The Southern Company
SOFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$8.4B
Q1 2026 · +8% YoY
TTM ROIC
5%
FY2025 · NOPAT / Invested Capital (Equity + Debt - Cash); NOPAT = Operating Income less taxes at 24% effective rate · WACC ~4.3% · Moat spread +0.7pp
Financial Snapshot
ticker: SO step: 04 generated: 2026-05-12 source: quick-research
The Southern Company (SO) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $25.3B | $26.7B | $28.5B | +7% |
| Net Income | $4.0B | $4.4B | $4.3B | -2% (GAAP) |
| Adjusted EPS | $3.64 | $4.02 | $4.30 | +7% |
| Operating Margin (utility) | ~22% | ~24% | ~25% | improving |
| Operating Cash Flow | $9B | $10B | $10.5B | +5% |
Q1 2026 Highlights
| Metric | Q1 2026 |
|---|---|
| Retail Sales Growth (YoY) | +2.3% |
| Data Center Usage Growth | +42% YoY |
| Georgia Power Q1 CapEx | $2B (vs $1.6B prior) |
| Data Center contracted load | 11 GW (vs 10 GW earlier) |
Data Center Demand
| Metric | Value |
|---|---|
| Fully contracted large load | 11 GW |
| Anticipated data center interest pipeline | 75 GW |
| Commercial sales growth target | +20%/year through end of decade |
| Q1 2026 Data Center % power growth | +42% |
Vogtle Nuclear Detail
| Metric | Value |
|---|---|
| Total Vogtle Capacity (Units 1-4) | 4,536 MW (largest US nuclear) |
| Units 3+4 (AP1000) completed | 2024 |
| Original Vogtle 3+4 budget | $14B → $30B+ actual |
| Future nuclear capacity planning | Underway (Georgia Power) |
2026-2030 CapEx Plan
| Metric | Value |
|---|---|
| 5-year CapEx | $81B |
| Increase from prior plan | +$5B |
| Annual run-rate | ~$16B |
| Focus areas | Generation, transmission, distribution, gas infrastructure |
2026 Guidance (mgmt)
| Metric | 2026 Guide |
|---|---|
| Adjusted EPS | $4.50-4.60 (+6% midpoint) |
| Long-term EPS Growth | 6-8%+ |
| Dividend Growth | mid-single-digit |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$10.5B |
| Capital Expenditures | ~$13B |
| Free Cash Flow | ~($2.5B) - capex heavy |
| Cash & Equivalents | ~$2B |
| Total Debt | ~$65B |
| Net Debt/EBITDA | ~5.5x (typical for utility) |
Key Ratios (approximate, May 2026)
- P/E (forward FY26): ~25x | EV/EBITDA: ~14x | Dividend Yield: ~2.8%
- ROE: ~12%
- Investment grade rating: BBB+
Forward Estimates
- FY2026E Revenue: ~$30B (+5-7%)
- FY2026E Adj EPS: $4.50-4.60 (mgmt)
- FY2027E EPS: ~$4.85 (+6-7%)
- FY2030E EPS: ~$5.75 (compounding 6-8%)
Capital Return
- Dividend $2.96 annual = ~$3.2B paid — 2.8% yield
- 23+ consecutive years of dividend growth (Aristocrat)
- Buybacks minimal (capex priority)
- Total return: ~2.8% dividend + 6-8% EPS growth
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $SO.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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