Edison International announces redemption of Series A Preferred Stock
Edison International's stock rose by 3.01% and reached a 52-week high amid positive market conditions.
The company announced the redemption of all outstanding shares of its 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A, on March 9, 2026, at a price of $1,000 per share. This move is aimed at optimizing its capital structure and reducing financial costs, which reflects the company's commitment to enhancing shareholder value. The redemption will be facilitated by Equiniti Trust Company, LLC, ensuring a smooth process for shareholders.
This strategic decision to redeem preferred stock is expected to strengthen Edison International's financial position and may lead to increased investor confidence, further supporting the stock's upward momentum.
Trade with 70% Backtested Accuracy
Analyst Views on EIX
About EIX
About the author

- Executive Bonus Cuts: Edison International (EIX) announced a 40% reduction in executive bonuses to reflect the impact of the Eaton wildfire in the Los Angeles area in January 2025, which lasted nearly four weeks, resulting in 19 fatalities and damage to over 10,000 structures.
- Community Responsibility: CEO Pedro Pizarro stated that while the bonus cuts do not reflect company or executive performance, the decision aims to demonstrate understanding and support for the community during this difficult period, thereby strengthening the company's ties with local residents.
- Compensation Program Adjustments: In addition to the bonus cuts, Edison International is modifying its wildfire compensation program to provide stronger support for displaced renters and increasing net damages to cover attorney fees, further showcasing the company's commitment to assisting those affected by the disaster.
- Financial Performance and Outlook: Despite the wildfire impact, Edison International's stock rose 2% in after-hours trading due to better-than-expected Q4 adjusted earnings, with guidance for FY 2026 adjusted EPS set at $5.90-$6.20, slightly below the analyst consensus estimate of $6.12.
- Increased Legal Expense Compensation: Southern California Edison’s wildfire compensation program now allows claimants to retain more of their compensation for rebuilding, with legal expense coverage raised to 20% of net damages, which will aid more affected individuals and businesses in their recovery efforts.
- Enhanced Tenant Support: The compensation scheme for tenants now offers up to three months of housing assistance based on actual rent or fair rental value, aimed at helping displaced renters better manage the financial pressures during their transition period.
- Prompt Compensation Pathway: The program's claims process averages just over 100 minutes, with payments made within 30 days after all settlement agreement conditions are met, significantly reducing the time and uncertainty associated with traditional litigation, thereby boosting affected individuals' confidence.
- Participant Information Updates: As of February 2026, 2,405 claims have been submitted involving nearly 7,000 individuals, with total compensation exceeding $183 million; affected participants will receive detailed updates about the program enhancements and next steps by the end of this week to ensure timely awareness of their claims.
- Core Earnings Beat: Edison International reported a core EPS of $6.55 for 2025, exceeding guidance and extending a two-decade track record of surpassing annual EPS targets, showcasing the company's excellence in execution and cost management.
- Customer Rate Reductions: A 2.3% rate decrease for residential customers and a 5.3% decrease for small and medium-sized businesses not only enhances customer satisfaction but also strengthens the company's appeal in a competitive market.
- Capital Expenditure Plans: The company plans to invest $7 billion in 2026, with an updated capital plan projected to reach $38 billion to $41 billion from 2026 to 2030, anticipating approximately 7% rate base growth during this period to support future business expansion.
- Risks and Uncertainties: While management maintains an optimistic outlook for future growth, uncertainties remain regarding potential losses from the Eaton fire and ongoing legal investigations, with management emphasizing continued engagement with policymakers to ensure regulatory stability.
- Strong Earnings Report: Edison International's Q4 non-GAAP EPS of $1.86 exceeded expectations by $0.41, reflecting robust financial performance that boosts investor confidence and market perception.
- Future Guidance: The company introduced core EPS guidance for 2026 ranging from $5.90 to $6.20 and for 2027 from $6.25 to $6.65, indicating a positive outlook on profitability that may attract further investor interest.
- Growth Potential: Edison expresses confidence in achieving 5-7% core EPS growth from 2025 to 2028, supported by recent regulatory decisions, which enhances visibility into long-term targets and could increase demand for its stock.
- Strategic Planning: The detailed earnings guidance for 2026 and 2027 underscores the company's financial strategy aimed at enhancing shareholder value through stable earnings growth, providing clarity on its operational roadmap.
- Major Earnings Preview: After Wednesday's close, earnings reports from Occidental Petroleum Corporation (OXY), Pan American Silver Corp. (PAAS), and Kinross Gold Corporation (KGC) are expected, with potential impacts on market sentiment due to their significant industry positions.
- Multiple Company Reports: In addition to the aforementioned companies, Booking Holdings (BKNG) and Blue Owl Capital Corporation (OBDC) will also release earnings at the same time, prompting investors to closely monitor the potential effects on stock prices.
- Broad Earnings Releases: Furthermore, up to 70 companies, including ADAM, AGI, and AMPL, are slated to report after Wednesday's close, indicating heightened market activity and investor interest in the earnings season.
- Earnings Season Calendar: Seeking Alpha offers a comprehensive earnings season calendar, allowing investors to access more information to better navigate market dynamics and investment opportunities.







