Consolidated Edison Inc.
EDBusiness Overview
ticker: ED step: 01 generated: 2026-05-12 source: quick-research
Consolidated Edison Inc. (ED) — Business Overview
Business Description
Consolidated Edison (Con Edison) is one of the largest investor-owned energy utilities in the United States, serving approximately 3.6 million customers in New York City and Westchester County. The company is a pure regulated utility following the 2023 sale of its Clean Energy Businesses for ~$6.8B; it now focuses entirely on regulated electric, gas, and steam distribution. Con Edison is the primary energy infrastructure monopoly for 660 square miles serving nearly 9 million people — the most densely populated service territory of any U.S. utility.
Revenue Model
Con Edison earns revenue almost entirely through regulated utility tariffs authorized by the New York Public Service Commission (PSC). The rate structure allows Con Edison to recover its operating costs plus a regulated return on its rate base (equity invested in infrastructure). Revenue fluctuates with energy commodity prices (which pass through to customers with no margin impact) and weather. The economic engine is rate base growth: each dollar invested in transmission, distribution, and clean energy infrastructure earns an authorized return on equity (~9.9–10.1%). The $38B five-year capital plan (2025–2029) is designed to grow the rate base at ~8.2% per year, translating to 5–7% EPS growth.
Products & Services
- Electric Distribution: Serving 3.5M+ electric customers in NYC (Manhattan, Bronx, Brooklyn, Queens, Staten Island) and Westchester County; underground cable network is the largest in the world
- Natural Gas Distribution: Serving ~1.1M gas customers in Manhattan, Bronx, parts of Queens, and Westchester
- Steam Distribution: NYC district steam system serving ~1,600 customers in Manhattan — one of the largest in the world
- Orange & Rockland Utilities: Subsidiary serving ~350,000 electric and ~130,000 gas customers in southeastern NY and northern NJ
- Electric Transmission: Con Edison Transmission investments in regional grid infrastructure
Customer Base & Go-to-Market
Con Edison is a regulated monopoly — customers in its service territory have no choice of distribution provider. Revenue is established via multi-year rate cases with the PSC rather than competitive market dynamics. Major customer categories: residential (~45% of revenue), commercial and industrial (~40%), and large-volume/transportation (~15%). Key large customers include NYC government agencies, hospitals, universities, airports, and major commercial real estate. Building electrification and JFK Airport modernization are major incremental load growth drivers.
Competitive Position
Con Edison has a regulatory monopoly with no competition for electric and gas distribution in its service territory. The moat is structural: Con Edison owns the only underground cable and pipe network serving NYC's density, and replicating it would be impossible given cost and right-of-way constraints. Its key advantage is the most constructive regulatory compact available — serving NYC means state regulators must balance affordability with reliability for the country's largest urban utility, giving Con Edison leverage in rate proceedings. The company has raised its dividend for 50+ consecutive years (Dividend Aristocrat). Credit ratings are strong (A-/Baa1 range).
Key Facts
- Founded: 1823 (origin as New York Gas Light Company)
- Headquarters: New York City, New York
- Employees: ~14,000
- Exchange: NYSE
- Sector / Industry: Utilities / Electric Utilities
- Market Cap: ~$33–35B
Financial Snapshot
ticker: ED step: 04 generated: 2026-05-12 source: quick-research
Consolidated Edison Inc. (ED) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $15.67B | $14.66B | $15.26B | +4.0% |
| Operating Margin | ~19% | ~21% | ~22% | +1pp |
| Net Income | $1.66B | $2.52B* | $1.82B | -28%* |
| EPS (diluted, GAAP) | $4.68 | $7.25* | $5.26 | -27%* |
| Adj. EPS | ~$4.55 | ~$5.03 | $5.40 | +7% |
FY2023 GAAP net income was elevated by $1.0–1.2B gain on sale of Clean Energy Businesses ($6.8B deal closed 2023). Adjusted EPS removes this gain and shows the true utility earnings trajectory.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$4.8B |
| Capital Expenditures | ~$4.8B |
| Free Cash Flow | ~$36M (near zero — typical for growth utility) |
| Total Debt | ~$22B |
| Total Assets | ~$70B |
Con Edison is a heavy capital reinvestment business. FCF is near zero because CapEx tracks or exceeds OCF; growth is equity- and debt-financed. Planned equity issuances: $1.4B in 2025, $1.85B in 2026.
Key Ratios (approximate)
- P/E: ~16x (adj. FY2025 EPS $5.66) | Dividend Yield: ~3.4%
- EV/EBITDA: ~12x | Regulatory ROE: ~9.9–10.1%
- Rate Base Growth Target: 8.2% per year | LT EPS Growth Guidance: 5–7%
Growth Profile
Con Edison's growth is driven entirely by rate base expansion — investing in grid modernization, clean energy infrastructure, and resiliency upgrades and earning a regulated return on those investments. The $38B five-year capital plan (2025–2029) and $72B ten-year plan are designed to grow the rate base at ~8.2% annually. Revenue growth is modest and lumpy (tied to rate case outcomes). Adj. EPS growth of 5–7% annually is the target, with FY2025 actuals at +4.8% ($5.66/share) and FY2026 consensus at ~$6.06 (+7%).
Forward Estimates
- FY2025 Actual: Revenue ~$15.3B; adj. EPS $5.66 (+7.6%)
- FY2026 Consensus: Adj. EPS ~$6.06 (+7%); pending 2026–2027 rate cases proposing 17.9%/14.9% electric/gas base rate hikes to support capital recovery
- Dividend: ~$3.24/year (50+ consecutive years of increases); yield ~3.4% at ~$95/share
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $ED.