Edison 10-Q Details $1.8B Eaton Fire Settlements, $887M Accrued Losses and Negative Rating Outlooks
EIX sits 16% above its 52-week low of $51.1.
Summary
Edison's Q3 10-Q confirms $1.8 billion of Eaton Fire settlements with $1.85 billion of identified recoveries, but total fire losses remain unestimable with trial dates set for 2027. Accrued wildfire liabilities fell to $887 million and SCE still has $3.2 billion of revolver capacity.
Key Events · Earnings and Guidance · EIX
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Q3 Earnings Drop on Prior-Year True-Up
Q3 2026 net income available to common was $724 million, or $1.88 basic and $1.87 diluted, versus $832 million and $2.16 a year ago; nine-month net income fell to $1,789 million from $2,611 million.
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Eaton Fire Settlements Reach $1.8 Billion
SCE recorded $1.8 billion of Eaton Fire settlement losses, offset by $917 million of customer-funded self-insurance, $859 million from the Wildfire Fund and $70 million through FERC rates, leaving a $9 million after-tax charge through September 30, 2026.
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Total Loss Range Still Unestimable
Management states it cannot reasonably estimate a range of Eaton Fire losses, with about 2,000 lawsuits and roughly 38,000 individual plaintiffs outstanding and bellwether trials set for January, May and September 2027.
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Accrued Wildfire Liabilities Fall to $887 Million
Total accrued wildfire losses dropped from $1,306 million at December 31, 2025 to $887 million, after $1,145 million of payments in the first nine months of 2026.
Analysis · EIX · Energy & Transportation
The headline numbers match this morning's 8-K, but the 10-Q is where the wildfire liability actually gets sized. SCE has now recorded $1.8 billion of Eaton Fire settlements, offset by $917 million of customer-funded self-insurance, $859 million from the Wildfire Fund and $70 million through FERC rates — leaving only a $9 million after-tax hit so far. What cannot be booked is the problem: management still says it is unable to estimate a range of total Eaton Fire losses, with roughly 2,000 lawsuits and 38,000 individual plaintiffs outstanding and bellwether trials starting January 2027. Against that, accrued wildfire liabilities fell to $887 million from $1,306 million and liquidity is intact at $3.2 billion available on SCE's revolver, but Fitch and S&P both carry Negative outlooks on the unlegislated wildfire liability framework.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 30.9% of the 1649 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.02%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, EIX was trading at $59.50 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $22.9B. The 52-week trading range was $51.10 to $81.62. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.