EXC

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Exelon stock has delivered a solid 48.0% total return over the past 5 years. However, its current valuation checks and recent softer share price moves leave investors weighing how much upside is already reflected in the price. Over 5 years, Exelon has returned 48.0%, which signals that a meaningful part of its long term value story is already being recognized by the market. The scale and frequency of severe weather events facing its ComEd network can support revenue from ongoing grid investment, but also add risk through higher repair costs and potential pressure on future returns. Exelon scores 3 out of 6 on our valuation checks, which points to a mixed picture rather than a clear bargain or clear overvaluation on the current fundamentals. For investors, the debate is whether Exelon's recent pullback, after several years of gains, leaves the stock attractively priced relative to its long term cash generation and risk profile. Find out why Exelon's -0.0% return over the last year is lagging behind its peers. The P/E ratio is a common way to look at Exelon because earnings remain a key yardstick for regulated utilities. Exelon trades on a P/E of about 16.2x, which is below the Electric Utilities industry average of 20.2x and under the peer group average of 20.5x. The fair P/E ratio implied by the model is 23.3x. That is higher than where Exelon stock trades today, which suggests the current price does not fully reflect the earnings level that would be expected given its sector, scale and risk profile. Despite the recent severe weather events affecting ComEd and the operational focus they demand, the market multiple still prices Exelon at a discount to typical utility peers. On this P/E measure, Exelon stock appears undervalued compared with both its sector benchmarks and the model’s fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives take the valuation puzzle around Exelon and turn it into a set of clear future paths that would need to play out in areas like growth, margins and earnings for the stock to be worth materially more or less than today's price. Where a single ratio or model gives one output, these narratives unpack the future that number relies on so you can see what to watch and whether those conditions are actually developing over time on Exelon's Community page. Share a narrative on Exelon that lays out your numbers-based view on how events like ComEd's major August restoration effort could shape its earnings power and risk over time. Add your voice to the Simply Wall St community and track how your thesis holds up as new results and grid investment updates come through. Do you think there's more to the story for Exelon? Head over to our Community to see what others are saying! Exelon looks modestly undervalued on earnings, with its P/E sitting below both sector and peer averages despite its regulated utility profile. That discount exists alongside only mixed results on broader valuation checks, so it is not an across the board green light. The key question is whether future grid investment and weather related risk leave current earnings and the P/E multiple resilient. The crux for investors is whether that discount reflects genuine mispricing or a fair cushion for the operational and regulatory uncertainties highlighted earlier. 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. Companies discussed in this article include EXC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, July 30, 2026, at 10 a.m. ET Vice President of Investor Relations - Ryan Brown President and Chief Executive Officer - Calvin Butler Chief Financial Officer - Jeanne Jones President and Chief Executive Officer of PECO - Michael A. Innocenzo Executive Vice President of Transmission and Development - Carim Khouzami Operator: Hello, and welcome to Exelon’s Second Quarter 2026 Earnings Call. My name is Josh, and I will be your event specialist today. All lines have been placed on mute to prevent any background noise. Please note that today’s webcast is being recorded. During the presentation, we will have a question-and-answer session. You can ask questions by pressing *11 on your telephone keypad. If you would like to view the presentation in full-screen view, click the full-screen button by hovering your computer mouse cursor over the PowerPoint screen. Press the Escape key on your keyboard to return to your original view. And finally, should you need technical assistance, as a best practice, we suggest you first refresh your browser. If that does not resolve the issue, please click on the Help option in the upper-right-hand corner of your screen for online troubleshooting. It is now my pleasure to turn today’s program over to Ryan Brown, Vice President of Investor Relations. The floor is yours. Ryan Brown: Great. Thank you, Josh. Good morning, everyone. Appreciate you joining us for our 2026 second quarter earnings call. Leading the call today are Calvin Butler, Exelon’s President and Chief Executive Officer, and Jeanne Jones, Exelon’s Chief Financial Officer. Other members of Exelon’s senior management team are also with us today and will be available to answer your questions following our prepared remarks. Today’s presentation, along with our earnings release and other financial information, can be found in the Investor Relations section of Exelon’s website. We would also like to remind you that today’s presentation and the associated earnings release materials contain forward-looking statements, which are subject to risks and uncertainties. You can find the cautionary statements on these risks on Slide 2 of today’s presentation or in our SEC filings. In addition, today’s presentation includes references to adjusted operating earnings and other non-GAAP measures. Reconciliations between these measures and the nearest equivalent GAAP measures can be found in the appendix of our presentation and in our earnings release. It is now my pleasure to turn the call over to Calvin Butler, Exelon’s President and CEO. Calvin Butler: Thank you, Ryan, and good morning, everyone. We appreciate you joining us for our second quarter earnings call. Halfway through 2026, Exelon is delivering where it matters most: performing today and preparing for tomorrow. Our utilities are providing safe, reliable service, driving affordability, and investing in the infrastructure that keeps our customers, communities, and economies thriving. This morning, we reported adjusted operating earnings of $0.43 per share, consistent with expectations, and are reaffirming our full-year guidance of $2.81 to $2.91 per share. Operationally, we continue to lead the industry, with all utilities projecting top-quartile reliability and ComEd and PHI projected in the top decile. Those of you who are from Chicagoland know that this has been quite a year for storms. So far this year, ComEd has experienced 16 major weather events, more than it has seen in over two decades, while Illinois has recorded more tornadoes than any other state. Most recently, Monday’s severe storms impacted approximately 530,000 customers. Thanks to the extraordinary efforts of our crews and support teams, power was restored to 90% of affected customers within 48 hours. These results reflect disciplined investment in grid resilience and a sustained focus on delivering safe, reliable service for our customers when they need it most. Reliability is about more than metrics. When the grid performs, businesses keep their doors open, hospitals care for patients, and families can count on the power being there when they need it most. In 2025 alone, our top-quartile reliability saved customers an estimated $1 billion in avoided outage costs. And annual customer interruptions have declined by nearly 2 million since 2021. And for every $1 million Exelon invests, an average of eight jobs are created or $1.7 million of economic output is generated. We are proud of the indispensable role we play in supporting the communities and businesses that depend on us every day. Now, turning to regulatory activity, we remain on track in the Pepco Maryland and DPL Delaware electric rate cases, as well as ComEd’s grid plan. Earlier this month, we also filed a rate case at BGE, with a decision expected in January 2027. Jeanne will cover the details, but the filing reflects our approach to balancing affordability with the investments required to maintain a safe and reliable grid. To help manage customer impacts, BGE delayed its filing, deferred select projects, and prioritized the maintenance and reliability work most critical to serving customers safely. The work our men and women perform every day is critical to our communities, and we cannot delay any further. If critical work is deferred for too long, customers ultimately pay the price through more outages, more costly repairs, and higher long-term costs. As demand grows and weather-related stress increases, the need to maintain and strengthen the grid remains. Long-term affordability depends on a strong, resilient system. Across Exelon, affordability and reliability are being addressed together. We manage expenses carefully, deploy capital where it creates the greatest customer value, and support customers through assistance programs and energy savings initiatives. We are also taking steps to ensure growth benefits existing customers rather than burdening them. As new large-load customers connect to our system, we are structuring agreements that require real financial commitments tied to the infrastructure needed to serve them. FERC’s recent large-load dockets reinforced that approach, recognizing the need to protect existing customers while ensuring that large loads have real commitments behind their projects. This is exactly the principle behind our transmission security agreements, which are helping to protect customers by filtering out speculative requests before significant system investments are made, creating a clear picture of actionable demand. Despite these efforts, the extreme heat and system demand in July made one thing very clear: affordability cannot be solved through cost discipline alone. It also requires new supply. At the beginning of the month, PJM was pushed to its limits. Demand hit a record peak of 168 gigawatts. PJM activated emergency procedures and called on demand response resources to maintain reliability, while power prices surged tenfold, from roughly $80 to $800 per megawatt-hour. Now, the grid held, and our teams did their job, but the system should not have to operate this close to the edge. And this is not a one-off event. This pressure is further evidenced by PJM’s most recent capacity auction. For the third consecutive auction, prices cleared at the FERC-approved price cap. Even so, the market fell short of PJM’s reliability requirement by approximately 6.8 gigawatts, larger than the prior 6.5-gigawatt shortfall, which is the equivalent of roughly seven nuclear reactors of missing supply. Even more telling, only about 525 megawatts of new generation and upgrades cleared, indicating that even at the highest allowed price, the market is not attracting the level of new supply the system needs. Absent the FERC-approved price cap of $330 per megawatt-day, PJM’s own simulation shows prices would have cleared at approximately $555 per megawatt-day across the footprint and $777 in ComEd, indicating the underlying scarcity is even more severe than the headline price suggests. The July heat event, auction results, and market price signals all point to the same conclusion: demand is growing faster than supply, and the system is under increasing strain. Our customers should not pay the price of a system that has been allowed to run too thin, and they should not have to wait years for solutions that are needed today. That is why Exelon is advocating for an all-of-the-above approach: transmission, demand-side solutions, market resources, and utility-owned generation where it makes sense. We are continuing the dialogue with our states and participating in FERC and PJM processes to advocate for policies that protect customers and help deliver energy reliably and cost-effectively. This is where the Exelon platform matters. Our scale, experience, and relationships across multiple states allow us to move from identifying the problems to advancing real solutions. First, transmission. Exelon continues to lead on transmission expansion because reliability starts with the ability to move power where it is needed most. Transmission helps relieve localized constraints, connect new resources, and strengthen the grid as demand grows. That momentum continues with the recent submission of two additional MISO Tranche 2.1 competitive transmission bids in partnership with Invenergy. We will continue to leverage our scale, expertise, and strong development partnerships to pursue transmission opportunities across and beyond our footprint. Second, utility-generated power and storage. We are proposing solutions that give states more control, more certainty, and more direct customer benefits. Utility-generated power and storage can add supply, improve reliability, and put downward pressure on long-term costs, with the accountability and lower-cost capital utilities are uniquely positioned to provide. This is not about ideology. It is about outcomes: reliable service, lower long-term costs, and greater energy security for customers. For example, during the extreme heat and record demand over the July 4 weekend, an ACE battery storage unit serving a New Jersey beach community was dispatched to support the grid. That one asset helped maintain reliability during a period of system stress, demonstrating the practical customer and grid benefits these investments can deliver. We have also seen these benefits play out elsewhere. Earlier this month, ERCOT served a record peak demand of more than 91 gigawatts without emergency actions or curtailment requests, while power prices remained relatively stable at roughly $40 per megawatt-hour during the peak hour. Renewables and battery storage played a significant role in meeting that demand while supporting both reliability and affordability. Building on that momentum, we recently announced a significant new 500-megawatt battery storage project in New Jersey. And we continue to see storage as an important tool for customers because it is fast, flexible, and targeted. Had our battery project been operating during the July 2 through July 5 heat wave, ACE customers would have realized approximately $7.5 million of energy cost savings that could have been returned to customers to help offset higher market prices. Storage solutions can provide peak capacity, improve reliability in constrained areas, support affordability, and help states meet their energy goals. The benefits are real, measurable, and already being demonstrated today. Lastly, energy efficiency and virtual power plants. Several of our utilities recently received approval for VPP programs that turn customer-sited resources into grid capacity. That helps reduce peak demand, lowers pressure on the system, and gives customers a direct role in the solution. Taken together, these are all practical solutions. They also are areas where Exelon can deploy capital with discipline, where there is a clear customer need and strong execution visibility. We are not waiting for the market to solve this on its own. We are bringing forward actionable solutions that strengthen reliability, improve affordability, and give our states more tools to shape their energy future. Now, with that, I will turn it over to Jeanne to walk through our financial performance and provide additional details on our rate case activity and outlook. Jeanne? Jeanne Jones: Thank you, Calvin, and good morning, everyone. Today, I will cover our second quarter financial results and key regulatory activity, discuss solutions we are advancing to support affordability and resource adequacy, and conclude with an update on our balance sheet and financing progress. Starting on Slide 5, we present our quarter-over-quarter adjusted operating earnings walk. Exelon earned $0.43 per share in the second quarter of 2026 compared to $0.39 per share in the same period in 2025. Results were higher by $0.04 per share year over year, primarily driven by $0.04 of distribution and transmission rates, net of depreciation and AFUDC, $0.04 related to last year’s Customer Relief Fund, and $0.01 of favorable weather at PECO. This was offset by $0.02 of higher credit loss expense at BGE and $0.02 of interest at corporate and PECO. Our second quarter performance is in line with the expectations we discussed on the first quarter call and continues to demonstrate the value of disciplined execution across the platform. We are delivering on customer-focused investments that support top-quartile reliability while managing costs and timing items within the full-year plan. Looking ahead to the third quarter, we expect earnings to be approximately 27% of the midpoint of our projected full-year earnings guidance range. This expectation contemplates the impact of weather, storms, and the PECO employee strike at the beginning of July, as well as normal weather and storm activity through the remainder of the quarter. As with historical practice, our quarterly shaping guidance also assumes anticipated revenue shaping and timing of costs across the utilities. Combined with results for the first half of the year, we anticipate the fourth quarter to benefit from the absence of one-time 2025 distribution and transmission rates, the unwinding of timing, and disciplined execution of bad debt and storm recovery efforts. We remain on track to deliver full-year operating earnings of $2.81 to $2.91 per share, with the goal of being at the midpoint or better. Finally, we reaffirm our expectation to deliver annualized earnings growth near the top end of 5% to 7% from 2025 through 2029, supported by 7.9% annualized rate base growth, disciplined cost management, and a balanced financing plan that maintains strong investment-grade credit metrics. Turning to Slide 6, I will review the open base rate cases and other regulatory activity across the platform. These proceedings reflect our continued focus on recovering prudent investments that support safe, reliable service while advancing proposals that are responsive to customer affordability and the policy priorities of our jurisdictions. Starting with Pepco Maryland, where a final order is expected next month for its traditional electric base rate case, this filing seeks recovery of critical investments that support reliability, accommodate growing customer needs, and strengthen the resiliency of the electric system, while also reflecting the impact of higher financing costs. Projects such as the White Flint Substation are tangible examples of work being done to increase capacity, reduce outage risk, and support long-term growth and economic development in the communities we serve. Also in Maryland, BGE filed an electric distribution rate case on July 2, seeking a $156.1 million revenue requirement increase to recover investments and costs necessary to maintain a safe and reliable grid under a historic test year. The filing also reflects revised financing and storm restoration costs and includes proposals to establish a storm recovery mechanism and provide customers with additional payment flexibility. A final order is anticipated in January 2027. In Delaware, Delmarva Power’s electric base rate case continues to progress. DPL is seeking a $45.4 million revenue requirement increase to support investments necessary to maintain safe and reliable service, including system upgrades and reliability investments across its service territory. The filing also includes proposals designed to support affordability, including a new income-based rate and a bad debt rider. As permitted by Delaware law, DPL implemented interim rates effective July 9, subject to refund. A final order is expected in the third quarter of 2027. Finally, at ComEd, the grid plan proceeding continues to move forward, with staff and intervenor rebuttal testimony filed earlier this month ahead of hearings in August. As a reminder, the plan proposes approximately $15.3 billion of investment through 2031 to support reliability, accommodate significant load growth, and advance the objectives of Illinois’ energy policy framework. An order is expected by December 15. Across these proceedings, our approach remains consistent. We are investing to support reliability, resiliency, and customer needs while remaining focused on affordability and cost discipline. While our base regulatory filings remain focused on maintaining safe, reliable, and affordable service, we continue to advance additional solutions to help address growing affordability and reliability challenges, particularly in light of supply constraints highlighted by the recent PJM auction. Turning to Slide 7, practical and deployable resources, such as storage and virtual power plants, can provide capacity, reduce congestion, and help manage price volatility while supporting each state’s energy goals. Today, roughly 10 gigawatts of solar and wind across PJM go unused on any given day. Storage can capture excess generation and shift it to peak-demand periods, turning surplus clean energy into reliable, high-value supply. Unlike many traditional solutions that can take five to 10 years or longer to develop, battery storage is a faster, scalable, and modular option that can often be deployed within approximately three years, even for large-scale batteries. In New Jersey, Atlantic City Electric, partnered with Invenergy, has advanced a 500-megawatt battery energy storage system using four-hour batteries to target roughly five peak-demand days a year in Pittsgrove. The project will be large enough to power approximately 400,000 homes and represents the single-largest battery storage installation in PJM. The Pittsgrove storage project was submitted in PJM Cycle 1 and represents approximately $1 billion in investment not currently reflected in our plan. Combined with anticipated PJM market revenues, all of which will be returned entirely to customers, federal tax credits, the mitigation of energy and capacity prices, and deferred transmission investment, customers will see over $700 million in net benefits after the project is placed into service, importantly, without seeing any customer bill impact until at least 2035. Atlantic City Electric filed a request last week for regulatory approval of the mechanism to recover project costs, with a final order anticipated in the first half of 2027. In addition, we are pursuing similar opportunities in Maryland, where BGE and Pepco have submitted battery storage projects as part of the state’s distributed connected storage solicitation, which are currently under commission review. Beyond storage, we are also advancing virtual power plant initiatives across our jurisdictions, which aggregate customer-sited resources to reduce peak demand, support grid reliability, and lower overall system costs. At ComEd, the approval to launch its first scheduled-dispatch VPP program is expected to increase the amount of battery storage available across Northern Illinois while providing compensation to participating customers. When paired with existing distributed generation rebates and incentives, the program creates a compelling customer value proposition while helping support the grid. Maryland also recently approved programs to allow a range of customer-sited assets to act as grid assets, and we continue to see momentum in New Jersey and Delaware as policymakers continue advancing distributed energy resource and VPP frameworks. Together with continued transmission and distribution investment, these solutions provide practical tools to address affordability, reliability, and resource adequacy needs across our jurisdictions. Turning to Slide 8, we continue to execute our financing plan in a balanced and disciplined manner. Maintaining a strong balance sheet is core to our strategy and essential to funding the investment needed to deliver safe, reliable, and affordable service for our customers. To date, we have completed approximately 86% of our 2026 debt financing needs, including all expected debt issuances at the holding company, Pepco Holdings, ComEd, and BGE, materially reducing our remaining exposure to interest rate volatility for the year. In addition, our pre-issuance hedging strategy continues to provide protection against future rate movements. We have already priced approximately 37% of our planned equity needs through 2029 via forward contracts under our ATM program, having priced all of our needs for 2026 and half of our needs for 2027. Our credit metric outlook also remains strong, with expected average credit metrics of approximately 14% through 2029, supporting the strategic and financial flexibility needed to advance our capital plan and capture additional customer-driven growth opportunities. We remain confident in our ability to deliver value for our customers and shareholders through disciplined execution, a strong balance sheet, and investments that support reliable, resilient, and affordable energy service. I will now turn the call back to Calvin for closing remarks. Calvin Butler: Thank you, Jeanne. I will close on Slide 9. The story is consistent and straightforward. And as I said, performing today and actively preparing for tomorrow. Exelon is built for this moment. We have the scale, diversified footprint, operational excellence, and financial discipline to perform in a changing environment. In 2026, we remain focused on deploying approximately $10 billion of capital for the benefit of customers, delivering operating earnings of $2.81 to $2.91 per share, earning a consolidated operating ROE of between 9% and 10%, and maintaining a strong and resilient balance sheet. Just as important, we are pursuing growth where it creates real customer value, strengthens the grid, and supports the communities and economies we serve. The environment is changing quickly, but our priorities are steady. We have the people, platform, and experience to navigate complexity, deliver on our commitments, and advance practical solutions for customers. That is why we remain confident in the path ahead. Josh, we can now open it up for any questions. Operator: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. One moment for questions. Our first question comes from Shahriar Pourreza with Wells Fargo. Shar Pourreza: Good morning, Calvin. Good morning, Jeanne. Calvin Butler: Hey. Morning, Shar. Shar Pourreza: Calvin, PJM walked back from the EDC proposal that had the Members Committee supermajority in its letter. I guess, do you feel like where they landed meaningfully addresses the key issues in PJM? Do you have any plans to intervene further with FERC? I mean, it does not seem like you are waiting for an outcome here to step in. You proposed the BESS development. I am assuming that was not a one-off. So just kind of curious about the recent development. Thanks. Calvin Butler: No. Thank you, Shar, and you captured it. We are focused on just really providing solutions, but let me first begin by applauding PJM’s efforts to address resource adequacy challenges with a sense of urgency and really looking at opportunities to bring new generation onto the system because these are important steps in the right direction. And we do believe that their measures may help address near-term reliability concerns, but they are unlikely to resolve any long-term affordability challenges. Ultimately, what we have always said, and we are very consistent, is that to really resolve long-term challenges on affordability, you need more generation to be brought online. And we will continue to advocate for several important consumer protections in this effort, and we will continue to engage with PJM. But over the long term, we believe that states should play a central role in resource planning and procurement. And utility-owned generation needs to be part of that mechanism as a cost-effective complement to market-based solutions. And as we have talked about, you know, this is our Exelon Promise in action, and we will continue to drive this. But it is going to require a partnership and more active engagement with the states. Jeanne, anything you would like to add? Jeanne Jones: Yeah. No. I think that covers it. And I think that, to your point about real solutions—and you noted it, Shar—the 500-megawatt battery solution, we have been working on this. We are pleased to see that, you know, we got through the filing, and we will work with the commission there. And to your question, no, it is not the only one, and we are working on others. Shar Pourreza: Okay. That is perfect. And then your data center growth slide shows a combined 36 gigawatts. That is down around 11 gigawatts from the 43 gigawatts that you previously cited. Is that simply a reclassification or refinement of the queue? Any read-through there with PJM’s current dysfunction maybe causing some attrition or slower conversion in the pipeline? Thanks. Jeanne Jones: Yeah. I will take that one, Shar. So I would say you are right. We did update it. I think this will continue to evolve. But I would also say we have always taken, as you know, a measured approach to the data center phenomenon, whether it was our position on co-location and ensuring fair cost allocation or the development of transmission security agreements, which, as you know, never existed in our regions. Right? And so we developed those agreements and made them part of our process. In addition to that, we also, throughout this, have kept our CapEx increases consistent with historical increases and really only put in capital that was certain and durable. And I think that this update underscores that was the right approach. The TSAs are doing what they should. As we go through our cluster process, we said, you know, we are going to study the clusters. We are going to offer the customer a TSA. Sign the TSA, and then, importantly, put up collateral behind that. And so what this update reflects is we have now weeded out speculative projects, and it gives us proactive insight into what is real. And this is what you want management to do. You want us to provide real and durable growth. And, importantly, our $41 billion of capital between now and 2029 remains unchanged due to this update because we have not put in speculative projects. And as I think about that growth, I would just say a couple of other things. You know, what is sitting in that 11 gigawatts? We have 4 gigawatts that have signed TSAs, and they are backed by $1 billion of collateral. The other 7 gigawatts in that high-probability category are projects that predated the TSA process but are further along, and we feel very comfortable that they will continue. And so the 11 gigawatts is significant, and we are going to continue to study the remaining 25 gigawatts that is on that slide. But there is real growth, and it goes back to, you know, not just being focused on what is real on the T&D growth side, but how do we provide those solutions on the supply side to support that growth? And that is, you know, our first project out of the gate is the 500-megawatt battery. Shar Pourreza: Got it. Perfect. Super comprehensive. Thank you, guys. Appreciate it. Calvin Butler: Thank you, Shar. Operator: Thank you. Our next question comes from Jeremy Tonet with JPMorgan Securities. You may proceed. Jeremy Tonet: Hey, guys. Good morning. Appreciate your time. I guess maybe just going back to the regulatory front. You know, now a few months since the withdrawal of your PECO rate case, how do you think about filing the case moving forward? It just seems like we continue to see a lot of constructive data points out of the PA PUC. At this point, are there any inflection points you kind of hope to see before filing again? You know, what would encourage you to file at this time? Calvin Butler: Yeah. Thank you, Jeremy. I appreciate that. And I think, once again, you captured it well. Let me just begin by saying that we share Governor Shapiro’s focus on affordability, and we have analyzed his letter and what his framework is, and I will ask Michael Innocenzo to jump in there. But let me just begin by saying that we have been having constructive conversations with not only the governor but his staff since day one. And like you said, we are seeing indicators that Pennsylvania is still a solid regulatory framework for us to operate in, and they view PECO as an economic partner and job creator in the state. And we recognize also, and they have said it, that Pennsylvania needs financially strong, viable utilities and sustainable investments to encourage that economic growth. But understanding that, we will continue to partner, and we believe that investment in our system is required to maintain the reliability and growth that they expect, and we will do that over our long-term planning horizon. So I am going to give it to Mike to see if he has any detail he wants to share about the governor’s conversation. Michael A. Innocenzo: Yeah. Thanks, Calvin. Thanks, Jeremy. I would say, you know, your point about data points—certainly, there are the data points, you know, the constructive settlements that have already occurred, constructive discussions on the active rate cases currently underway, and then it is our discussions. It is discussions with key stakeholders in Harrisburg. It is our discussions with the governor’s office. If you look at the key points that he is looking for and everybody is looking for, it is making sure that our investments are providing customer value and customer benefits, making sure that there is transparency on the ROE, and making sure that we are looking at every lever that we can to address affordability. We think we have addressed that in multiple ways under the existing process, as others in the state are, and we are continuing to work with the governor’s office, the PUC, and the statutory intervenors, like the Consumer Advocate’s Office and the Small Business Advocate’s Office, having discussions to make sure that when we file again, we are addressing each of their concerns. And we feel confident we will be back in a way that will be very productive. Jeremy Tonet: Great. Appreciate the insight there. And I just want to shift to the transmission front real quick, if I could. You know, to what extent can you tap into your identified $12 billion to $17 billion upside opportunity as we kind of think about the next plan? What win rate should we be thinking about as it pertains to upcoming competitive transmission windows for you guys? Jeanne Jones: Yeah. So, hey, it is Jeanne. Of the $12 billion to $17 billion, I am just going to hit on a couple of things. I am going to turn it to Carim, who is head of our transmission and development group. So, the $12 billion to $17 billion is not dependent on one sort of theme. Competitive transmission is one of, I would say, probably five. Right? So what we want to do is give insight into spending roughly that amount in our four-year period today, and so we see that continuing beyond 2029, driven by existing infrastructure over our 11,000 circuit miles, new business related to the data center pipeline, state policies around additional generation coming online, old generation retiring, the transmission needed to accommodate that, and, importantly, competitive transmission. And so maybe I will let Carim speak to kind of how we think about that. Carim Khouzami: Yeah. Thanks, Jeanne. And, you know, I agree with everything Jeanne just said. And I would add, on competitive transmission, you have seen us be very active over the last 12 to 18 months in PJM and also in other RTOs, such as MISO. We are going to continue to do that, and you saw recently that we filed for two projects in MISO Tranche 2.1 in Iowa, the MARS and the EASL projects. We expect to hear back from MISO in the fourth quarter. And what we would say is we think that we are very well positioned to take advantage of some of these opportunities based on our operational excellence and, importantly, our experience with 765-kV lines, so high-voltage lines. We are one of very few transmission operators that own and operate those types of lines today. And that is what increasingly more and more RTOs are seeking in their solutions. I would say I think we are very well positioned to continue to be successful, like we were in Western Pennsylvania this past PJM window. You will see us continue to be active. Jeremy Tonet: Great. Makes sense. Appreciate the time there. I will leave it there. Jeanne Jones: Thanks, Jeremy. Operator: Thank you. Our next question comes from Paul Zimbardo with Jefferies. You may proceed. Paul Zimbardo: Hi. Good morning, team. Thanks for the time. Just to follow up on the last one a little bit. Focusing on ComEd, that simulated $777-per-megawatt-day clearing price in the last auction, is that a catalyst for kind of unlocking even more incremental transmission and storage investments? I just think a lot more can pencil at that kind of potential price point, if you could share a thought. Carim Khouzami: Paul, I think that is probably indicative of what we have been saying, which is we need an all-of-the-above approach. It is probably not just transmission. It is not just battery solutions. It is really all of the above. Transmission, as Calvin mentioned in his prepared remarks, provides the optionality of moving the electrons from where they are being generated to where they are needed. Battery storage is very effective in helping to shave off the peaks and avoid transmission, avoid peak pricing, and help to insulate customers from that. So, from our perspective, you can expect to see us be active on both those fronts, as well as others. Really, what we are looking for is wherever those opportunities are for us to serve our customers, to help affordability and help reliability, that is where you will see us be active. And storage and transmission are two examples where we see a lot of benefits there. Jeanne Jones: Yeah. And that was contemplated already as part of the $12 billion to $17 billion when I mentioned kind of state-focused solutions. So definitely an opportunity there. We have seen over the last several planning cycles 80% to 100% of our four-year capital increase be in transmission, specifically for these issues. The other thing I would say is the state is well aware of this as well. If you look at what was passed in legislation last year, the state not only expanded energy efficiency, but also our distributed generation rebate programs, two programs that are meaningfully helpful for customers but also are treated as regulatory assets that we earn on—good for customers and good investments for us. They also are going to run a 3-gigawatt storage procurement this year, with, I think, 1 gigawatt of that 3 gigawatts this year. And then, importantly, they are taking a comprehensive view. Right? They are going to do their first integrated resource planning preview in November of this year. So pleased to see the state focused on this and that there are ways for us to lean in, as Carim said, not just in one area, but transmission, energy efficiency, DG rebates, and supporting through VPPs as well. Paul Zimbardo: Okay. That makes sense. And then a higher-level question, if I could, but I think an important one. Just holistically, it looks like there have been some—I do not know, maybe—paper cuts across the jurisdictions, legislation, and some regulatory action. Overall, how would you frame the conservatism in the plan overall? And I know you had that cost-cut update in the first quarter, but just overall comfort in the plan would be helpful. Thanks. Calvin Butler: Yeah. Thank you, Paul. I would say that comfort is not the word, but focused on execution is the word because we do not actually see it that way. We view that the strength of Exelon’s model is that we are not dependent on any single jurisdiction, regulatory outcome, or growth opportunity. As you just alluded to, when you think about what we have been able to accomplish with adverse rulings or inaction by some of our commissions, we have met and exceeded expectations that we have shared with you. And that is that diversity of our platform coming to life. I always talk about—and you have heard me say it, Paul—the power of our platform and not having one jurisdiction outweigh what we are able to accomplish and being able to move capital around and put it in place for the benefit of our customers and the communities. So, yes, there are single paper cuts, as you referred to, but not one of them is driving the ultimate outcome of Exelon. So when we pulled the Pennsylvania rate case, the PECO rate case, we reaffirmed our guidance. We did not lower our capital. In 2023, when ComEd’s grid plan was disallowed, the team got to work, met and exceeded our numbers because that is what we do, and that is what you should expect us to do. So I appreciate the observation, but we do not see it that way at all. Paul Zimbardo: Okay. No. Excellent. Thank you for the answer. Calvin Butler: Thank you. Operator: Thank you. And our final question comes from Andrew Weisel with Scotiabank. Andrew Weisel: Hi. Good morning, everyone. I want to first ask you to just elaborate a bit on the Pennsylvania commentary. I do not expect you to get too far ahead of the next rate case filing, but how are you thinking about CapEx levels and categories? Are your conversations pointing toward minimizing spending purely focused on reliability and safety? Or I heard you talk about supporting economic development. What does that look like? And is that specifically related to data centers and AI, or how are you thinking about that versus affordability? Other than, you know, how can you help other than the deferred spending that you talked about on the first quarter call? Any more detailed commentary would be very helpful. Thank you. Calvin Butler: No. Great question. I am going to ask Mike, who is serving as the CEO of PECO, to really give further clarification. And do not hesitate, if you have any follow-up, do not hesitate to ask, okay, if we do not scratch the itch. Michael A. Innocenzo: Thanks, Calvin. Thanks, Andrew. Yeah. I would, you know, go back to—I think you even alluded to it in your question there—it is making sure that we are really clear on areas that have that customer value. And we have heard loud and clear from the folks in the state that economic development continues to be important to the state. So we will make sure that our investments are supporting that, both on the transmission and on the distribution level. Safety, reliability, and resilience—it is an area that has seen increased storms and emergencies. We know the value that a reliable grid and a safe grid provide. As Calvin mentioned in his opening comments, PECO is a top performer nationally and is the top performer in the state. So we will continue to focus on those investments that are aligned with our long-term infrastructure improvement plans, both on the gas and electric side, also taking advantage of the DISC, and also looking for areas where we can drive affordability through other mechanisms. Including, just recently, PECO was awarded a RISE PA grant of $50 million for an investment that we will be making at our gas plant in West Conshohocken. So it is really just making sure that everything that we do is clearly aligned with those key categories, is well communicated, and is justified not only through the rate case process, but prior to the rate case process as we go in. Calvin Butler: And Andrew, let me just share. I think Mike captured it, and I just want to emphasize a point he made: communicating with all stakeholders on what and how we are doing it and the value that we are creating. Our number-one priority is always maintaining a reliable and safe system. We are never going to do anything to put that in jeopardy, but we will actively be communicating with all the stakeholders throughout this process. Andrew Weisel: Okay. Great. That is helpful. And you mentioned the DISC mechanism. Does that seem like something you will be leaning on a bit more? That seems to be a theme that we are hearing more of. Michael A. Innocenzo: Yeah. We have used it over the years already, so we will continue to do that. But as part of our going-forward conversations with the chair of the PUC, we will be looking for other ways that we can leverage that even further. That will be part of our plan going forward as well. Andrew Weisel: Okay. Very good. Then one more, if I can. In Illinois, I know that there is the IRP process the state is pursuing. Can you talk a bit about that? Given that the state is in PJM, what exactly is the goal here? Clearly, there are issues. You talked about the shortfalls and the high pricing from the auction if there were not the cap. As far as I can tell, I do not think it is too likely the state will leave PJM soon. I know there is some talk about it. I have heard the name ERCOT-IL floated around, which is a great name, but I do not know how likely that is. So maybe you could just talk about what the goal of this IRP is and what role you might be playing in that. Jeanne Jones: Yeah. I think the goal, ultimately, is what we need each of our states to do is to get a better picture of what they need from a state perspective in terms of demand versus supply. And it gives them the ability—the ICC and the other agencies working with them—the authority to expand programs, right, based on that analysis. Do we need to expand energy efficiency? Do we need to procure more storage? Do we need to do more in distributed generation? How do we look at our state emission limits? Things like that. So that is the goal, to say, how do we get more control over our own supply and demand situation within the state, which is something we applaud any state for doing. We are seeing Maryland study different procurement models. We are seeing Pennsylvania hire an independent consultant to study resource adequacy. Across all of our states, you know, Governor Moore is looking at supply solutions. This, I think, is the goal of all of our states, who are working very hard with PJM for long-term solutions, saying, hey, I have got to keep all options on the table. And the first thing I need to do is kind of have a good view of what my specific state needs, and we think that is absolutely the right thing to do. Andrew Weisel: Okay. Very helpful. Thank you, guys. Calvin Butler: Thank you. Operator: Thank you. At this time, I would like to turn the conference back over to Calvin Butler for closing remarks. Calvin Butler: As always, I just want to say thank you for taking the time to join us for our Q2 earnings call. We appreciate your continued interest and support, and we look forward to sharing further progress in the months ahead. And with that, Joshua, this concludes our call. Operator: Thanks to all our participants for joining us today. This concludes our presentation. You may now disconnect. 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Exelon Corporation recently reported past second-quarter 2026 results, with revenue rising to US$5,967 million from US$5,427 million a year earlier, while net income and earnings per share were essentially flat, and the board declared a regular quarterly dividend of US$0.42 per share payable in September 2026. Alongside these figures, Exelon reaffirmed its full-year guidance and highlighted progress on grid investments, including a proposed 500-megawatt battery storage project and expanded community solar initiatives through ComEd in Illinois. We’ll now examine how Exelon’s reaffirmed guidance and expanding grid and storage investments affect the existing investment narrative for the company. The latest GPUs need a type of rare earth metal called Terbium and there are only 29 companies in the world exploring or producing it. Find the list for free. To own Exelon, you need to be comfortable with a regulated utility story that leans heavily on grid investment, constructive regulators and stable dividends. The latest quarter, with higher revenue but flat earnings and reaffirmed guidance, does not materially change that narrative. In the near term, the key catalyst remains successful approval and execution of large grid and storage projects, while the biggest risk is that regulators do not fully support the rising capital and storm related cost burden. The announcement that Atlantic City Electric plans to build and own a 500 megawatt battery storage project in New Jersey ties directly into this catalyst, showing how Exelon is positioning around reliability and PJM supply concerns. If regulators endorse this and similar projects on terms that allow timely cost recovery, Exelon can keep expanding its rate base, but any pushback would feed directly into the earnings and financing risk investors are watching most closely. Yet for investors, the real concern to watch is how regulators respond if rising grid and storm costs start to... Read the full narrative on Exelon (it's free!) Exelon's narrative projects $27.4 billion revenue and $3.5 billion earnings by 2029. This requires 3.4% yearly revenue growth and a $0.7 billion earnings increase from $2.8 billion. Uncover how Exelon's forecasts yield a $49.33 fair value, a 8% upside to its current price. Two fair value estimates from the Simply Wall St Community span a wide range, from about US$6.58 to roughly US$49.33 per share, showing how far apart individual views can be. As you weigh those opinions, keep in mind that Exelon’s expanding grid and battery investments still depend on supportive rate decisions and cost recovery, which could materially influence the company’s ability to turn that spending into sustainable earnings power. Explore 2 other fair value estimates on Exelon - why the stock might be worth less than half the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Exelon research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Exelon research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Exelon's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. The future of work is here. Discover the 35 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. 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. Companies discussed in this article include EXC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, July 30, 2026 at 10 a.m. ET Vice President of Investor Relations - Ryan Brown President and Chief Executive Officer - Calvin Butler Chief Financial Officer - Jeanne Jones President and Chief Executive Officer of PECO - Michael A. Innocenzo Executive Vice President of Transmission and Development - Carim Khouzami Operator: Hello, and welcome to Exelon’s Second Quarter 2026 Earnings Call. My name is Josh, and I will be your event specialist today. All lines have been placed on mute to prevent any background noise. Please note that today’s webcast is being recorded. During the presentation, we will have a question-and-answer session. You can ask questions by pressing *11 on your telephone keypad. If you would like to view the presentation in full-screen view, click the full-screen button by hovering your computer mouse cursor over the PowerPoint screen. Press the Escape key on your keyboard to return to your original view. And finally, should you need technical assistance, as a best practice, we suggest you first refresh your browser. If that does not resolve the issue, please click on the Help option in the upper-right-hand corner of your screen for online troubleshooting. It is now my pleasure to turn today’s program over to Ryan Brown, Vice President of Investor Relations. The floor is yours. Ryan Brown: Great. Thank you, Josh. Good morning, everyone. Appreciate you joining us for our 2026 second quarter earnings call. Leading the call today are Calvin Butler, Exelon’s President and Chief Executive Officer, and Jeanne Jones, Exelon’s Chief Financial Officer. Other members of Exelon’s senior management team are also with us today and will be available to answer your questions following our prepared remarks. Today’s presentation, along with our earnings release and other financial information, can be found in the Investor Relations section of Exelon’s website. We would also like to remind you that today’s presentation and the associated earnings release materials contain forward-looking statements, which are subject to risks and uncertainties. You can find the cautionary statements on these risks on Slide 2 of today’s presentation or in our SEC filings. In addition, today’s presentation includes references to adjusted operating earnings and other non-GAAP measures. Reconciliations between these measures and the nearest equivalent GAAP measures can be found in the appendix of our presentation and in our earnings release. It is now my pleasure to turn the call over to Calvin Butler, Exelon’s President and CEO. Calvin Butler: Thank you, Ryan, and good morning, everyone. We appreciate you joining us for our second quarter earnings call. Halfway through 2026, Exelon is delivering where it matters most: performing today and preparing for tomorrow. Our utilities are providing safe, reliable service, driving affordability, and investing in the infrastructure that keeps our customers, communities, and economies thriving. This morning, we reported adjusted operating earnings of $0.43 per share, consistent with expectations, and are reaffirming our full-year guidance of $2.81 to $2.91 per share. Operationally, we continue to lead the industry, with all utilities projecting top-quartile reliability and ComEd and PHI projected in the top decile. Those of you who are from Chicagoland know that this has been quite a year for storms. So far this year, ComEd has experienced 16 major weather events, more than it has seen in over two decades, while Illinois has recorded more tornadoes than any other state. Most recently, Monday’s severe storms impacted approximately 530,000 customers. Thanks to the extraordinary efforts of our crews and support teams, power was restored to 90% of affected customers within 48 hours. These results reflect disciplined investment in grid resilience and a sustained focus on delivering safe, reliable service for our customers when they need it most. Reliability is about more than metrics. When the grid performs, businesses keep their doors open, hospitals care for patients, and families can count on the power being there when they need it most. In 2025 alone, our top-quartile reliability saved customers an estimated $1 billion in avoided outage costs. And annual customer interruptions have declined by nearly 2 million since 2021. And for every $1 million Exelon invests, an average of eight jobs are created or $1.7 million of economic output is generated. We are proud of the indispensable role we play in supporting the communities and businesses that depend on us every day. Now, turning to regulatory activity, we remain on track in the Pepco Maryland and DPL Delaware electric rate cases, as well as ComEd’s grid plan. Earlier this month, we also filed a rate case at BGE, with a decision expected in January 2027. Jeanne will cover the details, but the filing reflects our approach to balancing affordability with the investments required to maintain a safe and reliable grid. To help manage customer impacts, BGE delayed its filing, deferred select projects, and prioritized the maintenance and reliability work most critical to serving customers safely. The work our men and women perform every day is critical to our communities, and we cannot delay any further. If critical work is deferred for too long, customers ultimately pay the price through more outages, more costly repairs, and higher long-term costs. As demand grows and weather-related stress increases, the need to maintain and strengthen the grid remains. Long-term affordability depends on a strong, resilient system. Across Exelon, affordability and reliability are being addressed together. We manage expenses carefully, deploy capital where it creates the greatest customer value, and support customers through assistance programs and energy savings initiatives. We are also taking steps to ensure growth benefits existing customers rather than burdening them. As new large-load customers connect to our system, we are structuring agreements that require real financial commitments tied to the infrastructure needed to serve them. FERC’s recent large-load dockets reinforced that approach, recognizing the need to protect existing customers while ensuring that large loads have real commitments behind their projects. This is exactly the principle behind our transmission security agreements, which are helping to protect customers by filtering out speculative requests before significant system investments are made, creating a clear picture of actionable demand. Despite these efforts, the extreme heat and system demand in July made one thing very clear: affordability cannot be solved through cost discipline alone. It also requires new supply. At the beginning of the month, PJM was pushed to its limits. Demand hit a record peak of 168 gigawatts. PJM activated emergency procedures and called on demand response resources to maintain reliability, while power prices surged tenfold, from roughly $80 to $800 per megawatt-hour. Now, the grid held, and our teams did their job, but the system should not have to operate this close to the edge. And this is not a one-off event. This pressure is further evidenced by PJM’s most recent capacity auction. For the third consecutive auction, prices cleared at the FERC-approved price cap. Even so, the market fell short of PJM’s reliability requirement by approximately 6.8 gigawatts, larger than the prior 6.5-gigawatt shortfall, which is the equivalent of roughly seven nuclear reactors of missing supply. Even more telling, only about 525 megawatts of new generation and upgrades cleared, indicating that even at the highest allowed price, the market is not attracting the level of new supply the system needs. Absent the FERC-approved price cap of $330 per megawatt-day, PJM’s own simulation shows prices would have cleared at approximately $555 per megawatt-day across the footprint and $777 in ComEd, indicating the underlying scarcity is even more severe than the headline price suggests. The July heat event, auction results, and market price signals all point to the same conclusion: demand is growing faster than supply, and the system is under increasing strain. Our customers should not pay the price of a system that has been allowed to run too thin, and they should not have to wait years for solutions that are needed today. That is why Exelon is advocating for an all-of-the-above approach: transmission, demand-side solutions, market resources, and utility-owned generation where it makes sense. We are continuing the dialogue with our states and participating in FERC and PJM processes to advocate for policies that protect customers and help deliver energy reliably and cost-effectively. This is where the Exelon platform matters. Our scale, experience, and relationships across multiple states allow us to move from identifying the problems to advancing real solutions. First, transmission. Exelon continues to lead on transmission expansion because reliability starts with the ability to move power where it is needed most. Transmission helps relieve localized constraints, connect new resources, and strengthen the grid as demand grows. That momentum continues with the recent submission of two additional MISO Tranche 2.1 competitive transmission bids in partnership with Invenergy. We will continue to leverage our scale, expertise, and strong development partnerships to pursue transmission opportunities across and beyond our footprint. Second, utility-generated power and storage. We are proposing solutions that give states more control, more certainty, and more direct customer benefits. Utility-generated power and storage can add supply, improve reliability, and put downward pressure on long-term costs, with the accountability and lower-cost capital utilities are uniquely positioned to provide. This is not about ideology. It is about outcomes: reliable service, lower long-term costs, and greater energy security for customers. For example, during the extreme heat and record demand over the July 4 weekend, an ACE battery storage unit serving a New Jersey beach community was dispatched to support the grid. That one asset helped maintain reliability during a period of system stress, demonstrating the practical customer and grid benefits these investments can deliver. We have also seen these benefits play out elsewhere. Earlier this month, ERCOT served a record peak demand of more than 91 gigawatts without emergency actions or curtailment requests, while power prices remained relatively stable at roughly $40 per megawatt-hour during the peak hour. Renewables and battery storage played a significant role in meeting that demand while supporting both reliability and affordability. Building on that momentum, we recently announced a significant new 500-megawatt battery storage project in New Jersey. And we continue to see storage as an important tool for customers because it is fast, flexible, and targeted. Had our battery project been operating during the July 2 through July 5 heat wave, ACE customers would have realized approximately $7.5 million of energy cost savings that could have been returned to customers to help offset higher market prices. Storage solutions can provide peak capacity, improve reliability in constrained areas, support affordability, and help states meet their energy goals. The benefits are real, measurable, and already being demonstrated today. Lastly, energy efficiency and virtual power plants. Several of our utilities recently received approval for VPP programs that turn customer-sited resources into grid capacity. That helps reduce peak demand, lowers pressure on the system, and gives customers a direct role in the solution. Taken together, these are all practical solutions. They also are areas where Exelon can deploy capital with discipline, where there is a clear customer need and strong execution visibility. We are not waiting for the market to solve this on its own. We are bringing forward actionable solutions that strengthen reliability, improve affordability, and give our states more tools to shape their energy future. Now, with that, I will turn it over to Jeanne to walk through our financial performance and provide additional details on our rate case activity and outlook. Jeanne? Jeanne Jones: Thank you, Calvin, and good morning, everyone. Today, I will cover our second quarter financial results and key regulatory activity, discuss solutions we are advancing to support affordability and resource adequacy, and conclude with an update on our balance sheet and financing progress. Starting on Slide 5, we present our quarter-over-quarter adjusted operating earnings walk. Exelon earned $0.43 per share in the second quarter of 2026 compared to $0.39 per share in the same period in 2025. Results were higher by $0.04 per share year over year, primarily driven by $0.04 of distribution and transmission rates, net of depreciation and AFUDC, $0.04 related to last year’s Customer Relief Fund, and $0.01 of favorable weather at PECO. This was offset by $0.02 of higher credit loss expense at BGE and $0.02 of interest at corporate and PECO. Our second quarter performance is in line with the expectations we discussed on the first quarter call and continues to demonstrate the value of disciplined execution across the platform. We are delivering on customer-focused investments that support top-quartile reliability while managing costs and timing items within the full-year plan. Looking ahead to the third quarter, we expect earnings to be approximately 27% of the midpoint of our projected full-year earnings guidance range. This expectation contemplates the impact of weather, storms, and the PECO employee strike at the beginning of July, as well as normal weather and storm activity through the remainder of the quarter. As with historical practice, our quarterly shaping guidance also assumes anticipated revenue shaping and timing of costs across the utilities. Combined with results for the first half of the year, we anticipate the fourth quarter to benefit from the absence of one-time 2025 distribution and transmission rates, the unwinding of timing, and disciplined execution of bad debt and storm recovery efforts. We remain on track to deliver full-year operating earnings of $2.81 to $2.91 per share, with the goal of being at the midpoint or better. Finally, we reaffirm our expectation to deliver annualized earnings growth near the top end of 5% to 7% from 2025 through 2029, supported by 7.9% annualized rate base growth, disciplined cost management, and a balanced financing plan that maintains strong investment-grade credit metrics. Turning to Slide 6, I will review the open base rate cases and other regulatory activity across the platform. These proceedings reflect our continued focus on recovering prudent investments that support safe, reliable service while advancing proposals that are responsive to customer affordability and the policy priorities of our jurisdictions. Starting with Pepco Maryland, where a final order is expected next month for its traditional electric base rate case, this filing seeks recovery of critical investments that support reliability, accommodate growing customer needs, and strengthen the resiliency of the electric system, while also reflecting the impact of higher financing costs. Projects such as the White Flint Substation are tangible examples of work being done to increase capacity, reduce outage risk, and support long-term growth and economic development in the communities we serve. Also in Maryland, BGE filed an electric distribution rate case on July 2, seeking a $156.1 million revenue requirement increase to recover investments and costs necessary to maintain a safe and reliable grid under a historic test year. The filing also reflects revised financing and storm restoration costs and includes proposals to establish a storm recovery mechanism and provide customers with additional payment flexibility. A final order is anticipated in January 2027. In Delaware, Delmarva Power’s electric base rate case continues to progress. DPL is seeking a $45.4 million revenue requirement increase to support investments necessary to maintain safe and reliable service, including system upgrades and reliability investments across its service territory. The filing also includes proposals designed to support affordability, including a new income-based rate and a bad debt rider. As permitted by Delaware law, DPL implemented interim rates effective July 9, subject to refund. A final order is expected in the third quarter of 2027. Finally, at ComEd, the grid plan proceeding continues to move forward, with staff and intervenor rebuttal testimony filed earlier this month ahead of hearings in August. As a reminder, the plan proposes approximately $15.3 billion of investment through 2031 to support reliability, accommodate significant load growth, and advance the objectives of Illinois’ energy policy framework. An order is expected by December 15. Across these proceedings, our approach remains consistent. We are investing to support reliability, resiliency, and customer needs while remaining focused on affordability and cost discipline. While our base regulatory filings remain focused on maintaining safe, reliable, and affordable service, we continue to advance additional solutions to help address growing affordability and reliability challenges, particularly in light of supply constraints highlighted by the recent PJM auction. Turning to Slide 7, practical and deployable resources, such as storage and virtual power plants, can provide capacity, reduce congestion, and help manage price volatility while supporting each state’s energy goals. Today, roughly 10 gigawatts of solar and wind across PJM go unused on any given day. Storage can capture excess generation and shift it to peak-demand periods, turning surplus clean energy into reliable, high-value supply. Unlike many traditional solutions that can take five to 10 years or longer to develop, battery storage is a faster, scalable, and modular option that can often be deployed within approximately three years, even for large-scale batteries. In New Jersey, Atlantic City Electric, partnered with Invenergy, has advanced a 500-megawatt battery energy storage system using four-hour batteries to target roughly five peak-demand days a year in Pittsgrove. The project will be large enough to power approximately 400,000 homes and represents the single-largest battery storage installation in PJM. The Pittsgrove storage project was submitted in PJM Cycle 1 and represents approximately $1 billion in investment not currently reflected in our plan. Combined with anticipated PJM market revenues, all of which will be returned entirely to customers, federal tax credits, the mitigation of energy and capacity prices, and deferred transmission investment, customers will see over $700 million in net benefits after the project is placed into service, importantly, without seeing any customer bill impact until at least 2035. Atlantic City Electric filed a request last week for regulatory approval of the mechanism to recover project costs, with a final order anticipated in the first half of 2027. In addition, we are pursuing similar opportunities in Maryland, where BGE and Pepco have submitted battery storage projects as part of the state’s distributed connected storage solicitation, which are currently under commission review. Beyond storage, we are also advancing virtual power plant initiatives across our jurisdictions, which aggregate customer-sited resources to reduce peak demand, support grid reliability, and lower overall system costs. At ComEd, the approval to launch its first scheduled-dispatch VPP program is expected to increase the amount of battery storage available across Northern Illinois while providing compensation to participating customers. When paired with existing distributed generation rebates and incentives, the program creates a compelling customer value proposition while helping support the grid. Maryland also recently approved programs to allow a range of customer-sited assets to act as grid assets, and we continue to see momentum in New Jersey and Delaware as policymakers continue advancing distributed energy resource and VPP frameworks. Together with continued transmission and distribution investment, these solutions provide practical tools to address affordability, reliability, and resource adequacy needs across our jurisdictions. Turning to Slide 8, we continue to execute our financing plan in a balanced and disciplined manner. Maintaining a strong balance sheet is core to our strategy and essential to funding the investment needed to deliver safe, reliable, and affordable service for our customers. To date, we have completed approximately 86% of our 2026 debt financing needs, including all expected debt issuances at the holding company, Pepco Holdings, ComEd, and BGE, materially reducing our remaining exposure to interest rate volatility for the year. In addition, our pre-issuance hedging strategy continues to provide protection against future rate movements. We have already priced approximately 37% of our planned equity needs through 2029 via forward contracts under our ATM program, having priced all of our needs for 2026 and half of our needs for 2027. Our credit metric outlook also remains strong, with expected average credit metrics of approximately 14% through 2029, supporting the strategic and financial flexibility needed to advance our capital plan and capture additional customer-driven growth opportunities. We remain confident in our ability to deliver value for our customers and shareholders through disciplined execution, a strong balance sheet, and investments that support reliable, resilient, and affordable energy service. I will now turn the call back to Calvin for closing remarks. Calvin Butler: Thank you, Jeanne. I will close on Slide 9. The story is consistent and straightforward. And as I said, performing today and actively preparing for tomorrow. Exelon is built for this moment. We have the scale, diversified footprint, operational excellence, and financial discipline to perform in a changing environment. In 2026, we remain focused on deploying approximately $10 billion of capital for the benefit of customers, delivering operating earnings of $2.81 to $2.91 per share, earning a consolidated operating ROE of between 9% and 10%, and maintaining a strong and resilient balance sheet. Just as important, we are pursuing growth where it creates real customer value, strengthens the grid, and supports the communities and economies we serve. The environment is changing quickly, but our priorities are steady. We have the people, platform, and experience to navigate complexity, deliver on our commitments, and advance practical solutions for customers. That is why we remain confident in the path ahead. Josh, we can now open it up for any questions. Operator: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. One moment for questions. Our first question comes from Shahriar Pourreza with Wells Fargo. Shar Pourreza: Good morning, Calvin. Good morning, Jeanne. Calvin Butler: Hey. Morning, Shar. Shar Pourreza: Calvin, PJM walked back from the EDC proposal that had the Members Committee supermajority in its letter. I guess, do you feel like where they landed meaningfully addresses the key issues in PJM? Do you have any plans to intervene further with FERC? I mean, it does not seem like you are waiting for an outcome here to step in. You proposed the BESS development. I am assuming that was not a one-off. So just kind of curious about the recent development. Thanks. Calvin Butler: No. Thank you, Shar, and you captured it. We are focused on just really providing solutions, but let me first begin by applauding PJM’s efforts to address resource adequacy challenges with a sense of urgency and really looking at opportunities to bring new generation onto the system because these are important steps in the right direction. And we do believe that their measures may help address near-term reliability concerns, but they are unlikely to resolve any long-term affordability challenges. Ultimately, what we have always said, and we are very consistent, is that to really resolve long-term challenges on affordability, you need more generation to be brought online. And we will continue to advocate for several important consumer protections in this effort, and we will continue to engage with PJM. But over the long term, we believe that states should play a central role in resource planning and procurement. And utility-owned generation needs to be part of that mechanism as a cost-effective complement to market-based solutions. And as we have talked about, you know, this is our Exelon Promise in action, and we will continue to drive this. But it is going to require a partnership and more active engagement with the states. Jeanne, anything you would like to add? Jeanne Jones: Yeah. No. I think that covers it. And I think that, to your point about real solutions—and you noted it, Shar—the 500-megawatt battery solution, we have been working on this. We are pleased to see that, you know, we got through the filing, and we will work with the commission there. And to your question, no, it is not the only one, and we are working on others. Shar Pourreza: Okay. That is perfect. And then your data center growth slide shows a combined 36 gigawatts. That is down around 11 gigawatts from the 43 gigawatts that you previously cited. Is that simply a reclassification or refinement of the queue? Any read-through there with PJM’s current dysfunction maybe causing some attrition or slower conversion in the pipeline? Thanks. Jeanne Jones: Yeah. I will take that one, Shar. So I would say you are right. We did update it. I think this will continue to evolve. But I would also say we have always taken, as you know, a measured approach to the data center phenomenon, whether it was our position on co-location and ensuring fair cost allocation or the development of transmission security agreements, which, as you know, never existed in our regions. Right? And so we developed those agreements and made them part of our process. In addition to that, we also, throughout this, have kept our CapEx increases consistent with historical increases and really only put in capital that was certain and durable. And I think that this update underscores that was the right approach. The TSAs are doing what they should. As we go through our cluster process, we said, you know, we are going to study the clusters. We are going to offer the customer a TSA. Sign the TSA, and then, importantly, put up collateral behind that. And so what this update reflects is we have now weeded out speculative projects, and it gives us proactive insight into what is real. And this is what you want management to do. You want us to provide real and durable growth. And, importantly, our $41 billion of capital between now and 2029 remains unchanged due to this update because we have not put in speculative projects. And as I think about that growth, I would just say a couple of other things. You know, what is sitting in that 11 gigawatts? We have 4 gigawatts that have signed TSAs, and they are backed by $1 billion of collateral. The other 7 gigawatts in that high-probability category are projects that predated the TSA process but are further along, and we feel very comfortable that they will continue. And so the 11 gigawatts is significant, and we are going to continue to study the remaining 25 gigawatts that is on that slide. But there is real growth, and it goes back to, you know, not just being focused on what is real on the T&D growth side, but how do we provide those solutions on the supply side to support that growth? And that is, you know, our first project out of the gate is the 500-megawatt battery. Shar Pourreza: Got it. Perfect. Super comprehensive. Thank you, guys. Appreciate it. Calvin Butler: Thank you, Shar. Operator: Thank you. Our next question comes from Jeremy Tonet with JPMorgan Securities. You may proceed. Jeremy Tonet: Hey, guys. Good morning. Appreciate your time. I guess maybe just going back to the regulatory front. You know, now a few months since the withdrawal of your PECO rate case, how do you think about filing the case moving forward? It just seems like we continue to see a lot of constructive data points out of the PA PUC. At this point, are there any inflection points you kind of hope to see before filing again? You know, what would encourage you to file at this time? Calvin Butler: Yeah. Thank you, Jeremy. I appreciate that. And I think, once again, you captured it well. Let me just begin by saying that we share Governor Shapiro’s focus on affordability, and we have analyzed his letter and what his framework is, and I will ask Michael Innocenzo to jump in there. But let me just begin by saying that we have been having constructive conversations with not only the governor but his staff since day one. And like you said, we are seeing indicators that Pennsylvania is still a solid regulatory framework for us to operate in, and they view PECO as an economic partner and job creator in the state. And we recognize also, and they have said it, that Pennsylvania needs financially strong, viable utilities and sustainable investments to encourage that economic growth. But understanding that, we will continue to partner, and we believe that investment in our system is required to maintain the reliability and growth that they expect, and we will do that over our long-term planning horizon. So I am going to give it to Mike to see if he has any detail he wants to share about the governor’s conversation. Michael A. Innocenzo: Yeah. Thanks, Calvin. Thanks, Jeremy. I would say, you know, your point about data points—certainly, there are the data points, you know, the constructive settlements that have already occurred, constructive discussions on the active rate cases currently underway, and then it is our discussions. It is discussions with key stakeholders in Harrisburg. It is our discussions with the governor’s office. If you look at the key points that he is looking for and everybody is looking for, it is making sure that our investments are providing customer value and customer benefits, making sure that there is transparency on the ROE, and making sure that we are looking at every lever that we can to address affordability. We think we have addressed that in multiple ways under the existing process, as others in the state are, and we are continuing to work with the governor’s office, the PUC, and the statutory intervenors, like the Consumer Advocate’s Office and the Small Business Advocate’s Office, having discussions to make sure that when we file again, we are addressing each of their concerns. And we feel confident we will be back in a way that will be very productive. Jeremy Tonet: Great. Appreciate the insight there. And I just want to shift to the transmission front real quick, if I could. You know, to what extent can you tap into your identified $12 billion to $17 billion upside opportunity as we kind of think about the next plan? What win rate should we be thinking about as it pertains to upcoming competitive transmission windows for you guys? Jeanne Jones: Yeah. So, hey, it is Jeanne. Of the $12 billion to $17 billion, I am just going to hit on a couple of things. I am going to turn it to Carim, who is head of our transmission and development group. So, the $12 billion to $17 billion is not dependent on one sort of theme. Competitive transmission is one of, I would say, probably five. Right? So what we want to do is give insight into spending roughly that amount in our four-year period today, and so we see that continuing beyond 2029, driven by existing infrastructure over our 11,000 circuit miles, new business related to the data center pipeline, state policies around additional generation coming online, old generation retiring, the transmission needed to accommodate that, and, importantly, competitive transmission. And so maybe I will let Carim speak to kind of how we think about that. Carim Khouzami: Yeah. Thanks, Jeanne. And, you know, I agree with everything Jeanne just said. And I would add, on competitive transmission, you have seen us be very active over the last 12 to 18 months in PJM and also in other RTOs, such as MISO. We are going to continue to do that, and you saw recently that we filed for two projects in MISO Tranche 2.1 in Iowa, the MARS and the EASL projects. We expect to hear back from MISO in the fourth quarter. And what we would say is we think that we are very well positioned to take advantage of some of these opportunities based on our operational excellence and, importantly, our experience with 765-kV lines, so high-voltage lines. We are one of very few transmission operators that own and operate those types of lines today. And that is what increasingly more and more RTOs are seeking in their solutions. I would say I think we are very well positioned to continue to be successful, like we were in Western Pennsylvania this past PJM window. You will see us continue to be active. Jeremy Tonet: Great. Makes sense. Appreciate the time there. I will leave it there. Jeanne Jones: Thanks, Jeremy. Operator: Thank you. Our next question comes from Paul Zimbardo with Jefferies. You may proceed. Paul Zimbardo: Hi. Good morning, team. Thanks for the time. Just to follow up on the last one a little bit. Focusing on ComEd, that simulated $777-per-megawatt-day clearing price in the last auction, is that a catalyst for kind of unlocking even more incremental transmission and storage investments? I just think a lot more can pencil at that kind of potential price point, if you could share a thought. Carim Khouzami: Paul, I think that is probably indicative of what we have been saying, which is we need an all-of-the-above approach. It is probably not just transmission. It is not just battery solutions. It is really all of the above. Transmission, as Calvin mentioned in his prepared remarks, provides the optionality of moving the electrons from where they are being generated to where they are needed. Battery storage is very effective in helping to shave off the peaks and avoid transmission, avoid peak pricing, and help to insulate customers from that. So, from our perspective, you can expect to see us be active on both those fronts, as well as others. Really, what we are looking for is wherever those opportunities are for us to serve our customers, to help affordability and help reliability, that is where you will see us be active. And storage and transmission are two examples where we see a lot of benefits there. Jeanne Jones: Yeah. And that was contemplated already as part of the $12 billion to $17 billion when I mentioned kind of state-focused solutions. So definitely an opportunity there. We have seen over the last several planning cycles 80% to 100% of our four-year capital increase be in transmission, specifically for these issues. The other thing I would say is the state is well aware of this as well. If you look at what was passed in legislation last year, the state not only expanded energy efficiency, but also our distributed generation rebate programs, two programs that are meaningfully helpful for customers but also are treated as regulatory assets that we earn on—good for customers and good investments for us. They also are going to run a 3-gigawatt storage procurement this year, with, I think, 1 gigawatt of that 3 gigawatts this year. And then, importantly, they are taking a comprehensive view. Right? They are going to do their first integrated resource planning preview in November of this year. So pleased to see the state focused on this and that there are ways for us to lean in, as Carim said, not just in one area, but transmission, energy efficiency, DG rebates, and supporting through VPPs as well. Paul Zimbardo: Okay. That makes sense. And then a higher-level question, if I could, but I think an important one. Just holistically, it looks like there have been some—I do not know, maybe—paper cuts across the jurisdictions, legislation, and some regulatory action. Overall, how would you frame the conservatism in the plan overall? And I know you had that cost-cut update in the first quarter, but just overall comfort in the plan would be helpful. Thanks. Calvin Butler: Yeah. Thank you, Paul. I would say that comfort is not the word, but focused on execution is the word because we do not actually see it that way. We view that the strength of Exelon’s model is that we are not dependent on any single jurisdiction, regulatory outcome, or growth opportunity. As you just alluded to, when you think about what we have been able to accomplish with adverse rulings or inaction by some of our commissions, we have met and exceeded expectations that we have shared with you. And that is that diversity of our platform coming to life. I always talk about—and you have heard me say it, Paul—the power of our platform and not having one jurisdiction outweigh what we are able to accomplish and being able to move capital around and put it in place for the benefit of our customers and the communities. So, yes, there are single paper cuts, as you referred to, but not one of them is driving the ultimate outcome of Exelon. So when we pulled the Pennsylvania rate case, the PECO rate case, we reaffirmed our guidance. We did not lower our capital. In 2023, when ComEd’s grid plan was disallowed, the team got to work, met and exceeded our numbers because that is what we do, and that is what you should expect us to do. So I appreciate the observation, but we do not see it that way at all. Paul Zimbardo: Okay. No. Excellent. Thank you for the answer. Calvin Butler: Thank you. Operator: Thank you. And our final question comes from Andrew Weisel with Scotiabank. Andrew Weisel: Hi. Good morning, everyone. I want to first ask you to just elaborate a bit on the Pennsylvania commentary. I do not expect you to get too far ahead of the next rate case filing, but how are you thinking about CapEx levels and categories? Are your conversations pointing toward minimizing spending purely focused on reliability and safety? Or I heard you talk about supporting economic development. What does that look like? And is that specifically related to data centers and AI, or how are you thinking about that versus affordability? Other than, you know, how can you help other than the deferred spending that you talked about on the first quarter call? Any more detailed commentary would be very helpful. Thank you. Calvin Butler: No. Great question. I am going to ask Mike, who is serving as the CEO of PECO, to really give further clarification. And do not hesitate, if you have any follow-up, do not hesitate to ask, okay, if we do not scratch the itch. Michael A. Innocenzo: Thanks, Calvin. Thanks, Andrew. Yeah. I would, you know, go back to—I think you even alluded to it in your question there—it is making sure that we are really clear on areas that have that customer value. And we have heard loud and clear from the folks in the state that economic development continues to be important to the state. So we will make sure that our investments are supporting that, both on the transmission and on the distribution level. Safety, reliability, and resilience—it is an area that has seen increased storms and emergencies. We know the value that a reliable grid and a safe grid provide. As Calvin mentioned in his opening comments, PECO is a top performer nationally and is the top performer in the state. So we will continue to focus on those investments that are aligned with our long-term infrastructure improvement plans, both on the gas and electric side, also taking advantage of the DISC, and also looking for areas where we can drive affordability through other mechanisms. Including, just recently, PECO was awarded a RISE PA grant of $50 million for an investment that we will be making at our gas plant in West Conshohocken. So it is really just making sure that everything that we do is clearly aligned with those key categories, is well communicated, and is justified not only through the rate case process, but prior to the rate case process as we go in. Calvin Butler: And Andrew, let me just share. I think Mike captured it, and I just want to emphasize a point he made: communicating with all stakeholders on what and how we are doing it and the value that we are creating. Our number-one priority is always maintaining a reliable and safe system. We are never going to do anything to put that in jeopardy, but we will actively be communicating with all the stakeholders throughout this process. Andrew Weisel: Okay. Great. That is helpful. And you mentioned the DISC mechanism. Does that seem like something you will be leaning on a bit more? That seems to be a theme that we are hearing more of. Michael A. Innocenzo: Yeah. We have used it over the years already, so we will continue to do that. But as part of our going-forward conversations with the chair of the PUC, we will be looking for other ways that we can leverage that even further. That will be part of our plan going forward as well. Andrew Weisel: Okay. Very good. Then one more, if I can. In Illinois, I know that there is the IRP process the state is pursuing. Can you talk a bit about that? Given that the state is in PJM, what exactly is the goal here? Clearly, there are issues. You talked about the shortfalls and the high pricing from the auction if there were not the cap. As far as I can tell, I do not think it is too likely the state will leave PJM soon. I know there is some talk about it. I have heard the name ERCOT-IL floated around, which is a great name, but I do not know how likely that is. So maybe you could just talk about what the goal of this IRP is and what role you might be playing in that. Jeanne Jones: Yeah. I think the goal, ultimately, is what we need each of our states to do is to get a better picture of what they need from a state perspective in terms of demand versus supply. And it gives them the ability—the ICC and the other agencies working with them—the authority to expand programs, right, based on that analysis. Do we need to expand energy efficiency? Do we need to procure more storage? Do we need to do more in distributed generation? How do we look at our state emission limits? Things like that. So that is the goal, to say, how do we get more control over our own supply and demand situation within the state, which is something we applaud any state for doing. We are seeing Maryland study different procurement models. We are seeing Pennsylvania hire an independent consultant to study resource adequacy. Across all of our states, you know, Governor Moore is looking at supply solutions. This, I think, is the goal of all of our states, who are working very hard with PJM for long-term solutions, saying, hey, I have got to keep all options on the table. And the first thing I need to do is kind of have a good view of what my specific state needs, and we think that is absolutely the right thing to do. Andrew Weisel: Okay. Very helpful. Thank you, guys. Calvin Butler: Thank you. Operator: Thank you. At this time, I would like to turn the conference back over to Calvin Butler for closing remarks. Calvin Butler: As always, I just want to say thank you for taking the time to join us for our Q2 earnings call. We appreciate your continued interest and support, and we look forward to sharing further progress in the months ahead. And with that, Joshua, this concludes our call. Operator: Thanks to all our participants for joining us today. This concludes our presentation. You may now disconnect. 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Earnings Release Highlights GAAP net income of $0.39 per share and Adjusted (non-GAAP) operating earnings of $0.43 per share for the second quarter of 2026, in line with expectations Affirming full year 2026 Adjusted (non-GAAP) operating earnings guidance range of $2.81-$2.91 per share and operating EPS compounded annual growth near top end of 5-7% from 2025 to 2029 All utilities projecting top quartile reliability performance, with ComEd and PHI in the top decile BGE filed an electric distribution rate case with the Maryland Public Service Commission (MDPSC) in July, requesting the funding of investments and operating costs necessary to maintain a safe and reliable electric system, cost of capital, and storm event recovery ACE filed a transmission-connected battery storage proposal with the New Jersey Board of Public Utilities Executed ~86% of 2026 planned debt financings, supporting continued investment across the utilities CHICAGO, July 30, 2026--(BUSINESS WIRE)--Exelon Corporation (Nasdaq: EXC) today reported its financial results for the second quarter of 2026. "At Exelon, we are focused on delivering where it matters most for our customers and communities by providing safe, reliable and affordable energy," said Exelon President and Chief Executive Officer Calvin Butler. "Our second-quarter results reflect disciplined execution and strong operational performance, keeping us on track to deliver on our financial commitments. As energy demand continues to grow, we remain focused on advancing solutions through The Exelon Promise that strengthen reliability, protect customers, keep bills as low as possible, and create long-term value for the communities we serve. From grid modernization to practical solutions such as storage and virtual power plants, we are helping meet growing energy demand and enabling a more affordable and reliable grid." "Exelon delivered second quarter 2026 adjusted operating earnings of $0.43 per share, in line with the expectations we discussed on our first quarter call," said Exelon Chief Financial Officer Jeanne Jones. "Through the first half of the year, we remain on track to deliver full-year operating earnings of $2.81 to $2.91 per share and annualized earnings growth near the top end of 5% to 7% from 2025 through 2029. With substantial progress on our financing plan, we are well positioned to fund customer-focused investments across our utilities and advance additional solutions, such as storage, that support affordability, reliability and resource adequacy." Second Quarter 2026 Exelon's GAAP net income for the second quarter of 2026 remained relatively consistent with the prior period at $0.39 per share. Adjusted (non-GAAP) operating earnings for the second quarter of 2026 increased to $0.43 per share from $0.39 per share in the second quarter of 2025. For the reconciliations of GAAP net income to Adjusted (non-GAAP) operating earnings, refer to the tables beginning on page 4. The GAAP net income and Adjusted (non-GAAP) operating earnings in the second quarter of 2026 primarily reflect: Higher utility earnings primarily due to distribution and transmission rates at ComEd and PHI, distribution rates at BGE, absence of customer surcharge credits at PECO, higher allowance for funds used during construction (AFUDC) at ComEd, and favorable weather at PECO. This was partially offset by higher depreciation at PECO and PHI, higher credit loss expense at BGE, and higher interest expense and income taxes at PECO. Note that rate increases are associated with updated recovery rates for costs and investments to serve customers. Lower costs at the Exelon holding company due to the lack of Customer Relief Fund contribution and lower income taxes were offset by higher interest expense. Operating Company Results1 ComEd ComEd's second quarter of 2026 GAAP net income increased to $249 million from $228 million in the second quarter of 2025. ComEd's Adjusted (non-GAAP) operating earnings for the second quarter of 2026 increased to $249 million from $228 million in the second quarter of 2025, primarily due to an increase in higher distribution and transmission rate base driven by incremental investments to serve customers, driving top quartile reliability and avoiding outage costs, and higher AFUDC. Due to revenue decoupling, ComEd's distribution earnings are not intended to be affected by actual weather or customer usage patterns. PECO PECO’s second quarter of 2026 GAAP net income decreased to $119 million from $136 million in the second quarter of 2025. PECO's Adjusted (non-GAAP) operating earnings for the second quarter of 2026 decreased to $130 million from $136 million in the second quarter of 2025, primarily due to an increase in depreciation and interest expense, and higher income taxes due to tax repairs, a portion of which is timing, partially offset by absence of surcharge credits to customers and favorable weather. BGE BGE’s second quarter of 2026 GAAP net income remained relatively consistent with the prior period at $55 million in the second quarter of 2025. BGE's Adjusted (non-GAAP) operating earnings for the second quarter of 2026 increased to $70 million from $55 million in the second quarter of 2025, primarily due to approved distribution rates associated with updated recovery of investments to serve customers, driving top quartile reliability and avoiding outage costs, partially offset by an increase in credit loss expense. Due to revenue decoupling, BGE's distribution earnings are not intended to be affected by actual weather or customer usage patterns. PHI PHI’s second quarter of 2026 GAAP net income decreased to $109 million from $143 million in the second quarter of 2025. PHI’s Adjusted (non-GAAP) operating earnings for the second quarter of 2026 decreased to $126 million from $144 million in the second quarter of 2025, primarily due to an increase in depreciation, partially offset by approved distribution and transmission rates driven by updated recovery of investments to serve customers, driving top quartile reliability and avoiding outage costs. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not intended to be affected by actual weather or customer usage patterns. Recent Developments and Second Quarter Highlights Dividend: On July 28, 2026, Exelon's Board of Directors declared a regular quarterly dividend of $0.42 per share on Exelon's common stock. The dividend is payable on September 15, 2026, to Exelon shareholders of record as of the close of business on September 4, 2026. Rate Case Developments: Financing Activities: Adjusted (non-GAAP) Operating Earnings Reconciliation Adjusted (non-GAAP) operating earnings for the second quarter of 2026 do not include the following items (after tax) that were included in reported GAAP net income: Adjusted (non-GAAP) operating earnings for the second quarter of 2025 do not include the following items (after tax) that were included in reported GAAP net income: Webcast Information Exelon will discuss second quarter 2026 earnings in a conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at investors.exeloncorp.com/. About Exelon Exelon (Nasdaq: EXC) is a Fortune 200 company and one of the nation’s largest utility companies, serving almost 11 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). Exelon's more than 20,000 employees dedicate their time and expertise to supporting our communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow @Exelon on X and LinkedIn. Non-GAAP Financial Measures In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) operating earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) operating earnings exclude certain costs, expenses, gains and losses, and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. Adjusted (non-GAAP) operating earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. Exelon has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) operating earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP net income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of Adjusted (non-GAAP) operating earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: investors.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on July 30, 2026. Cautionary Statements Regarding Forward-Looking Information This press release contains certain forward-looking statements within the meaning of federal securities laws that are subject to risks and uncertainties. Words such as "could," "may," "expects," "anticipates," "will," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "predicts," "should," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors that may cause our actual results or outcomes to differ materially from those contained in our forward-looking statements, including, but not limited to: unfavorable legislative and/or regulatory actions; uncertainty as to outcomes and timing of regulatory approval proceedings and/or negotiated settlements thereof; environmental liabilities and remediation costs; state and federal legislation requiring use of low-emission, renewable, and/or alternate fuel sources and/or mandating implementation of energy conservation programs requiring implementation of new technologies; challenges to tax positions taken, tax law changes, and difficulty in quantifying potential tax effects of business decisions; negative outcomes in legal proceedings; physical security and cybersecurity risks; extreme weather events, natural disasters, operational accidents such as wildfires or natural gas explosions, war, acts and threats of terrorism, public health crises, epidemics, pandemics, or other significant events; disruptions or cost increases in the supply chain, including shortages in labor, materials or parts, or significant increases in relevant tariffs; lack of sufficient power generation resources to meet actual or forecasted demand or disruptions at generation facilities owned by third parties; emerging technologies that could affect or transform the energy industry; instability in capital and credit markets; a downgrade of any Registrant’s credit ratings or other failure to satisfy the credit standards in the Registrants’ agreements or regulatory financial requirements; significant economic downturns or increases in customer rates; impacts of climate change and weather on energy usage and maintenance and capital costs; and impairment of long-lived assets, goodwill, and other assets. New factors emerge from time to time, and it is impossible for us to predict all of such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For more information, see those factors discussed with respect to Exelon, ComEd, PECO, BGE, Pepco Holdings LLC (PHI), Pepco, DPL, and ACE (Registrants) in the Registrants' most recent Annual Report on Form 10-K, including in Part I, ITEM 1A, any subsequent Quarterly Reports on Form 10-Q, and in other reports filed by the Registrants from time to time with the SEC. Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release. Exelon uses its corporate website, www.exeloncorp.com, investor relations website, investors.exeloncorp.com, and social media channels to communicate with Exelon's investors and the public about the Registrants and other matters. Exelon's posts through these channels may be deemed material. Accordingly, Exelon encourages investors and others interested in the Registrants to routinely monitor these channels, in addition to following the Registrants' press releases, Securities and Exchange Commission filings and public conference calls and webcasts. The contents of Exelon's websites and social media channels are not, however, incorporated by reference into this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730326292/en/ Contacts Khanya BrannCorporate Communications301-535-3292 Ryan BrownInvestor Relations779-231-0017

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Exelon Corp (NASDAQ:EXC) reported Q2 2026 adjusted operating earnings of $0.43 per share, in line with expectations, and reaffirmed its full-year guidance of $2.81 to $2.91 per share. The company continues to lead the industry in operational reliability, with all utilities projecting top-quartile performance and ComEd and PHI in the top decile. Exelon Corp (NASDAQ:EXC) is advancing a major 500-megawatt battery storage project in New Jersey, which is expected to provide over $700 million in net customer benefits without bill impacts until at least 2035. The company has successfully implemented Transmission Security Agreements (TSAs) to filter out speculative data center projects, backed by $1 billion in collateral, ensuring durable growth. Exelon Corp (NASDAQ:EXC) has completed approximately 86% of its 2026 debt financing needs and pre-priced 37% of planned equity through 2029, reducing exposure to interest rate volatility. Exelon Corp (NASDAQ:EXC) faces significant regulatory uncertainty, highlighted by the withdrawal of its PECO rate case in Pennsylvania and ongoing negotiations with state stakeholders. The PJM capacity market continues to show severe supply shortages, with a 6.8-gigawatt reliability shortfall and prices clearing at the FERC-approved cap, indicating systemic strain. Extreme weather events are increasing operational costs and risks, with ComEd experiencing 16 major storms in 2026, the most in over two decades. The company's data center pipeline was revised downward from 43 gigawatts to 36 gigawatts, reflecting the removal of speculative projects and a more cautious outlook. Higher credit loss expenses at BGE and increased interest costs at corporate and PECO negatively impacted Q2 earnings by $0.04 per share year-over-year. Warning! GuruFocus has detected 9 Warning Signs with EXC. Is EXC fairly valued? Test your thesis with our free DCF calculator. Q: PJM walked back from the EDC proposal that had the members committee supermajority in its recent letter. Do you feel like where they landed meaningfully addresses the key issues in PJM? Do you have any plans to intervene further with FERC? A: Calvin Butler (President and CEO): We applaud PJM's efforts to address resource adequacy challenges with urgency, as these are important steps in the right direction. However, their measures may help address near-term reliability concerns but are unlikely to resolve long-term affordability challenges. To resolve long-term affordability, more generation needs to be brought online. We believe states should play a central role in resource planning and procurement, and utility-owned generation needs to be part of that mechanism as a cost-effective complement to market-based solutions. Q: Your data center growth slide shows a combined 36 gigawatts, down around 11 gigawatts from the 43 gigawatts previously cited. Is that simply a reclassification or refinement of the queue? A: Calvin Butler (President and CEO): We have always taken a measured approach to the data center phenomenon. This update reflects that our Transmission Security Agreements (TSAs) are doing what they shouldweeding out speculative projects. Of the 11 gigawatts, 4 gigawatts have signed TSAs backed by $1 billion of collateral, and the other 7 gigawatts are projects that predated the TSA process but are further along. Importantly, our $41 billion capital plan between now and 2029 remains unchanged because we have not included speculative projects. Q: Now a few months since the withdrawal of your Peco rate case, how do you think about filing cases moving forward? Are there any inflection points you hope to see before filing again? A: Calvin Butler (President and CEO) and Mike Innocenzo (CEO of Peco): We share Governor Shapiro's focus on affordability and have been having constructive conversations with his staff. We are seeing indicators that Pennsylvania remains a solid regulatory framework. We are working with the governor's office, the PUC, and statutory interveners to ensure that when we file again, we are addressing each of their concerns regarding customer value, transparency on ROE, and affordability. We feel confident we will be back in a way that will be productive. Q: To what extent can you tap into your identified $12 to $17 billion transmission opportunity? What win rate should we think about for upcoming competitive transmission windows? A: Gene Jones (CFO) and Kareem (Head of Transmission and Development): The $12 to $17 billion opportunity is not dependent on one theme; competitive transmission is one of about five drivers. We see this continuing beyond 2029, driven by our existing infrastructure, data center pipeline, state policies, and competitive bids. We are very well positioned for competitive transmission due to our operational excellence and experience with 765 kV high-voltage lines, which are increasingly sought after by RTOs. Q: Regarding the simulated $777 per megawatt-day clear in the last PJM auction, is that a catalyst for unlocking even more incremental transmission and storage investments? A: Gene Jones (CFO): That price point is indicative of our need for an "all of the above" approach. Transmission provides the optionality to move electrons, while battery storage is effective in shaving off peaks and insulating customers from high pricing. You can expect us to be active in both areas. This was already contemplated as part of the $12 to $17 billion opportunity, and we have seen 80-100% of our 4-year capital increase be in transmission specifically for these issues. Q: Holistically, it looks like there have been some paper cuts across jurisdictions with legislation and regulatory actions. How would you frame the comfort and conservatism in the overall plan? A: Calvin Butler (President and CEO): The strength of Exelon's model is that we are not dependent on any single jurisdiction, regulatory outcome, or growth opportunity. The diversity of our platform allows us to move capital around. When we pulled the Pennsylvania rate case, we reaffirmed our guidance. When ComEd disallowed the grid plan in 2023, the team met and exceeded our numbers. While there are single paper cuts, none of them are driving the ultimate outcome of Exelon. Q: In Pennsylvania, how are you thinking about CapEx levels and categories? Are conversations pointing toward minimizing spending purely on reliability and safety, or also supporting economic development like data centers? A: Mike Innocenzo (CEO of Peco): We have heard loud and clear that economic development continues to be important to the state. We will ensure our investments support that on both the transmission and distribution levels. Safety, reliability, and resiliency remain key, especially with increased storms. We will continue to focus on investments aligned with our long-term infrastructure improvement plans and take advantage of mechanisms like the DSIC (Distribution System Improvement Charge) to drive affordability. Q: In Illinois, what is the goal of the state's Integrated Resource Plan (IRP) process, given that the state is in PJM? A: Gene Jones (CFO): The goal is for each state to get a better picture of their demand versus supply. It gives the ICC and other agencies the authority to expand programs based on that analysis, such as energy efficiency, storage procurement, or distributed generation. It is about states gaining more control over their own supply and demand situation. We applaud any state doing this, as it allows them to keep all options on the table while working with PJM for a long-term solution. Q: Can you elaborate on the 500 megawatt battery storage project in New Jersey and its customer benefits? A: Gene Jones (CFO): The Pittsgrove Storage Project is a $1 billion investment not currently reflected in our plan. It will be large enough to power approximately 400,000 homes. Combined with PJM market revenues (returned to customers), federal tax credits, and deferred transmission investment, customers will see over $700 million in net benefits after the project is placed into service, without any customer bill impact until at least 2035. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Exelon (EXC) reported $5.97 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 10%. EPS of $0.43 for the same period compares to $0.39 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $5.66 billion, representing a surprise of +5.47%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.43. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Exelon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating revenues- PHI: $1.71 billion versus the two-analyst average estimate of $1.61 billion. The reported number represents a year-over-year change of +8.4%. Operating revenues- BGE: $1.22 billion versus $1.05 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.4% change. Operating revenues- PECO: $1.06 billion versus the two-analyst average estimate of $1.05 billion. The reported number represents a year-over-year change of +6.2%. Operating revenues- ComEd: $1.99 billion versus the two-analyst average estimate of $1.97 billion. The reported number represents a year-over-year change of +8.1%. Adjusted Operating Earnings (non-GAAP)- ComEd: $249 million versus the two-analyst average estimate of $290.77 million. Adjusted Operating Earnings (non-GAAP)- PHI: $126 million compared to the $146.16 million average estimate based on two analysts. Adjusted Operating Earnings (non-GAAP)- BGE: $70 million versus the two-analyst average estimate of $49.49 million. Adjusted Operating Earnings (non-GAAP)- PECO: $130 million versus the two-analyst average estimate of $122.24 million. View all Key Company Metrics for Exelon here>>> Shares of Exelon have returned +1.7% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Exelon Corporation? Here are five stocks we like better. Exelon reported stronger earnings, with second-quarter 2026 adjusted operating earnings of $0.43 per share versus $0.39 a year earlier, while reaffirming full-year guidance of $2.81–$2.91 per share and targeting 5%–7% annualized earnings growth through 2029. The company plans to invest approximately $10 billion in 2026 and maintain its $41 billion capital plan through 2029, emphasizing grid reliability, infrastructure upgrades, transmission and battery storage amid rising PJM power-supply concerns. Exelon highlighted regulatory and financing progress, including multiple pending rate cases, 86% completion of its 2026 debt-financing needs and plans for a proposed 500-megawatt battery project in New Jersey that could provide more than $700 million in projected net customer benefits. 2026 Sector Playbook: 3 Sectors Trading Below Fair Value Exelon (NASDAQ:EXC) reported second-quarter 2026 adjusted operating earnings of $0.43 per share, up from $0.39 per share a year earlier, and reaffirmed its full-year guidance of $2.81 to $2.91 per share. President and Chief Executive Officer Calvin Butler said the company’s utilities continued to deliver reliability performance that is projected to rank in the industry’s top quartile, with ComEd and Pepco Holdings Inc. utilities projected in the top decile. Butler also reiterated Exelon’s expectation for annualized earnings growth near the upper end of its 5% to 7% target range from 2025 through 2029. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Best Utilities Stocks for Stability and Growth in 2025 The company expects to deploy approximately $10 billion of capital in 2026 for customer-focused infrastructure investments, while targeting a consolidated operating return on equity of 9% to 10%. Butler highlighted severe weather challenges in Illinois, where ComEd has experienced 16 major weather events so far this year, its highest level in more than two decades. Illinois has also recorded more tornadoes than any other state, he said. → 3 Value ETFs to Consider as Growth Stocks Lag Behind 2 Safe-Haven Stocks Shielded From Import Tariffs Monday’s severe storms affected about 530,000 customers, and ComEd restored power to 90% of affected customers within 48 hours, according to Butler. He attributed the response to the company’s workforce and prior investments in grid resilience. Exelon said its top-quartile reliability performance saved customers an estimated $1 billion in avoided outage costs during 2025. Annual customer interruptions have declined by nearly 2 million since 2021, Butler said. The company also said that every $1 million it invests generates an average of eight jobs or $1.7 million in economic output. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Chief Financial Officer Jeanne Jones said Exelon is advancing several regulatory proceedings across its service territories. Pepco Maryland expects a final order in its traditional electric base rate case next month, while Delmarva Power’s Delaware electric base rate case is expected to receive a final order in the third quarter of 2027. Baltimore Gas and Electric filed an electric distribution rate case on July 2 seeking a $156.1 million revenue requirement increase under a historic test year. The filing includes revised financing and storm restoration costs, a proposed storm recovery mechanism and additional customer payment flexibility. A decision is expected in January 2027. Delmarva Power is seeking a $45.4 million revenue requirement increase in Delaware to support system upgrades and reliability investments. It implemented interim rates effective July 9, subject to refund. At ComEd, Exelon’s grid plan proceeding continues, with hearings scheduled for August and an order expected by Dec. 15. The plan proposes approximately $15.3 billion of investment from 2028 through 2031 for reliability, load growth and Illinois energy-policy objectives. Butler said BGE delayed its rate-case filing, deferred selected projects and prioritized maintenance and reliability work to help manage customer affordability. However, he said deferring essential work for too long could lead to more outages, higher repair costs and greater long-term costs for customers. Exelon’s executives pointed to resource adequacy concerns in the PJM Interconnection market. Butler said PJM demand reached a record 168 gigawatts during extreme heat in July, prompting emergency procedures and demand-response deployment. Power prices surged from about $80 per megawatt-hour to roughly $800 per megawatt-hour, he said. The most recent PJM capacity auction fell about 6.8 gigawatts short of PJM’s reliability requirement, according to Butler. Prices cleared at the Federal Energy Regulatory Commission-approved cap for the third consecutive auction. Without the cap, PJM simulations indicated prices of approximately $555 per megawatt-day across the footprint and $777 per megawatt-day in ComEd’s territory, he said. Butler said Exelon supports an “all-of-the-above” strategy involving transmission, demand-side resources, market-based generation and utility-owned generation where appropriate. He said the company is continuing discussions with states, PJM and FERC on measures intended to protect customers and improve system reliability. Exelon and Invenergy submitted two additional MISO Tranche 2.1 competitive transmission bids. Atlantic City Electric and Invenergy advanced a proposed 500-megawatt, four-hour battery storage project in Pittsgrove, New Jersey. BGE and Pepco submitted battery-storage projects in Maryland’s distribution-connected storage solicitation. Several Exelon utilities received approvals or advanced plans for virtual power plant programs that aggregate customer-sited resources. Jones said the Pittsgrove project would be the largest battery storage installation in PJM and could power approximately 400,000 homes. The project represents about $1 billion in investment not currently included in Exelon’s plan. She said anticipated PJM market revenues would be returned entirely to customers and that the project is expected to generate more than $700 million in net customer benefits after entering service, with no customer bill impact expected until at least 2035. Atlantic City Electric filed for approval of a cost-recovery mechanism for the project, with a final order anticipated in the first half of 2027. Jones said Exelon’s $41 billion capital plan through 2029 remains unchanged despite the company refining its assessment of data-center demand. Exelon said it now identifies 11 gigawatts of high-probability load growth, including 4 gigawatts supported by signed Transmission Security Agreements and $1 billion of collateral. The remaining 7 gigawatts of high-probability projects predated the TSA process but are further along in development, Jones said. The company said its TSA process is intended to filter speculative large-load requests and ensure that customers seeking major grid connections make financial commitments tied to needed infrastructure. Exelon has completed approximately 86% of its 2026 debt financing needs, including all anticipated debt issuance at the holding company, Pepco Holdings, ComEd and BGE, Jones said. The company has also priced approximately 37% of planned equity needs through 2029 through forward contracts under its at-the-market program, including all 2026 needs and half of expected 2027 needs. For the third quarter, Exelon expects earnings to represent approximately 27% of the midpoint of its full-year guidance range. That outlook incorporates weather, storms, the PECO employee strike earlier in July, and normal weather and storm activity for the remainder of the quarter. Exelon Corporation (NASDAQ: EXC) is a Chicago-based energy company that operates primarily as a regulated electric and natural gas utility holding company. The company's businesses focus on the delivery of electricity and related services to residential, commercial and industrial customers, as well as investments in grid modernization, customer energy solutions and demand-side programs. Exelon's operations emphasize reliable service delivery, infrastructure maintenance and regulatory compliance across its utility footprint. Formed in 2000 through the merger of Unicom and PECO Energy, Exelon historically combined generation and regulated utility businesses. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Exelon Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Exelon Corporation EXC reported second-quarter 2026 adjusted operating earnings of 43 cents per share, in line with the Zacks Consensus Estimate. Earnings increased 10.3% from 39 cents in the year-ago quarter. Higher distribution and transmission rates across several utilities supported the improvement.On a GAAP basis, earnings were 39 cents per share, matching the year-ago quarter's reported figure. Revenues totaled $5.97 billion, beating the Zacks Consensus Estimate of $5.66 billion by 5.46%.  The top line increased 10% from the year-ago figure of $5.43 billion. Exelon Corporation price-consensus-eps-surprise-chart | Exelon Corporation Quote In the reported quarter, the company served more customers than in the year-ago quarter. Consequently, total electric deliveries reached 41,742 gigawatt hours in the first six months of 2026, up 0.1% from the year-ago period. Total operating expenses increased 10.8% year over year to $4.99 billion. The rise was primarily due to higher purchased power and fuel costs, which increased 16.6% to $2.21 billion, as well as a 4.9% jump in operating and maintenance expenses to $1.39 billion.Operating income amounted to $979 million, up 5.6% year over year.Interest expenses totaled $574 million, up nearly 8.1% from the year-ago quarter’s level.In the reported quarter, adjusted net income was $438 million, up 11.7% from $392 million in the year-ago quarter. Commonwealth Edison Company (ComEd): Adjusted earnings increased 9.2% year over year to $249 million. The increase was primarily driven by growth in its distribution and transmission rates based on incremental customer-focused investments, along with higher AFUDC.PECO Energy Company (PECO): Adjusted operating earnings for the reported quarter declined 4.4% to $130 million. The decrease was mainly attributable to higher depreciation, interest expense and tax-repair-related income taxes, despite support from favorable weather and the absence of customer surcharge credits.Baltimore Gas and Electric Company (BGE): Adjusted earnings for the second quarter advanced 27.3% to $70 million, reflecting approved distribution rates. Higher credit loss expenses partially offset the benefit.Pepco Holdings LLC (PHI): Adjusted operating earnings for the reported quarter decreased 12.5% to $126 million. Higher depreciation weighed on results, while approved distribution and transmission rates provided a partial offset. Cash and cash equivalents totaled $1.81 billion as of June 30, 2026 compared with $626 million at the end of 2025.As of June 30, 2026, long-term debt was $50.31 billion compared with $47.41 billion as of Dec. 31, 2025. Exelon generated $3.67 billion in operating cash flow during the first six months of 2026, up from $2.71 billion in the year-ago period. Capital expenditures for the first six months of 2026 increased to $4.56 billion from $3.96 billion, reflecting the company's continued investment in utility infrastructure. The company had completed about 86% of its planned 2026 debt financings by the end of the second quarter. Exelon also priced roughly 37% of its $3.4 billion equity requirement through 2029 using forward contracts. BGE filed an electric distribution rate case with the Maryland Public Service Commission in July. The utility requested a $156.1 million annual revenues increase based on a 10.40% return on equity. A decision is expected in January 2027.Atlantic City Electric also filed a proposal for up to 500 megawatts of utility-owned battery storage in New Jersey. The project is targeted for completion by late 2030. Management expects customer benefits to exceed total life-cycle costs, with no customer bill impact through at least 2035. Exelon reaffirmed its 2026 adjusted operating earnings guidance of $2.81-$2.91 per share. The company also continues to expect annualized adjusted operating earnings growth near the upper end of its 5-7% target through 2029. The Zacks Consensus Estimate for the same is pinned at $2.86 per share, on par with the midpoint of the company’s guided range. The outlook is supported by a $41.7 billion capital investment plan and projected rate-base growth of 7.9%. Exelon also identified $12-$17 billion of potential transmission investment opportunities beyond the current plan, primarily related to reliability, load growth, new generation and competitive transmission projects. Exelon carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Upcoming Releases Duke Energy DUK is scheduled to report second-quarter results on Aug. 4, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.29 per share, which suggests a year-over-year increase of 3.20%.DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.72 per share, which implies a year-over-year improvement of 6.50%.Consolidated Edison ED is slated to report second-quarter results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, which implies a year-over-year increase of 10.45%.ED’s long-term earnings growth rate is 6.32%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 6.84%.PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.PPL’s long-term earnings growth rate is 7.52%. The Zacks Consensus Estimate for 2026 earnings is pinned at $1.94 per share, which implies a year-over-year improvement of 7.18%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC) : Free Stock Analysis Report PPL Corporation (PPL) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Consolidated Edison Inc (ED) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Exelon (EXC) came out with quarterly earnings of $0.43 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this energy company would post earnings of $0.89 per share when it actually produced earnings of $0.91, delivering a surprise of +2.25%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Exelon, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $5.97 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.47%. This compares to year-ago revenues of $5.43 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Exelon shares have added about 7.9% since the beginning of the year versus the S&P 500's gain of 6.9%. While Exelon has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Exelon was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.90 on $6.98 billion in revenues for the coming quarter and $2.86 on $25.65 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, NiSource (NI), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This energy holding company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -22.7%. The consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level. NiSource's revenues are expected to be $1.33 billion, up 3.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC) : Free Stock Analysis Report NiSource, Inc (NI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research