The Southern Company (SO) Q3 2024 earnings summary

Executive summary

• Q3 2024 adjusted EPS was $1.43, up from $1.42 in Q3 2023; YTD adjusted EPS reached $3.56, up from $3.01 year-over-year.

• Net income for Q3 2024 was $1.5B ($1.40/share), up from $1.4B ($1.30/share) in Q3 2023; YTD net income was $3.9B ($3.53/share), up from $3.1B ($2.86/share).

• Delivered strong operational and financial results despite Hurricane Helene, restoring 95% of affected customers within eight days and supporting community recovery.

• Plant Vogtle Units 3 and 4 were placed in service, increasing annual retail base revenues by $730M and adjusting average retail base rates by 5% effective May 2024.

• Alabama Power agreed to acquire Tenaska Alabama Partners for $622M, adding 855 MW of capacity, with completion expected by Q3 2025.

Financial highlights

• Q3 2024 operating revenues were $7.3B, up 4.2% year-over-year; YTD revenues were $20.4B, up 6.1%.

• Q3 2024 operating income was $2.4B, up from $2.1B in Q3 2023; YTD operating income was $6.0B, up from $4.6B.

• Retail electric revenues increased 8.9% in Q3 and 9.5% YTD, mainly from Plant Vogtle and base rate increases.

• Q3 2024 adjusted EPS was $1.43, and diluted EPS was $1.39; YTD adjusted EPS was $3.56, and diluted EPS was $3.51.

• Interest expense rose 11.6% in Q3 and 13.1% YTD due to higher borrowings and rates.

Outlook and guidance

• Full-year 2024 adjusted EPS is projected at $4.05, with long-term adjusted EPS growth targeted at 5% to 7%.

• Fourth quarter adjusted EPS estimate is $0.49 per share.

• Projected state-regulated electric and gas utility rate base growth of 6% supports earnings outlook.

• Capital plan expected to increase by several billion dollars in the next update, reflecting new projects and opportunities.

• Georgia Power filed for a $306M net rate increase effective January 2025, pending PSC approval.