01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Southern Company (SO) reported a decrease in consolidated net income attributable to Southern Company for the second quarter of 2025, falling to $880 milliona ($0.79 per diluted share) from $1.2 billion ($1.09 per diluted share) in the same period of 2024.
Year-to-date, net income attributable to Southern Company was $2.21 billionb ($2.00 per diluted share), down from $2.33 billion ($2.12 per diluted share) in the first half of 2024. This decline was primarily driven by higher non-fuel operations and maintenance expenses, increased depreciation and amortization, higher interest expenses, and increased income taxes across its segments. Despite the dip in net income, total operating revenues for the consolidated entity saw an increase, reaching $6.97 billion for the quarter, up from $6.46 billion in the prior year's second quarter.
This revenue growth was supported by higher retail electric revenues, driven by rate increases and sales growth, particularly in the commercial and industrial sectors, as well as increased natural gas revenues due to base rate adjustments and higher commodity prices. Southern Power's revenues also saw an increase, largely from higher energy revenues related to increased natural gas prices. The company's significant capital expenditures continue, with a substantial portion allocated to construction programs across its subsidiaries to support future load growth and infrastructure upgrades.
02—Key points
Key Highlights
- Consolidated net income attributable to Southern Company decreased to $880 million in Q2 2025 from $1.2 billion in Q2 2024, with diluted EPS at $0.79 compared to $1.09.
- Year-to-date net income attributable to Southern Company was $2.21 billion, down from $2.33 billion in the prior year's period.
- Total operating revenues increased to $6.97 billion in Q2 2025 from $6.46 billion in Q2 2024, driven by higher retail electric and natural gas revenues.
- Georgia Power's 2022 ARP was extended for an additional three years through December 31, 2028, maintaining its retail ROE set point and range.
- Southern Power is developing wind repowering projects and has committed to new development projects, incurring construction costs for these initiatives.
- Southern Company Gas' natural gas revenues increased due to base rate increases and higher commodity prices, with gas distribution operations seeing a net income increase in Q2 2025.
- Capital expenditures remain significant, with substantial investments in construction programs across subsidiaries, particularly Georgia Power and Alabama Power, for generation, transmission, and distribution facilities.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $6.73B$6.35B | +6.1% |
| Operating Expenses | $5.21B$4.52B | +15.1% |
| Operating Income | $1.76B$1.94B | −9.0% |
| Net Income | $853.00M$1.20B | −29.1% |
| EPS (Basic) | $0.80$1.10 | −27.3% |
| EPS (Diluted) | $0.79$1.09 | −27.5% |
| Shares Outstanding (Basic) | 1.10B1.10B | +0.5% |
| Shares Outstanding (Diluted) | 1.11B1.10B | +0.5% |
05—Questions
Frequently Asked Questions
What was Southern Company's net income performance in the second quarter of 2025 compared to the prior year?
Southern Company's consolidated net income attributable to Southern Company for the second quarter of 2025 was $880 million, or $0.79 per diluted share, a decrease from $1.2 billion, or $1.09 per diluted share, in the second quarter of 2024. The year-to-date net income attributable to Southern Company was $2.21 billion ($2.00 per diluted share) for the first half of 2025, down from $2.33 billion ($2.12 per diluted share) in the same period of 2024.
What drove the changes in operating revenues?
Total operating revenues increased to $6.97 billion in Q2 2025 from $6.46 billion in Q2 2024. This growth was primarily due to higher retail electric revenues driven by rate increases and sales growth across key customer segments, as well as increased natural gas revenues resulting from base rate adjustments and higher commodity prices. Southern Power also contributed with increased revenues from higher energy prices.
Are there any significant regulatory developments impacting the company?
Yes, Georgia Power's 2022 Annual Rate Plan (ARP) has been extended for three years through December 31, 2028, maintaining its retail Return on Equity (ROE) set point and range. Additionally, Georgia Power has requested certification for new battery energy storage facilities and other resources as part of its Integrated Resource Plans (IRPs), with significant capital investment implications.
How is Southern Power performing with its renewable energy projects?
Southern Power is continuing development on wind repowering projects and has committed to new development projects, incurring construction costs. These projects are contracted under new and amended Power Purchase Agreements (PPAs).
06—Continue