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 from 2023.

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

• Secured 26 large load contracts totaling 10 GW, with another 10 GW in late-stage negotiations, supporting long-term growth.

• Announced $81 billion five-year capital plan, up 30% from prior year, focused on new generation, transmission, and grid resilience.

• Dividend increased for 24 consecutive years, with a 78-year record of stable or rising dividends.

Financial highlights

• 2025 adjusted EPS: $4.30 (guidance range $4.20–$4.30); reported EPS: $3.94.

• Full-year 2025 operating revenues increased 10.6% to $29.6 billion from $26.7 billion in 2024.

• Dividend per share reached $2.80 in 2025, with 3.3% average annual growth since 2002.

• Improved credit metrics and proactive equity financing, including $9 billion addressed through 2028.

• 2025 year-over-year adjusted EPS drivers: state-regulated electrics (+$0.34), Southern Company Gas (+$0.02), offset by higher O&M, depreciation, and interest expense.

Outlook and guidance

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

• Projected 8–9% adjusted EPS growth annually from 2026–2028, with 7–8% growth expected beyond 2028.

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

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

• Commercial sales expected to more than double, growing 20% annually through decade's end.