The Southern Company Q3 FY2025 earnings call

Bullet points:

• Southern Company performed exceptionally well with strong adjusted earnings in Q3 2025, above estimates.
• State-regulated electric and gas utilities serve over 9 million customers with reliable and affordable energy, Georgia Power rate plan extends base rates until 2029.
• 4 contracts with large load customers in GA and AL (over 2 GW) signed in last 2 months.
• David Poroch discussed adjusted EPS, retail sales growth, $4B debt issuance in Q3, $1.8B equity through ATM program, and robust pipeline of large load projects.
• Georgia Power filed updated load forecast supporting need for 10 GW of capacity resources.

For the third quarter of 2025, adjusted EPS was $1.60 per share, $0.10 above the estimate and $0.17 higher than Q3 2024. Year-to-date, adjusted EPS was $3.76 compared to $3.56 in the same period 2024. Revenue grew at state-regulated electrics due to customer growth and higher usage. Year-to-date weather-normal retail electricity sales were 1.8% higher than the first 3 quarters of 2024, with commercial sector up 3.5% in Q3 2025, residential up 2.7%, and industrial segments (primary metals, paper, transportation) up 4% or higher YTD.

Bullet points:

• Adjusted EPS estimate for Q4 2025 is $0.54 per share, which would place full-year adjusted earnings at the top of 2025 annual guidance range of $4.30 per share.
• Expect 8% annual electric sales growth through 2029, with Georgia Power at 12% annually.
• Pipeline of large load projects includes over 50 GW potential incremental load by mid-2030s, with 4 contracts in last 2 months adding over 2 GW.

Q: Carly Davenport asked about reception from customers to new tariff structure in Georgia and impacts of PSC election on longer-term plan.

A: David Poroch said customers understand long-term commitments, and Christopher Womack noted they work constructively with PSC members. David Poroch also discussed Georgia Power's load forecast update and PSC ruling timeline.

Q: Julien Dumoulin-Smith asked about rebasing timeline and equity needs.

A: Christopher Womack said multiple factors like economy, interest rates, and large load contracts influence rebasing timeline, and David Poroch discussed equity progress with over $7B of $9B need solidified.

Q: Shahriar Pourreza asked about Southern Power tolling agreements and SNG pipeline timing.

A: David Poroch said they renegotiate tolling agreements near expiration, and SNG expansion is on track with $3B investment.

Q: Anthony Crowdell asked about 2027 guidance and equity.

A: David Poroch discussed clarity expected in February on 2027 guidance and equity progress.

Q: Jeremy Tonet asked about nuclear development.

A: Christopher Womack expressed excitement about federal actions supporting nuclear development but stated no immediate appetite for new nuclear plant announcements yet.

Q: Andrew Weisel asked about demand delta in large load projections.

A: David Poroch explained committed vs contracted as different stages in negotiation and ramp-up processes.

Q: David Arcaro asked about additional large load gigawatts and future RFPs.

A: Christopher Womack said there are more upside opportunities, and David Poroch discussed RFP timeline starting as early as 2026.

Q: Agnieszka Storozynski asked about gas-fired new build and nuclear.

A: David Poroch said they evaluate gas-fired opportunities, and Christopher Womack stated no immediate new nuclear plant announcement until risks are mitigated.

Q: Paul Fremont asked about difference between contracted and committed.

A: David Poroch explained contracted as signed agreement, committed as advanced stage in negotiation near contract signing.

Q: Travis Miller asked about large load project details.

A: David Poroch discussed variety in large load project sizes and stages, with both greenfield and brownfield projects involved