The Southern Company

SO
Financial 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) · WACC ~4.3% · Moat spread +0.7pp
Margin Profile
Gross 55%
Operating 24.7%
FCF -9.9%
FY2025
Net Debt
$72.4B
Cash $1.6B · Debt $74.1B · FY2025
Diluted Shares
1.11B
2026-05

Business Overview

ticker: SO step: 01 generated: 2026-05-12 source: quick-research

The Southern Company (SO) — Business Overview

Business Description

Southern Company is one of the largest US electric utility holding companies, serving 9M+ customers across Georgia, Alabama, Mississippi (electric) and Georgia/Illinois/Virginia/Tennessee (natural gas). Southern owns the largest US nuclear power station (Vogtle 1-4, 4,536 MW after completing Units 3 + 4 in 2024). The 2026 thesis: nuclear-powered utility uniquely positioned for the Southeast data center buildout — 75 GW potential pipeline + 11 GW already contracted. CEO Chris Womack (since 2023, succeeded Tom Fanning).

Revenue Model

  • Electric Utilities (~80% of revenue): Georgia Power (largest), Alabama Power, Mississippi Power
  • Natural Gas Distribution (~13%): Southern Company Gas (Atlanta Gas Light, Nicor Gas, Virginia Natural Gas, Chattanooga Gas)
  • Power Generation + Other (~7%): Southern Power (independent power), PowerSecure (distributed generation)
  • Regulated rate-base utility — predictable cash flow + multi-year capex visibility

Products & Services

Electric Utilities
  • Georgia Power: Largest subsidiary; 2.7M customers
  • Alabama Power: 1.5M customers
  • Mississippi Power: 192K customers
  • Generation mix: Natural gas, nuclear (Vogtle), coal (declining), renewables, hydro
Nuclear Generation
  • Plant Vogtle Units 1-4: Largest US nuclear station, 4,536 MW
  • Units 3 + 4 (AP1000): Completed 2024 ($30B+ project)
  • Planning additional nuclear capacity: Georgia Power exploring next nuclear projects
Natural Gas Distribution
  • Atlanta Gas Light, Nicor Gas (Illinois), Virginia Natural Gas, Chattanooga Gas
  • 4.4M+ gas customers
Southern Power
  • Independent power producer
  • Wind + solar + battery storage development
  • Contracted PPAs with utilities/corporates

Customer Base & Go-to-Market

  • Residential customers: ~9M across electric + gas
  • Commercial + Industrial: Growing data center base (key catalyst)
  • Data center pipeline: 11 GW under contract + 75 GW interest pipeline
  • Geographic mix: Southeast US-only (regulated franchise areas)

Competitive Position

SO is one of the largest US electric utilities by market cap (~$120B). Moats: (1) regulated monopoly territories in growing Southeast US, (2) nuclear baseload (Vogtle) provides 24/7 dispatchable carbon-free power critical for AI data centers, (3) supportive Georgia + Alabama PSCs allow recovery of large capital investments, (4) 75 GW data center pipeline = multi-year load growth tailwind. Competitors: NextEra (renewables), Duke Energy (large utility), Dominion Energy (Virginia data center exposure), Exelon (nuclear).

Key Facts

  • Founded: 1945
  • Headquarters: Atlanta, GA
  • Employees: ~28,000
  • Exchange: NYSE
  • Sector / Industry: Utilities / Multi-Utilities
  • Market Cap: ~$120B (May 2026)
  • Chairman, President, CEO: Christopher C. Womack (since 2023)
  • Dividend: $2.96 annual ($0.74 quarterly)
  • 23+ consecutive years of dividend growth (Dividend Aristocrat)
  • 2026-2030 CapEx Plan: $81B
  • Nuclear Generation: 4,536 MW (largest US)

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.
GET /api/v1/research/SO/fundamental$1.00 · Bearer token required
Markdown: /stocks/so/financials/md · → thesis · → memo