Exelon Narrows 2026 Earnings Range After Third-Quarter Beat

The Tip Desk · October 30, 2026 · 3 min read

Adjusted operating earnings were $0.87 a share, and the utility narrowed full-year guidance to $2.85-$2.91 a share.

Exelon Corporation (EXC) reported adjusted operating earnings of $0.87 a share for the third quarter of 2026, above expectations, and narrowed its full-year 2026 guidance range to $2.85-$2.91 a share from the $2.81-$2.91 band it had affirmed after the first and second quarters.

GAAP net income was $0.70 a share, down from $0.86 a year earlier. The company said the GAAP and adjusted results primarily reflected higher utility earnings from distribution and transmission rates at ComEd, BGE, and PHI tied to updated recovery of costs and investments, the absence of customer surcharge credits and favorable weather at PECO, higher AFUDC at ComEd, and lower contracting costs at BGE. Those gains were partly offset by higher storm costs, interest, and depreciation at PECO and PHI, and higher income taxes and contracting costs at PECO.

Chief Financial Officer Rob Kleczynski said the company is affirming annualized earnings growth near the top end of 5% to 7% from 2025 through 2029. President and Chief Executive Officer Calvin Butler said third-quarter results reflected disciplined investment and consistent performance that helped prevent outages during a summer of severe weather.

ComEd, the largest of Exelon’s four reportable units, posted GAAP net income of $406 million and adjusted operating earnings of $412 million, up from $373 million on both measures a year earlier. The company attributed the increase primarily to a higher distribution and transmission rate base from incremental investments and higher AFUDC.

PECO moved the other way. GAAP net income fell to $165 million from $250 million a year earlier, and adjusted operating earnings declined to $167 million from $250 million. The company said the drop reflected higher storm costs after the absence of extraordinary February and June storm-cost deferrals recognized in 2025, higher income taxes from tax repairs, and higher contracting, depreciation, and interest expense, partly offset by the absence of surcharge credits and favorable weather.

BGE’s GAAP net income rose to $90 million from $82 million, and adjusted operating earnings increased to $119 million from $82 million, primarily on approved distribution rates and lower contracting costs. PHI’s GAAP net income decreased to $187 million from $291 million, while adjusted operating earnings increased to $320 million from $290 million, primarily on approved distribution rates, partly offset by higher storm costs, depreciation, and interest.

For the three months ended September 30, Exelon’s operating revenues were $7.319 billion, up from $6.705 billion a year earlier. Operating income was $1.379 billion. Year-over-year effects on adjusted operating earnings included a $67 million lift from distribution and transmission rates and a $115 million lift from other energy delivery, offset by $69 million from operating and maintenance expense, $47 million from depreciation and amortization, and $49 million from interest expense and other.

On August 28, the Maryland Public Service Commission approved a $51 million increase in Pepco’s annual electric distribution base rates at a 9.40% return on equity, effective August 10. PECO issued $750 million of 5.00% first mortgage bonds due 2031 on August 10, and DPL issued $75 million of 5.00% first mortgage bonds due 2036 on September 16. The company said it completed 2026 planned debt financings.

The board declared a regular quarterly dividend of $0.42 a share on October 30, payable December 15, 2026.