SOUTHERN CO (SO) Earnings History

SOUTHERN CO - Q4 FY2025 Earnings

Filed at: Feb 19, 2026, 8:10 AM EST|Read from source

EXECUTIVE SUMMARY

Southern Company reported a transformative year in 2025, characterized by significant revenue growth driven by increased demand and strategic investments. While the company navigated higher operating expenses and interest costs, it successfully managed its adjusted earnings and maintained a disciplined approach to serving projected generational growth.

POSITIVE HIGHLIGHTS

  • •

    Fourth-quarter 2025 operating revenues increased 10.1% to $7.0 billion, compared with $6.3 billion for the fourth quarter of 2024.

    positive
  • •

    Full-year 2025 operating revenues increased 10.6% to $29.6 billion, compared with $26.7 billion in 2024.

    positive
  • •

    Adjusted earnings per share (EPS) for the full-year 2025 were $4.30, an increase from $4.05 in 2024.

    positive
  • •

    Total regulated utility customers increased by 0.8% to 9,005,000.

    neutral

CONCERNS & RISKS

  • •

    Reported net income for the fourth quarter of 2025 decreased to $416 million, or $0.38 per share, compared with $534 million, or $0.49 per share, in the fourth quarter of 2024.

    negative
  • •

    Reported full-year 2025 net income decreased to $4.3 billion, or $3.94 per share, compared with $4.4 billion, or $4.02 per share, in 2024.

    negative
  • •

    Higher non-fuel operations and maintenance expenses, depreciation and amortization, and interest expense partially offset adjusted earnings drivers.

    attention
  • •

    Loss on extinguishment of debt of $123 million ($92 million after tax) in Q4 2025 and $252 million ($189 million after tax) for the full year 2025 due to repurchase of convertible senior notes.

    attention
  • •

    Accelerated depreciation charges of $116 million ($90 million after tax) for the three months and $284 million ($221 million after tax) for the twelve months ended December 31, 2025, related to wind facility repowering.

    attention
  • •

    Estimated loss of $63 million ($47 million after tax) at Southern Company Gas related to Nicor Gas capital investment disallowances.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$6.98B
+10.1%
Prior year: $6.34B
Annual (YTD)
$29.55B
N/A
Prior year: $26.72B
Net Income
Quarterly
$416.00M
-22.1%
Prior year: $534.00M
Annual (YTD)
$4.34B
N/A
Prior year: $4.40B
EPS (Diluted)
Quarterly
$0.38
-20.8%
Prior year: $0.48
Operating Income
Quarterly
$917.00M
-13.3%
Prior year: $1.06B
Annual (YTD)
$7.29B
N/A
Prior year: $7.07B
EPS (Basic)
Quarterly
$0.38
-22.4%
Prior year: $0.49

MARGIN ANALYSIS

Operating Margin
Current Quarter
13.1%
Prior Year
16.7%
YoY Change
-355 bps
Net Margin
Current Quarter
6.0%
Prior Year
8.4%
YoY Change
-246 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Traditional Electric Operating Companies
0.0%
N/A
Southern Power
0.0%
N/A
Southern Company Gas
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Traditional Electric Operating Companies
N/A———
Southern Power
N/A———
Southern Company Gas
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Estimated Loss on Plants Under Construction
Includes pre-tax credits to income of $27 million ($20 million after tax) related to estimated probable loss on Plant Vogtle Units 3 and 4.
+$19M
Q4 2025
Accelerated Depreciation from Repowering
Pre-tax charges, net of noncontrolling interests impacts, of $116 million ($90 million after tax) associated with accelerated depreciation related to the repowering of certain wind facilities at Southern Power Company.
$116M
Q4 2025
Loss on Extinguishment of Debt
As a result of Southern Company's repurchase of certain convertible senior notes.
$123M
FY 2025
Estimated Loss on Plants Under Construction
Includes pre-tax credits to income of $60 million ($45 million after tax) related to estimated probable loss on Plant Vogtle Units 3 and 4.
+$46M
FY 2025
Accelerated Depreciation from Repowering
Pre-tax charges, net of noncontrolling interests impacts, of $284 million ($221 million after tax) associated with accelerated depreciation related to the repowering of certain wind facilities at Southern Power Company.
$284M
FY 2025
Loss on Extinguishment of Debt
As a result of Southern Company's repurchase of certain convertible senior notes.
$252M
FY 2025
Disposition Impacts
Pre-tax gain related to the sale of a multi-use commercial facility development at Alabama Power Company.
+$2M
FY 2025
Estimated Loss on Nicor Gas Capital Investments
Related to Nicor Gas capital investment disallowances by the Illinois Commerce Commission.
$63M
FY 2025
Adjustment to Certain Tax Benefit from Tax Reform
At Southern Company Gas related to an adjustment to the 2017 Tax Cuts and Jobs Act impact on certain deferred income tax balances.
+$19M
Total Impact
$752M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

2025 was another outstanding year for Southern Company, and it was also a transformative one.

— SOUTHERN CO, Q4 FY2025 2025 Earnings Call

Southern Company is meeting the growing demand responsibly, while continuing to deliver value and benefits to all of our customers.

— SOUTHERN CO, Q4 FY2025 2025 Earnings Call

Taking a disciplined, all-of-the-above approach is how we will continue to operate our company to serve this projected generational growth in a way that supports rate stability and helps drive long-term savings for our customers.

— SOUTHERN CO, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Kilowatt-Hour Sales
48868.0M
+4.9% YoY
Prior year: 46577.0M
kWh
Total Regulated Utility Customers
9.0M
+0.8% YoY
Prior year: 8.9M
customers
Total Retail Sales
35330.0M
+1.7% YoY
Prior year: 34752.0M
kWh
Total Wholesale Sales
13538.0M
+14.5% YoY
Prior year: 11825.0M
kWh

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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