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Research Alert: Ed Q1: Eps Misses On Higher Costs; Reaffirms Guidance On Strong Load Growth

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

ED delivered Q1 2026 adjusted EPS of $2.18, down from $2.26 in the prior year and missing consensus by 3.8%, primarily due to higher O&M expenses at CECONY and dilution from equity issuance, partially offset by rate-base growth. The decline reflected $0.08 per share in higher costs and dilution effects, while CECONY and O&R rate-base growth contributed $0.10 per share combined. We view ED's electrification positioning favorably, with new buildings showing 20%-25% increases in electric demand and 20 MW of fast-charging capacity added in 2025 (+18%), supporting long-term investment opportunities. Management reaffirmed 2026 adjusted EPS guidance of $6.00-$6.20 despite Q1 headwinds. The company strengthened its capital position through the $357.5M MVP stake sale (generating $134M after-tax gain) and $776M equity forward settlement, while the five-year 8.8% investment-base CAGR target through 2030 supports our view of sustained earnings growth driven by accelerating electrification and grid-modernization needs.

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