Edison International’s $1.66 Billion Preferred Buyback Could Be a Game Changer for EIX

• In November 2025, Edison International announced cash tender offers to buy any and all outstanding Series A and Series B Fixed-Rate Reset Cumulative Perpetual Preferred Stock, with a total liquidation preference of over US$1.66 billion, to be funded from cash on hand and including accrued dividends for shareholders.
• This initiative reflects Edison International’s effort to optimize its capital structure and manage future financing costs amid ongoing industry and regulatory pressures.
• We'll now examine how Edison International's preferred stock buybacks may influence its investment narrative and future capital allocation.

Find companies with promising cash flow potential yet trading below their fair value.

Edison International Investment Narrative Recap

Being a shareholder in Edison International generally relies on a belief in the long-term demand for grid modernization, electrification, and the company’s regulated growth model within Southern California. The recent cash tender offers for preferred stock may have only a limited short-term impact on the key catalysts of electrification-led demand and regulatory clarity, while not materially shifting the focus from the ongoing wildfire liability risks that remain the company’s most significant headwind.

Among Edison International’s recent announcements, its October 2025 quarterly common dividend declaration stands out, reflecting the company’s ongoing emphasis on providing consistent returns to common shareholders even as it adjusts its capital structure. This continued dividend focus remains relevant as the company manages balance sheet flexibility to support grid investments and address regulatory and wildfire cost exposures.

However, investors need to be aware that unresolved wildfire liabilities could still...

Read the full narrative on Edison International (it's free!)

Edison International's outlook estimates $20.4 billion in revenue and $2.4 billion in earnings by 2028. This assumes a 5.2% annual revenue growth rate and a $0.2 billion decrease in earnings from the current $2.6 billion level.

Uncover how Edison International's forecasts yield a $67.37 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Fair value estimates from four members of the Simply Wall St Community range between US$52.50 and US$101.61. While these opinions highlight considerable variety, persistent wildfire liabilities and related legal challenges remain crucial to watch for those considering Edison International’s future performance.

Explore 4 other fair value estimates on Edison International - why the stock might be worth 10% less than the current price!

Build Your Own Edison International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Edison International research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Edison International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Edison International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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