The Southern Company (SO) Q3 2025 earnings summary

Executive summary

• Q3 2025 adjusted EPS was $1.60, exceeding estimates by $0.10, with net income of $1.7 billion, up 11.5% year-over-year, and operating revenues rising 7.5% to $7.8 billion.

• Retail electricity sales grew 2.6% year-over-year in Q3, with strong growth across all customer classes, especially data centers and industrials.

• Large load contracts increased to 8 GW (up 2 GW in Q3), supporting a robust long-term sales outlook and an active pipeline above 50 GW.

• Economic development remains robust, with 22 companies announcing new or expanded operations in Q3, generating nearly 5,000 jobs and $2.8B in expected capital investment.

• Key regulatory approvals included Alabama Power's acquisition of the Lindsay Hill Generating Station and Georgia Power's extension of its ARP and approval of major battery and renewable projects.

Financial highlights

• Q3 2025 adjusted EPS was $1.60, up from $1.43 in Q3 2024; basic EPS was $1.55, up from $1.40.

• Year-to-date adjusted EPS was $3.76, up from $3.56 in 2024; net income reached $3.93 billion.

• Q3 2025 operating revenues were $7.8 billion, up from $7.3 billion; year-to-date revenues reached $22.6 billion.

• Key drivers included customer growth, higher usage, and investment in state-regulated utilities, partially offset by higher depreciation, interest expense, and less favorable weather.

• Q4 adjusted EPS estimate is $0.54, positioning full-year adjusted earnings at the top of the $4.30 guidance range.

Outlook and guidance

• Full-year 2025 adjusted EPS is projected at $4.30, at the top of the guidance range.

• Projected electric load growth of 8% annually through 2029, with Georgia Power averaging 12% annual growth.

• Long-term adjusted EPS growth targeted at 5% to 7%, supported by projected 8% rate base growth in state-regulated utilities.

• Georgia Power's ARP extension through 2028 maintains base rates and ROE targets, with no base rate increases planned during the extension period.

• Long-term plan update, including refreshed capital investment outlook and EPS guidance, to be provided in February 2026.