The Southern Company (SO) Q4 2025 earnings summary

Executive summary

• Achieved adjusted EPS of $4.30 for 2025, at the top of guidance, representing 6% growth year-over-year and 9% CAGR since 2023.

• Delivered 1.7% year-over-year growth in weather-normalized retail electricity sales, with strong contributions from residential, commercial (notably data centers), and industrial segments.

• Signed 10GW of large load contracts, supporting robust sales and infrastructure growth, with another 10GW in late-stage negotiations.

• Robust economic development with over 120 companies expanding or locating in service territories, supporting 21,000 new jobs and $23B investment.

• Maintained a 78-year dividend track record, with increases for 24 consecutive years.

Financial highlights

• Adjusted EPS of $4.30 in 2025, up 6% from 2024 and 9% CAGR from 2023; reported EPS: $3.94.

• 11th consecutive year of meeting or exceeding annual EPS guidance.

• FFO to debt improved to 15.4% in 2025, up from 14.8% in 2024, with a target of 17% by 2029.

• Dividend payout ratio projected to move to low- to mid-60% range by late forecast horizon.

• 2025 dividend per share: $2.80, with 3.3% average annual growth since 2002.

Outlook and guidance

• 2026 adjusted EPS guidance: $4.50–$4.60, representing 7% growth from 2025.

• Projected 8–9% adjusted EPS growth from 2026–2028, with 2027 guidance at $4.85–$4.95 and 2028 at $5.25–$5.45.

• Long-term adjusted EPS growth expected at 7–8% from 2028 guidance through 2030.

• Retail electric sales projected to grow at least 3% in 2026 and average 10% annually through 2030.

• Over 90% of projected earnings from state-regulated electric and gas utilities.