EXC

Exelon is a pure-play regulated transmission-and-distribution utility (ComEd, PECO, BGE and the PHI utilities — Pepco/DPL/ACE), and the numbers read like a well-run regulated business: FY2025 revenue of $24.3B (+5.3%) and net income of $2.77B (+12.5%) extend a clean five-year climb from $17.9B/$1.83B in FY2021. The MD&A attributes the gains to favorable rate increases at ComEd, PECO, BGE and PHI plus higher returns on regulatory assets — exactly the low-risk, regulator-blessed earnings stream you want from a utility — and reports diluted EPS rising to $2.73 from $2.45 (adjusted operating EPS $2.77). Note the provided P/E of 26.3x is built on a mislabeled '$1.74 (FY2021)' EPS figure; against the filing's actual FY2025 diluted EPS of $2.73, the $45.81 price is ~16.8x, a fair-to-slightly-cheap multiple for a regulated utility, and the ~$1.59/share dividend (from $1.62B paid, +6.1%) yields ~3.5%.

The balance sheet is leveraged but conventionally so for the sector: $87.8B liabilities against $28.8B equity (3.05x), $49.4B long-term debt, and only $626M of cash — the durability rests on regulated cash flows and credit-market access, which the filing explicitly leans on for liquidity. Operating cash flow of $6.25B (+12.3%) is the real engine, but it does not cover the $8.53B capex (+20.2%), and management guides to $9.95B of 2026 capex plus $31.3B beyond 2026. That gap is the crux: Exelon is funding its rate base through a mix of debt and equity, having issued ~16M shares in 2025 at ~$43.24 (net $691M) under a $2.5B ATM program with $1.5B still available, plus forward sale agreements (15.4M antidilutive shares pending). Shares outstanding already rose 1.8% YoY.