The Southern Company Q1 FY2026 earnings call

• Adjusted earnings results for the first quarter were above the estimate, with year-over-year growth across all major businesses. - There is extraordinary growth and economic development opportunities in the service territories, with 23 gigawatts of contracted or late-stage load, and 1.9 gigawatts of customer load added in the last two months. - Georgia Power achieved commercial operations for two battery energy storage systems. - The Southern Company Board of Directors approved an increase of $0.08 per share in the annual common dividend, marking the 25th consecutive annual increase.

In the first quarter of 2026, the adjusted EPS was $1.32 per share, which was 9 cents higher than the first quarter of 2025 and 12 cents above the estimate. Retail electricity sales to all classes were 2.3% higher than the first quarter of 2025. Data center usage saw a material expansion of 42% year over year. Industrial sales grew 1.5%. Southern Power is moving forward to add 400 megawatts of additional capacity upgrades. The $26.5 billion in loan agreements with the Department of Energy is projected to generate cumulative savings of $7 billion for customers over the approximately 30-year term.

• The adjusted EPS estimate for the second quarter is $1 per share. - There is a projected remaining need for equity or equity equivalents of approximately $1.8 billion through 2030 to support the capital plan and long-term credit objectives. - Interest from large load customers in the electric service territories remains strong with a prospective pipeline of well over 75 gigawatts, and there are 12 gigawatts in active late-stage discussions with nearly 6 gigawatts expected to be finalized in the near term. - Southern Power will add 400 megawatts of capacity upgrades with commercial operation projected between 2029 and 2031, and is evaluating an additional 300 megawatts of natural gas upgrades.

Q: Regarding new nuclear, interest in the consortium and Southern's interest?

A: Very excited about the Trump administration's support for new nuclear construction. Southern Company is not at a point to make a commitment about building a new unit but is excited about the work being led to support new nuclear construction.

Q: For Southern Power, renegotiation conversations and with hyperscalers?

A: Yes, there are recontracting opportunities underway and conversations with potential hyperscalers are taking place.

Q: How load affects the regulatory strategy and if ahead of plan?

A: In line with the plan, focused on rate stability and delivering as planned.

Q: About $850 million of cumulative bill credits, chance of revision higher?

A: Focus is on rate stability and looking for opportunities to lower bills for customers.

Q: Thoughts on the Georgia PSC election?

A: Primary on May 19 and runoff on June 16, issues are debated, and Southern Company is confident in having a constructive regulatory environment regardless of the election results.

Q: Timing of Georgia RFP and CapEx update?

A: The RFP process is year-long, and in-service dates for new generation resources are projected to be 2032 - 2033 with selection process through 2027.

Q: Equity outlook, DOE loans, and Southern Power upgrades?

A: DOE loans reduce capital market needs, Southern Power upgrades require equity with an approximately 40% equity proportion for incremental capital.

Q: Timing and visibility of Southern Power upgrades?

A: Tracking as expected, late-stage conversations are ongoing and likely to be contracted by the time of construction.

Q: Supply chain, turbines, labor?

A: Well-positioned due to the company's size and scale and relationships with suppliers, but continue to work on supply chain, and has good relationships with labor.

Q: New generation and RFP trigger?

A: Matching load forecast, with an all-source RFP for 2 - 6 gigawatts of new dispatchable generation resources projected for in-service in 2032 - 2033.

Q: Southern Power contracted capacity and consideration of 300 megawatts?

A: 400 megawatt upgrade conversations are late-stage, and the 300 megawatts is assessed on the ability to contract, with the same operating philosophy of dealing with high credit quality counterparties