Southern Company(US:SO)2025-10-29 21:40Financial 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].