The Southern Company (SO) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted EPS was $0.92, exceeding estimates by $0.07, with net income at $880 million ($0.80 per share), down 26.8% year-over-year; retail electricity sales grew 3% year-over-year, with notable increases in residential, industrial, and data center usage.

• Operating revenues rose 7.9% year-over-year to $7.0 billion, driven by higher retail electric and natural gas revenues, offset by increased O&M, depreciation, interest, and taxes.

• Economic development in Q2 included nearly $2 billion in capital investment and over 6,000 new jobs.

• Leadership transition announced, with Dan Tucker retiring as CFO and David Poroch assuming the role.

Financial highlights

• Q2 2025 adjusted EPS was $0.92, $0.07 above estimate but $0.18 lower year-over-year; reported EPS was $0.80, with year-to-date adjusted EPS at $2.15, up from $2.13.

• Q2 2025 operating revenues were $6.97-$7.0 billion, up from $6.46 billion year-over-year; operating income was $1.76 billion, down from $1.94 billion.

• Retail electricity sales grew 3% year-over-year in Q2, with residential up 2.8%, commercial up 3.5%, and industrial up 2.8%; data center usage rose 13%.

• Retail electric revenues increased 11% year-over-year in Q2; natural gas revenues rose 17.8%.

• Q3 2025 adjusted EPS estimate is $1.50.

Outlook and guidance

• Remain on track to meet 2025 financial objectives and long-term EPS growth target of 5%-7%, with 2025 full-year adjusted EPS guidance of $4.20 to $4.30.

• Rate base growth outlook increased to 8% through 2029.

• Georgia Power's ARP extension freezes base rates through 2028, with ROE set at 10.5% and an equity ratio of 56%.

• Regulatory, operational, and market risks could impact results, including new tax law and compliance costs.