Did Southern Company's first-quarter 2025 results beat the prior year?

Yes. GAAP EPS was $1.21 versus $1.03, and adjusted EPS (excluding Kemper and Kay Wind items) was $1.23 versus $1.03. Net income attributable to Southern Company rose about 18% to $1.334 billion.

What drove the revenue increase?

Operating revenues rose 17% to $7.8 billion. Retail revenue, including fuel pass-through, was the largest driver, with non-fuel retail revenues up $454 million and fuel revenues up $206 million. Wholesale revenues also rose $173 million, and natural gas revenues increased $132 million.

What are the excluded items, and should investors expect them to continue?

The exclusions are Kemper County gasification plant charges and Kay Wind accelerated depreciation at Southern Power. Kemper dismantlement and related costs are expected through the end of 2025, and Kay Wind accelerated depreciation is projected at about $100 million in 2025 and $40 million in 2026, so these items will likely affect reported results for some time.

Is underlying demand growing?

Reported retail kilowatt-hour sales grew 3.4%, but that was largely weather-driven. Weather-adjusted retail sales declined 0.3%, with residential sales down 1.8% on a weather-adjusted basis. Customer count grew 0.8% to about 8.97 million, which provides a modest growth base.

How did individual segments perform?

Traditional electric operating companies were the strongest, with net income up to $1.026 billion from $819 million, and Georgia Power's net income rose 36% to $596 million. Southern Power's net income fell 9% to $87 million, and Southern Company Gas rose 2% to $418 million.

SOUTHERN CO 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.

Southern Company (SO) reported first-quarter 2025 GAAP earnings of $1.3 billion^a, or $1.21 per basic share, up from $1.1 billion, or $1.03 per share, in Q1 2024, an increase of roughly 18%.

Excluding charges tied to the Kemper County gasification project, and accelerated depreciation at the Kay Wind repowering project at Southern Power, adjusted earnings were $1.4 billion^b, or $1.23 per share, versus $1.03 a year earlier. Operating revenues rose 17.0% to $7.8 billion, driven mainly by higher retail revenues (up about 25 cents per share in EPS impact at the traditional electric operating companies) and stronger weather-related and wholesale contributions. Retail electric sales were up 3.4% overall, though weather-adjusted retail sales declined 0.3%, with residential sales weaker on a weather-adjusted basis and industrial and commercial sales roughly flat to modestly higher.

The earnings drivers were higher utility revenues, partly offset by increased non-fuel operations and maintenance expense (up about 10%, or 9 cents per share), higher depreciation and amortization (6 cents per share), and higher interest expense and other items (8 cents per share). Traditional electric operating companies were the main contributor, with net income of $1.03 billion^c versus $819 million a year earlier, while Southern Power's net income declined to $87 million and Southern Company Gas's rose modestly to $418 million. Management emphasized a goal of regular, predictable and sustainable long-term results.

Investors should note the company's ongoing Kemper and Kay Wind-related costs, with Kay Wind accelerated depreciation projected at about $100 million^d in 2025 and $40 million in 2026, and the Kemper dismantlement costs expected to continue through the end of 2025. The filing is a earnings release furnished under Item 2.02 rather than a filed financial statement, and it includes non-GAAP measures reconciled to GAAP net income. Reported results are the primary benchmark, but the excluded items are recurring themes for this company and merit monitoring.

02—Key points

Key Highlights

GAAP net income attributable to Southern Company rose to $1.334 billion ($1.21 per basic share) from $1.129 billion ($1.03) in Q1 2024, an increase of about 18%.
Excluding Kemper County charges and Kay Wind accelerated depreciation, adjusted EPS was $1.23 versus $1.03, a 20-cent improvement.
Operating revenues increased 17.0% to $7.8 billion, led by a $454 million rise in non-fuel retail revenues and a $206 million increase in fuel revenues.
Traditional electric operating companies contributed 19 cents of the 20-cent adjusted EPS increase, with net income up to $1.026 billion from $819 million.
Non-fuel O&M expense rose 10% to $1.62 billion and depreciation and amortization rose 12% to $1.29 billion, together offsetting part of the revenue gains.
Kay Wind repowering accelerated depreciation is projected at about $100 million in 2025 and $40 million in 2026, with commercial operation expected in Q3 2026.
Weather-adjusted retail kilowatt-hour sales declined 0.3%, even though reported retail sales grew 3.4%, and total regulated utility customers reached 8.97 million.

03—Questions

Frequently Asked Questions

Did Southern Company's first-quarter 2025 results beat the prior year?
Yes. GAAP EPS was $1.21 versus $1.03, and adjusted EPS (excluding Kemper and Kay Wind items) was $1.23 versus $1.03. Net income attributable to Southern Company rose about 18% to $1.334 billion.
What drove the revenue increase?
Operating revenues rose 17% to $7.8 billion. Retail revenue, including fuel pass-through, was the largest driver, with non-fuel retail revenues up $454 million and fuel revenues up $206 million. Wholesale revenues also rose $173 million, and natural gas revenues increased $132 million.
What are the excluded items, and should investors expect them to continue?
The exclusions are Kemper County gasification plant charges and Kay Wind accelerated depreciation at Southern Power. Kemper dismantlement and related costs are expected through the end of 2025, and Kay Wind accelerated depreciation is projected at about $100 million in 2025 and $40 million in 2026, so these items will likely affect reported results for some time.
Is underlying demand growing?
Reported retail kilowatt-hour sales grew 3.4%, but that was largely weather-driven. Weather-adjusted retail sales declined 0.3%, with residential sales down 1.8% on a weather-adjusted basis. Customer count grew 0.8% to about 8.97 million, which provides a modest growth base.
How did individual segments perform?
Traditional electric operating companies were the strongest, with net income up to $1.026 billion from $819 million, and Georgia Power's net income rose 36% to $596 million. Southern Power's net income fell 9% to $87 million, and Southern Company Gas rose 2% to $418 million.

04—Continue

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