Exelon Exceeds Earnings Estimates, Plans $38 Billion Infrastructure Investment
Exelon Corporation (EXC) announced its annual profit projections, exceeding Wall Street estimates. The utility provider anticipates increased revenues from higher electricity and natural gas rates.
Infrastructure Upgrades Drive Investment
U.S. utilities, including Exelon, are pursuing higher customer rates to finance infrastructure modernization. These investments aim to enhance grid resilience amid extreme weather events and meet growing energy demands from electrification and data center expansion.
Capital Expenditure Plan
Exelon plans to allocate $38 billion in capital expenditures over the next four years, surpassing its previous plan by 10%. This elevated investment will support its ongoing modernization efforts.
Earnings Growth Target
The company expects to achieve an annualized earnings growth of 5-7% through 2028, driven by its capital plan and rate case approvals.
Rate Case Approvals
Several Exelon rate case proposals have been approved by regulators, resulting in increased revenues. As a result, the company anticipates adjusted operating earnings of $2.64-$2.74 per share in 2025, outpacing analysts' consensus estimate of $2.63 per share.
Fourth Quarter Results
Exelon reported adjusted operating earnings of 64 cents per share for Q4 2022, surpassing analysts' forecast of 59 cents per share. The company's stock experienced a pre-market rise of over 1%.