The Southern Company (SO) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted EPS was $1.10, up from $0.79 in Q2 2023, driven by strong utility performance, customer growth, and robust economic development in the Southeast.

• Net income attributable to the company rose 43.6% to $1.2 billion in Q2 2024 and 37.2% to $2.3 billion for the first half, supported by higher retail electric and gas revenues and favorable weather.

• Retail electricity sales saw robust growth, with residential sales up 11.2% and commercial up 7.1% year-over-year in Q2 2024; data center sales increased 17%.

• Georgia Power placed Plant Vogtle Unit 4 in service, increasing retail base rates and annual revenues by $730 million effective May 2024.

• The company demonstrated high reliability during record heat and peak electric loads.

Financial highlights

• Q2 2024 operating revenues increased 12.4% year-over-year to $6.46 billion; six-month revenues rose 7.2% to $13.1 billion.

• Adjusted EPS for Q2 2024 was $1.10, up $0.31 year-over-year and $0.20 above estimate.

• Q2 2024 operating income was $1.94 billion, up $649 million year-over-year; year-to-date operating income was $3.64 billion, up $1.13 billion.

• Q2 results benefited from continued investment in regulated utilities, warmer-than-normal weather, and higher customer usage, partially offset by higher interest and depreciation expenses.

• Retail electric revenues increased by $953 million in Q2 2024 compared to Q2 2023.

Outlook and guidance

• 2024 full-year adjusted EPS guidance is $3.95 to $4.05, with Q3 2024 adjusted EPS estimate at $1.30.

• Projected retail electric sales growth of 6% from 2025 to 2028, with Georgia Power at 9% over the same period.

• Long-term projected adjusted EPS growth of 5% to 7%, supported by 6% projected rate base growth.

• Disciplined approach to pricing and serving new load expected to benefit both new and existing customers.

• Long-term load growth opportunity is expected to accelerate in the latter part of the decade and beyond.