What is the revenue and EPS growth rate for The Southern year over year?

Did The Southern beat or miss consensus estimates last quarter?

What does The Southern do and what are its main business segments?

What were the key takeaways from The Southern's earnings call?

What is The Southern's gross profit margin?

What factors drove the changes in The Southern's revenue and profit?

What is The Southern's latest dividend and current dividend yield?

What were the key takeaways from The Southern’s earnings call?

- **EPS Beats & Growth**: Q3 adjusted EPS $1.60 (+$0.10 vs. estimates), full-year EPS at top of $4.30 guidance.
- **Customer Expansion**: 22 new economic development projects in Q3, $2.8B investment, 5,000 jobs created.
- **Large Load Contracts**: 2 GW new contracts in 2 months, 7 GW contracted by 2029, 50+ GW pipeline.
- **Financial Discipline**: $7B of $9B equity needs secured; targeting 17% FFO/debt to maintain credit ratings.
- **Regulatory Support**: Georgia PSC load forecast update supports 10 GW capacity request; Alabama Power acquires 900 MW plant.
- **Strategic Positioning**: Named 'Most Trustworthy Energy Company' by Newsweek; disciplined forecasting protects affordability while serving growth.

**【CEO Summary Section】**
- Reported strong third-quarter performance with adjusted EPS of $1.60, $0.10 above estimates, driven by customer growth and usage increases.
- Highlighted Georgia Power's rate plan extension (base rates frozen until 2029) as a model for balancing affordability and growth.
- Announced 4 new contracts with large load customers representing over 2 GW of demand in the last 2 months.
- Emphasized disciplined forecasting and cost recovery mechanisms to protect existing customers while serving new loads.
- Named to Newsweek's 'World's Most Trustworthy Companies' list for 2025.

**【CFO Financial Commentary】**
- Year-to-date adjusted EPS of $3.76, up 5.6% vs. 2024, with revenue growth driven by customer additions and usage.
- Weather-normalized retail electricity sales up 1.8% YTD, with commercial sector growing 3.5% Q3/Q3 and residential sales up 2.7%.
- Signed 22 new economic development projects in Q3, generating $2.8B in capital investment and 5,000 jobs.
- Issued $4B in long-term debt at attractive rates, reducing future interest costs.
- Progress on $9B equity needs: $7B secured through 2029 via ATM programs, hybrid securities, and internal plans.
- Projected full-year adjusted EPS at top of $4.30 guidance range.

**【Q&A Key Highlights】**
- **Load Growth & Contracts**: 
  - 7 GW of contracted load by 2029, ramping to 8 GW by 2030s.
  - 50+ GW pipeline through mid-2030s, with 12 GW in advanced negotiations.
  - Data center sales up 17% Q3/Q3, residential customer additions +12,000 (vs. historical trends).
- **Regulatory Environment**: 
  - Georgia PSC load forecast update supports 10 GW capacity request (5 CCGT + 11 BESS).
  - Alabama Power acquired 900 MW natural gas plant to meet long-term needs.
- **Financing Strategy**: 
  - Targeting 17% FFO/debt ratio to maintain credit ratings.
  - $4B incremental equity needed if Georgia PSC approves full 10 GW request.
- **Nuclear Developments**: 
  - No immediate plans for new nuclear, but supportive of federal efforts to mitigate risks.
- **Southern Power**: 
  - 95% of assets under long-term contracts through 2029; exploring new PPA opportunities in 2030s.
  - SNG pipeline expansion on track, expected to attract significant demand.


The Southern Company (SO) Q3 2025 Earnings Call Transcript

- **Q2 Earnings Beat**: Adjusted EPS of $0.92 exceeded estimates, driven by utility growth and customer additions.
- **Capital Expansion**: 5-year capital plan increased to $76 billion, with $12 billion in state-regulated investments and potential $5 billion upside.
- **Regulatory Momentum**: Georgia PSC approved 10 gigawatts of new generation, including 7 gigawatts of company-owned assets, supporting 50+ gigawatt pipeline.
- **Growth Outlook**: Potential to reset 5% to 7% EPS growth rate as early as 2027, contingent on large load project execution.
- **Financial Discipline**: $5 billion equity needs to be met through 2029, maintaining strong credit metrics with 17% FFO to debt target.

**【Management Opening Remarks】**
- CEO Chris Womack highlighted strong Q2 2025 adjusted earnings of $0.92 per share, exceeding estimates and reflecting operational excellence across the utility system. The company met peak demand during extreme heat with no major issues, showcasing reliability.
- CFO David Poroch announced a $13 billion increase in the 5-year base capital plan to $76 billion, driven by regulatory approvals and new generation investments. The plan includes $12 billion in state-regulated capital, with potential upside of $5 billion tied to Georgia PSC certifications.

**【CEO Commentary】**
- Economic activity in the Southeast remains robust, with unemployment rates and population growth outpacing national averages. Q2 2025 saw $2 billion in capital investments and 6,000 new jobs across Alabama, Georgia, and Mississippi.
- Georgia Power's 2025 Integrated Resource Plan (IRP) received PSC approval, authorizing 10 gigawatts of new generation, including 7 gigawatts of company-owned resources. This includes 8 gigawatts of certified resources from an all-source RFP, with 6.8 gigawatts in Georgia Power-owned assets.
- The large load pipeline remains above 50 gigawatts by mid-2030s, with 10 gigawatts in committed projects and strong interest from hyperscalers and industrial customers.

**【CFO Commentary】**
- Q2 2025 adjusted EPS was $0.92, $0.07 above estimates, driven by utility earnings growth and customer additions. Retail electricity sales grew 3% year-over-year, with data center usage up 13% and industrial sales up 6-16% across key sectors.
- Southern Power is repowering 3 wind facilities, adding $800 million to the capital plan. The company plans to address $5 billion in incremental equity needs through 2029, maintaining a credit supportive capital structure.

**【Q&A Highlights】**
- **Capital Plan & Growth**: Management reaffirmed potential to reset the 5% to 7% long-term EPS growth rate as early as 2027, contingent on sustained large load growth. Georgia PSC certification of 10 gigawatts of new generation could add $4 billion to the capital plan.
- **Regulatory Certainty**: The stipulated agreement in Georgia avoids a 2025 base rate case, ensuring stable rates through 2028. The IRP approval provides clarity on generation needs and timelines.
- **Southern Power Strategy**: Repowering projects and potential contract repricing in the early 2030s could enhance returns, though disciplined risk-return parameters will guide investments.
- **Gas Pipeline Expansion**: FERC-regulated pipeline expansions are being evaluated for their role in serving growing load and supporting new generation projects.
- **Asset Sales**: No updates on potential asset sales, but the company remains open to transactions that align with strategic priorities.

The Southern Company (SO) Q2 2025 Earnings Call Transcript

- **Q1 Beat & Dividend Growth**: $1.23 EPS (+16% YoY), 24th straight dividend increase to $2.96 annualized.
- **Data Center Momentum**: 11% YoY growth in data center sales, 52+ GW pipeline in Georgia.
- **Tariff Mitigation**: 1-3% cost impact offset by USMCA compliance, vendor diversification.
- **Financing Strength**: $4.6B capital raised YTD, 50% equity credit on $2.4B JSNs.
- **2027 Outlook**: 17% FFO/debt target achievable; reevaluate 5-7% EPS base in 2027.


**【CEO Opening Remarks】**
- Q1 2025 adjusted EPS of $1.23, up 16% YoY, driven by strong utility performance and weather benefits.
- Southeast economic resilience supports 50+ GW pipeline of large load projects (data centers, manufacturers).
- Tariff impact estimated at 1-3% of capital costs, with mitigation strategies (USMCA compliance, vendor diversification, regulatory approaches).
- 24th consecutive dividend increase (+$0.08 annualized to $2.96), marking 78 years of dividend growth.

**【CFO Financial Update】**
- Q1 2025 GAAP net income: $420M; Non-GAAP EPS: $1.23 (vs. $1.03 YoY).
- Weather-normalized retail sales down 0.3% YoY, with data center sales +11%, industrial +4% (Hyundai plant).
- $2.2B long-term debt issued YTD; $2.4B junior subordinated notes issued with 50% equity credit.
- 2025 equity needs ($4B) 50% met through debt, JSNs, and ATM program.

**【Q&A Key Themes】**
1. **2Q EPS Guide ($0.85)**: Driven by colder weather vs. 2024 and absence of one-time transmission transaction.
2. **Data Center Pipeline**: 52GW+ in Georgia alone, with 12GW under contract/advanced discussion.
3. **Financing Strategy**: 17% FFO/debt target achievable by mid-2030s via regulatory asset recoveries.
4. **Rate Case Outlook**: Georgia Power IRP filing in July; affordability focus amid $1B+ storm recovery costs.
5. **IRA Credits**: Minimal reliance on transferability; ~20bp impact if credits unavailable.

**【Strategic Priorities】**
- Expand renewable & gas-fired generation via competitive RFPs (13GW in Georgia).
- Maintain investment-grade credit ratings (BBB+/Baa1).
- Deliver 5-7% EPS growth through 2027, reevaluating base case in 2027.



The Southern Company (SO)-1 May 25-2025 Q1 Earnings call transcript

- **Record EPS Growth**: 2024 adjusted EPS of $4.05 (11% YoY) driven by Commercial sales growth and disciplined capital allocation.
- **Data Center Expansion**: 17% YoY growth in data center usage, with 1,000 MW of new load contracted in Alabama and Mississippi.
- **Capital Intensity**: $63 billion 5-year capex plan (+30% YoY) focused on transmission and generation, with $10-15 billion in incremental opportunities.
- **Long-Term Outlook**: 5-7% EPS growth target reaffirmed, with potential to rebase at a higher rate by 2027 due to reduced interest cost headwinds.
- **Credit Strength**: Maintaining investment-grade ratings with FFO to debt targeting 17%, and equity needs met through ATM sales and JSNs.


**【CEO Summary Section】**
- Southern Company achieved adjusted EPS of $4.05 for 2024, at the top of its guidance range, representing 11% growth from 2023. This was driven by strong performance across all business units and weather-related impacts.
- The company emphasized its focus on serving growing electric load through disciplined forecasting, with Commercial sales (including data centers) up 17% YoY. Georgia Power's total retail electric sales growth is projected to be 12% from 2025 to 2029.
- Capital investment is expected to reach $63 billion over 5 years, with 95% allocated to state-regulated utilities. Incremental opportunities could add $10-15 billion in regulated capital investments.
- The company reaffirmed its long-term EPS growth target of 5-7%, with potential to rebase at a higher starting point by 2027 due to improving fundamentals and reduced interest rate headwinds.

**【CFO Financial Commentary】**
- 2024 adjusted EPS was $4.05, beating the midpoint of guidance by 6%. Weather-normalized retail electricity sales grew 1% YoY, with Commercial sales leading the charge.
- The 2025 EPS guidance is $4.20-4.30, reflecting 6% growth from 2024. The long-term EPS growth target remains 5-7%, supported by rate base growth of 7% and disciplined capital allocation.
- Southern Power's portfolio includes 13,000 MW of natural gas, solar, and wind generation, with 500 MW of solar under construction. Repowering and new brownfield gas plants are key growth drivers.
- The company maintains a strong credit profile, with FFO to debt expected to reach 17% by the latter part of the forecast horizon. Equity needs are manageable through internal cash flow and ATM programs.

**【Q&A Highlights】**
- **Capital Allocation & Growth**: The $10-15 billion incremental capital opportunity is heavily weighted toward Georgia Power's generation needs, with potential clarity by mid-2025. Transmission investment is the largest driver of the $63 billion base plan.
- **Southern Power Strategy**: Southern Power's long-term contracts and risk-adjusted approach to new generation (e.g., brownfield gas plants) provide durability. Repowering projects and new solar capacity are key to maintaining steady earnings growth.
- **Data Center Growth**: Alabama and Mississippi are seeing expanding data center activity, with Southern Power signing contracts for 1,000 MW of new load. Credit requirements for large customers are helping weed out speculative projects.
- **Nuclear Energy**: The company remains a leader in nuclear power, with Unit 3 and 4 at Vogtle performing well. New nuclear development depends on federal risk mitigation and stakeholder support.
- **Credit & Dividends**: The company prioritizes credit quality, with a dividend payout ratio targeting 60-65%. Equity needs are met through a mix of ATM sales, JSNs, and internal cash flow.


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