EDISON INTERNATIONAL

Years ended December 31, 2025 and 2024

The following table is a summary of SCE's results of operations for the periods indicated:

2025 vs 2024

Operating Revenue

Higher net operating revenue of $1,729 million was primarily due to:

•An increase in revenue of $880 million resulting from implementing the 2025 GRC final decision, as discussed in "—Impact of 2025 GRC."

•An increase in revenue of $758 million related to net higher expenses that are passed through to customers, which included increases in:

•Wildfire-related claims of $899 million;

•Depreciation and amortization expense of $108 million;

•Interest expense of $38 million;

•Property and other taxes of $11 million;

•Other income of $4 million;

•Income tax expense of $2 million;

partially offset by decreases in:

•Purchased power and fuel expense of $276 million;

•Operation and maintenance expense of $28 million.

•An increase in revenue of $91 million was primarily due to higher balancing account rate base primarily associated with wildfire mitigation efforts and utility owned energy storage projects.

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $276 million was primarily due to lower power prices (offset in "Operating Revenue" above).

Operation and Maintenance

A decrease in operation and maintenance expense of $65 million was primarily due to:

•A net decrease of $28 million related to lower expenses that are passed through to customers (offset in "Operating Revenue" above, which mainly included:

•A net lower expense of $273 million related to previously deferred wildfire mitigation, vegetation management, and emergency restoration costs authorized for recovery in 2025 than in 2024.

These decreases are partially offset by:

•$98 million higher FERC-jurisdictional costs primarily due to increased transmission allocation;

•$78 million higher uncollectible expense;

•$69 million primarily related to higher public programs expenses.

•A decrease of $115 million in legal costs, of which $58 million related to recoveries under the TKM Settlement Agreement, $37 million related to recoveries under the Woolsey Settlement Agreement, and $20 million related to lower costs associated with the 2017/2018 Wildfire/Mudslide Events. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

•A decrease of $53 million related to severance costs recorded in 2024 due to workforce reductions.

•A charge of $62 million recorded in 2025 primarily associated with disallowed historical expenses related to 2021 GRC wildfire mitigation memorandum account balances. For additional information, see "Liquidity and Capital Resources—SCE—Regulatory Proceedings."

•A charge of $50 million recorded in 2025 related to shareholder-funded wildfire mitigation costs stipulated under the TKM Settlement Agreement. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

•An increase of $19 million primarily related to higher wildfire mitigation related activities.

Wildfire-related Claims, Net of Recoveries

A decrease in wildfire-related claims, net of recoveries of $2,656 million was primarily due to:

•A recovery of $1,603 million in claim costs was recorded in 2025 as authorized under the Woolsey Settlement Agreement.

•A recovery of $1,341 million in claim costs was recorded in 2025 as authorized under the TKM Settlement Agreement.

•A decrease of $490 million related to lower claim costs for 2017/2018 Wildfire/Mudslide Events recorded in 2025 than in 2024, $28 million of which was expected to be recovered through FERC rates (offset in "Operating Revenue" above).

•A decrease of $157 million related to lower claim costs recorded in 2025 than in 2024 for Other Wildfire Events, $10 million of which was expected to be recovered through FERC rates (offset in "Operating Revenue" above).

•A decrease of $14 million due to insurance reimbursements recorded in 2025 for costs incurred in previous years related to Other Wildfire Events.

partially offset by:

•An increase of $949 million related to wildfire claim costs recorded in 2025 related to the Eaton Fire. These costs include $917 million covered by customer-funded self-insurance and $19 million expected FERC recovery (offset in "Operating Revenue" above) and $12.5 million from the shareholder contribution related to SCE's customer-funded self-insurance coverage.

For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Depreciation and Amortization

An increase in depreciation and amortization expense of $368 million was primarily due to higher plant balances, $108 million of which were pass-through costs mainly associated with wildfire mitigation costs and utility owned energy storage projects (offset in "Operating Revenue" above).

Property and Other Taxes

An increase in property and other taxes expense of $42 million was primarily due to higher assessed property values, $11 million of which were pass-through costs mainly associated with wildfire mitigation costs and utility owned energy storage projects (offset in "Operating Revenue" above).

Asset Impairment

Charges of $106 million recorded in 2025 primarily related to:

•$88 million impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in SCE's 2025 GRC final decision.

•$18 million impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in the TKM and Woolsey Settlement Agreements.

Interest Expense

A net decrease in interest expense of $368 million was primarily due to:

•$171 million benefit related to cost recoveries authorized under the TKM Settlement Agreement;

•$243 million benefit related to cost recoveries under the Woolsey Settlement Agreement;

partially offset by:

•$38 million pass-through expense mainly associated with wildfire mitigation efforts and utility owned energy storage projects (offset in "Operating Revenue" above);

•$8 million higher interest expense from higher borrowings.

Other Income, Net

A decrease in other income, net of $46 million was primarily due to lower interest income driven by lower balancing account undercollection balances, and $4 million of higher pass-through costs (offset in "Operating Revenue" above).

Income Tax Expense

An increase in income tax expense of $1,295 million was primarily due to higher tax expense on higher pre-tax income. See "Notes to Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rate.

Preference Stock Dividend Requirements

A decrease in preference stock dividend requirements of $31 million was primarily due to a lower amount of outstanding preference stock following 2024 and 2025 redemptions.

Results of operations for Edison International Parent and Other include amounts from other subsidiaries that are not reportable segments, as well as intercompany eliminations.