Preliminary brief— based on press release only. Full analysis including management tone and Q&A will be added when the transcript is available.

SO · Q2 2025 Earnings

Southern Company

Reported July 30, 2026

30-second summary

Southern reported Q2 FY2026 non-GAAP EPS of $1.13, up from $0.92 in Q2 FY2025, with GAAP EPS of $1.03 versus $0.80 a year ago. Revenue of $6.98B was essentially flat YoY (+0.1%). Net income of $1.17B was up 33% versus $880M in Q2 FY2025, driven by investment in state-regulated utilities, customer usage and growth, higher earnings from equity method investments, and lower income taxes, partially offset by higher interest expense. Note that the 33% GAAP jump benefits from a favorable base effect — Q2 FY2025 was depressed by a $129M pre-tax loss on debt extinguishment; on a non-GAAP basis net income was $1,289M vs. $1,014M (+27%), a cleaner comp. Commercial retail sales up 7.4% weather-adjusted and wholesale sales up 9.2% are the standout KPIs, consistent with the large-load thesis showing up in actual meter reads rather than just pipeline commentary.

Headline numbers

EPS

Q2 FY2025

$1.13

+1.2% vs est.

Revenue

Q2 FY2025

$6.98B

+0.1% YoY

-4.1% vs est.

Operating margin

Q2 FY2025

25.5%

Key financials

Q2 FY2025

Metric	Q2 FY2025	Q2 FY2024	YoY	Q1 FY2025	QoQ
Revenue	$6.98B	$7.00B	-0.3%	$8.40B	-16.9%
EPS	$1.13	$0.92	+22.8%	$1.32	-14.4%
Operating margin	25.5%	25.3%	+20bps	24.0%	+147bps

Guidance

Strong Q2 EPS beat on $1.13 actual vs. $0.85 guide, but revenue missed consensus; Q3 EPS guided at $1.50 with management expressing increased long-term confidence.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
EPS (non-GAAP)	Q2 FY2025	$0.85	$1.13	+$0.28 above guide	Beat
Revenue	Q2 FY2025	Not provided	$6.977B	-4.1% vs. consensus estimate	Missed

New guidance

Metric	Period	Guide	YoY
EPS (non-GAAP)	Q3 FY2025	$1.50	—

Segment KPIs

Q2 FY2025

Segment	Q2 FY2025	Q2 FY2024	YoY
Southern Company Gas	$0.966B	$0.979B	-1.3%
Southern Power	$0.535B	$0.546B	-2.0%

Other KPIs

Q2 FY2025

Segment	Q2 FY2025	Q2 FY2024	YoY
Total Kilowatt-Hour Sales	51,793 million	—	—
Total Retail Sales	37,967 million MWh	—	—
Retail Sales Growth (Weather Adjusted)	2.3%	—	—
Commercial Retail Sales Growth	7.4% (Weather Adjusted)	—	—
Total Regulated Utility Customers	9,000 thousand	—	—
Operating Margin	25.5%	—	—
Wholesale Electric Sales Growth	9.2%	—	—
Allowance for Equity Funds Used During Construction	$128 million	—	—

Management tone

No tone-shift analysis available for this quarter.

Recurring themes management leaned on this quarter:

Large load and data center demand acceleration driving incremental generation needsOrderly regulatory processes delivering certainty (Georgia IRP approval, rate stability through 2028)Capital intensity increasing but equity needs manageable and well-fundedVertically integrated model as competitive advantage in capturing growth benefitsSouthern Power repowering and potential repricing opportunities in early 2030sDiscipline in avoiding over-commitment while positioning for growth rebase

Risks management surfaced:

EPC and turbine delivery timing risk for combined cycle capacity additions by 2028-2030Escalating generation costs in marketplace creating upward pressure on project economicsSustainability of large load momentum must be proven before resetting long-term growth assumptionsCredit metric targets (17% FFO to debt) depend on capital execution and equity raise successPotential FERC gas pipeline expansion tied to uncertain generation buildout and co-op/muni load growth

What to watch into next quarter

Commercial retail sales growth sustaining above 5% weather-adjusted — this quarter's +7.4% is the strongest evidence yet that data-center load is landing in the P&L. A step-down would call the load-arrival thesis into question.

Southern Power softness — revenue -2.0% YoY, with a $143M pre-tax charge in the quarter for accelerated depreciation tied to wind repowering. Remaining pre-tax charges are projected at ~$205M in 2026 and ~$120M in 2027, running through Q3 2027 completion. Watch when the segment turns.

Nicor Gas disallowed capital — Illinois Commerce Commission November 2025 disallowance drove an $8M pre-tax loss in the quarter; the press release flags that further charges may occur.

Interest expense trajectory — Q2 interest expense of $796M was down $78M YoY and is a live driver as the equity/debt mix evolves against the base capital plan.

Sources

Southern Company Q2 FY2026 earnings press release (SEC EDGAR Exhibit 99), filed July 30, 2026.

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