The Southern Company (SO) investor relations material

Executive summary

• Adjusted Q2 2026 EPS was $1.13, up from $0.92, exceeding estimates by $0.13 and driven by robust demand from data centers and large load customers, with over 17 GW of contracts secured through the mid-2030s.

• Net income for Q2 2026 was $1.2 billion ($1.03 per share), up 33% year-over-year, with adjusted net income at $1.3 billion.

• Retail electricity sales growth reached a two-decade high, with total kilowatt-hour sales up 3.9% and 11,000 new residential customers added in the quarter.

• Data center system load increased by 55% in Q2 and 49% year-to-date, with over 6 GW of new large load contracts signed since Q1.

• Major 25-year, 3.2 GW contract signed with OpenAI, including 1 GW of flexible demand response.

Financial highlights

• Q2 2026 operating revenues were $6.98 billion, nearly flat year-over-year; year-to-date revenues reached $15.4 billion, up from $14.75 billion.

• Adjusted EPS for the first half of 2026 was $2.46, up from $2.15, exceeding year-to-date expectations.

• Operating income for Q2 was $1.78 billion, up slightly from $1.76 billion last year; cash flow from operations for the first half was $4.28 billion.

• Growth in earnings driven by increased usage, customer growth, higher AFUDC, equity method investments, and favorable tax impacts.

• Interest expense from higher debt and share dilution partially offset gains, though Q2 2026 saw a $78 million decrease in interest expense.

Outlook and guidance

• Full-year 2026 adjusted EPS is projected to be near or at the top of the $4.50–$4.60 guidance range; Q3 adjusted EPS estimate is $1.65.

• Projected electric sales growth of ~10% from 2026 to 2030, driven by economic development and large load additions.

• Regulatory and legislative actions are expected to keep Alabama retail rates stable through 2027, with no increases before 2029.

• Ongoing RFPs in Alabama and Georgia for additional generation resources to meet growing demand into the 2030s.

• Management highlighted ongoing investments in state-regulated utilities and infrastructure to support customer growth and reliability.