Southern Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.25%.
Did SO Beat Earnings? Q4 2025 Results
Southern Company delivered a mixed fourth quarter for 2025, posting adjusted earnings of $0.55 per share that fell just short of the $0.57 consensus estimate — a 3.51% miss — even as revenue told a more convincing story, climbing 10.1% year-over-year to $6.98 billion against analyst expectations of $6.04 billion. On a GAAP basis, earnings came in at $0.38 per share, weighed down by a $123 million pre-tax loss on debt extinguishment, accelerated depreciation charges tied to wind facility repowering, and a regulatory setback at Nicor Gas from Illinois Commerce Commission capital investment disallowances. The revenue strength was broad-based, with Southern Company Gas leading segment growth at 20.7% and Southern Power adding 13.2%. Total kilowatt-hour sales rose 4.9%, powered in part by a 14.5% surge in wholesale volumes. Looking ahead, the Atlanta-based utility is leaning into <a href="https://247wallst.com/investing/2026/02/26/southwest-gas-has-a-14-annual-growth-target-through-2030-despite-earnings-miss/">long-term demand growth</a> from data centers as a central investment thesis, though investors should note that wind repowering charges are projected to continue at roughly $490 million pre-tax in 2026.
- Higher utility revenues across traditional electric operating companies
- 10.1% increase in Q4 operating revenues year-over-year
- Total kilowatt-hour sales up 4.9% in Q4 with wholesale sales up 14.5%
- Retail sales up 1.7% led by 3.0% commercial growth
- Customer base grew 0.8% to 9.005 million regulated utility customers
“2025 was another outstanding year for Southern Company, and it was also a transformative one. Southern Company is meeting the growing demand responsibly, while continuing to deliver value and benefits to all of our customers.”
Southern Company CEO, on the earnings call
Forward Guidance & Outlook
Southern Company's earnings guidance and supplemental financial information are available at investor.southerncompany.com. The company expects projected generational growth in electricity demand driven primarily by data centers and other large load customers, requiring substantial new generation and transmission investments. Remaining pre-tax accelerated depreciation related to wind facility repowering is projected at approximately $490 million in 2026 and $100 million in 2027.
SO YoY Financials
SO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.