The Southern Company (SO) Q4 2024 earnings summary

Executive summary

• Achieved adjusted EPS of $4.05 for 2024, an 11% increase from 2023 and at the top of guidance range.

• Strong operational and financial performance across all business units, with robust customer growth and resilience during major weather events.

• Significant economic development in the Southeast, with over 150 companies expanding or locating in the region, supporting 20,000+ new jobs and a pipeline of ~10 GW committed projects.

• Data center and large manufacturing load growth are major drivers of long-term demand and investment, with 80% of pipeline gigawatts attributed to data centers.

• $63 billion five-year capital plan, with $10–$15 billion additional opportunity focused on regulated investment and grid resilience.

Financial highlights

• 2024 adjusted EPS was $4.05, up from $3.65 in 2023, while reported EPS was $4.02.

• Q4 2024 adjusted EPS was $0.64, compared to $0.78 in Q4 2023.

• Weather-normalized total retail electricity sales up ~1% year-over-year; commercial sales, led by data centers, up 17%.

• Added over 57,000 new residential electric customers in 2024, the highest annual addition on record.

• Full-year operating revenues rose 5.8% to $26.7B, with operating income up to $7.07B.

Outlook and guidance

• 2025 adjusted EPS guidance range: $4.20–$4.30, with midpoint representing 6% growth from 2024 guidance midpoint.

• Long-term adjusted EPS growth rate guidance remains 5%–7%, underpinned by 7% projected rate base growth.

• Retail electricity sales projected to grow 2%–3% in 2025 and average 8% annually from 2025–2029.

• Commercial segment sales expected to grow 18% annually from 2025–2029.

• Potential for $10–$15 billion incremental regulated capital investments pending regulatory outcomes.