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The Southern Company
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S&P 500
🏹 Trader: 🎯 Near 52W High View all →
$95.0B
Market Cap
22.1
P/E
2.71
PEG
5.7%
ROCE
11.0%
ROE
1.91
D/E
24.7%
OPM
-11.6%
% from 52W High
34
α RS
🔍 SO is showing a multi-screen setup because it matches 3 of 39 tracked screener presets, Sector RRG has Utilities in the Leading quadrant with the trail still strengthening, it's within 11.6% of its 52-week high, and it has maintained a 20-day Near 52-Week High momentum persistence. The main caution: the Margin Expansion preset's Backtest win rate is only 42%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG 52W High Momentum Streaks Backtest
Sources
Conviction 3/39 · Utilities in Leading quadrant · 11.6% from 52W high · Near 52-Week High streak: 20d · Backtest win rate 42%
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🌏 Global Investor Returns
Currency-adjusted total returns for SO including FX impact
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📈 Price History
Ratio Health
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About

The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.

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📈 Growth Pattern
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⭐ Superinvestors Holding SO
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 431.6K $41.7M 0.07% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Confident Specific ↑ Improving 5 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$6.98B
+0.1% YoY
Net Income
$1.174B
+33% YoY
Adjusted EPS (Non-GAAP)
$1.13
+23% YoY
What Went Right
  • Adjusted EPS of $1.13 beat company estimate by $0.13, with all businesses contributing to the upside.
  • Large-load contracting momentum: Alabama added ~3 GW and Georgia signed a 3.2 GW, 25-year OpenAI contract, bringing total contracted load to 17+ GW by mid-2030s.
  • Data center usage rose 55% YoY in Q2; system data center load now exceeds 1.2 GW, up 500+ MW YoY.
  • Management raised full-year outlook to near/at the top of the $4.50-$4.60 adjusted EPS guidance range.
What to Watch
  • Higher interest expense from increased debt balances and dilution from additional shares outstanding remain offsets.
  • Remaining equity need of $1.1B through 2030, though ATM and DOE loan access mitigate financing risk.
  • RFP outcomes and regulatory certifications are still pending; no incremental generation capex is in the current capital plan.
  • Management acknowledged load ramp variability and political/misinformation noise around data centers, though minimum bills and collateral protections limit downside.
Management Guidance
  • Full-year 2026 adjusted EPS guidance maintained at $4.50-$4.60; now expected to land near or at the top.
  • Q3 2026 adjusted EPS estimate of $1.65.
  • Long-term FFO-to-debt target of 17% by 2029; remaining equity need ~$1.1B through 2030.
  • RFPs in Alabama and Georgia: selections expected by year-end 2026, with regulatory certification process running through much of 2027.
Investor Lens
The thesis is stronger after this call. Southern Company is converting a massive pipeline (75+ GW) into contracted load with rate-stable, regulated returns and strong customer protections. The OpenAI deal and Alabama contracts validate the vertically integrated model, while the company continues to self-fund equity needs in a shareholder-friendly way. With 2026 guidance lifted to the top of the range and long-term earnings trajectory still intact, the growth story appears more durable.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 adjusted EPS $1.13 beat by $0.13; strong demand.
Revenue
Q2 operating revenues were $6.98B, essentially flat YoY (+0.1%), with growth from state-regulated utilities, customer usage and Southern Company Gas. First-half revenues were $15.4B, up 4.2% YoY.
Profitability
Reported net income was $1.174B, up 33% YoY. Adjusted EPS was $1.13, up 23% YoY and $0.13 above the company's estimate, helped by AFUDC, equity method earnings, tax items and lower income taxes.
Margins
Operating margin was not disclosed on the call. Earnings benefited from volume, customer growth and AFUDC, partially offset by higher interest expense and share dilution.
Balance Sheet
Southern sourced an additional $700M of equity via ATM in Q2, reducing projected remaining equity need to $1.1B by 2030. The company remains on track for 17% FFO-to-debt by 2029 and continues to use low-cost DOE loans.
Key Risks
Management flagged higher interest expense and dilution, along with remaining equity needs. Analysts probed RFP timing, regulatory certification and data center political noise; management emphasized minimum bills and ~$21B collateral across the 17 GW portfolio as protection.
Outlook
Full-year 2026 adjusted EPS is now expected near or at the top of the $4.50-$4.60 range. Q3 adjusted EPS estimate is $1.65, and management reiterated confidence in the top half of the long-term earnings trajectory.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Q2 2026 adjusted EPS rose to $1.13, up $0.21 year-over-year, driven by strong load growth, especially from data centers and industrial customers. Over 17 GW of large load contracts are secured, with full-year EPS expected at the top of guidance.
Q1 2026 Q1 2026 2026-04-30
Q1 2026 adjusted EPS exceeded estimates, driven by strong customer and data center growth, with over 11 GW of large load contracts signed and robust economic development in the Southeast. Rate stability, major DOE loans, and a 25th consecutive dividend increase highlight a disciplined, growth-focused outlook.
Q4 2025 Q4 2025 2026-02-19
Adjusted EPS reached $4.30 in 2025, at the top of guidance, with strong sales growth driven by data centers and robust customer additions. A $81 billion capital plan supports projected 8–9% annual EPS growth through 2028, underpinned by large load contracts and disciplined financing.
Q3 2025 Q3 2025 2025-10-30
Adjusted EPS for Q3 2025 exceeded expectations, driven by strong customer and usage growth, with full-year earnings expected at the top of guidance. Robust economic development and large load contracts support an 8% annual electric sales growth forecast through 2029.
Q2 2025 Q2 2025 2025-07-31
Adjusted Q2 2025 EPS exceeded estimates despite year-over-year decline, driven by strong retail sales and robust industrial demand. Capital plan increased to $76B with significant new generation filings, and proactive equity actions support credit targets. Regulatory settlements and economic growth underpin a positive long-term outlook.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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