What Does Edison International Offer That Eversource Does Not?
Investors typically buy Eversource Energy (ES) and Edison International (EIX), the parent of Southern California Edison, for steady earnings growth. The two electric utilities share similar long-term targets. On July 30, both companies repeated a goal of 5% to 7% growth in earnings per share through 2030, with Edison tracking adjusted earnings. Their valuations look quite different. At the October 14 close, Edison stock traded at 5.4 times its earnings, against 14.3 times for Eversource. How have Edison’s earnings held up behind that lower price?
Edison Held Its 2026 Earnings Guide
Edison reported adjusted earnings of $1.54 per share in April to June 2026, compared with $0.97 a year earlier. Alongside that July 30 report, Edison held its 2026 guide for adjusted earnings at $5.90 to $6.20 per share. That target remains unchanged at the midpoint since April.
Eversource also held its 2026 guide on July 30. The company expects $4.57 to $4.72 per share of recurring earnings, its own adjusted measure. That announcement carried less weight, as Eversource had provided the same midpoint just four weeks earlier, on July 1. Edison maintained a guide that dated from April, keeping its target steady after a quarter of sharply higher earnings.
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Edison Is The Heavier Borrower Of The Two
Debt loads clearly separate the two companies. Edison carried total debt equal to 204% of its market value at the October 14 close, against 121% for Eversource.
Edison also spent more cash than its operations generated. The company reported free cash flow of negative $389 million over July 2025 to June 2026. Eversource operates on a slightly different timeline, with figures running to March 2026, a quarter behind Edison. Over April 2025 to March 2026, Eversource generated a positive $237 million in free cash flow, covering its spending through its own operations.
Edison’s Revenue Grew Faster Over Twelve Months
Top-line growth slightly favored Edison in recent periods. Edison reported a 10.7% revenue increase over July 2025 to June 2026, compared with a 9.8% rise for Eversource over April 2025 to March 2026. During April to June 2026 alone, however, Edison’s revenue fell 4.1% from a year earlier. Over longer timelines, Edison maintained a narrow lead. Its revenue growth averaged 4.3% a year over the three years to June 2026, against 3.8% for Eversource over the three years to March 2026.
Profitability metrics show mixed results. Edison recorded an operating margin of 23.1% over its latest twelve months, coming in just above the 22.5% margin for Eversource. When extending the view over the same three-year spans, Eversource delivered the wider average operating margin at 22.1%, compared with 19.0% for Edison.
Eversource Borrows Less, Edison Trades Below It On Sales
A single quarter accounts for part of Edison’s low price against its earnings. In October to December 2025, Edison posted net income of $1.92 billion, well above its operating income of $802 million. That quarter made up nearly half of the $3.94 billion Edison earned over its latest twelve months. Edison still carries a lower valuation on sales, a metric untouched by that quarter. Its stock trades at 1.1 times, against 1.8 for Eversource.
The financial profiles present distinct trade-offs. Edison comes out ahead on valuation and on twelve-month revenue growth, and it held its 2026 earnings guide in July. Eversource is ahead on debt, on free cash flow, and on operating margin over three years.
Edison’s heavier debt remains the weaker part of its case. The company reported total debt of $43.5 billion at June 30, 2026. That figure is the number to watch in its next report, expected on or around October 29.
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