Exelon sees strong 2026 on robust power demand, higher rates

U.S. utility Exelon on Thursday forecast full-year adjusted profit largely above analysts' expectations after beating fourth-quarter earnings estimates, driven by higher electricity rates and rising power demand.

Shares of the Chicago-based company rose 8.8% to $48.24, the highest since October 2025, in afternoon trading.

U.S. utilities are raising prices and stepping up capital expenditure to boost infrastructure, to keep pace with the surge in power demand from tech giants that are racing to build data centers to support advanced and complex artificial intelligence-related tasks.

Exelon, which serves more than 10.9 million customers through six fully regulated transmission and distribution utilities, projected $41.3 billion of capital expenditure over the next four years, up from $38 billion previously.

"With a $41.3 billion four-year capital plan and 7.9% rate base growth, we are well-positioned to deliver annualized earnings growth near the top end of 5% to 7% through 2029," said CFO Jeanne Jones.

Exelon executives said on a post-earnings call that load growth, or demand for electricity, is expected to exceed 3% through 2029, helped by a large load pipeline and transmission service agreements.

The company said it was actively partnering with federal agencies, regional transmission operators such as PJM, and state leaders to address high electricity prices and emerging risks related to power supply.

"We need to focus on supply because we know it will lower electric costs," said Chief Legal Officer Colette Honorable.

The company forecast 2026 adjusted profit between $2.81 and $2.91 per share, compared with analysts' average estimate of $2.84, according to data compiled by LSEG.

Earnings at Exelon's PECO unit, Pennsylvania's largest electric and natural gas utility, fell nearly 17% to $162 million due to higher taxes and costs.

The company posted an adjusted profit of 59 cents per share for the three months ended December 31, compared with analysts' average estimate of 55 cents per share.