SOUTHERN CO 8-K Report, Financial Results (Oct 31, 2024)

Southern Company (SO) reported third-quarter 2024 GAAP earnings of $1.5 billion^a, or $1.40 per basic share, up from $1.30 in the prior-year quarter, while excluding certain items it earned $1.43 per share versus $1.42 a year earlier.

Results were lifted by higher utility revenues, with operating revenues up 4.2% to $7.3 billion^b. Adjusted earnings growth was modest because higher interest expense, depreciation and amortization, non-fuel O&M, and income taxes offset the revenue gains. The reported quarter also included a $36 million pre-tax impairment at Alabama Power tied to a discontinued commercial facility, and a $12-cent benefit from the reversal of prior Plant Vogtle Units 3 and 4 losses that flatters the GAAP comparison.

For the nine-month period, GAAP EPS rose to $3.53^c from $2.86 and excluding items to $3.56 from $3.01, a much stronger trajectory driven by the Traditional Electric Operating Companies, which contributed 62 cents of the 55-cent year-to-date adjusted EPS increase. Georgia Power was the standout, with net income up roughly 45% year to date, benefiting from rate-base growth and the absence of the 2023 Vogtle charge. Retail non-fuel electric revenues rose sharply year to date, while weather-adjusted retail sales grew only 0.6%, and residential sales declined on a weather-adjusted basis, a point investors may watch closely.

The quarter was dominated by Hurricane Helene, which management described as the most destructive storm in Georgia Power's history. Restoration costs and customer impacts are not quantified in this release, so the financial effect of the storm on future quarters remains an open question. Investors should also note that Mississippi Power expects roughly $15 million^d of additional annual Kemper-related costs through 2025, and that Vogtle-related and other project charges may still occur given the uncertainty noted in the filing.