The Southern Company (SO) Q3 2024 earnings summary

Executive summary

• Q3 2024 adjusted EPS was $1.43, up from $1.42 in Q3 2023; YTD adjusted EPS reached $3.56, up from $3.01 year-over-year.

• Net income for Q3 2024 was $1.5B ($1.40/share), up from $1.4B ($1.30/share) in Q3 2023; YTD net income was $3.9B ($3.53/share), up from $3.1B ($2.86/share).

• Strong operational and financial results were driven by higher utility revenues, Plant Vogtle's completion, and robust customer and economic growth, despite the impact of Hurricane Helene.

• Hurricane Helene caused historic damage in Georgia, leading to 1.5 million outages and significant restoration and rebuilding efforts, with 95% restored within eight days.

• Customer growth continued, with 12,000 new electric and 7,000 new natural gas residential customers in Q3.

Financial highlights

• Q3 2024 operating revenues were $7.3B, up 4.2% year-over-year; YTD revenues were $20.4B, up 6.1%.

• Q3 2024 operating income was $2.4B, up from $2.1B in Q3 2023; YTD operating income was $6.0B, up from $4.6B.

• Retail electric revenues increased 8.9% in Q3 and 9.5% YTD, mainly from Plant Vogtle and base rate increases.

• Interest expense rose 11.6% in Q3 and 13.1% YTD due to higher borrowings and rates.

• Adjusted EPS for the first nine months of 2024 was $3.56, compared to $3.01 for the same period in 2023.

Outlook and guidance

• Full-year 2024 adjusted EPS is projected at $4.05, with long-term adjusted EPS growth targeted at 5% to 7%.

• Q4 2024 adjusted EPS estimate is $0.49 per share.

• Projected state-regulated electric and gas utility rate base growth of 6% supports earnings outlook.

• Projected electric load growth of ~6% from 2025 to 2028, driven by economic development.

• Capital plan expected to increase by several billion dollars in February update, reflecting new projects and opportunities.