Southern Company Reports Q4 2025 Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SO?
Source: PRnewswire
- Quarterly Profit Decline: Southern Company's Q4 2025 net income was $416 million, or $0.38 per share, down 22.1% from $534 million and $0.49 per share in Q4 2024, reflecting profitability pressures faced by the company.
- Annual Performance Review: For the full year 2025, net income was $4.341 billion, or $3.94 per share, slightly down from $4.401 billion and $4.02 per share in 2024, indicating challenges in balancing revenue growth with cost control.
- Revenue Growth: Q4 operating revenues reached $7.0 billion, a 10.1% increase from $6.341 billion in Q4 2024, while full-year revenues were $29.6 billion, up 10.6%, demonstrating strong market demand.
- Rising Operating Costs: Despite revenue growth, non-fuel operations and maintenance expenses, depreciation, and interest expenses increased, impacting overall profitability, necessitating effective cost management strategies moving forward.
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Analyst Views on SO
Wall Street analysts forecast SO stock price to rise
17 Analyst Rating
4 Buy
11 Hold
2 Sell
Hold
Current: 92.000
Low
45.00
Averages
92.34
High
109.00
Current: 92.000
Low
45.00
Averages
92.34
High
109.00
About SO
The Southern Company is an energy provider. The Company owns three traditional electric operating companies, Southern Power Company and Southern Company Gas. The traditional electric operating companies-Alabama Power, Georgia Power and Mississippi Power-are operating public utility companies providing electric service to retail customers in three Southeastern states in addition to wholesale customers in the Southeast. The Southern Power Company develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. The Southern Company Gas is an energy services holding company whose primary business is the distribution of natural gas in four states - Illinois, Georgia, Virginia, and Tennessee, through the natural gas distribution utilities. Southern Company Gas is also involved in several other businesses that are complementary to the distribution of natural gas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Southern Company Q4 Earnings Forecast
- Earnings Expectations: Southern Company is projected to report Q4 earnings per share of $0.56, reflecting a 12% year-over-year increase, with revenues expected to reach $6.3 billion, indicating robust growth potential amid rising electricity demand.
- Financing Activities: The company raised $2 billion through an equity units offering to refinance debt and support corporate needs, which not only alleviates short-term obligations but also provides funding for future capital expenditures.
- Subsidiary Developments: Georgia Power is advancing new generation capacity plans and has reached an agreement with the Georgia Public Service Commission to lower residential customer costs, reflecting proactive strategies to address growing electricity demand from large users.
- Analyst Ratings: Despite Southern Company exceeding EPS estimates 88% of the time over the past two years, analysts have rated the stock as Hold, primarily due to valuation misalignment with the stock price, indicating a cautious market outlook on future growth.
See More
Southern Company: Steady Growth with Downgrade Analysis
- Steady Growth: Southern Company has demonstrated a consistent growth trend in its recent earnings reports, maintaining a 3.2% dividend yield despite downgrade pressures, indicating its stability and attractiveness in the market.
- Market Opportunity: The recent pullback in stock price provides an entry point for investors, with analysts suggesting that the current price levels may create value for long-term investors, especially given the company's strong fundamentals.
- Data Center Tailwinds: Southern Company's strong execution in the data center sector, coupled with increasing demand for renewable energy, is expected to further drive the company's growth potential and enhance its competitive position in the market.
- Earnings Outlook: Southern Company is set to release its Q4 earnings, with the market widely anticipating that its performance will reflect the company's adaptability in the current economic environment and its potential for future growth.
See More
Southern Company Q4 Earnings Analysis
- Earnings Performance: Southern Company's Q4 non-GAAP EPS of $0.55 missed expectations by $0.01, indicating some pressure on profitability that could affect investor confidence.
- Revenue Growth: The company reported Q4 revenue of $6.98 billion, a 10.1% year-over-year increase, exceeding market expectations by $680 million, demonstrating its strong competitive position and business expansion capabilities.
- Market Reaction: Despite the earnings miss, Southern Company's stock price rebounded after six consecutive declines, reflecting market recognition of its long-term growth potential and possibly attracting more investor interest.
- Investment Opportunity: With a current dividend yield of 3.2%, Southern Company presents an attractive option for investors, especially following the recent pullback in stock price, which may create a favorable entry point for value investors.
See More
Southern Company Reports Q4 2025 Earnings Analysis
- Quarterly Profit Decline: Southern Company's Q4 2025 net income was $416 million, or $0.38 per share, down 22.1% from $534 million and $0.49 per share in Q4 2024, reflecting profitability pressures faced by the company.
- Annual Performance Review: For the full year 2025, net income was $4.341 billion, or $3.94 per share, slightly down from $4.401 billion and $4.02 per share in 2024, indicating challenges in balancing revenue growth with cost control.
- Revenue Growth: Q4 operating revenues reached $7.0 billion, a 10.1% increase from $6.341 billion in Q4 2024, while full-year revenues were $29.6 billion, up 10.6%, demonstrating strong market demand.
- Rising Operating Costs: Despite revenue growth, non-fuel operations and maintenance expenses, depreciation, and interest expenses increased, impacting overall profitability, necessitating effective cost management strategies moving forward.
See More
Southern Company Reports Q4 2025 Earnings Decline Amid Revenue Growth
- Earnings Decline: Southern Company reported Q4 2025 net income of $416 million, or $0.38 per share, down 22.0% from $534 million and $0.49 per share in Q4 2024, indicating pressure on profitability amid rising costs.
- Full-Year Performance: For the full year 2025, net income was $4.341 billion, or $3.94 per share, slightly down from $4.401 billion and $4.02 per share in 2024, reflecting challenges in cost control and market competition.
- Revenue Growth: Despite the earnings decline, Q4 revenues reached $7.0 billion, a 10.1% increase, with full-year revenues at $29.6 billion, up 10.6%, indicating strong market demand and operational resilience.
- Rising Operating Costs: The company noted increases in non-fuel operations and maintenance expenses, depreciation, and interest costs, which impacted overall profitability, highlighting the need for effective cost management strategies moving forward.
See More
U.S. Stocks Rise Slightly as Fear Index Eases
- Fear Index Eases: The CNN Money Fear & Greed Index recorded a reading of 40.3 on Wednesday, up from 37.8, indicating a slight improvement in market sentiment while still remaining in the 'Fear' zone, suggesting ongoing uncertainty.
- Industrial Production Growth: U.S. industrial production increased by 0.7% month-over-month in January, surpassing market expectations of a 0.4% gain, demonstrating economic resilience that could support future recovery efforts.
- Durable Goods Orders Decline: Durable goods orders in the U.S. fell by 1.4% month-over-month in December, contrasting sharply with a revised 5.4% increase in November, highlighting challenges faced by the manufacturing sector that may impact overall economic growth.
- Market Performance: The Dow Jones rose by approximately 129 points to close at 49,662.66, while the S&P 500 increased by 0.56% to 6,881.31, and the Nasdaq Composite climbed 0.78% to 22,753.63, reflecting investor optimism in response to economic data.
See More
Southern Company Q4 Earnings Forecast
- Earnings Expectations: Southern Company is projected to report Q4 earnings per share of $0.56, reflecting a 12% year-over-year increase, with revenues expected to reach $6.3 billion, indicating robust growth potential amid rising electricity demand.
- Financing Activities: The company raised $2 billion through an equity units offering to refinance debt and support corporate needs, which not only alleviates short-term obligations but also provides funding for future capital expenditures.
- Subsidiary Developments: Georgia Power is advancing new generation capacity plans and has reached an agreement with the Georgia Public Service Commission to lower residential customer costs, reflecting proactive strategies to address growing electricity demand from large users.
- Analyst Ratings: Despite Southern Company exceeding EPS estimates 88% of the time over the past two years, analysts have rated the stock as Hold, primarily due to valuation misalignment with the stock price, indicating a cautious market outlook on future growth.
See More
Southern Company: Steady Growth with Downgrade Analysis
- Steady Growth: Southern Company has demonstrated a consistent growth trend in its recent earnings reports, maintaining a 3.2% dividend yield despite downgrade pressures, indicating its stability and attractiveness in the market.
- Market Opportunity: The recent pullback in stock price provides an entry point for investors, with analysts suggesting that the current price levels may create value for long-term investors, especially given the company's strong fundamentals.
- Data Center Tailwinds: Southern Company's strong execution in the data center sector, coupled with increasing demand for renewable energy, is expected to further drive the company's growth potential and enhance its competitive position in the market.
- Earnings Outlook: Southern Company is set to release its Q4 earnings, with the market widely anticipating that its performance will reflect the company's adaptability in the current economic environment and its potential for future growth.
See More
Southern Company Q4 Earnings Analysis
- Earnings Performance: Southern Company's Q4 non-GAAP EPS of $0.55 missed expectations by $0.01, indicating some pressure on profitability that could affect investor confidence.
- Revenue Growth: The company reported Q4 revenue of $6.98 billion, a 10.1% year-over-year increase, exceeding market expectations by $680 million, demonstrating its strong competitive position and business expansion capabilities.
- Market Reaction: Despite the earnings miss, Southern Company's stock price rebounded after six consecutive declines, reflecting market recognition of its long-term growth potential and possibly attracting more investor interest.
- Investment Opportunity: With a current dividend yield of 3.2%, Southern Company presents an attractive option for investors, especially following the recent pullback in stock price, which may create a favorable entry point for value investors.
See More
Southern Company Reports Q4 2025 Earnings Analysis
- Quarterly Profit Decline: Southern Company's Q4 2025 net income was $416 million, or $0.38 per share, down 22.1% from $534 million and $0.49 per share in Q4 2024, reflecting profitability pressures faced by the company.
- Annual Performance Review: For the full year 2025, net income was $4.341 billion, or $3.94 per share, slightly down from $4.401 billion and $4.02 per share in 2024, indicating challenges in balancing revenue growth with cost control.
- Revenue Growth: Q4 operating revenues reached $7.0 billion, a 10.1% increase from $6.341 billion in Q4 2024, while full-year revenues were $29.6 billion, up 10.6%, demonstrating strong market demand.
- Rising Operating Costs: Despite revenue growth, non-fuel operations and maintenance expenses, depreciation, and interest expenses increased, impacting overall profitability, necessitating effective cost management strategies moving forward.
See More
Southern Company Reports Q4 2025 Earnings Decline Amid Revenue Growth
- Earnings Decline: Southern Company reported Q4 2025 net income of $416 million, or $0.38 per share, down 22.0% from $534 million and $0.49 per share in Q4 2024, indicating pressure on profitability amid rising costs.
- Full-Year Performance: For the full year 2025, net income was $4.341 billion, or $3.94 per share, slightly down from $4.401 billion and $4.02 per share in 2024, reflecting challenges in cost control and market competition.
- Revenue Growth: Despite the earnings decline, Q4 revenues reached $7.0 billion, a 10.1% increase, with full-year revenues at $29.6 billion, up 10.6%, indicating strong market demand and operational resilience.
- Rising Operating Costs: The company noted increases in non-fuel operations and maintenance expenses, depreciation, and interest costs, which impacted overall profitability, highlighting the need for effective cost management strategies moving forward.
See More
U.S. Stocks Rise Slightly as Fear Index Eases
- Fear Index Eases: The CNN Money Fear & Greed Index recorded a reading of 40.3 on Wednesday, up from 37.8, indicating a slight improvement in market sentiment while still remaining in the 'Fear' zone, suggesting ongoing uncertainty.
- Industrial Production Growth: U.S. industrial production increased by 0.7% month-over-month in January, surpassing market expectations of a 0.4% gain, demonstrating economic resilience that could support future recovery efforts.
- Durable Goods Orders Decline: Durable goods orders in the U.S. fell by 1.4% month-over-month in December, contrasting sharply with a revised 5.4% increase in November, highlighting challenges faced by the manufacturing sector that may impact overall economic growth.
- Market Performance: The Dow Jones rose by approximately 129 points to close at 49,662.66, while the S&P 500 increased by 0.56% to 6,881.31, and the Nasdaq Composite climbed 0.78% to 22,753.63, reflecting investor optimism in response to economic data.
See More
