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% year-over-year growth and 9% CAGR since 2023.

• Retail electricity sales grew 1.7% year-over-year, with strong contributions from residential, commercial (notably data centers), and industrial segments.

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

• $81 billion capital expenditure plan for 2026–2030, up 30% from prior plan, focused on new generation, transmission, and grid resilience.

• 24 consecutive years of dividend increases and 78 years 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.

• Delivered adjusted earnings at or above guidance for 11 consecutive years.

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

• FFO to debt improved to 15.4% in 2025, up from 14.8% in 2024.

Outlook and guidance

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

• Initial EPS guidance for 2027: $4.85–$4.95 (8% growth); for 2028: $5.25–$5.45 (9% growth).

• Long-term adjusted EPS growth projected at 7–8% from 2028 guidance through 2030, with 9% annual rate base growth and 10% annual retail sales growth forecasted.

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

• Commercial sales projected to more than double, growing ~20% annually through 2030.