10-QPeriod: Q1 FY2025

SOUTHERN CO Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 1, 2025For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) reported a strong first quarter for 2025, with consolidated net income attributable to Southern Company rising by 18.2% to $1.334 billion, or $1.21 per diluted share, compared to $1.129 billion, or $1.03 per diluted share, in the first quarter of 2024. This growth was primarily driven by a significant increase in retail electric revenues, largely due to favorable rates and pricing adjustments, along with positive weather impacts. Wholesale electric revenues also saw a substantial increase of 30.3%, bolstered by higher energy revenues reflecting increased prices and volumes, particularly from natural gas and solar power purchase agreements (PPAs) at Southern Power. The company's operating expenses saw an increase, notably in fuel and purchased power, as well as other operations and maintenance expenses. However, the positive revenue performance, especially from rate increases and the inclusion of Plant Vogtle Unit 4 in Georgia Power's retail rates, more than compensated for these increased costs. Southern Company's financial position remains solid, supported by robust operating cash flows and substantial credit facilities, enabling continued investment in its construction programs.

Financial Highlights

39 data points
Beta

Revenue

$7.59B

Net Income

$1.33B

17.6% Net Margin

EPS (Diluted)

$1.21

Total Assets

$148.11B

Cash & Equivalents

$2.33B

Free Cash Flow

-$1.19B

Financial Statements
Beta
Revenue$7.59B
Operating Expenses$5.76B
Operating Income$2.01B
Net Income$1.33B
EPS (Basic)$1.21
EPS (Diluted)$1.21
Shares Outstanding (Basic)1.10B
Shares Outstanding (Diluted)1.10B

Key Highlights

  • 1Consolidated net income attributable to Southern Company increased 18.2% year-over-year to $1.334 billion.
  • 2Diluted earnings per share grew to $1.21 from $1.03 in the prior year's quarter.
  • 3Total operating revenues increased by 17.1% to $7.775 billion, driven by strong performance across segments.
  • 4Retail electric revenues rose by 16.7% to $4.623 billion, primarily due to rate increases and favorable weather impacts.
  • 5Wholesale electric revenues saw a significant increase of 30.3% to $744 million, supported by higher energy prices and volumes.
  • 6Capital expenditures for property additions totaled $2.437 billion for the quarter, reflecting ongoing investment in infrastructure.
  • 7Southern Company's total assets grew to $148.109 billion as of March 31, 2025.

Frequently Asked Questions

The primary driver of Southern Company's earnings growth in the first quarter of 2025 was a significant increase in retail electric revenues, bolstered by favorable rate adjustments and positive weather impacts. Additionally, higher wholesale electric revenues, driven by increased energy prices and volumes, also contributed positively.

Southern Company continued to invest heavily in its construction programs, with property additions totaling $2.437 billion for the quarter. These investments are crucial for future growth and system reliability, and while they increase expenses, they are supported by regulatory mechanisms designed to recover costs and provide a return on investment.

Southern Company's long-term debt increased by $4.6 billion in the first quarter of 2025, primarily due to the issuance of junior subordinated notes and senior notes to fund its capital expenditures and general corporate purposes. The company maintains substantial unused committed credit facilities, providing strong liquidity and flexibility to meet future capital needs and manage its debt profile.

While the company has various ongoing legal and regulatory matters, including those related to environmental compliance and construction projects, management does not anticipate that the ultimate liabilities from current proceedings, not specifically reported as material, would have a significant adverse effect on its financial statements. However, specific environmental compliance efforts, such as those related to Coal Combustion Residuals (CCR) and Greenhouse Gases (GHG), could result in significant compliance costs in the future.