Exelon quarterly profit misses estimates on higher costs

July 30 (Reuters) - U.S. utility Exelon EXC.O on Thursday reported second-quarter adjusted profit below Wall Street estimates, as higher costs partly offset gains from higher distribution and transmission rates.

Exelon's shares were down 2.6% in premarket trading.

• The Chicago-based company posted adjusted operating earnings of 43 cents per share for the three months ended June 30, compared with analysts' average estimate of 44 cents per share, according to LSEG data. Earnings rose from 39 cents per share a year earlier.
• Revenue for the quarter increased 10% from a year earlier to $5.97 billion, exceeding analysts' average estimate of $5.63 billion.
• Higher distribution and transmission rates added $41 million to quarterly adjusted earnings, while other energy-delivery revenue contributed $64 million, the company said.
• But Exelon's quarterly operating and maintenance expenses rose nearly 5% to $1.39 billion from a year earlier, while interest expenses were up over 8%.
• Customer load also reduced quarterly adjusted earnings by $6 million from a year earlier, highlighting the regulated utility's reliance on rate-base growth and cost recovery rather than electricity sales volumes.
• Exelon reaffirmed its 2026 adjusted operating earnings forecast of $2.81 to $2.91 per share and said it remained on track to deliver annualized earnings growth near the upper end of its 5% to 7% target range through 2029.
• Separately, Exelon said its regulated subsidiary BGE filed in July to increase Maryland annual electric distribution rates by $156 million to fund grid investment, operating costs and storm recovery.
• Its Atlantic City Electric unit also filed a transmission-connected battery-storage proposal in New Jersey, it added.