10-QPeriod: Q2 FY2026

SOUTHERN CO Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 30, 2026For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) reported solid financial results for the six months ended June 30, 2026. Total operating revenues increased to $15.37 billion from $14.75 billion in the prior year period, driven by growth across its electric utilities and natural gas segments. Consolidated net income attributable to Southern Company rose to $2.53 billion, or $2.24 per diluted share, from $2.21 billion, or $2.01 per diluted share, in the same period last year. This performance reflects a combination of increased retail and wholesale electric revenues, higher natural gas revenues due to base rate adjustments, and improved contributions from equity method investments. The company also saw favorable impacts from decreased income taxes and lower interest expense in the current period. Operationally, the company is investing significantly in its infrastructure, with property additions totaling $6.64 billion in the first half of 2026, reflecting ongoing capital expenditure programs across its subsidiaries to enhance reliability and meet future demand. The company's balance sheet remains robust, with total assets increasing to $162.03 billion. Southern Company maintains a strong liquidity position with significant unused committed credit facilities, providing ample flexibility to fund ongoing operations and capital investments.

Key Highlights

  • 1Total operating revenues for the first six months of 2026 increased to $15.37 billion from $14.75 billion in the prior year period.
  • 2Consolidated net income attributable to Southern Company increased to $2.53 billion ($2.24 per diluted share) for the first six months of 2026, up from $2.21 billion ($2.01 per diluted share) in the same period of 2025.
  • 3Retail electric revenues saw a slight increase to $9.39 billion year-to-date 2026, driven by sales growth, particularly in commercial KWH sales at Georgia Power.
  • 4Wholesale electric revenues significantly increased to $1.66 billion year-to-date 2026, up from $1.43 billion in 2025, primarily due to higher energy volumes and prices.
  • 5Natural gas revenues grew to $3.16 billion year-to-date 2026, up from $2.82 billion in 2025, driven by base rate increases and higher natural gas prices in the first quarter.
  • 6Property additions for the first six months of 2026 were $6.64 billion, reflecting substantial investments in infrastructure across the company's operating segments.
  • 7The company maintained a strong liquidity position, with $8.91 billion in unused committed credit facilities across its subsidiaries as of June 30, 2026.

Frequently Asked Questions

Southern Company's total operating revenues increased to $15.37 billion for the six months ended June 30, 2026, compared to $14.75 billion for the same period in 2025. This growth was primarily driven by increases in wholesale electric revenues, natural gas revenues due to rate adjustments and higher prices, and a slight rise in retail electric revenues.

The increase in net income attributable to Southern Company to $2.53 billion ($2.24/share) in the first half of 2026 from $2.21 billion ($2.01/share) in the prior year was due to higher net income across its operating segments, supported by increased revenues, favorable tax impacts, and lower interest expenses. Key contributors included growth in wholesale electric and natural gas segments, improved earnings from equity method investments, and beneficial changes in income tax expenses.

Southern Company is making substantial investments in its infrastructure, with property additions totaling $6.64 billion in the first six months of 2026. These capital expenditures are directed towards construction programs across its electric utilities and natural gas operations to enhance reliability, meet future demand, and comply with environmental regulations.

Southern Company maintains a strong financial position. Total assets grew to $162.03 billion as of June 30, 2026. The company has substantial liquidity, with $8.91 billion in unused committed credit facilities available across its subsidiaries, providing ample financial flexibility to manage its operations and capital requirements.