NYSE: SO · Electric Utilities
Southern Company
Southern Company, based in Atlanta, owns Alabama Power, Georgia Power and Mississippi Power, the wholesale generator Southern Power, and the gas utility group Southern Company Gas, serving about 9.0 million electric and gas utility customers. 2025 revenue was $29,553M and net income $4,341M. Capital spending rose to $12,737M as data center demand drives new generation; Georgia’s regulator approved 9,885 MW of new resources in December 2025.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 4, 2026 15:22 (SEC EDGAR) · Source 10-K filed: February 19, 2026
Built on10-K FY2025 · filed 2026-02-1910-Q (quarter ended 2026-09-30) · filed 2026-11-05Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 7.7%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 24.7%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +0.7 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 4.8x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 2.26x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 23.0x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.25
Higher than 45% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 68% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 37% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 86% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 79% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; fiscal FY2025
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$90.92close on 2026-11-04
Market cap$99.92B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 23.0x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 2.8x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 12.3x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- -2.9%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 3.2%
At FY2025 year-end: 22.2x
Earnings: fiscal FY2025
At FY2025 year-end: 2.7x
Book value at FY2025 year-end
At FY2025 year-end: 12.0x
EBITDA for FY2025
At FY2025 year-end: -3.1%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Mar 31, 2026.
These figures are behind: a newer quarter was reported on Nov 5, 2026, but SEC's structured data doesn't include it yet. Read the release ↗
- Revenue$7.78B → $8.4B (vs. a year earlier)↑ +8.0%$7.78B → $8.4B (vs. a year earlier)
- Operating margin25.9% → 24.0% (vs. a year earlier)↓ −1.8 pts25.9% → 24.0% (vs. a year earlier)
- Net income$1.33B → $1.36B (vs. a year earlier)↑ +1.6%$1.33B → $1.36B (vs. a year earlier)
- Diluted EPS$1.21 → $1.20 (vs. a year earlier)↓ −0.8%$1.21 → $1.20 (vs. a year earlier)
- Cash$1.64B → $981M (vs. previous quarter-end)↓ −40.1%$1.64B → $981M (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Jul 30, 2026.
Key changes
Q2 operating revenues $6.98B versus $6.97B. Source sentence
Second-quarter 2026 operating revenues were $6.98 billion, compared with $6.97 billion for the second quarter of 2025, an increase of 0.1%.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- SOUTHERN CO
- Headquarters
- ATLANTA, GA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: SO
- Industry
- Electric Utilities
- CIK
- 92122
Workforce (as of FY2025 year-end)
Employees
29,800
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 46–51 days after quarter end (Feb 19, 2026; Feb 20, 2025; Feb 15, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 30–51 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Nov 5, 2026 (+36 days) | Nov 5, 2026 10-Q (+36 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 30, 2026 (+30 days) | Jul 30, 2026 10-Q (+30 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | Apr 30, 2026 10-Q (+30 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 19, 2026 (+50 days) | Feb 19, 2026 10-K (+50 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 30, 2025 (+30 days) | Oct 30, 2025 10-Q (+30 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 31, 2025 (+31 days) | Jul 31, 2025 10-Q (+31 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 1, 2025 10-Q (+31 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 20, 2025 (+51 days) | Feb 20, 2025 10-K (+51 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 31, 2024 (+31 days) | Oct 31, 2024 10-Q (+31 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 1, 2024 (+32 days) | Aug 1, 2024 10-Q (+32 days) |
| Q1 FY2024 | Mar 31, 2024 | May 2, 2024 (+32 days) | May 2, 2024 10-Q (+32 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 15, 2024 (+46 days) | Feb 15, 2024 10-K (+46 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Traditional electric
Retail electric service
Alabama Power, Georgia Power and Mississippi Power.
Southern Power
Wholesale generation
Power and battery storage sold at market-based rates.
Southern Company Gas
Gas distribution and marketing
About 4.4 million distribution customers in Illinois, Georgia, Virginia and Tennessee.
From the Form 10-K, FY2025.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Gas marketing
Georgia energy customers
U.S. share
—
Not disclosedWorldwide share
—
Not disclosedGeorgia
29.9%
Company-disclosedShare of energy customers, 2025
07
Recent strategic focusSite analysis
Recent developments.
Q2 2026 results
Net income $1.2B ($1.03 per share) vs $0.9B ($0.80).
Source: Form 10-Q (quarter ended 2026-06-30)
New capacity
Georgia PSC approved 9,885 MW on December 19, 2025; a petition seeks reversal.
Source: Form 10-Q (quarter ended 2026-06-30)
Financing
$725M 2.125% and $1.65B 3.50% convertible notes priced August 2026.
Source: Form 8-K (2026-08-04) — Item 8.01 convertible notes
DOE guarantee
Alabama Power entered a DOE Title XVII loan guarantee in February 2026.
Source: Form 8-K (2026-02-25) — Item 1.01 DOE loan guarantee
Capex ÷ D&A (FY2025)
2.11x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$12,737M ÷ $6,030M = 2.11x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$1.06B
Latest year: $635M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $7.52B in FY2020 to $12.74B in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$29.55B
As reported in the 10-K
Revenue CAGR (5 years)
+7.7%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($29,553M ÷ $20,375M) ^ (1÷5) − 1 = 7.7%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
24.7%
+0.7pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$7,285M ÷ $29,553M × 100 = 24.7%
ROE (FY2025)
12.5%▲favorable
6-year average: 11.7%
As reported in the 10-K
P/B (FY2025 end)
2.66x
formulafiscal year-end closing price ÷ book value per share
e.g.$87.20 ÷ $32.77 = 2.66x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
12.0x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($95,833M + $65,649M − $1,639M) ÷ ($7,285M + $6,030M) = 12.0x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +7.7% a year over 5 years (strong growth)
From $20.38B in FY2020 to $29.55B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ―
Operating margin held roughly flat: 24.0% → 24.7%
How much operating profit is left per $100 of revenue. It moved +0.7 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 23.1% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▼
Free cash flow was positive in 1 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 11.7% over 6 years (latest: 12.5%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Vertically integrated electric service in three states
- Gas distribution in four states
- Wholesale generation and battery storage
06 · what it draws on
Key resources
- About 29,800 employees
- Generation including Plant Vogtle units
- About 77,900 miles of gas pipelines
02 · why customers buy
Value propositions
- Cost-effective electric and gas service in its franchise territories.
04 · how it keeps them
Customer relationships
- Regulated service to about 9.0 million customers; customer satisfaction is a key performance indicator.
03 · how it reaches them
Channels
- Its own generation, transmission and distribution networks; Southern Power sells wholesale; gas marketing services in Georgia.
01 · who it serves
Customer segments
- Retail electric customers in Alabama, Georgia and Mississippi
- About 4.4 million gas distribution customers
- Wholesale buyers
09 · where money goes
Cost structure
FY2025, share of revenue ($29.55B)
- Other operating costs (incl. cost of goods sold)75.3%
Operating profit left: 24.7% of revenue. Depreciation & amortization (inside the costs above): $6.03B. Capital spending: $12.74B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Revenue $29,553M (2025)
- Traditional electric $22,056M; Southern Company Gas $5,044M; Southern Power $2,198M
- Rates set by state commissions and FERC
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Earns regulated returns on electric and gas systems in the Southeast and Midwest, plus wholesale power sold by Southern Power.
01 what it draws on
Inputs & resources
- About 29,800 employees
- Generation including Plant Vogtle units
- About 77,900 miles of gas pipelines
02 what it does
Activities
- Vertically integrated electric service in three states
- Gas distribution in four states
- Wholesale generation and battery storage
03 who it serves
Customers
- Retail electric customers in Alabama, Georgia and Mississippi
- About 4.4 million gas distribution customers
- Wholesale buyers
04 how money comes in
How it earns
- Revenue $29,553M (2025)
- Traditional electric $22,056M; Southern Company Gas $5,044M; Southern Power $2,198M
- Rates set by state commissions and FERC
How the business makes money
- Capex rose to $12,737M in 2025.
- Debt rose to $65,649M.
- Dividends paid per share rose to $2.94.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Rates, new capacity and financing all run through regulators and federal programs.
Regulated prices & reimbursement
State and federal rates
State commissions and FERC set rates.
Supports and constrainsTouches: How it earnsSource: Form 10-K (FY2025)
Approvals & licenses
Capacity certification
Georgia PSC approved 9,885 MW of resources.
Supports the businessTouches: Inputs & resources · ActivitiesSource: Form 10-K (FY2025)
Government funding & tax credits
DOE loan guarantee
Alabama Power entered a Title XVII loan guarantee with the DOE in February 2026.
Supports the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Environmental rules
GHG, effluent and ash rules
Compliance involves significant capital and operating costs, largely recovered through rates.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Traditional electric operating companies
22,056 (75%)Southern Company Gas
5,044 (17%)Southern Power
2,198 (7%)All other
893 (3%)Eliminations
-638 (-2%)
Source: Form 10-K (FY2025) Before and after eliminations of $477M and $161M.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Retail, wholesale and gas customers.
Named by the company
What the filings disclose
Suppliers
Fuel and equipment suppliers; none named as material.
Named by the company
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Utilities operate in exclusive territories; Southern Power competes with utilities and independent producers for wholesale sales. No company is named as a competitor.
Competitors named in the 10-K
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 20,375 | 23,113 | 29,279 | 25,253 | 26,724 | 29,553 |
| Operating income | 4,885 | 3,698 | 5,370 | 5,826 | 7,068 | 7,285 |
| Pretax income | 3,496 | 2,576 | 4,223 | 4,345 | 5,229 | 4,999 |
| Net income (attributable) | 3,103 | 2,309 | 3,428 | 3,976 | 4,401 | 4,341 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 13.4% | 26.7% | -13.8% | 5.8% | 10.6% |
| Operating margincalcoperating income ÷ revenue × 100 | 24.0% | 16.0% | 18.3% | 23.1% | 26.4% | 24.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 15.2% | 10.0% | 11.7% | 15.7% | 16.5% | 14.7% |
| Balance sheet ($M) | ||||||
| Total assets | 122,935 | 127,534 | 134,891 | 139,331 | 145,180 | 155,720 |
| Total equity | 32,234 | 32,276 | 34,532 | 35,225 | 36,674 | 38,867 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 45,073 | 50,120 | 50,656 | 57,210 | 58,768 | 65,649 |
| Equity ratio | 22.8% | 21.9% | 22.5% | 22.6% | 22.9% | 23.1% |
| ROE | 11.1% | 8.3% | 11.8% | 12.9% | 13.6% | 12.5% |
| Cash flow ($M) | ||||||
| Operating CF | 6,696 | 6,169 | 6,302 | 7,553 | 9,788 | 9,802 |
| Investing CF | -7,030 | -7,353 | -8,430 | -9,668 | -9,400 | -13,959 |
| Financing CF | -576 | 1,945 | 2,336 | 999 | -208 | 4,696 |
| Free cash flowcalccash flow from operations − capital expenditures | -826 | -1,417 | -1,621 | -1,542 | 833 | -2,935 |
| Cash and equivalents | 1,065 | 1,798 | 1,917 | 748 | 1,070 | 1,639 |
| Per share & other | ||||||
| EPS ($) | 2.93 | 2.24 | 3.26 | 3.62 | 3.99 | 3.92 |
| BVPS ($) | 25.45 | 25.36 | 27.67 | 28.61 | 30.22 | 32.77 |
| Dividend per share ($) | 2.54 | 2.62 | 2.70 | 2.78 | 2.86 | 2.94 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 86.7% | 117.0% | 82.8% | 76.8% | 71.7% | 75.0% |
| P/E (x) | 21.0 | 30.6 | 21.9 | 19.4 | 20.6 | 22.2 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 12.7 | 16.1 | 13.5 | 12.3 | 12.0 | 12.0 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 2.41 | 2.70 | 2.58 | 2.45 | 2.72 | 2.66 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-03-31 | $8.4B+8.0% | $2.02B+0.4% | $1.36B+1.6% | $1.20 |
| 2025-12-31 † | $6.98B+10.1% | $917M-13.3% | $416M | — |
| 2025-09-30 | $7.82B+7.5% | $2.59B+9.5% | $1.71B+11.5% | $1.54 |
| 2025-06-30 | $6.97B+7.9% | $1.76B-9.0% | $880M-26.8% | $0.79 |
| 2025-03-31 | $7.78B | $2.01B | $1.33B | $1.21 |
| 2024-12-31 † | $6.34B | $1.06B | — | — |
| 2024-09-30 | $7.27B | $2.37B | $1.54B | $1.39 |
| 2024-06-30 | $6.46B | $1.94B | $1.2B | $1.09 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
6.2%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$7,285M × (1 − 15.5%) ÷ $99,979M × 100 = 6.2%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
5.45%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $95.83B ÷ ($95.83B + $65.65B) = 59.3%
e.g.Debt weight: $65.65B ÷ ($95.83B + $65.65B) = 40.7%
e.g.WACC: 6.3% × 59.3% + 4.9% × (1 − 15.5%) × 40.7% = 5.45%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 4.8%–6.4% and ROIC − WACC runs −0.2 to +1.4 points. The sign flips inside this range, so the result depends on the assumptions. This describes the latest year and does not predict future value creation.
WACC 5.45% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.25 (price-derived adjusted beta, but correlation with the market is low (R² 0.01), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 6.33%
- Cost of debt
- 4.93%
- Tax rate
- 15.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 59% : 41%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 5.45%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.25 (price-derived adjusted beta. Raw β -0.11, R² 0.01, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × -0.114 + 0.33 = 0.254
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.25 × 5.5% = 6.3%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Not enough data for this calculation (FY2025): it needs positive free cash flow, a fiscal year-end P/E, and a positive enterprise value.
16
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 2.17x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.6%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 146%
Most profit comes from core operations.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$9,802M ÷ $4,341M = 2.26x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$7,285M ÷ $4,999M × 100 = 146%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
17
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 74.1%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 25.9%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 361 of 416
- Beta (adjusted)
- 0.25
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 87% of covered companies have more
above 1 = swings more than the market
- 834.9M shares reported by 2,356 13F filers ÷ 1,127.3M shares outstanding on 2026-03-31. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-03 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-03-31)
18
Strengths & weaknessesSite analysis
Strengths
1. Regulated base
About 9.0 million electric and gas utility customers.
Evidence: Form 10-K (FY2025)
2. Dividend growth
Dividends paid per share rose from $2.54 (2020) to $2.94 (2025).
Evidence: Form 10-K (FY2025)
3. Earnings growth
Net income rose from $3,103M (2020) to $4,341M (2025).
Evidence: Form 10-K (FY2025)
Weaknesses
1. Rising debt
Debt rose from $45,073M (2020) to $65,649M (2025).
Evidence: Form 10-K (FY2025)
2. Free cash flow gap
2025 capex of $12,737M exceeded operating cash flow of $9,802M.
Evidence: Form 10-K (FY2025)
3. Dependence on rate decisions
Returns depend on state commissions.
Evidence: Form 10-K (FY2025)
19
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
22.2x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
3.37%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
75%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
-3.1%
(Operating CF − capex) ÷ market cap
1. Load growth
Data centers drive demand for new generation.
- What has to hold
- Regulators allow recovery.
- The other side
- Affordability pressure.
Evidence: Form 10-Q (quarter ended 2026-06-30)
2. Regulated income
Dividends paid rose each year 2020–2025.
- What has to hold
- Constructive regulation continues.
- The other side
- High capex and debt.
Evidence: Form 10-K (FY2025)
20
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
0.2x
$1.64B vs. $6.94B
Interest coverage (operating income ÷ interest expense)
2.2x
$7.29B vs. $3.24B
Free cash flow ÷ dividends paid
-1.0x
−$2.94B vs. $3.02B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -13.8% in FY2023 ($29.28B → $25.25B) | Yes, by FY2025 |
| Operating income | -24.3% in FY2021 ($4.89B → $3.7B) | Yes, by FY2022 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable in 2020
Net income of $3,103M in 2020.
Source: Form 10-K (FY2025)
21
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Southern discloses antitrust, environmental and tax matters.
2 open matters (1 flagged as major) · 1 settled or closed
Nuclear consulting antitrust class action
PendingAntitrustMajorPlaintiffs; nuclear operators
Purported class action filed July 11, 2025 in the District of Maryland against two nuclear consulting companies and all U.S. commercial nuclear operators or affiliates, including Southern Company.
Source: Form 10-K (FY2025)
Plant Barry ash pond
PendingEnvironmentalEPA; Alabama Power
Alabama Power settled two of three EPA allegations in 2024; the allegation on its closure plan remains.
Source: Form 10-K (FY2025)
Mississippi tax assessment
SettledTax disputeMississippi DOR; Mississippi Power
Settled in November 2025 at about $13 million including penalties and interest.
- Amounts
- $13M
Source: Form 10-K (FY2025)
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings, reviewed 2026-11-05. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
22
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Law & regulation
Rate regulation
- Company disclosure (summarized from the 10-K)
- Revenue recovery depends on state and federal rate decisions.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 2Demand & macro
Data center load
- Company disclosure (summarized from the 10-K)
- Rising demand brings capital access and revenue recovery risks.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 3Funding & liquidity
Capital needs
- Company disclosure (summarized from the 10-K)
- Large equity and debt issuance to fund investment.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 4Law & regulation
Environmental rules
- Company disclosure (summarized from the 10-K)
- GHG, effluent and coal ash rules involve significant costs.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 5Demand & macro
Customer affordability
- Company disclosure (summarized from the 10-K)
- Affordability is named among forward-looking risks.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
23
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (2)
The OBBB was signed into law on July 4, 2025. The OBBB, among other things, materially changed the requirements for most of the federal renewable energy incentives. Read more
The Registrants are still assessing the impacts of the OBBB on tax incentives for renewable energy projects. Any loss of, reduction in, or impacts on tax incentives, including transferability of tax credits, due to the OBBB could have a material adverse effect on the Registrants. See MANAGEMENT'S DISCUSSION AND ANALYSIS –
such delay or failure in recovering costs by the Subsidiary Registrants could have a material adverse effect on the Registrants, including lower credit ratings and, thus, higher costs for future debt issuances, as well as limitations on their ability to fund capital expenditures and support economic development opportunities.
No longer in the text (1)
The SEC adopted new rules relating to the disclosure of climate-related matters, but has stayed their effectiveness pending judicial review. Read more
If these rules, or similar rules, become effective, the Registrants could incur increased costs to comply with these new rules and could face increased risk of litigation related to disclosures made pursuant to the rules.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 19, 2026 ↗ with the 10-K filed Feb 20, 2025 ↗.
24
What to watch going forwardSite analysis
- Data center load growth in Georgia.
- Georgia Power’s 2,000–6,000 MW request for proposals.
- Court challenge to the 2025 certification.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 4, 2026 15:22 (SEC EDGAR) · Source 10-K filed: February 19, 2026
Built on10-K FY2025 · filed 2026-02-19Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Southern Company’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.