Southern Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did SO Beat Earnings? Q3 2025 Results
Southern Company delivered a strong third quarter for 2025, posting adjusted earnings of $1.60 per share on total revenues of $7.82 billion, with EPS clearing analyst estimates and adjusted net income climbing 12.9% year-over-year. The primary engine behind the beat was robust utility performance, particularly at Georgia Power and Alabama Power, where higher retail revenues contributed a combined $0.28-per-share tailwind as weather-adjusted retail sales grew 2.6% and the company's regulated customer base expanded 1.1% to 4.58 million electric customers. Analysts retain a consensus "Hold" rating on the stock despite the solid print, with a mean price target of $101.24 suggesting modest upside. The quarter was not without headwinds — Southern Power's net income cratered 96.3% to just $3 million due to $103 million in pre-tax accelerated depreciation tied to wind facility repowering projects, a drag that will persist with roughly $320 million in similar charges projected for 2026. CEO Chris Womack pointed to accelerating electric demand growth across the company's service territories as a reason to expect a strong finish to the year.
- Higher utility revenues across Traditional Electric Operating Companies
- Strong retail revenue impacts contributing $0.15/share year-over-year
- Weather-adjusted retail sales growth of 2.6% driven by commercial and industrial demand
- Customer base growth of 0.8% year-over-year to 8.934 million regulated utility customers
- Total kWh sales growth of 1.1% to 56.627 billion kWh
“Southern Company's robust third quarter performance comes as the momentum around electric demand growth opportunities and interest in our service territories continue to build. Our 28,000 system employees remain focused on meeting these growing needs in a way that benefits all customers while also providing premier reliability and resilient service for our company's 9 million customers. It is that disciplined approach and our unwavering commitment to put customers at the center of all that we do that positions us to finish the year strong and continues to position us to capture the opportunities ahead.”
Southern Company CEO, on the earnings call
Forward Guidance & Outlook
CEO Chris Womack indicated the company is positioned to finish the year strong, citing momentum around electric demand growth opportunities and growing interest in its service territories. The company highlighted continued electric demand growth as a key forward-looking theme. Southern Power's wind facility repowering projects are projected to generate remaining pre-tax accelerated depreciation charges of approximately $100 million in 2025, $320 million in 2026, and $25 million in 2027, with commercial operation dates projected between Q3 2026 and Q2 2027.
SO YoY Financials
SO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.