Southern Company Q3 Earnings Top on Usage, New Customers

Core Insights - Southern Company reported Q3 2025 earnings per share (EPS) of $1.60, exceeding the Zacks Consensus Estimate of $1.50 and up from $1.43 in the previous year, driven by investments in state-regulated utilities and customer growth [1][8] - The company achieved revenues of $7.8 billion, a 7.6% increase from Q3 2024, surpassing the Zacks Consensus Estimate of $7.5 billion [2][8] - Southern Company maintained its long-term EPS growth rate projection of 5-7% and guided for an EPS of $4.30 for the full year and 54 cents for the December quarter [2] Revenue Breakdown - Wholesale power sales increased by 0.8%, contributing to a rise in retail electricity demand, with total electricity sales up 1.1% year-over-year [3] - Total retail sales improved by 1.1%, with industrial and commercial sales rising by 1.5% and 2.3%, respectively, while residential sales decreased by 0.3% [3] Expense Overview - Operations and maintenance (O&M) costs decreased by 1.1% year-over-year to $1.6 billion, but total operating expenses rose by 6.6% to $5.2 billion, exceeding estimates [4][8] Comparison with Other Utilities - Exelon Corporation reported an EPS of 86 cents, surpassing estimates by 13.2% and showing a year-over-year increase due to improved distribution and transmission rates [5] - American Water Works Company posted an EPS of $1.94, beating estimates by 2.1% and reflecting a 7.8% increase from the previous year, attributed to new rate implementations [7] - IDACORP, Inc. reported an EPS of $2.26, exceeding estimates by 1.3% and improving by 6.6% year-over-year, driven by customer growth and rate changes [10]