Earnings Analysis November 5, 2026

Southern Company ($SO) Q3 2025 Earnings Analysis: Adjusted EPS of $1.94 Beats Estimates, After-hours Shares Flat

Earnings Report

Revenue: $8.843 billion (up 13.0% YoY, vs. expected $8.410 billion) ✅ Beat

EPS (Earnings Per Share): Adjusted $1.94, GAAP $1.77 (vs. expected $1.71) ✅ Beat

Guidance: Not provided (did not include outlook for next quarter or full year)

Stock Reaction: After-hours -0.01% ($93.11, as of 11-05 21:32 KST)

Highlights

Adjusted EPS Surprise: $1.94 exceeded the expected $1.71 by $0.23.

Double-digit Revenue Growth: $8.843 billion, a 13.0% increase compared to the same period last year.

Georgia Power Net Income Up 22%: Recorded $1.523 billion, driving growth.

The customer base in the Southeast region grew to approximately 9 million, with electricity sales supported by weather and demand from large commercial and industrial customers. Southern Power recorded a net income of $52 million. Alabama Power and Mississippi Power also saw increased profits, widening the overall growth margin.

Misses

Increase in Shares Outstanding: The average number of shares outstanding increased to 1.157 billion, reducing earnings per share by $0.09.

Non-fuel Costs Up $200 million: Non-fuel operating and maintenance expenses rose to $1.848 billion, an increase of $205 million from the previous year.

Gas Segment Profit Decline: Southern Company Gas net income fell 16.0% year-over-year to $21 million.

The difference between GAAP EPS and adjusted EPS stemmed from accelerated depreciation due to the re-powering of Southern Power's wind facilities and losses from debt redemption. As this depreciation is expected to continue through the third quarter of 2027, the gap between the two metrics will persist for the time being. Losses from the parent company and other segments also weighed on results, increasing to $299 million from the previous year.

What the Company Said

Chairman and CEO Chris Womack expressed confidence, stating that the growth in the Southeast represents demand that the company's scale and experience can manage. The company did not provide separate guidance for the next quarter or annual figures in this press release.

Market Reaction and Future Outlook

While weather and customer growth boosted adjusted earnings, the after-hours stock price remained nearly flat at $93.11. Since the company did not provide numerical guidance, the earnings report was the only material available to gauge next quarter's figures.

A key point will be to confirm whether revenue from large commercial and industrial customers and customer growth continue into the fourth quarter.

Accelerated depreciation due to the restart of Southern Company's wind power facilities will continue through the third quarter of 2027.

It is necessary to monitor the extent to which the increased number of outstanding shares, 1.157 billion, weighs on earnings per share.

Earnings Call Key Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added here. We will select and summarize only the most important points, such as how management explained performance and outlook, and what analysts asked.