Core Viewpoint - Southern Company has announced the pricing of its offering of 35 million 2025 Series A Equity Units, aiming to raise approximately $1.75 billion in total stated amount, with the offering expected to close on November 6, 2025 [1][4]. Summary by Sections Offering Details - Each 2025 Series A Equity Unit is priced at $50, aggregating to a total of $1.75 billion [1]. - The offering includes a contract to purchase Southern Company common stock in the future and beneficial ownership interests in two series of Remarketable Senior Notes [1]. - The total annual distributions on the equity units will be at a rate of 7.125%, which includes interest from the Remarketable Senior Notes and payments under the stock purchase contracts [2]. Financial Proceeds and Use - Southern Company estimates net proceeds from the offering to be approximately $1.719 billion, or $1.965 billion if the over-allotment option is fully exercised [4]. - Approximately $1.153 billion of the net proceeds will be used to repurchase existing convertible senior notes, including $674.4 million of Series 2023A Convertible Senior Notes and $342.0 million of Series 2024A Convertible Senior Notes [4]. - Remaining proceeds will be allocated to repay short-term debt, redeem outstanding notes, and for general corporate purposes [4]. Underwriting and Management - BofA Securities, J.P. Morgan, and Mizuho are acting as joint book-running managers for the offering [7]. - The offering is made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission [8]. Market Impact and Strategy - The company has engaged in privately negotiated transactions to repurchase existing convertible notes, which may influence the market price of Southern Company's common stock [5][6]. - The repurchase strategy may involve holders of the existing notes engaging in derivative transactions to hedge their exposure, potentially affecting stock prices [6].

Core Viewpoint - Southern Company plans to sell 35 million equity units in a public offering, aiming to raise approximately $1.75 billion, with an additional option for underwriters to purchase 5 million more units for $250 million to cover over-allotments [1][2]. Group 1: Offering Details - Each equity unit will be priced at $50 and will include a contract to purchase common stock and beneficial ownership interests in remarketable senior notes [1]. - The offering will be conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission [5]. Group 2: Use of Proceeds - A portion of the net proceeds will be used to repurchase Series 2023A and Series 2024A Convertible Senior Notes through individually negotiated transactions [2][3]. - Remaining proceeds will be allocated to repay short-term debt, redeem outstanding Convertible Notes, and for general corporate purposes, including investments in subsidiaries [2]. Group 3: Market Impact and Strategy - The company anticipates that the repurchase of Existing Convertible Notes may lead to market activities that could influence the stock price, as holders may engage in derivative transactions or stock purchases to hedge their positions [3]. - Southern Company expects to negotiate terms for the note repurchase based on market conditions at the time of the transactions [3]. Group 4: Company Overview - Southern Company serves approximately 9 million customers across the Southeast and operates various energy-related businesses, including electric and natural gas distribution [6].

Core Insights - Southern Co. reported a strong third-quarter performance with earnings of $1.7 billion, or $1.55 per share, compared to $1.5 billion, or $1.40 per share, in the same period last year [4] Group 1: Sales Growth and Customer Demand - The company anticipates electric sales to rise by 8% across its service territories, with double-digit growth expected in Georgia Power's footprint through 2029 [2] - In the third quarter, Southern Co. added 12,000 new residential customers, significantly above historical trends, and data center usage increased by 17% compared to the same period last year [5] - The commercial sector experienced a growth of 3.5% on a weather-normal basis compared to the third quarter of 2024, driven by increased sales to existing and new customers, including new data centers [6] Group 2: Infrastructure and Capacity Expansion - Southern Co. has a pipeline of over 50 GW of potential large load additions over the next decade, with specific plans for 10 GW of new resources needed in Georgia [3][4] - The company is proposing the construction of five gas combined cycle units and 11 battery energy storage facilities to meet the anticipated demand [3] - Recently, Southern Co. signed four contracts with large load customers in Georgia and Alabama, representing over 2 GW of demand [4]

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].