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SOUTHERN CO 8-K Report, Financial Results (Feb 20, 2025)

Reports
Earnings & Results
Filing Date
Filed February 20, 2025
Period End
February 20, 2025
In the record · 2016–202610-K1110-Q328-K206

SO filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 206 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jan ’19Jan ’19
  2. Leadership change8-K · Oct ’21Oct ’21
  3. Material agreement8-K · Feb ’26Feb ’26

01—Abstract

Summary

Summary of the 8-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.

Southern Company (SO) reported fourth-quarter 2024 GAAP earnings of $534 milliona, or $0.49 basic EPS, down from $855 million, or $0.78, in Q4 2023.

Excluding non-GAAP items, Q4 2024 earnings were $544 millionb, or $0.50 per share, versus $700 million, or $0.64, a year earlier. The quarterly decline was driven largely by a $222 million pre-tax-equivalent swing in Plant Vogtle Units 3 and 4 estimated loss reversals in 2023 that did not recur, along with higher non-fuel O&M, interest expense, depreciation and income taxes at the Traditional Electric Operating Companies. Q4 2024 operating revenues rose 4.9% to $6.3 billion.

For full-year 2024, GAAP net income was $4.4 billionc, or $4.02 basic EPS, versus $4.0 billion, or $3.64, in 2023. Excluding items, full-year EPS was $4.05 compared with $3.65, an increase of about 11%. Operating revenues grew 5.8% to $26.7 billion, supported by higher retail non-fuel revenues (up about $1.7 billion, or 14%), with retail kilowatt-hour sales up 3.0% and weather-adjusted growth of 0.8%.

Commercial and residential demand strength, along with a 2% increase in Traditional Electric Operating Company customers, supported the top line, partially offset by higher O&M, interest and depreciation costs. Investors should note the continued volatility in project-related charges, including the Vogtle reversals, Kemper County dismantlement costs (roughly $15 milliond expected in 2025), the Kay Wind repowering accelerated depreciation (about $100 million projected in 2025 and $40 million in 2026), and a $36 million Alabama Power impairment.

Southern Company also said that forward-looking guidance is available in its earnings slides rather than this release. Diluted EPS was $0.48 for Q4 2024 and $3.99 for full-year 2024.

02—Key points

Key Highlights

  1. GAAP net income for Q4 2024 was $534 million ($0.49 basic EPS), down 37.5% from $855 million ($0.78) in Q4 2023, largely because of Vogtle-related reversals recognized in 2023.
  2. Adjusted (non-GAAP) Q4 2024 EPS was $0.50 versus $0.64 in Q4 2023, a decline of $0.14 per share.
  3. Full-year 2024 GAAP EPS rose to $4.02 from $3.64 (up about 10.4%), and adjusted EPS rose to $4.05 from $3.65 (up about 11%).
  4. Full-year 2024 operating revenues increased 5.8% to $26.7 billion, with retail non-fuel revenues up 14% to $13.6 billion.
  5. Retail kilowatt-hour sales grew 3.0% for the full year, though weather-adjusted growth was only 0.8%, indicating weather contributed meaningfully to demand.
  6. Q4 2024 and full-year results face ongoing cost pressure from non-fuel O&M, interest expense, depreciation and income taxes, which offset revenue gains.
  7. Upcoming charges to watch include roughly $15 million of Kemper County costs in 2025, about $100 million of Kay Wind accelerated depreciation in 2025 and $40 million in 2026, and potential future Vogtle and impairment adjustments.

03—Questions

Frequently Asked Questions

  1. Why did Southern Company's fourth-quarter 2024 earnings decline compared with Q4 2023?

    The decline was mainly due to the absence of the large Plant Vogtle Units 3 and 4 credit recognized in Q4 2023 (a $228 million pre-tax credit that year), along with higher non-fuel O&M, interest expense, depreciation and income taxes. GAAP EPS fell to $0.49 from $0.78, and adjusted EPS fell to $0.50 from $0.64.

  2. How did full-year 2024 performance compare with 2023?

    Full-year GAAP EPS increased to $4.02 from $3.64, and adjusted EPS increased to $4.05 from $3.65. Growth was driven by higher utility revenues, including a 5.8% rise in total operating revenues to $26.7 billion, partially offset by higher operating, interest, depreciation and tax expenses.

  3. What non-GAAP adjustments did Southern Company make, and why do they matter?

    Adjustments excluded items such as estimated losses and credits on Plant Vogtle Units 3 and 4, Kemper County charges, Kay Wind accelerated depreciation, an Alabama Power impairment, and certain 2023 acquisition, disposition and debt extinguishment items. Management argues these exclusions show performance from ongoing operations, but investors should review the reconciliations because these items recur frequently and can be material.

  4. What future charges could affect Southern Company's earnings?

    The company disclosed expected Kemper dismantlement and site restoration costs of about $15 million in 2025, Kay Wind accelerated depreciation of roughly $100 million in 2025 and $40 million in 2026, and the possibility of further Vogtle, impairment and disposition-related charges with uncertain timing and amounts.

04—Continue

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