Summary
Southern Company (SO) reported strong financial performance for the fiscal year ending December 30, 2024, with consolidated net income attributable to Southern Company increasing by 10.7% to $4.4 billion, and diluted Earnings Per Share (EPS) reaching $3.99. This growth was primarily driven by higher retail electric revenues, attributed to rate adjustments and favorable weather impacts, coupled with increased natural gas revenues stemming from rate hikes. The company also noted an increase in other revenues across its business segments. Despite increases in non-fuel operations and maintenance expenses, income tax, interest expense, depreciation, and other taxes, the overall financial health of the company remains robust. Southern Company continues to invest heavily in its construction programs, with an estimated $14.8 billion allocated for 2025 across its system, focusing on new generation, environmental compliance, generation maintenance, and transmission/distribution infrastructure. Southern Power is expanding its renewable energy portfolio with projects like Millers Branch solar and Kay Wind repowering, while Southern Company Gas is advancing its natural gas distribution network improvements. The company maintained its commitment to shareholder returns, paying dividends of $2.86 per share in 2024, with a dividend payout ratio of 71%. The company's regulatory environment remains a key factor, with ongoing discussions and approvals from state Public Service Commissions impacting rate structures and cost recovery mechanisms.
Financial Highlights
43 data points| Revenue | $26.72B |
| Operating Expenses | $19.66B |
| Operating Income | $7.07B |
| Net Income | $4.26B |
| EPS (Basic) | $4.02 |
| EPS (Diluted) | $3.99 |
| Shares Outstanding (Basic) | 1.10B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Consolidated net income increased by 10.7% to $4.4 billion in 2024.
- 2Diluted EPS reached $3.99, up from $3.62 in the prior year.
- 3Southern Company's electric utilities saw a $1.6 billion, or 8.0%, increase in electric operating revenues for 2024, driven by rate increases, weather impacts, and new generation (Plant Vogtle Units 3 & 4) coming online.
- 4Southern Company Gas reported a 5.2% decrease in operating revenues, primarily due to lower natural gas prices and demand, but saw a net income increase of 20.3% due to rate adjustments and prior year regulatory disallowances.
- 5Total estimated capital expenditures for the Southern Company system in 2025 are projected at $14.8 billion, reflecting significant investments in new generation, environmental compliance, and infrastructure upgrades.
- 6Southern Power continues to expand its renewable energy portfolio, with projects like the Millers Branch solar facility and Kay Wind repowering contributing to its generation capacity.
- 7The company's common stock dividend was $2.86 per share in 2024, with a dividend payout ratio of 71%.