Electric Utilities & Regulated Energy Infrastructure
Strategic Profile
Con Edison maintains robust profitability metrics with an operating margin of 18.19% and net margin of 12.27%, though operating margins have declined 5.4% annually over five years. The company plans over $38 billion in capital investments from 2026-2030, expanding its regulated rate base to drive earnings growth. Management reaffirmed a five-year adjusted EPS growth target of 6% to 7% and guided 2026 adjusted EPS to $6.00 to $6.20.
Cyborg Score Rationale
Con Edison's substantial capital investment plan ($38B through 2030) expands the regulated rate base, driving earnings growth through approved returns rather than volume expansion, providing predictable regulated returns. However, Bank of America maintains an Underperform rating with higher valuation expectations, signaling concerns about relative performance versus peers.
Top Insights
2025 revenue increased 10.89% to $16.92 billion with earnings up 11.15% to $2.02 billion, driven by infrastructure investments and rate recovery.
Quarterly dividend increased to $0.8875 per share with a 3.2% yield and 62.83% payout ratio, balancing shareholder returns with infrastructure reinvestment.
The company's Altman Z-Score of 1.21 places it in the distress zone, suggesting potential financial risk within two years due to moderate-to-high leverage.
Major institutional backing includes Vanguard (12.53% ownership, $4.54B), with recent increases by Citigroup, JPMorgan, and other large investors despite some profit-taking.
Named Competitors
Electric & Gas Utilities — Large regional utility serving multiple states
Regulated Electric & Gas — Diversified utility with operations across US regions
Regional Utilities — Eastern US utility operator
Recent Developments
(February 2026) Reported Q4 2025 EPS of $0.89, beating estimates; 2025 net income rose to $2.02B with adjusted EPS of $5.70
(February 2026) Announced 2026 adjusted EPS guidance of $6.00-$6.20 and reaffirmed five-year 6-7% EPS growth target
(January 2026) Declared quarterly dividend of $0.8875 per share, increased from $0.85, reflecting commitment to dividend growth
(February 2026) Bank of America raised price target to $104 while maintaining Underperform rating, signaling valuation risk
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