Fourth Quarter 2025 Earnings Conference Call February 19, 2026 Cautionary Note Regarding Forward-Looking Statements Certain information contained in this presentation is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, financial objectives, earnings guidance, projected capital expenditures, planned financing activities, and other financial and operational projections. Southern Company and its s ...

Core Insights - The company achieved a 9% EPS growth for the fourth time in five years, driven by favorable rate case outcomes and effective interim recovery mechanisms [1] Financial Performance - The company has maintained a strategy of keeping customer charges nearly flat by distributing fixed costs over a rapidly expanding load base, with data centers expected to reduce residential delivery charges [1] Growth Forecast - The Houston Electric peak load growth forecast has been accelerated to 50% by 2029, reaching this milestone two years earlier than previously planned due to reshoring and data center demand [1] Capacity and Infrastructure - The company attributes its ability to meet rapid load growth to existing system capacity, which facilitates quick interconnection of large projects with manageable upgrades [1] - The ten-year capital plan has been increased to $65 billion to include a third 765 kV import line necessary for regional resiliency and reliability [1] Project Management - The focus has shifted from unconstrained interconnection queues to a pipeline of firmly committed projects, totaling 7.5 gigawatts either under construction or energized by 2028 [1] Operational Efficiency - The company managed O&M expenses by accelerating reliability work into 2025, resulting in a reduction of over 100 million outage minutes in the Greater Houston region [1]

Core Viewpoint - Exelon commended the U.S. Department of the Treasury for issuing a corporate alternative minimum tax (CAMT) notice that supports energy affordability and infrastructure investments [1] Group 1 - The CAMT notice can save customers up to $200 million over four years [1] - The action makes it more cost-effective for Exelon to invest in necessary grid improvements [1]

Core Insights - Evergy, Inc. (EVRG) reported fourth-quarter 2025 operating earnings per share (EPS) of 42 cents, missing the Zacks Consensus Estimate of 57 cents by 26.3% [1]. - Full-year 2025 adjusted EPS increased to $3.83 from $3.81 in the previous year, driven by recovery in regulated investments and increased weather-normalized demand [1]. Revenue Performance - Quarterly revenues reached $1.34 billion, exceeding the Zacks Consensus Estimate of $1.29 billion by 4.3% [2]. - Full-year 2025 revenues totaled $5.96 billion, up from $5.85 billion in the prior year [2]. Expense Overview - Fuel and purchased power costs for the year were $1.41 billion, a decrease of 4.6% from $1.48 billion last year [3]. - Operating and maintenance expenses rose to $995.3 million, an increase of 3.5% from $961.9 million in the previous year [3]. - Interest expenses increased by 9.4% year over year, totaling $616.3 million [3]. Financial Position - As of December 31, 2025, cash and cash equivalents were $19.8 million, down from $22 million a year earlier [4]. - Long-term debt increased to $13.04 billion from $11.81 billion as of December 31, 2024 [4]. - Cash provided by operating activities in 2025 was $2.05 billion, compared to $1.98 billion in the previous year [4]. Future Guidance - Evergy provided 2026 adjusted EPS guidance in the range of $4.14-$4.34, with the Zacks Consensus Estimate at $4.27, near the upper end of the guidance [5]. - The company targets an annual adjusted EPS growth of 6-8% through 2030 [5]. Market Position - Evergy currently holds a Zacks Rank 4 (Sell) [6].

Core Insights - Edison International (EIX) reported fourth-quarter 2025 adjusted earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.47 by 27.4%, and increased 78.1% from $1.05 in the year-ago quarter [1] - The company recorded GAAP earnings of $4.80 per share compared to 88 cents in the fourth quarter of 2024 [1] - For the full year 2025, adjusted earnings were $6.55 per share, significantly higher than the previous year's $4.93 [1] Revenue Performance - EIX's fourth-quarter operating revenues reached $5.21 billion, surpassing the Zacks Consensus Estimate of $4.38 billion by 19%, and increased 30.9% from $3.98 billion in the same quarter last year [2] - Total operating revenues for 2025 were reported at $19.32 billion, up from $17.6 billion in 2024 [2] Operational Highlights - Total operating expenses for 2025 decreased by 16.7% year over year to $12.22 billion [3] - Purchased power and fuel costs fell by 5.3%, while depreciation and amortization expenses rose by 12.9% [3] - Operating income for 2025 was $7.09 billion, compared to $2.93 billion in the prior year [3] Segment Results - Southern California Edison reported fourth-quarter adjusted earnings of $2.14 per share, up from $1.28 in the year-ago quarter, attributed to benefits from interest expense related to cost recoveries and revenue recognition [4] - Edison International Parent and Other incurred an adjusted loss of 28 cents per share, compared to a loss of 23 cents in the previous year, due to a loss on preferred stock redemption [5] Financial Update - As of December 31, 2025, cash and cash equivalents were $158 million, down from $193 million a year earlier [6] - Long-term debt increased to $36.07 billion from $33.53 billion at the end of 2024 [8] - Net cash flow from operating activities was $5.8 billion, up from $5.01 billion in the previous year [8] - Total capital expenditures were $6.52 billion, higher than $5.71 billion in the prior year [8] Guidance - The company expects 2026 earnings to be in the range of $5.90-$6.20 per share, below the current Zacks Consensus Estimate of $6.24 [9]

Core Insights - Southern Co. reported $6.98 billion in revenue for the quarter ended December 2025, marking a year-over-year increase of 10.1% and an EPS of $0.55 compared to $0.50 a year ago, with revenue exceeding the Zacks Consensus Estimate of $6.86 billion by 1.7% [1] Financial Performance - The company delivered an EPS surprise of -1.79%, with the consensus EPS estimate being $0.56 [1] - Southern Co. shares returned +2.1% over the past month, while the Zacks S&P 500 composite experienced a -0.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance against the broader market in the near term [3] Operating Revenues Breakdown - Southern Power reported operating revenues of $472 million, below the estimated $510.01 million, but reflecting a +13.2% change year-over-year [4] - Total retail sales reached $35.33 billion, surpassing the three-analyst average estimate of $34.88 billion [4] - Southern Company Natural Gas generated $1.49 billion in operating revenues, exceeding the $1.27 billion estimate, with a year-over-year increase of +20.7% [4] - Georgia Power - Other Revenues were $222 million, below the two-analyst average estimate of $273.36 million, representing a year-over-year decline of -17.5% [4] - Mississippi Power - Retail Revenues were $261 million, exceeding the estimated $232.24 million, with a +15.5% year-over-year change [4] - Southern Company Gas - Gas Distribution Operations reported $1.31 billion, surpassing the $1.1 billion estimate, reflecting a +21.9% year-over-year change [4] - Retail Electric revenues were $4.27 billion, slightly below the $4.28 billion estimate, with a +6.7% year-over-year change [4] - Alabama Power reported $1.94 billion, slightly above the two-analyst average estimate of $1.93 billion, with a +10.6% year-over-year change [4] - Georgia Power generated $2.71 billion, exceeding the $2.65 billion estimate, reflecting a +4.9% year-over-year change [4] - Mississippi Power reported $394 million, surpassing the $356.15 million estimate, with a +14.2% year-over-year change [4]

Core Insights - CenterPoint Energy, Inc. (CNP) reported fourth-quarter 2025 adjusted earnings of 45 cents per share, missing the Zacks Consensus Estimate of 46 cents by 1.1%, but showing a 12.5% increase from 40 cents in the same quarter last year [1] - The company generated revenues of $2.51 billion, exceeding the Zacks Consensus Estimate of $2.33 billion by 6.7%, and reflecting an 11.1% improvement from the previous year [2] - CNP's total expenses for 2025 rose by 8.9% year over year to $7.25 billion, while operating income increased to $2.11 billion from $1.99 billion a year ago [3] - As of December 31, 2025, CNP had cash and cash equivalents of $38 million, up from $24 million a year earlier, and total long-term debt increased slightly to $20.6 billion [4] - The company reaffirmed its 2026 non-GAAP EPS guidance range of $1.89-$1.91, indicating an expected growth of 8% over 2025 results [5] - CNP raised its 10-year capital investment plan by $500 million, now totaling over $65 billion for the period from 2026 to 2035 [7] - The company currently holds a Zacks Rank of 4 (Sell) [8]

Core Insights - Edison International (EIX) is valued at $27.48 billion and is one of the largest electric utility holding companies in the U.S. [1][6] - The company operates through its subsidiaries, including Southern California Edison Company and Edison Energy LLC, providing clean energy and advisory services [2]. Financial Performance - EIX has experienced a stock price increase of over 35% in the past year and is currently trading near new 52-week highs [7]. - The stock has a trailing price-earnings ratio of 12.47 and offers a dividend yield of 4.9%, which exceeds the 30-year U.S. Treasury yield of 4.69% [9]. - Revenue is projected to grow by 24.32% this year and by an additional 0.29% next year, while earnings are estimated to increase by 0.30% next year [9]. Technical Indicators - EIX has a 100% "Buy" technical opinion from Barchart, with a Weighted Alpha of +47.19 [8]. - The stock has made 11 new highs recently and is up 14.78% over the past month, with a Relative Strength Index (RSI) of 75.36 [8]. - The recent trading price was $72.14, with a 50-day moving average of $61.76, and a technical support level around $68.89 [8].

Financial Data and Key Metrics Changes - For the full year 2025, the company reported adjusted earnings of $894 million, or $3.83 per share, compared to $878 million, or $3.81 per share for the same period last year, reflecting a slight increase in earnings despite challenges [26] - The company raised its long-term adjusted EPS growth target to 6%-8%+ through 2030, with expectations of exceeding 8% annually beginning in 2028 [5][43] - The financial results in 2025 were negatively impacted by weather and weak industrial demand, leading to a decrease in EPS by $0.43 due to higher operation and maintenance costs and depreciation [6][27] Business Line Data and Key Metrics Changes - The company executed a capital investment plan of $2.8 billion in 2025 to modernize infrastructure and improve reliability, despite facing challenges from weather and demand [6][9] - New electric service agreements for four major data center projects were announced, representing 1.9 GW of steady-state peak demand, which is expected to increase total peak system demand by nearly 20% [10][11] Market Data and Key Metrics Changes - The company has grown its pipeline to over 15 GW, with significant legislative support in Missouri and Kansas for infrastructure investment [6][8] - The approval of new large load power service tariffs in both Kansas and Missouri is expected to drive affordability benefits for existing customers while supporting economic growth [7][15] Company Strategy and Development Direction - The company aims to maintain competitive and affordable rates, with a focus on cost discipline and infrastructure investment to support economic development in Kansas and Missouri [20][23] - A rolling five-year investment plan totaling approximately $21.6 billion is set to drive 11.5% annualized rate base growth through 2030, with a significant portion allocated to new generation investments [22][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated financial outlook, which has been tested against various outcomes, and emphasized the importance of consistent financial performance for long-term value creation [6][43] - The company expects a return to normal residential load growth in 2026, with strong early indications for industrial demand compared to 2025 [27][83] Other Important Information - The company raised its dividend by 4% to an annualized $2.78, with expectations for the payout ratio to decline over time to a revised target of 50%-60% [9][37] - The LLPS tariffs established a framework for new large customers to pay a premium demand rate, which will generate significant benefits for existing customers [15][17] Q&A Session Summary Question: Can you discuss the equity issuances planned for 2030? - Management indicated no planned equity issuances for 2030 due to expected improvements in cash flow, but noted that additional capital opportunities may arise [49][51] Question: What is the potential for additional electric service agreements (ESAs)? - Management expects at least one more executed ESA in 2026, with potential for additional sizable opportunities beyond that [55][56] Question: How does incremental load growth affect CapEx and earnings? - Management stated that each ESA will depend on negotiations with customers, and historically, a 50/50 debt-equity funding approach is used for incremental capital [94]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported adjusted earnings of $894 million, or $3.83 per share, compared to $878 million, or $3.81 per share for the same period last year, reflecting a slight increase in EPS [26] - The year-over-year drivers included a 0.3% growth in weather-normalized demand, primarily driven by the commercial class, which contributed $0.04 per share in margin [26] - The company expects EPS growth to exceed 8% annually beginning in 2028 and through 2030, raising the long-term adjusted EPS growth target to 6%-8%+ through 2030 [5][43] Business Line Data and Key Metrics Changes - The company executed a capital investment plan of $2.8 billion in 2025 to modernize the grid and replace aging equipment, although financial results were negatively impacted by weather and weak industrial demand [6] - Significant progress was made in advancing economic development opportunities, growing the pipeline to over 15 GW, with new electric service agreements for four data center projects representing 1.9 GW of steady-state peak demand [10][12] Market Data and Key Metrics Changes - The company achieved the strongest reliability performance in its history for SAIDI, with reductions in both average outage duration and frequency [9] - The cumulative change in Evergy's all-in rates since 2017 is approximately 4.9%, compared to a regional peer average of 19% and inflation of 29%, indicating strong rate competitiveness [20] Company Strategy and Development Direction - The company aims to maintain affordability, reliability, and sustainability as strategic objectives, with a focus on capital investments to support economic growth in Kansas and Missouri [5][25] - A rolling five-year investment plan totals approximately $21.6 billion from 2026 to 2030, with a focus on new generation investments to support growing customer demand [22][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated financial outlook, which has been tested against a range of outcomes, and emphasized the importance of consistent financial performance for long-term value creation [6] - The company anticipates strong load growth through 2030, supported by electric service agreements with large customers, and expects to execute at least one more large customer ESA in 2026 [39][56] Other Important Information - The company raised its dividend by 4% to an annualized $2.78, with expectations for the payout ratio to decline over time to a revised target of 50%-60% [9][37] - The LLPS tariffs established a framework for new large customers to pay a premium demand rate, which will drive affordability benefits for existing customers [15][17] Q&A Session Summary Question: Can you discuss the equity issuances planned for 2030? - Management indicated no planned equity issuances for 2030 due to expected improvements in cash flow, but noted that additional capital opportunities may arise [49][51] Question: What is the potential for additional electric service agreements (ESAs)? - Management expects at least one more executed ESA in 2026, with potential for additional sizable opportunities beyond that [56][58] Question: How does weak industrial demand impact future forecasts? - Management acknowledged the impact of weak industrial demand in 2025 but expressed confidence in a return to normal growth in 2026, particularly with the ramp-up of the Panasonic project [82][84]