE, Commonwealth Energy) and natural gas distribution (PGW, ComEd, PECO). The Generation segment focuses on nuclear power production including the Quad Cities and Peach Bottom plants. Additionally, the company engages in Wholesale Markets for energy trading and sales to third parties, and offers Consumer Products through its home services division.
What are the main risks for EXC?
Regulatory risks from state public utility commissions affecting rate approvals or capital investment plans could impact earnings growth. Climate change policies and potential carbon taxes may increase operating costs for the generation segment or influence long-term asset valuation. Nuclear decommissioning fund adequacy and potential delays in project timelines pose financial uncertainty. Geopolitical tensions affecting natural gas supply chains or wholesale energy prices could disrupt margins in the unregulated segments.
What is EXC's competitive advantage?
Exelon possesses a deep moat in the form of its diverse portfolio of high-barrier-to-entry nuclear power plants which provide long-term, low-carbon baseload power. Its extensive regulated distribution networks across populous states ensure stable revenue streams protected by rate-of-return mechanisms. The company's scale and operational expertise in complex nuclear operations create significant cost advantages and resilience against market volatility.
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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.