Southern Company Q3 2025 slides: EPS beats estimates as electricity demand surges

Southern Company (NYSE:SO) reported strong third-quarter results on October 30, 2025, with adjusted earnings per share (EPS) of $1.60, exceeding analyst estimates by $0.10. The company’s shares rose 0.9% in pre-market trading to $94.35, reflecting investor confidence in its performance and growth strategy.

Quarterly Performance Highlights

Southern Company delivered solid financial results in the third quarter, with adjusted EPS of $1.60 compared to $1.43 in the same period last year, representing an 11.9% year-over-year increase. The company’s reported EPS was $1.55, up from $1.40 in Q3 2024.

As shown in the following earnings results table, Southern Company has maintained consistent growth in both quarterly and year-to-date performance:

The primary drivers behind the $0.17 increase in adjusted EPS were investments in state-regulated electric utilities (+$0.23), partially offset by decreases in Parent & Other (-$0.04) and a slight impact from share dilution (-$0.01). Southern Company Gas and Southern Power segments remained relatively flat year-over-year.

The following chart breaks down the specific factors contributing to the year-over-year adjusted EPS growth:

Based on strong year-to-date performance, Southern Company has projected full-year 2025 adjusted EPS of $4.30, representing the top of its guidance range. This projection is supported by the company’s performance across its business segments:

Electricity Sales Growth & Customer Demand

A key highlight from the presentation was the robust growth in retail electricity sales, which increased by 2.6% on a weather-normalized basis compared to Q3 2024. This growth was broad-based across all customer segments, with residential sales up 2.7%, commercial sales up 3.5%, and industrial sales up 1.5%.

The company added 12,000 new residential customers in Q3, while data center usage surged 17% compared to the previous year. Industrial usage was led by growth in primary metals and electronics sectors.

As illustrated in the following chart, both quarterly and year-to-date electricity sales have shown consistent growth across all customer segments:

Southern Company’s large load customer pipeline remains robust, with contracts for 8GW (an increase of 2GW compared to the previous quarter). The company noted that 7GW (23 projects) have already broken ground, and the overall pipeline remains above 50GW through the mid-2030s.

The following chart shows the company’s progress with large load customers:

CEO Chris Womack emphasized the company’s growth strategy during the earnings call, stating, "We are building for growth in the Southeast." He highlighted the importance of Southern Company’s vertically integrated markets and constructive regulatory environment as foundational elements for sustained success.

Capital Investment & Financing Strategy

Southern Company outlined its approach to addressing equity needs through 2029, with a total requirement of $9 billion. The company has made significant progress, having already secured $7 billion through various sources including internal equity, ATM programs, and hybrid securities.

The following chart details the company’s equity financing strategy:

In a significant development, Georgia Power filed for certification of 10GW of new resources, including 8GW through an All-Source RFP process and 2GW through a supplemental process. The new generation resources include combined cycle units, battery energy storage systems (BESS), and solar projects, with certification proceedings scheduled to conclude by year-end 2025.

The company also highlighted additional potential regulated capital investment opportunities of up to $5 billion, including:

• Up to $4 billion tied to Georgia Power-owned resources included in RFP certification filings
• $1 billion of potential investment in FERC-regulated businesses

Southern Company maintains a strong liquidity position with over $8.9 billion in committed credit facilities and available liquidity of $10.6 billion as of September 30, 2025.

Forward-Looking Statements

Southern Company presented its value proposition centered on regular, predictable, and sustainable growth. The company highlighted its 78-year history of maintaining or increasing dividends, including 24 consecutive years of dividend increases.

Looking ahead, Southern Company projects long-term adjusted EPS growth of 5% to 7% with potential upside, supported by projected electric load growth of approximately 8% from 2025 to 2029. The company plans to allocate 95% of its projected capital expenditure to state-regulated utilities.

As shown in the following slide, Southern Company’s value proposition emphasizes financial integrity, superior shareholder returns, and sustainable growth:

The company has received numerous recognitions, including being named the #1 Energy Company in America by Newsweek Magazine’s World’s Most Trustworthy Companies ranking and the #2 electric and gas utility in Fortune Magazine’s World’s Most Admired Companies list.

While Southern Company’s outlook remains positive, potential risks include regulatory changes, fluctuations in energy demand, supply chain disruptions, and economic downturns in key markets. However, the company’s diversified operations and strategic investments position it well to navigate these challenges.

With its strong Q3 performance, robust electricity demand, and clear capital investment strategy, Southern Company appears well-positioned to deliver on its long-term growth objectives while maintaining its commitment to shareholders through consistent dividend growth.

Full presentation:

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