EXC
Exelon Corporation
Utilities · Utilities - Regulated Electric · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Exelon earned a mid-range composite score of 53.5/100 driven by solid but not exceptional growth (5.3% revenue, 12.5% net income) and respectable margins (21.2% operating, 11.4% net) that reflect a stable regulated utility profile.
- Financial health was a relative strength given the scale of Exelon's $116.6 billion asset base, though the 1.72 debt-to-equity ratio and 2.4% return on assets moderated the overall score.
- The theme factor contributed zero points in the current evaluation cycle despite the Grid Modernization assignment, which held back the total score.
Why Not Higher
- The theme factor scored zero points despite the Grid Modernization assignment, representing a meaningful gap in the total score that prevented a higher overall ranking.
- The combination of a low 2.4% return on assets, a 58.4% dividend payout ratio, and quarterly volatility including a dip in 2025Q4 collectively limited the profitability, dividend, and momentum sub-scores.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $23,028,000,000 to FY2025's $24,258,000,000, a gain of +5.3%, while net income rose from FY2024's $2,460,000,000 to FY2025's $2,768,000,000, a gain of +12.5%.
The model recognized positive growth on both the top and bottom lines, with net income expanding at a faster rate than revenue in FY2025. However, the mid-range score suggests the absolute pace of growth was not sufficient to earn a higher reward under the model's methodology.
In FY2025, Exelon posted an operating margin of 21.2% and a net margin of 11.4%, while return on assets came in at 2.4%.
The model rewarded the solid operating and net margins, which reflect meaningful earnings conversion from revenue. The relatively low return on assets of 2.4% in FY2025, typical of capital-intensive utilities, likely tempered the overall profitability score.
In FY2025, Exelon reported a debt-to-equity ratio of 1.72 and total assets of $116,570,000,000.
The model appears to have rewarded the scale of Exelon's asset base in FY2025, which is characteristic of a large regulated utility. The debt-to-equity ratio of 1.72 in FY2025 reflects meaningful leverage, though this level is common in capital-intensive utility businesses and did not prevent a high sub-score.
Over the last four reported quarters, revenue moved from $5,427,000,000 in 2025Q2 to $6,705,000,000 in 2025Q3, dipped to $5,412,000,000 in 2025Q4, then surged to $7,242,000,000 in 2026Q1. Net income followed a similar pattern: $391,000,000 in 2025Q2, $875,000,000 in 2025Q3, $594,000,000 in 2025Q4, and $919,000,000 in 2026Q1. Operating income likewise rose from $927,000,000 in 2025Q2 to $1,605,000,000 in 2026Q1, with a mid-period dip in 2025Q4.
The model observed a broadly upward trend across revenue, net income, and operating income over the trailing four quarters, with the most recent quarter (2026Q1) representing the peak on all three metrics. The seasonal dip in 2025Q4 introduced some volatility, which may have moderated the score relative to a perfectly linear acceleration.
Exelon's dividends per share have grown steadily from $1.35 in FY2022 to $1.44 in FY2023, $1.52 in FY2024, and $1.60 in FY2025, while the dividend payout ratio stood at 58.4% of net income in FY2025.
The model recognized a consistent multi-year dividend growth trend, but the payout ratio of 58.4% in FY2025 indicates that a substantial portion of earnings is committed to dividends, which may limit the score under a methodology that weighs dividend sustainability or growth capacity alongside yield.
Exelon has been assigned the macro theme of Grid Modernization.
Although Exelon carries the Grid Modernization theme assignment, this alignment did not translate into score under the model's current methodology. The theme assignment reflects the company's relevance to infrastructure investment trends, but the scoring outcome suggests the model did not award points for this factor in the current evaluation cycle.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Exelon Corporation posted solid year-over-year growth in FY2025, with revenue rising 5.3% to $24.26 billion and net income expanding 12.5% to $2.77 billion, demonstrating meaningful bottom-line leverage. The company maintains respectable operating and net margins of 21.2% and 11.4% respectively, supported by a large asset base of $116.6 billion, though a return on assets of just 2.4% reflects the capital-intensive nature of regulated utilities. Quarterly momentum has been broadly positive, with 2026Q1 representing peak revenue of $7.24 billion and peak operating income of $1.61 billion across the trailing four quarters. The overall model score of 53.5/100 with a Medium risk rating and a 'Research Further' label reflects a balanced profile of steady fundamentals tempered by leverage, modest asset returns, and a dividend payout ratio that limits reinvestment flexibility.
Plain English
Exelon is a large utility company that grew its revenue and profits in 2025, pays a steadily rising dividend, and has been getting stronger quarter by quarter recently — but it also carries significant debt and pays out more than half its earnings as dividends, which keeps it from scoring higher.
Bull Case vs. Bear Case
Bull Case
- Net income grew 12.5% year-over-year in FY2025, outpacing revenue growth of 5.3%, indicating improving earnings efficiency and bottom-line leverage.
- Quarterly momentum has been broadly upward, with revenue surging to $7.24 billion and operating income reaching $1.61 billion in 2026Q1, the highest levels across the trailing four quarters.
- Exelon has grown its dividend per share every year from $1.35 in FY2022 to $1.60 in FY2025, demonstrating a consistent multi-year commitment to returning capital to shareholders.
Bear Case
- Return on assets stood at only 2.4% in FY2025, reflecting the heavy capital requirements of the utility business model and limiting overall profitability scores.
- The debt-to-equity ratio of 1.72 in FY2025 signals meaningful financial leverage, which introduces risk in a rising interest rate environment even if typical for the sector.
- A dividend payout ratio of 58.4% in FY2025 means more than half of net income is committed to dividends, constraining the company's capacity to reinvest in growth or reduce debt.
What Could Change the Picture
Bullish Triggers
- A sustained acceleration in quarterly revenue and net income beyond the 2026Q1 peaks — without the seasonal dips seen in 2025Q4 — would signal stronger underlying demand and operational consistency.
- A meaningful reduction in the debt-to-equity ratio from its current 1.72 level would improve financial flexibility and could support a higher financial health and overall composite assessment.
Bearish Triggers
- If the dividend payout ratio rises significantly above 58.4%, it could signal earnings pressure or an unsustainable capital return policy that limits future investment capacity.
- A reversal of the quarterly momentum trend — particularly if revenue or operating income in future quarters falls below the 2025Q4 trough levels — would undermine the current positive trajectory.
Risk Profile
Medium RiskExelon carries a debt-to-equity ratio of 1.72 in FY2025, reflecting meaningful leverage that is common in capital-intensive utilities but still represents a financial risk factor. Quarterly results showed a seasonal dip in 2025Q4 across revenue, net income, and operating income before recovering strongly in 2026Q1, introducing some volatility into the momentum profile.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.