10-QPeriod: Q3 FY2025

SOUTHERN CO Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 30, 2025For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) reported solid financial results for the nine months ended September 30, 2025, with consolidated net income attributable to Southern Company increasing to $3.93 billion from $3.87 billion in the prior year period. This growth was driven by higher retail electric revenues across its operating companies, particularly at Georgia Power and Alabama Power, fueled by rate increases and improved sales volumes, including strong demand from industrial sectors like data centers. Operationally, the company has seen increased capital expenditures, notably at Georgia Power for infrastructure and generation projects totaling approximately $16.7 billion. Southern Company Gas also reported increased revenues and has been investing in infrastructure improvements. Southern Power's performance was impacted by accelerated depreciation on wind repowering projects, leading to lower net income for that segment, although overall operating revenues showed growth. The company has actively managed its financing, issuing new debt and repurchasing existing notes, while maintaining substantial unused credit facilities.

Financial Highlights

40 data points
Beta

Revenue

$7.82B

Net Income

$1.71B

21.9% Net Margin

EPS (Diluted)

$1.54

Total Assets

$153.25B

Cash & Equivalents

$3.34B

Free Cash Flow

$559.00M

Financial Statements
Beta
Revenue$7.82B
Operating Expenses$5.23B
Operating Income$2.59B
Net Income$1.71B
EPS (Basic)$1.55
EPS (Diluted)$1.54
Shares Outstanding (Basic)1.10B
Shares Outstanding (Diluted)1.11B

Key Highlights

  • 1Consolidated net income attributable to Southern Company increased to $3.93 billion for the first nine months of 2025, up from $3.87 billion in the same period of 2024.
  • 2Retail electric revenues saw a significant increase of 9.2% year-over-year, driven by rate adjustments, customer growth, and increased industrial demand, especially from data centers.
  • 3Georgia Power is proceeding with significant capital expenditure plans, requesting certification for projects totaling approximately $16.7 billion.
  • 4Southern Power's net income was impacted by accelerated depreciation on wind repowering projects, but overall operating revenues grew.
  • 5Southern Company Gas reported higher natural gas revenues due to increased prices and volumes, alongside ongoing infrastructure investments.
  • 6The company maintained a strong liquidity position with substantial unused committed credit facilities of $8.9 billion as of September 30, 2025.
  • 7Southern Company managed its debt profile by issuing new debt, including convertible senior notes, and repurchasing existing notes.

Frequently Asked Questions

The increase in net income was primarily driven by higher retail electric revenues, which saw a 9.2% year-over-year increase. This growth was fueled by rate adjustments and increased sales volumes across its operating companies, particularly in industrial sectors like data centers at Georgia Power. Additionally, higher natural gas revenues and increased allowance for equity funds used during construction contributed positively, partially offset by higher depreciation and amortization expenses.

Georgia Power is undertaking significant capital expenditure plans, having requested certification for projects totaling approximately $16.7 billion, focused on generation, transmission, and distribution infrastructure. Southern Power is also continuing construction on solar and wind repowering projects, with aggregate remaining construction costs between $685 million and $775 million for its wind repowering projects.

Southern Power's net income was impacted by accelerated depreciation related to wind repowering projects, leading to a decrease in net income attributable to Southern Power for the nine months ended September 30, 2025, compared to the prior year. However, overall operating revenues for Southern Power increased due to higher PPA energy revenues driven by increased volumes and higher market prices for energy.

Southern Company maintains a strong liquidity position, with $8.9 billion in unused committed credit facilities as of September 30, 2025. The company actively manages its debt profile by issuing new debt, including convertible senior notes, and repurchasing existing notes. The subsidiary registrants plan to fund future capital needs through operating cash flows, external securities, borrowings, and equity contributions from Southern Company.