Core Insights - Southern Co. reported revenue of $7.82 billion for the quarter ended September 2025, reflecting a year-over-year increase of 7.6% and surpassing the Zacks Consensus Estimate of $7.54 billion by 3.78% [1] - The company's EPS for the quarter was $1.60, up from $1.43 in the same quarter last year, exceeding the consensus EPS estimate of $1.50 by 6.67% [1] Financial Performance Metrics - Southern Power's operating revenues were $0.61 billion, exceeding the average estimate of $598.56 million by analysts, marking a year-over-year increase of 2.17% [4] - Total retail sales reached $42.37 billion, slightly above the average estimate of $42.35 billion [4] - Southern Company Natural Gas reported operating revenues of $734 million, compared to the estimated $729.93 million, representing a 7.6% increase year-over-year [4] - Georgia Power's operating revenues were $3.77 billion, surpassing the average estimate of $3.33 billion, with an 8.6% year-over-year increase [4] - Alabama Power's operating revenues reached $2.32 billion, exceeding the average estimate of $2.14 billion, reflecting an 8.4% increase year-over-year [4] - Mississippi Power's retail revenues were $302 million, above the average estimate of $263.7 million, indicating a 9.4% year-over-year increase [4] - Retail Electric operating revenues were reported at $5.71 billion, significantly higher than the estimated $5.05 billion, marking a 6.4% increase year-over-year [4] Stock Performance - Southern Co. shares have returned -1.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - For Q3 2025, the adjusted EPS was $1.60 per share, which is $0.10 above the estimate and $0.17 higher than Q3 2024 [8][9] - Year-to-date adjusted EPS was $3.76 compared to $3.56 for the same period in 2024, indicating a positive trend in earnings [9] - Revenue growth was driven by state-regulated utilities, customer growth, and increased usage, with year-to-date weather-normal retail electricity sales up 1.8% compared to the first three quarters of 2024 [10][11] Business Line Data and Key Metrics Changes - The commercial sector saw a 3.5% growth in weather-normal retail electricity sales compared to Q3 2024, driven by increased sales to data centers, which were up 17% [10][11] - Residential sales also grew by 2.7% year-over-year, with the addition of approximately 12,000 new electric customers in the quarter [11] - Industrial customer segments, including primary metals, paper, and transportation, were up 4% or higher year-over-year [11] Market Data and Key Metrics Changes - Economic development activity in the Southeast remains strong, with 22 companies announcing expansions or new operations, generating nearly 5,000 potential new jobs and expected capital investments of approximately $2.8 billion [11] - The company has contracts in place with large load customers representing 7 gigawatts through 2029, expected to ramp to 8 gigawatts in the 2030s [17] Company Strategy and Development Direction - The company is focused on balancing growth and affordability, with a rate plan extension at Georgia Power freezing base rates until at least 2029 [6] - A disciplined approach to forecasting and pricing is emphasized to ensure that growth does not come at the expense of existing customers [6] - The company plans to continue utilizing equity or equity equivalents to support its path towards a 17% FFO to debt ratio within its planning horizon [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting strong operational and financial results through the first three quarters of the year [20] - The company is well-positioned to address its long-term equity needs and has made significant progress in sourcing equity in a disciplined manner [14] - Management noted that the Southeast economy remains strong and well-positioned for growth, with robust customer growth and increasing usage in commercial and industrial segments [12] Other Important Information - Southern Company was named to Newsweek's World's Most Trustworthy Companies 2025 list, ranking as the highest energy company in the U.S. [20] - The company plans to provide a complete update on its long-term plan during the fourth quarter 2025 earnings call, including capital investment outlook and sales forecast [19] Q&A Session Summary Question: Load growth outlook in Georgia - Management noted that customers understand the long-term commitments being made under the new tariff structure, which has helped bring serious counterparties to the forefront [26][27] Question: Georgia regulatory environment and potential impacts - Management expressed confidence in working constructively with whoever is elected to the Georgia Public Service Commission and highlighted ongoing processes for load forecasts [28] Question: Rebasement timeline and metrics - Management indicated that various factors, including economic performance and large load contracts, will influence the timeline for rebasement decisions [33] Question: Southern Power's asset value and pricing environment - Management confirmed that a large portion of assets are under long-term contracts, with opportunities to renegotiate as contracts expire [40] Question: Nuclear development and federal support - Management expressed excitement about federal actions supporting nuclear development but stated that no announcements regarding new nuclear plants are imminent [55][72] Question: Contracted vs. committed definitions - Management clarified that contracted refers to signed agreements, while committed involves advanced negotiations nearing contract signing [75]

Financial Performance - Q3 2025 adjusted EPS was $1.60, exceeding estimates by $0.10, and the full year 2025 adjusted EPS projection is $4.30[13] - Q3 2025 as-reported EPS was $1.55, compared to $1.40 in Q3 2024[15] - Year-to-date 2025 as-reported EPS was $3.56, compared to $3.53 in the same period of 2024[15] - Year-to-date 2025 adjusted EPS was $3.76, compared to $3.56 in the same period of 2024[15] Sales and Load Growth - Weather-normal retail electricity sales grew by 2.6% in Q3 2025 compared to the prior year[13] - Total retail electricity sales increased by 2.6% year-to-date in 2025[27] - Large load pipeline remains above 50GW across the system[13] - Contracts for 8GW of large load support long-term sales growth outlook, with an increase of 2GW in Q3[13, 30] Equity and Financing - Additional equity of $1.8 billion was priced, solidifying $7 billion of the $9 billion equity need[13] - An additional $5 billion in capital expenditure opportunities would require incremental equity of approximately 40%[13] - The company issued $257 million through internal equity plans through Q3 2025[36] Capital Investments and Resource Planning - The company projects $76 billion in capital expenditures from 2025-2029, with 95% allocated to state-regulated utilities[40] - Georgia Power filed for certification of 10GW of new resources through all-source and supplemental processes[47, 51] - Up to $5 billion of additional regulated capital investment opportunities remain, including up to $4 billion tied to Georgia Power-owned resources and $1 billion in expansion opportunities at FERC-regulated businesses[57, 58] Debt and Liquidity - Over $8.9 billion in committed credit facilities and available liquidity of $10.6 billion as of September 30, 2025[72]

Core Insights - Southern Co. reported revenue of $7.82 billion for the quarter ended September 2025, reflecting a year-over-year increase of 7.6% and surpassing the Zacks Consensus Estimate of $7.54 billion by 3.78% [1] - The company's EPS for the quarter was $1.60, up from $1.43 in the same quarter last year, exceeding the consensus EPS estimate of $1.50 by 6.67% [1] Revenue Performance - Southern Power's operating revenues reached $7.82 billion, significantly exceeding the average estimate of $598.56 million by 1203.8% year-over-year [4] - Total retail sales amounted to $42.37 billion, slightly above the average estimate of $42.35 billion [4] - Southern Company Natural Gas reported operating revenues of $734 million, slightly above the estimated $729.93 million, marking a 7.6% increase from the previous year [4] - Georgia Power's other revenues were $271 million, surpassing the estimate of $220.22 million with a year-over-year increase of 29.7% [4] - Mississippi Power's retail revenues were $302 million, exceeding the average estimate of $263.7 million, representing a 9.4% year-over-year increase [4] - Alabama Power's operating revenues reached $2.32 billion, above the estimate of $2.14 billion, reflecting an 8.4% increase [4] - Georgia Power's revenues were $3.77 billion, exceeding the estimate of $3.33 billion, with an 8.6% year-over-year increase [4] - Mississippi Power's revenues were $480 million, surpassing the average estimate of $403.96 million, indicating a 16.5% increase from the previous year [4] Stock Performance - Southern Co. shares have returned -1.4% over the past month, while the Zacks S&P 500 composite has increased by 3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Southern Co exceeded Wall Street profit estimates for the third quarter, driven by increased electricity demand from businesses [1] Company Performance - The company reported a significant rise in profit due to surging demand for electricity [1] Market Context - The increase in demand reflects broader trends in the utility sector, indicating a recovery or growth in business activities [1]

Core Insights - Southern Company reported third-quarter earnings of $1.7 billion, or $1.55 per share, for 2025, an increase from $1.5 billion, or $1.40 per share, in the same quarter of 2024 [1] - For the nine months ended September 30, 2025, earnings were $3.93 billion, or $3.56 per share, compared to $3.87 billion, or $3.53 per share, for the same period in 2024 [1] Financial Performance - Excluding certain items, Southern Company earned $1.8 billion, or $1.60 per share, in Q3 2025, up from $1.6 billion, or $1.43 per share, in Q3 2024 [2] - For the nine months ended September 30, 2025, excluding these items, earnings were $4.1 billion, or $3.76 per share, compared to $3.9 billion, or $3.56 per share, in the same period of 2024 [2] - Operating revenues for Q3 2025 were $7.8 billion, a 7.5% increase from $7.3 billion in Q3 2024 [5] - Year-to-date operating revenues reached $22.6 billion, up 10.7% from $20.4 billion in the same period of 2024 [5] Earnings Drivers - Key drivers for adjusted earnings in Q3 2025 included higher utility revenues, which were partially offset by increased depreciation, amortization, interest expenses, and milder weather conditions [4] - The increase in earnings per share was attributed to traditional electric operating companies, while Southern Power and the parent company reported declines [16] Customer Metrics - Total kilowatt-hour sales for Q3 2025 were 56,627 million, a 1.1% increase from 56,035 million in Q3 2024 [25] - The number of regulated utility customers increased to 8,934 thousand, up 0.8% from 8,865 thousand in the previous year [25] Management Commentary - The CEO emphasized the company's focus on meeting growing electric demand and providing reliable service to its 9 million customers, positioning the company for a strong finish to the year [6]

Financial Performance - Consolidated net income attributable to Southern Company was $1.7 billion ($1.55 per share) in Q3 2025, an increase of 11.5% compared to $1.5 billion ($1.40 per share) in Q3 2024[319]. - Year-to-date 2025 consolidated net income was $3.93 billion ($3.56 per share), up 1.5% from $3.87 billion ($3.53 per share) in the same period of 2024[320]. - Alabama Power's net income in Q3 2025 was $588 million, a 19.3% increase from $493 million in Q3 2024, primarily due to higher retail electric revenues[359]. - Year-to-date 2025, Alabama Power's net income was $148 million, reflecting a 12.4% increase compared to the same period in 2024[359]. - For year-to-date 2025, net income increased to $1.3 billion from $1.2 billion in 2024, driven by higher retail electric revenues and other revenues[360]. - Georgia Power's net income for year-to-date 2025 was $2.5 billion, a 9.0% increase from $2.2 billion in 2024, attributed to higher retail revenues[387]. - Year-to-date 2025, net income for Southern Power was $141 million, a decrease from $264 million in the same period of 2024, impacted by accelerated depreciation and increased maintenance expenses[441]. - Net income for Q3 2025 was $25 million, a decrease of $13 million (34.2%) from Q3 2024, while year-to-date net income was $549 million, down from $555 million in 2024[463][464]. Revenue Growth - Retail electric revenues for Q3 2025 were $5.7 billion, a 6.4% increase from $5.4 billion in Q3 2024, and year-to-date revenues reached $15.1 billion, up 9.2% from $13.8 billion in 2024[321]. - Wholesale electric revenues rose to $832 million in Q3 2025, a 15.4% increase from $721 million in Q3 2024, with year-to-date revenues at $2.3 billion, up 17.6% from $1.9 billion[325]. - Natural gas revenues for Q3 2025 were $734 million, a 7.6% increase from $682 million in Q3 2024, and year-to-date revenues reached $3.6 billion, up 10.3% from $3.2 billion[329]. - Retail revenues for Q3 2025 were $2.0 billion, a 7.5% increase from $1.9 billion in Q3 2024; year-to-date retail revenues reached $5.5 billion, up 7.2% from $5.1 billion in 2024[361]. - Wholesale revenues from non-affiliates increased by 53.9% to $137 million in Q3 2025, and by 25.9% to $326 million year-to-date, attributed to higher demand and energy prices[365]. - Other revenues for year-to-date 2025 were $353 million, up from $324 million in 2024, mainly due to increases in transmission revenue and regulated energy services[369]. - Retail revenues in the third quarter of 2025 reached $3.4 billion, a 5.5% increase from $3.2 billion in 2024, with year-to-date revenues at $8.8 billion, up 10.3% from $7.9 billion[390]. - Wholesale revenues for year-to-date 2025 were $390 million, a significant increase of 97.0% from $198 million in 2024, driven by higher market demand[393]. - Other revenues for year-to-date 2025 totaled $774 million, a 26.9% increase from $610 million in 2024, mainly due to unregulated sales and solar application fees[397]. Expenses and Costs - Total fuel and purchased power expenses in Q3 2025 were $1.6 billion, an increase of 17.4% from $1.4 billion in Q3 2024, with year-to-date expenses at $4.5 billion, up 18.2% from $3.8 billion[334]. - Other operations and maintenance expenses in Q3 2025 were $1.6 billion, a decrease of 1.1% from $1.7 billion in Q3 2024, primarily due to a $36 million impairment loss in 2024[345]. - Year-to-date 2025, other operations and maintenance expenses totaled $4.9 billion, an increase of 9.4% compared to $4.5 billion in 2024, driven by higher generation expenses[346]. - Depreciation and amortization expenses in Q3 2025 were $1.4 billion, up 17.5% from $1.2 billion in Q3 2024, attributed to additional plant in service[348]. - Year-to-date 2025, depreciation and amortization reached $4.0 billion, a 13.9% increase from $3.5 billion in 2024[348]. - Interest expense, net of amounts capitalized, was $755 million in Q3 2025, a 9.1% increase from $692 million in Q3 2024, mainly due to higher average outstanding borrowings[352]. - For year-to-date 2025, interest expense totaled $2.34 billion, up 14.3% from $2.05 billion in 2024, driven by increased borrowings and debt extinguishment losses[353]. - Total fuel and purchased power expenses for year-to-date 2025 were $2.7 billion, a 17.4% increase from $2.3 billion in 2024, primarily due to higher KWH volume and costs[399]. Regulatory and Strategic Developments - Alabama Power is authorized to establish a regulatory asset to defer costs estimated at approximately $100 million associated with capacity changes for 2026[299]. - Georgia Power's retail return on equity (ROE) set point remains at 10.50% under the extended 2022 ARP through December 31, 2028[303]. - Georgia Power's Integrated Resource Plans include certification requests totaling approximately $16.7 billion for various projects, excluding AFUDC[304]. - Southern Company continues to focus on key performance indicators such as customer satisfaction and earnings per share as part of its operational strategy[298]. - The company anticipates that future earnings will depend on maintaining constructive regulatory environments and managing costs amid increasing operational challenges[491][492]. Operational Metrics - Weather-adjusted residential KWH sales increased by 2.7% in Q3 2025 and 1.2% year-to-date, driven by customer growth and increased usage[322]. - Weather-adjusted commercial KWH sales increased by 3.5% in Q3 2025, largely driven by data centers at Georgia Power[323]. - The total generation for Q3 2025 was 53 billion KWH, consistent with Q3 2024, while total purchased power increased to 6 billion KWH from 5 billion KWH[339]. - In Q3 2025, Georgia Power's total generation was 19 billion KWH, up from 18 billion KWH in Q3 2024, while purchased power increased to 10 billion KWH from 9 billion KWH[404]. Market and Economic Conditions - Economic and policy uncertainties have increased volatility in future economic outlooks, potentially impacting customer demand for energy and access to capital markets[494]. - The company has contracts with new customers covering approximately 8 gigawatts of electric load, expected to ramp up through 2028[493].

Core Insights - Southern Company is recognized as the highest-ranked U.S. energy company on Newsweek's World's Most Trustworthy Companies 2025 list, reflecting its commitment to trust among customers, investors, and employees [1][2]. Company Recognition - The recognition is based on an independent survey involving over 65,000 participants across 23 industries and 20 countries, focusing on investor trust, customer trust, and employee trust [3][4]. - Southern Company's Chairman, President, and CEO, Chris Womack, emphasized the company's goal to be a trusted partner and its commitment to serving customers and communities [3]. Company Values and Mission - Southern Company adheres to values such as safety, intentional inclusion, integrity, and superior performance, which align with its mission to provide clean, safe, reliable, and affordable energy [4][5]. - The company aims for net-zero greenhouse gas emissions by 2050, showcasing its commitment to sustainability and innovation [5]. Financial Information - Southern Company announced a regular quarterly dividend of 74 cents per share, payable on December 8, 2025 [7]. - The company plans to release its third-quarter earnings on October 30, 2025 [8].

Core Viewpoint - Southern Company is a significant player in the energy sector, providing electricity and natural gas to millions in the southeastern United States, facing competition from other utility giants [1] Earnings Expectations - Southern Company is set to release its quarterly earnings on October 30, 2025, with analysts expecting earnings per share (EPS) of $1.50 and revenues of approximately $7.91 billion [2][6] - The anticipated EPS reflects a 4.9% increase compared to the same period last year, supported by a projected 4.1% rise in revenues [3][6] - Over the past month, the consensus EPS estimate has been revised upward by 9.3%, indicating a positive reassessment by analysts [3][6] Performance Drivers - The company's performance in the third quarter is likely bolstered by strong demand in the Southeast region and the initiation of new projects [4] - However, rising generation costs and other expenses could exert pressure on profitability [4] Market Reaction - The stock's movement will depend on how actual results compare to expectations, with potential upward trends if earnings surpass estimates, or declines if they miss [5] - Future earnings expectations will be influenced by management's discussion of business conditions during the earnings call [5]

Core Insights - Sierra Auction has expanded its operations by opening a new location in Montclair, California, marking its first expansion outside Arizona [1][3] - The new facility will serve as the GovDeals Lot, enhancing Sierra Auction's presence in the Southwest [1][3] - This expansion increases Sierra Auction's total locations to three, alongside existing facilities in Phoenix and Tucson [3] Company Overview - Sierra Auction specializes in the sale of vehicles, equipment, and surplus assets for government agencies, commercial businesses, and charity organizations [2][8] - The company operates as a trusted marketplace within GovDeals, which is a subsidiary of Liquidity Services [2][8] Services Offered - The new location allows government and commercial fleet owners in California to sell retired fleet assets with zero commission and zero fees [4] - Auctions are accessible online, providing the general public with opportunities to bid on a variety of items, including vehicles and heavy equipment [5][7] Market Demand - Sierra Auction has experienced a significant increase in demand across various categories, including heavy equipment and passenger vehicles [6] - The company continues to see strong momentum as part of the GovDeals marketplace, reflecting its growth over the past year [6] About GovDeals - GovDeals is recognized as the world's leading marketplace for surplus government and educational assets, facilitating over $15 billion in sales to date [9] - The platform offers a transparent surplus disposition technology, allowing sellers to manage their listings with more control and lower fees compared to traditional auction solutions [9]