Southern Company misses Q2 earnings estimates, shares fall

Published 31/07/2025, 13:54
 Southern Company misses Q2 earnings estimates, shares fall

ATLANTA - Southern Company (NYSE:SO) reported second-quarter adjusted earnings that fell short of analyst expectations, sending shares down 1.7% as higher operating costs offset revenue growth.

The energy provider posted adjusted earnings of $0.92 per share for the second quarter, missing analyst estimates of $0.93, despite revenue climbing 7.9% to $6.97 billion, well above the $6.64 billion consensus.

On a GAAP basis, earnings fell to $0.80 per share from $1.10 in the same period last year. The company’s quarterly revenue rose to $7.0 billion from $6.5 billion a year earlier, driven by higher utility revenues.

"This is an exciting time for Southern Company. We performed well both financially and operationally through the first half of the year and remain well positioned to deliver on our 2025 goals," said Chris Womack, chairman, president and CEO. "Our focus continues to be on balancing growth, reliability and affordability for all customers."

The earnings decline was primarily attributed to higher non-fuel operations and maintenance expenses, prior year gains on transmission asset sales, milder weather, and increases in income taxes, depreciation and amortization, and interest expense. These factors overshadowed the company’s revenue growth.

Southern Company’s traditional electric operating companies saw earnings decline to $1.05 billion from $1.19 billion in the year-ago quarter. Total (EPA:TTEF) retail electricity sales increased by 0.5%, or 3.0% when adjusted for weather.

For the first half of 2025, Southern Company reported adjusted earnings of $2.15 per share, slightly above the $2.13 per share reported for the same period in 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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