Southern Company Q2 Earnings Beat as Utility Sales Grow

Core Insights - The Southern Company reported Q2 2025 earnings per share (EPS) of 91 cents, exceeding the Zacks Consensus Estimate of 87 cents, but down from $1.09 in the previous year due to increased expenses and milder weather [1][8] - Revenues reached $7 billion, a 7.9% increase from Q2 2024, surpassing the Zacks Consensus Estimate of $6.6 billion [2][8] - The company guided EPS for the year between $4.20 and $4.30, with a projection of $1.50 for the September quarter, maintaining a long-term EPS growth rate of 5-7% [2] Revenue Breakdown - Wholesale power sales decreased by 1.8%, while retail electricity demand saw a slight increase [3] - Total electricity sales edged down 0.1% year-over-year, with total retail sales rising by 0.5% [3] - Industrial and commercial sales increased by 2.8% and 1.3%, respectively, while residential sales fell by 2.7% [3] Expense Summary - Operations and maintenance (O&M) costs rose by 21.4% year-over-year to $1.7 billion [4] - Total operating expenses for the quarter were $5.2 billion, a 15.1% increase from the previous year, exceeding estimates of $4.9 billion [4] Comparison with Other Utilities - PPL Corporation reported operating EPS of 32 cents, missing estimates, but total revenues of $2.03 billion exceeded expectations [6] - American Water Works Company posted operating EPS of $1.48, below estimates, with total operating expenses rising by 12.4% [9][10] - IDACORP, Inc. reported EPS of $1.76, in line with estimates, with a year-over-year improvement attributed to customer growth and rate changes [11][12]