Southern Company (SO) Financial Results Summary
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Southern Company (SO) Q4 2025 Financial Results Summary
Released on February 19, 2026, Southern Company reported its fourth-quarter and full-year earnings for 2025. Below is a summary of the key highlights from the financial results.
Financial Performance
- Net Income:
- Q4 2025: $416 million (or $0.38 per share), a decrease of 22.1% vs. Q4 2024’s $534 million (or $0.49 per share).
- Full-Year 2025: $4.3 billion (or $3.94 per share), a decrease of 1.4% from $4.4 billion (or $4.02 per share) in 2024.
- Earnings Excluding Items:
- Q4 2025: $612 million (or $0.55 per share), a growth of 12.5% compared to Q4 2024’s $544 million (or $0.50 per share).
- Full-Year 2025: $4.7 billion (or $4.30 per share), a growth of 4.1% from $4.4 billion (or $4.05 per share) in 2024.
- Operating Revenues:
- Q4 2025: $7.0 billion, a 10.1% increase from Q4 2024’s $6.3 billion.
- Full-Year 2025: $29.6 billion, a 10.6% increase compared to $26.7 billion in 2024.
Segment Performance
- Traditional Electric Operating Companies:
- Q4 Net Income: $588 million, up from $515 million in Q4 2024.
- Southern Power:
- Q4 Net Loss: $16 million, a decrease from a net income of $64 million in Q4 2024.
- Southern Company Gas:
- Q4 Net Income: $183 million, slightly down from $185 million in Q4 2024.
Dividend and Share Repurchase
The report does not specify the declaration of a quarterly dividend or any share repurchase activities.
Revenue Drivers
- Retail Electric Revenues:
- Q4 2025: Became a significant contributor with $4.5 billion from fuel revenues, representing a 10.2% increase compared to Q4 2024.
- Natural Gas Revenues:
- Q4 2025: $1.49 billion, a 20.7% increase from $1.24 billion in Q4 2024.
- Total Kilowatt-Hour Sales:
- Q4 2025: 48.9 billion kWh, an increase of 4.9% from 46.6 billion kWh in Q4 2024.
Operational Efficiency
- Non-fuel operations and maintenance expenses rose to $2.1 billion in Q4 2025, up 6.1% from Q4 2024’s figures.
- Total operating expenses increased to $6.1 billion for Q4 2025, marking a 14.8% rise from the previous year’s $5.3 billion.
Outlook
Southern Company expressed optimism in its operations for 2025, stating, “2025 was another outstanding year for Southern Company… meeting the growing demand responsibly.”
It highlights an ongoing commitment to providing reliable energy, contingent on a disciplined, all-inclusive approach focused on customer value.
Conclusion
The fourth-quarter results for Southern Company indicate mixed performance metrics, with net income showing a notable decline while adjusted earnings have grown. The company continues to report increases in operating revenues, underscoring its position within the energy sector despite challenges faced in net income attributable to various operational costs and investment impacts.
Note: All amounts in the following tables are in millions.
| Three Months Ended December | Year-To-Date December | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Net Income – As Reported | $416 | $534 | $4,341 | $4,401 |
| Less: | ||||
| Estimated Loss on Plants Under Construction | $19 | $-4 | $46 | $7 |
| Tax Impact | $-5 | $1 | $-15 | $-15 |
| Accelerated Depreciation from Repowering | $-116 | $-9 | $-284 | $-9 |
| Tax Impact | $26 | $2 | $63 | $2 |
| Loss on Extinguishment of Debt | $-123 | $— | $-252 | $— |
| Tax Impact | $31 | $— | $63 | $— |
| Disposition Impacts | $— | $— | $2 | $— |
| Tax Impact | $— | $— | $-1 | $— |
| Impairments | $— | $— | $— | $-36 |
| Tax Impact | $— | $— | $— | $9 |
| Estimated Loss on Nicor Gas Investments | $-63 | $— | $-63 | $— |
| Tax Impact | $16 | $— | $16 | $— |
| Adjustment to Certain Tax Benefit from Tax Reform | $19 | $— | $19 | $— |
| Net Income – Excluding Items | $612 | $544 | $4,747 | $4,443 |
| Average Shares Outstanding – (in millions) | $1,109 | $1,098 | $1,103 | $1,096 |
| Basic Earnings Per Share – Excluding Items | $0.55 | $0.50 | $4.30 | $4.05 |
Note: All amounts in the following table are in thousands.
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current Assets | ||
| Cash and cash equivalents | $2,536 | $2,529 |
| Accounts receivable, net | $4,147 | $3,541 |
| Inventory | $1,678 | $1,494 |
| Other current assets | $1,807 | $1,623 |
| Total Current Assets | $10,168 | $9,187 |
| Noncurrent Assets | ||
| Property, plant and equipment, net | $66,073 | $62,774 |
| Goodwill | $1,332 | $1,332 |
| Other noncurrent assets | $846 | $908 |
| Total Noncurrent Assets | $68,251 | $64,014 |
| TOTAL ASSETS | $78,419 | $73,201 |
| LIABILITIES AND EQUITY | ||
| Current Liabilities | ||
| Current portion of long-term debt | $1,562 | $774 |
| Accounts payable | $4,052 | $3,215 |
| Accrued expenses | $2,568 | $2,118 |
| Other current liabilities | $983 | $820 |
| Total Current Liabilities | $9,165 | $6,927 |
| Long-term Debt, net | $25,472 | $26,938 |
| Other Noncurrent Liabilities | $1,493 | $1,422 |
| Total Liabilities | $36,130 | $35,287 |
| Equity | ||
| Common stock and additional paid-in capital | $23,479 | $22,140 |
| Retained earnings | $19,810 | $15,901 |
| Total Equity | $42,289 | $39,914 |
| TOTAL LIABILITIES AND EQUITY | $78,419 | $73,201 |