Exelon Corporation's 2024 Annual Report: A Year of Growth and Resilience
Exelon Corporation, a leading utility services holding company, has unveiled its annual report for the year ending December 31, 2024, showcasing a robust financial performance and strategic advancements across its subsidiaries, including ComEd and PECO. This report highlights Exelon's commitment to delivering reliable energy solutions while navigating the complexities of regulatory landscapes and evolving market conditions.
1. Executive Overview
In 2024, Exelon continued its focus on energy transmission and distribution through its six reportable segments: Commonwealth Edison Co (ComEd), PECO Energy Co, Baltimore Gas and Electric Company (BGE), Pepco Holdings LLC, Delmarva Power and Light (DPL), and Atlantic City Electric (ACE). The company’s strategic initiatives, including rate adjustments and operational efficiencies, have resulted in substantial growth in both revenue and net income.
2. Financial Results of Operations
Exelon reported a net income attributable to common shareholders from continuing operations of $2.46 billion in 2024, an increase of $132 million compared to 2023. The primary drivers of this growth included favorable rate increases at BGE and Pepco, improved weather conditions affecting PECO, and a higher return on regulatory assets at ComEd. Notably, the absence of realized losses from hedging activities at Exelon Corporate further bolstered the company's financial results.
Income Statement Overview
The income statement for 2024 reflects total revenues of $23.02 billion, up from $21.72 billion in 2023. Operating expenses also increased to $18.72 billion, primarily due to growth in sales volumes and higher operational costs.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Net Income | 2.32B | 2.46B |
Profit | 2.32B | 2.46B |
Net Income Continuing | 2.32B | 2.46B |
Income Tax Expense | 374M | 207M |
Pretax Income | 2.70B | 2.66B |
Non-operating Income | -1.32B | -1.65B |
Operating Income | 4.02B | 4.31B |
Revenue | 21.72B | 23.02B |
Costs and Expenses | 17.71B | 18.72B |
Cost of Revenue | 11.74B | 12.27B |
Operating Expenses | 5.96B | 6.44B |
Selling, General & Administrative | 5.96B | 6.44B |
Revenue Breakdown
Exelon's revenue growth can be attributed to its diverse operations. The company reported significant increases in revenue across its segments:
- ComEd: $8.21 billion (up 4.78%)
- PECO: $3.97 billion (up 2.03%)
- BGE: $4.42 billion (up 9.91%)
- Pepco Holdings: $6.44 billion (up 7%)
3. Cash Flow and Liquidity
In 2024, Exelon's cash flows from operating activities amounted to $5.56 billion, enabling the company to meet its financial commitments while continuing to invest in infrastructure improvements. The net change in cash for the year was a decrease of $162 million, primarily due to substantial investments in capital projects totaling $7.05 billion.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Net Change in Cash | 11M | -162M |
Net Cash from Operating Activities | 4.70B | 5.56B |
Operating Profit | 2.32B | 2.46B |
Adjustment to Operating Profit | 2.37B | 3.10B |
Net Cash from Investing Activities | -7.37B | -7.04B |
Productive Assets | 7.38B | 7.05B |
Other Investing Activities | 8M | 17M |
Net Cash from Financing Activities | 2.68B | 1.31B |
Debt | 4.04B | 2.75B |
Dividends | 1.43B | 1.52B |
Equity Issuance/Repurchase | 181M | 191M |
Other Financing Activities | -114M | -109M |
4. Balance Sheet Analysis
Exelon's total assets grew to $107.7 billion in 2024, a significant increase from $101.5 billion in 2023. This growth was driven by investments in property, plant, and equipment which reached $78.18 billion. Total liabilities also rose to $80.86 billion, reflecting the company's ongoing capital expenditures and commitment to maintaining operational excellence.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Total Assets | 101.5B | 107.7B |
Total Current Assets | 7.77B | 8.38B |
Cash and Equivalents | 445M | 357M |
Net Inventories | 493M | 523M |
Accounts Receivable | 2.34B | 2.73B |
Restricted Cash and Investments | 482M | 541M |
Prepaid Expenses | 80M | 705M |
Other Current Assets | 2.91B | 2.50B |
Total Non-current Assets | 93.76B | 99.4B |
Intangible Assets | 6.63B | 6.63B |
Long-term Investments | 251M | 290M |
Net PP&E | 73.59B | 78.18B |
Other Non-current Assets | 13.29B | 14.29B |
Total Liabilities and Equity | 101.5B | 107.7B |
Total Liabilities | 75.79B | 80.86B |
Total Current Liabilities | 9.59B | 9.61B |
Accounts Payable and Accrued Liabilities | 4.22B | 4.46B |
Current Debt | 3.92B | 3.31B |
Other Current Liabilities | 1.43B | 1.83B |
Total Non-current Liabilities | 66.2B | 71.25B |
Long-term Debt | 76.03B | 82.78B |
Asset Retirement and Litigation Obligation | 267M | 301M |
Other Non-current Liabilities | -10.10B | -11.83B |
Total Equity and Non-controlling Interests | 25.75B | 26.92B |
Total Equity | 25.75B | 26.92B |
5. Segment Performance Highlights
ComEd
ComEd's performance was marked by a 10% increase in utility segment revenue, attributed to higher electric distribution service improvement charges (DSIC) and increased demand for electricity. However, the segment faced challenges due to a lower allowed return on equity (ROE) and increased pension-related expenses.
PECO Energy
PECO's revenues were bolstered by favorable weather conditions, leading to an increase in operating revenues despite rising credit loss and depreciation expenses. The segment's strategic initiatives aimed at enhancing customer service and reliability have continued to yield positive results.
BGE and Pepco
BGE and Pepco both experienced revenue growth driven by rate increases and improved operational efficiency, reflecting Exelon's commitment to providing reliable energy solutions across its service territories.
6. Legislative and Regulatory Developments
Exelon has actively engaged with regulatory commissions to file base rate cases aimed at adjusting transmission and distribution rates to reflect cost recovery and investment needs. Additionally, the company has been involved in various initiatives under the Infrastructure Investment and Jobs Act, emphasizing its commitment to infrastructure modernization and sustainability.
7. Mergers, Acquisitions, and Key Developments
Exelon issued approximately 4 million shares of common stock in Q3 2024 at an average gross price of $37.60, generating net proceeds of $148 million. The company has not reported any significant mergers or acquisitions during the year.
8. Environmental and Community Impact
Exelon's commitment to sustainability remains a cornerstone of its operations. The company is on track to achieve net-zero greenhouse gas emissions by 2050, investing heavily in clean energy initiatives and community engagement programs.
9. Conclusion
Exelon Corporation's 2024 annual report reflects a year of strong financial performance and strategic growth, underscored by commitments to sustainability, regulatory compliance, and operational excellence. The company's proactive approach to addressing market challenges and enhancing customer service positions it well for future growth and success in the evolving energy landscape. As Exelon continues to navigate the complexities of the energy sector, its focus on innovation and community impact will remain pivotal for long-term sustainability.
