Southern (SO)
Market Price (11/10/2026): $93.15 | Market Cap: $108.5 BilInvestor Relations Sector: Utilities | Industry: Electric Utilities
Southern (SO)
Market Price (11/10/2026): $93.15Market Cap: $108.5 BilSector: UtilitiesIndustry: Electric Utilities
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.5%, Dividend Yield is 2.9% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 34%, CFO LTM is 10 Bil Low stock price volatilityVol 12M is 18% Megatrend and thematic driversMegatrends include Renewable Energy Transition, Smart Grids & Grid Modernization, Electrification of Everything, Energy Transition & Decarbonization, Show more. | Trading close to highsDist 52W High is -4.0%, Dist 3Y High is -4.0% Weak multi-year price returns2Y Excs Rtn is -16%, 3Y Excs Rtn is -23% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 68% Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -12% Key risksSO key risks include [1] a significant debt burden and execution risk on large-scale construction projects, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.5%, Dividend Yield is 2.9% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 34%, CFO LTM is 10 Bil |
| Low stock price volatilityVol 12M is 18% |
| Megatrend and thematic driversMegatrends include Renewable Energy Transition, Smart Grids & Grid Modernization, Electrification of Everything, Energy Transition & Decarbonization, Show more. |
| Trading close to highsDist 52W High is -4.0%, Dist 3Y High is -4.0% |
| Weak multi-year price returns2Y Excs Rtn is -16%, 3Y Excs Rtn is -23% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 68% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -12% |
| Key risksSO key risks include [1] a significant debt burden and execution risk on large-scale construction projects, Show more. |
Qualitative Assessment
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Southern (SO) stock has remained largely at the same level since 7/31/2026 because of the following key factors:
1. Utilities Sector Headwinds and Rising Interest Rates.
The broader Utilities sector experienced a significant decline of 12.4% in fiscal Q3 2026 (ending September 30, 2026), ranking last among major sectors. This underperformance was largely influenced by rising interest rates and bond yields during the quarter, which reduced the relative attractiveness of rate-sensitive utility stocks, creating a general downward pressure on companies within the sector, including Southern Company.
2. Strong Q3 2026 Earnings Beat and Upgraded Full-Year Guidance.
Southern Company reported robust financial results for fiscal Q3 2026 (ended September 30, 2026), with adjusted earnings per share (EPS) of $1.94, surpassing analysts' consensus estimates of $1.71 by $0.23. Quarterly revenue also exceeded expectations, rising 13.0% year-over-year to $8.84 billion against an $8.38 billion estimate. The company subsequently raised its full-year 2026 adjusted EPS guidance to $4.70, exceeding its original guidance range.
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Southern (SO) stock has remained largely at the same level since 7/31/2026 because of the following key factors:
1. Utilities Sector Headwinds and Rising Interest Rates.
The broader Utilities sector experienced a significant decline of 12.4% in fiscal Q3 2026 (ending September 30, 2026), ranking last among major sectors. This underperformance was largely influenced by rising interest rates and bond yields during the quarter, which reduced the relative attractiveness of rate-sensitive utility stocks, creating a general downward pressure on companies within the sector, including Southern Company.
2. Strong Q3 2026 Earnings Beat and Upgraded Full-Year Guidance.
Southern Company reported robust financial results for fiscal Q3 2026 (ended September 30, 2026), with adjusted earnings per share (EPS) of $1.94, surpassing analysts' consensus estimates of $1.71 by $0.23. Quarterly revenue also exceeded expectations, rising 13.0% year-over-year to $8.84 billion against an $8.38 billion estimate. The company subsequently raised its full-year 2026 adjusted EPS guidance to $4.70, exceeding its original guidance range.
3. Accelerating Demand Growth, Especially from Data Centers.
A significant driver of Southern Company's strong performance was accelerating electricity demand, with weather-normal sales growing 3.5% in fiscal Q3 2026. Commercial sales increased by 7.3%, and usage from data centers surged by 59% during the quarter, contributing to a strong outlook for future load growth. The company also secured 21 gigawatts of signed large load contracts, with an additional 7 gigawatts in late-stage discussions, demonstrating significant future demand.
4. Balanced Impact of Capital Investment Plans and Financing.
Southern Company's ambitious five-year capital plan, which could approach $100 billion, positions the company for long-term growth in its regulated asset base. While this signals future expansion, the plan involves significant capital expenditures. In early August 2026, the company also upsized and priced $725 million in Series 2026A Convertible Senior Notes and $1.65 billion in Series 2026B Convertible Senior Notes, and settled $1.2 billion of equity in fiscal Q3 2026. These financing activities, while supporting growth, can also lead to near-term considerations regarding capital intensity and share dilution, which may temper immediate upward stock movement.
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Stock Movement Drivers
Fundamental Drivers
The -0.2% change in SO stock from 7/31/2026 to 11/9/2026 was primarily driven by a -5.3% change in the company's P/E Multiple.| (LTM values as of) | 7312026 | 11092026 | Change |
|---|---|---|---|
| Stock Price ($) | 93.77 | 93.57 | -0.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 30,178 | 31,198 | 3.4% |
| Net Income Margin (%) | 15.4% | 16.0% | 3.7% |
| P/E Multiple | 22.9 | 21.7 | -5.3% |
| Shares Outstanding (Mil) | 1,137 | 1,157 | -1.7% |
| Cumulative Contribution | -0.2% |
Market Drivers
7/31/2026 to 11/9/2026| Return | Correlation | |
|---|---|---|
| SO | -0.2% | |
| Market (SPY) | 0.8% | -13.8% |
| Sector (XLU) | -1.3% | 81.6% |
Fundamental Drivers
The -1.6% change in SO stock from 4/30/2026 to 11/9/2026 was primarily driven by a -11.5% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 11092026 | Change |
|---|---|---|---|
| Stock Price ($) | 95.12 | 93.57 | -1.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 30,174 | 31,198 | 3.4% |
| Net Income Margin (%) | 14.5% | 16.0% | 10.7% |
| P/E Multiple | 24.5 | 21.7 | -11.5% |
| Shares Outstanding (Mil) | 1,124 | 1,157 | -2.9% |
| Cumulative Contribution | -1.6% |
Market Drivers
4/30/2026 to 11/9/2026| Return | Correlation | |
|---|---|---|
| SO | -1.6% | |
| Market (SPY) | 5.0% | -22.5% |
| Sector (XLU) | -5.9% | 83.8% |
Fundamental Drivers
The 2.8% change in SO stock from 10/31/2025 to 11/9/2026 was primarily driven by a 7.9% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 10312025 | 11092026 | Change |
|---|---|---|---|
| Stock Price ($) | 91.03 | 93.57 | 2.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 28,912 | 31,198 | 7.9% |
| Net Income Margin (%) | 15.4% | 16.0% | 3.8% |
| P/E Multiple | 22.5 | 21.7 | -3.6% |
| Shares Outstanding (Mil) | 1,102 | 1,157 | -4.8% |
| Cumulative Contribution | 2.8% |
Market Drivers
10/31/2025 to 11/9/2026| Return | Correlation | |
|---|---|---|
| SO | 2.8% | |
| Market (SPY) | 11.3% | -15.6% |
| Sector (XLU) | 0.4% | 79.7% |
Fundamental Drivers
The 54.2% change in SO stock from 10/31/2023 to 11/9/2026 was primarily driven by a 43.2% change in the company's Net Income Margin (%).| (LTM values as of) | 10312023 | 11092026 | Change |
|---|---|---|---|
| Stock Price ($) | 60.69 | 93.57 | 54.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 27,653 | 31,198 | 12.8% |
| Net Income Margin (%) | 11.2% | 16.0% | 43.2% |
| P/E Multiple | 21.5 | 21.7 | 1.1% |
| Shares Outstanding (Mil) | 1,092 | 1,157 | -5.6% |
| Cumulative Contribution | 54.2% |
Market Drivers
10/31/2023 to 11/9/2026| Return | Correlation | |
|---|---|---|
| SO | 54.2% | |
| Market (SPY) | 86.2% | -2.0% |
| Sector (XLU) | 59.3% | 75.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| SO Return | 16% | 8% | 2% | 22% | 9% | 10% | 89% |
| Peers Return | 16% | -2% | -13% | 26% | 19% | 16% | 73% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 96% |
Monthly Win Rates [3] | |||||||
| SO Win Rate | 50% | 67% | 50% | 58% | 50% | 45% | |
| Peers Win Rate | 58% | 58% | 50% | 62% | 65% | 58% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 36% | |
Max Drawdowns [4] | |||||||
| SO Max Drawdown | -8% | -23% | -15% | -13% | -15% | -16% | |
| Peers Max Drawdown | -13% | -26% | -27% | -13% | -12% | -16% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: DUK, NEE, D, AEP, ETR. See SO Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 11/9/2026 (YTD)
How Low Can It Go
| Event | SO | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -12.7% | -9.5% |
| % Gain to Breakeven | 14.6% | 10.5% |
| Time to Breakeven | 60 days | 24 days |
| 2020 COVID-19 Crash | ||
| % Loss | -37.0% | -33.7% |
| % Gain to Breakeven | 58.7% | 50.9% |
| Time to Breakeven | 393 days | 140 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -10.6% | -3.7% |
| % Gain to Breakeven | 11.8% | 3.9% |
| Time to Breakeven | 182 days | 6 days |
| 2013 Taper Tantrum | ||
| % Loss | -13.5% | -0.2% |
| % Gain to Breakeven | 15.6% | 0.2% |
| Time to Breakeven | 191 days | 1 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -27.3% | -53.4% |
| % Gain to Breakeven | 37.5% | 114.4% |
| Time to Breakeven | 412 days | 1085 days |
In The Past
Southern's stock fell -1.8% during the 2025 US Tariff Shock. Such a loss loss requires a 1.8% gain to breakeven.
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Asset Allocation
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| Event | SO | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -37.0% | -33.7% |
| % Gain to Breakeven | 58.7% | 50.9% |
| Time to Breakeven | 393 days | 140 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -27.3% | -53.4% |
| % Gain to Breakeven | 37.5% | 114.4% |
| Time to Breakeven | 412 days | 1085 days |
In The Past
Southern's stock fell -1.8% during the 2025 US Tariff Shock. Such a loss loss requires a 1.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Southern (SO)
Southern Company (SO) is a large energy company primarily focused on the generation, transmission, and distribution of electricity, complemented by significant natural gas operations. Through its various subsidiaries, the company manages everything from power production and delivery to natural gas infrastructure and supply. Its operations are segmented across gas distribution, gas pipeline investments, wholesale gas services, and gas marketing, indicating a comprehensive involvement in both the electric and natural gas utility sectors.
The company's core products and services revolve around providing essential energy. For electricity, Southern Company operates a diverse portfolio of generation assets, including hydroelectric, fossil fuel, nuclear, solar, wind, and battery storage facilities, selling power to both retail and wholesale markets. In its natural gas business, it distributes natural gas through an extensive network of pipelines and storage facilities, also providing gas marketing and wholesale services. Additionally, Southern Company offers some digital wireless communications and fiber optics services.
Southern Company serves a substantial customer base, totaling approximately 8.7 million electric and gas utility customers. These customers span residential, commercial, and industrial sectors. Its natural gas distribution services primarily reach customers in Illinois, Georgia, Virginia, and Tennessee, while its electricity operations cover a broader region. The company's market focus is on delivering reliable energy and utility services to communities and businesses within its service territories.
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- Southern Company is like Con Edison (ED), but scaled up to serve millions of electricity and natural gas customers across multiple U.S. states.
- Think of it as a huge, diversified energy provider similar to NextEra Energy (NEE), but with a massive integrated natural gas distribution and pipeline business in addition to its electricity operations.
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- Electricity Generation, Transmission, and Distribution: Provides electricity to retail and wholesale markets.
- Natural Gas Distribution: Delivers natural gas to residential, commercial, and industrial customers.
- Wholesale Gas Services: Provides natural gas to wholesale customers.
- Gas Marketing Services: Markets and sells natural gas products and services.
- Gas Pipeline Investments: Involves investment in and management of natural gas pipeline infrastructure.
- Digital Wireless Communications Services: Offers digital wireless communication solutions.
- Fiber Optics Services: Provides fiber optic infrastructure and related services.
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The Southern Company (SO) primarily sells electricity and natural gas directly to end-users. Its major customer categories are:
- Residential customers
- Commercial customers
- Industrial customers
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Christopher C. Womack, Chairman of the Board, President and Chief Executive Officer
Christopher C. Womack has over 35 years of experience in the U.S. energy sector. He has held various leadership positions within Southern Company, including senior vice president of Human Resources and chief people officer, and president of External Affairs. Prior to his current role, he served as chairman, president and CEO of Georgia Power, Southern Company's largest subsidiary. Womack joined Southern Company in 1988. He also served as executive vice president of external affairs at Georgia Power, senior vice president and senior production officer of Southern Company Generation, senior vice president of human resources and chief people officer at Southern Company, and senior vice president of public relations and corporate services at Alabama Power. Before joining Southern Company, he worked on Capitol Hill for the U.S. House of Representatives.
David P. Poroch, Executive Vice President and Chief Financial Officer
David P. Poroch joined Southern Company in 2012. He previously served as senior vice president, comptroller and chief accounting officer of Southern Company. Prior to that, he held CFO positions at Georgia Power and Southern Company Gas. Before joining Southern Company, Poroch was a partner at Deloitte & Touche LLP, with nearly two decades of experience in the utility sector. He has also served as chief audit executive for Southern Company Services.
Stan W. Connally, Jr., Executive Vice President, Chief Operating Officer
Stan W. Connally, Jr. served as chairman, president and CEO of former subsidiary Gulf Power from 2012 to 2018. He has held senior leadership roles at each of the system's regulated electric operating companies, including senior vice president and senior production officer for Georgia Power, where he was responsible for fossil and hydroelectric generation. He joined Southern Company in 1989 as a co-op engineering student at Plant Yates.
Sloane Drake, Executive Vice President and Chief Human Resources Officer
Sloane Drake is the Executive Vice President and Chief Human Resources Officer for Southern Company.
Sterling Spainhour, Executive Vice President, Chief Legal Officer
Sterling Spainhour previously served as senior vice president, general counsel and chief compliance officer for Georgia Power, and as senior vice president and general counsel of Southern Company Services. Before joining Southern Company, Spainhour was a partner at Jones Day, focusing on mergers, acquisitions and corporate governance, and served as counsel for CNN.
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- Regulatory and Policy Shifts Towards Decarbonization and Clean Energy Transition: As a utility with significant investments in fossil fuel generation (24 fossil fuel generating stations) and three nuclear generating stations, Southern Company is highly susceptible to changes in environmental regulations, carbon emission standards, and broader energy policies favoring decarbonization. Stricter mandates, carbon pricing, or accelerated shifts to renewable energy could render existing assets uneconomical prematurely, require substantial capital investment for compliance, or force costly operational changes. The transition to a cleaner energy grid, while an area of investment for the company, presents a continuous risk regarding the pace, cost, and technological challenges involved.
- Large Capital Project Execution Risk: Southern Company's business involves developing, constructing, acquiring, owning, and managing power generation assets, including renewable energy projects. Large-scale construction and infrastructure projects in the utility sector are often complex, long-duration endeavors that are prone to cost overruns, schedule delays, and unforeseen technical challenges. Such issues can significantly impact the company's financial performance, regulatory cost recovery, and shareholder value, as evidenced by historical projects within the industry and for Southern Company specifically.
- Impacts of Climate Change and Extreme Weather Events: The company operates extensive physical infrastructure, including 76,289 miles of natural gas pipelines, numerous power plants, and electricity transmission and distribution networks. This infrastructure is vulnerable to physical damage and operational disruptions caused by increasingly frequent and intense extreme weather events, such as hurricanes, severe storms, heatwaves, and wildfires, which are exacerbated by climate change. These events can lead to significant repair and restoration costs, prolonged service outages, increased operational expenses for emergency response, and potential liabilities, directly impacting financial performance and reliability.
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Widespread adoption of distributed energy resources (such as rooftop solar, community microgrids, and battery storage) by residential, commercial, and industrial customers. This trend allows consumers to generate and store their own electricity, reducing their reliance on the traditional centralized grid for generation and potentially transmission services, thereby threatening the core revenue streams of a traditional utility like Southern Company.
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Electricity Services
The addressable market for Southern Company's electricity services can be measured by its total operating revenues from electricity sales within its service territories. For 2024, Southern Company reported the following:- Retail Electric Revenues: $18,877 million (U.S. Region: Alabama, Georgia, and Mississippi)
- Wholesale Electric Revenues: $1,926 million (U.S. Region: primarily across the country, served by Southern Power)
Natural Gas Distribution Services
The addressable market for Southern Company's natural gas distribution services can be measured by its total operating revenues from natural gas distribution and the broader U.S. natural gas distribution market.- Natural Gas Distribution Revenues: $3,815 million (U.S. Region: Illinois, Georgia, Virginia, and Tennessee)
- Other Natural Gas Revenues (including marketing services): $525 million (U.S. Region: Illinois, Georgia, Virginia, and Tennessee, and other marketing service areas)
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Southern Company (SO) is expected to experience future revenue growth over the next two to three years driven by several key factors:
- Robust Electric Load Growth from Data Centers and Industrial Expansion: Southern Company anticipates significant growth in electric sales, particularly from the expansion of data centers and increased industrial development across its service territories in the Southeast. The company projects electric load growth of around 8% between 2025 and 2029, with retail electric sales growth of at least 3% in 2026 and a powerful 10% average annual retail electricity sales growth from 2026 to 2030. Georgia Power, a subsidiary, is specifically projected to see approximately 13% average annual growth in total retail electric sales over the same period, underscoring its central role in supplying power for the region's expanding economy and data center build-out.
- Substantial Capital Investments in Regulated Utilities and Infrastructure Modernization: The company has outlined a significant multi-year capital investment plan, including an $81 billion base capital plan over the next five years, with approximately 95% allocated to state-regulated utilities. These investments target grid modernization, transmission system upgrades, and new generation facilities, which are expected to drive approximately 9% average annual regulated rate-base growth through 2030. This growth in the rate base forms a cornerstone of the company's financial outlook and supports its long-term growth plan.
- Expansion of Renewable Energy and Battery Storage Systems: Southern Company is actively investing in and acquiring renewable assets, including major solar-plus-storage projects. The company's 2025 Integrated Resource Plan for Georgia Power also outlines plans to procure 4,000 MW of renewable energy by 2035, with 1,100 MW proposed in this plan, and to add over 1,500 MW of battery energy storage in the coming years. These initiatives contribute to revenue diversification and meet the evolving demand for cleaner energy solutions.
- Customer Growth and Increased Usage in Electric and Gas Businesses: Beyond large industrial customers, Southern Company continues to experience growth in its residential electric and natural gas customer base, alongside increased usage. For instance, the company added 57,000 residential electric customers and 26,000 natural gas customers during 2024. In Q2 2025, retail electricity sales grew by 3%, with notable increases in residential and industrial sectors, and the company added over 15,000 new electric customers. This consistent customer acquisition and increased demand contribute to overall revenue growth.
- Development of New Generation Facilities, Including Nuclear and Natural Gas: The completion of Vogtle Unit 4 in April 2024 added 2,200 MW of zero-carbon baseload power, significantly bolstering grid reliability and serving as a cornerstone of the company's decarbonization strategy. Furthermore, Southern Company is undertaking construction of 2.5 gigawatts of new generation in Georgia and Alabama, including natural gas and battery storage, scheduled to come online within two years. These new generation facilities expand capacity and contribute to the company's ability to meet growing energy demand and drive revenue.
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Capital Allocation Decisions (Last 3-5 Years) for Southern Company (SO)
Share Repurchases
- Southern Company intends to use a portion of the net proceeds from a November 2025 equity units offering to repurchase a portion of its Series 2023A Convertible Senior Notes due December 15, 2025, and Series 2024A Convertible Senior Notes due June 15, 2027.
- As of December 31, 2025, Southern Company's quarterly stock buybacks reflected a value of -1.533 billion.
- The company's buyback yield stood at -0.64% as of March 2026.
Share Issuance
- In November 2025, Southern Company completed a public offering of 40,000,000 equity units, generating $2 billion in gross proceeds, which included the full exercise of the underwriters' over-allotment option.
- This offering initially planned to sell 35 million equity units for an aggregate stated amount of $1.75 billion, with an option for underwriters to purchase an additional 5 million units ($250 million).
- As of August 2025, the company had also utilized $1.2 billion in at-the-market (ATM) equity issuances to support capital structure resilience.
Inbound Investments
- Southern Company and its subsidiaries secured a historic $26.5 billion loan package from the U.S. Department of Energy (DOE) in February 2026, aimed at enhancing power generation and grid reliability.
Capital Expenditures
- Southern Company has increased its five-year capital spending plan to $81 billion for 2026-2030, marking an $18 billion or approximately 30% increase from its forecast just one year prior.
- This expanded capital plan is primarily driven by significant new growth infrastructure investments to meet surging electricity demand, particularly from hyperscale data centers and industrial customers across Alabama, Georgia, and Mississippi.
- Approximately $42 billion of the $81 billion capital plan through 2030 is allocated to generation, modernization, and transmission projects, with 95% directed to state-regulated utilities.
Peer Outperformance in Electric Utilities
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| SO | Southern | 6.0% | 21.7x | 5.7% | 52.4% | 77.3% | — |
| VST | Vistra | 10.0% | 16.6x | -29.5% | 298.4% | 654.5% | +577pp |
| ETR | Entergy | 3.7% | 25.5x | 17.9% | 155.1% | 162.8% | +85pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Independent Power Producers & Energy Traders | 5 | -42.7% | 99.7% | 172.5% | NRG 217% · OKLO 172% · TAC 28% |
| Multi-Utilities | 18 | 6.1% | 63.2% | 53.6% | NI 111% · MDU 110% · PNW 109% |
| Electric Utilities ← | 24 | 5.7% | 52.6% | 50.8% | VST 655% · ETR 163% · AEP 82% |
| Gas Utilities | 10 | 6.8% | 68.2% | 44.7% | ATO 111% · SR 79% · NJR 69% |
| Water Utilities | 11 | 11.4% | 10.2% | -6.1% | WTRG 11% · AWR 8% · HTO -1% |
| Renewable Electricity | 5 | -70.2% | -73.7% | -89.9% | CWEN 23% · ORA 21% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 102.47 |
| Mkt Cap | 85.1 |
| Rev LTM | 26,218 |
| Op Inc LTM | 6,670 |
| FCF LTM | -4,606 |
| FCF 3Y Avg | -2,409 |
| CFO LTM | 9,028 |
| CFO 3Y Avg | 8,356 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 9.9% |
| Rev Chg 3Y Avg | 5.5% |
| Rev Chg Q | 13.3% |
| QoQ Delta Rev Chg LTM | 3.5% |
| Op Inc Chg LTM | 7.1% |
| Op Inc Chg 3Y Avg | 11.9% |
| Op Mgn LTM | 26.1% |
| Op Mgn 3Y Avg | 26.3% |
| QoQ Delta Op Mgn LTM | 0.6% |
| CFO/Rev LTM | 33.9% |
| CFO/Rev 3Y Avg | 35.3% |
| FCF/Rev LTM | -22.1% |
| FCF/Rev 3Y Avg | -12.9% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 85.1 |
| P/S | 3.3 |
| P/Op Inc | 13.2 |
| P/EBIT | 11.8 |
| P/E | 21.2 |
| P/CFO | 9.7 |
| Total Yield | 8.1% |
| Dividend Yield | 3.0% |
| FCF Yield 3Y Avg | -4.3% |
| D/E | 0.7 |
| Net D/E | 0.7 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 9.6% |
| 3M Rtn | 3.6% |
| 6M Rtn | 0.6% |
| 12M Rtn | 8.3% |
| 3Y Rtn | 73.3% |
| 1M Excs Rtn | 15.2% |
| 3M Excs Rtn | 7.4% |
| 6M Excs Rtn | 1.1% |
| 12M Excs Rtn | -0.2% |
| 3Y Excs Rtn | -1.0% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Traditional Electric Operating Companies | 22,056 | 19,977 | 18,358 | 20,408 | 16,614 |
| Southern Company Gas | 5,044 | 4,456 | 4,702 | 5,962 | 4,380 |
| Southern Power | 2,198 | 2,014 | 2,189 | 3,369 | 2,216 |
| All Other | 893 | 843 | 718 | 593 | 582 |
| Eliminations | -161 | -178 | -165 | -149 | -149 |
| Electric Utilities-Eliminations | -477 | -388 | -549 | -904 | -530 |
| Total | 29,553 | 26,724 | 25,253 | 29,279 | 23,113 |
| $ Mil | 2004 | 2003 | 2002 |
|---|---|---|---|
| Electric Utilities | 1,421 | 1,424 | 1,296 |
| All Other | 112 | 50 | 23 |
| Total | 1,533 | 1,474 | 1,319 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Traditional Electric Operating Companies | 4,582 | 4,145 | 3,637 | 3,318 | 1,981 |
| Southern Company Gas | 732 | 740 | 615 | 572 | 539 |
| Southern Power | 125 | 328 | 357 | 354 | 266 |
| Electric Utilities-Eliminations | 0 | 0 | 0 | 0 | 0 |
| Eliminations | -7 | -27 | 2 | -9 | -9 |
| All Other | -1,091 | -785 | -635 | -711 | -384 |
| Total | 4,341 | 4,401 | 3,976 | 3,524 | 2,393 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Traditional Electric Operating Companies | 114,287 | 105,577 | 100,429 | 95,861 | 89,051 |
| Southern Company Gas | 27,387 | 26,177 | 25,083 | 24,621 | 23,560 |
| Southern Power | 12,657 | 12,653 | 12,761 | 13,081 | 13,390 |
| All Other | 2,829 | 2,371 | 2,446 | 2,665 | 2,975 |
| Eliminations | -525 | -573 | -843 | -678 | -775 |
| Electric Utilities-Eliminations | -915 | -1,025 | -545 | -659 | -667 |
| Total | 155,720 | 145,180 | 139,331 | 134,891 | 127,534 |
Price Behavior
| Market Price | $93.57 | |
| Market Cap ($ Bil) | 108.3 | |
| First Trading Date | 12/31/1981 | |
| Distance from 52W High | -4.0% | |
| 50 Days | 200 Days | |
| DMA Price | $88.28 | $91.69 |
| DMA Trend | down | indeterminate |
| Distance from DMA | 6.0% | 2.0% |
| 3M | 1YR | |
| Volatility | 17.3% | 17.9% |
| Downside Capture | -32.89 | -32.59 |
| Upside Capture | -34.12 | -23.09 |
| Correlation (S&P 500) | -18.4% | -17.0% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.89 | -0.31 | -0.32 | -0.40 | -0.24 | -0.02 |
| Up Beta | 0.06 | 0.11 | -0.04 | -0.46 | -0.20 | 0.01 |
| Down Beta | -0.78 | -1.12 | -1.06 | -0.29 | -0.08 | 0.01 |
| Up Capture | 8% | 9% | -17% | -31% | -16% | 1% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 15 | 22 | 30 | 60 | 126 | 393 |
| Down Capture | -190% | -44% | -22% | -55% | -54% | -46% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 6 | 20 | 33 | 65 | 123 | 355 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SO | |
|---|---|---|---|---|
| SO | 6.4% | 17.9% | 0.18 | - |
| Sector ETF (XLU) | 1.1% | 15.8% | -0.13 | 80.1% |
| Equity (SPY) | 13.3% | 13.7% | 0.65 | -16.0% |
| Gold (GLD) | 3.7% | 28.8% | 0.12 | 1.2% |
| Commodities (DBC) | 38.2% | 21.3% | 1.42 | -1.9% |
| Real Estate (VNQ) | 13.7% | 14.3% | 0.65 | 47.3% |
| Bitcoin (BTCUSD) | -25.3% | 43.6% | -0.55 | -11.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SO | |
|---|---|---|---|---|
| SO | 12.5% | 18.9% | 0.51 | - |
| Sector ETF (XLU) | 8.5% | 17.4% | 0.33 | 82.1% |
| Equity (SPY) | 11.8% | 17.3% | 0.51 | 19.9% |
| Gold (GLD) | 17.8% | 19.1% | 0.75 | 14.2% |
| Commodities (DBC) | 8.0% | 19.6% | 0.29 | 5.4% |
| Real Estate (VNQ) | 1.5% | 18.9% | -0.03 | 52.3% |
| Bitcoin (BTCUSD) | 4.4% | 51.6% | 0.27 | 2.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SO | |
|---|---|---|---|---|
| SO | 10.8% | 22.0% | 0.44 | - |
| Sector ETF (XLU) | 9.4% | 19.3% | 0.41 | 87.6% |
| Equity (SPY) | 15.3% | 18.0% | 0.72 | 40.2% |
| Gold (GLD) | 12.1% | 16.5% | 0.60 | 13.7% |
| Commodities (DBC) | 7.6% | 18.1% | 0.33 | 9.3% |
| Real Estate (VNQ) | 6.1% | 20.7% | 0.25 | 61.3% |
| Bitcoin (BTCUSD) | 60.0% | 66.3% | 1.00 | 6.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 11/10/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/5/2026 | 0.2% | ||
| 7/30/2026 | -1.8% | -3.1% | -6.5% |
| 4/30/2026 | 3.4% | 0.0% | -0.7% |
| 2/19/2026 | 4.4% | 5.4% | 5.7% |
| 10/30/2025 | 1.7% | -2.2% | -4.0% |
| 7/31/2025 | -0.4% | -0.2% | -2.0% |
| 5/1/2025 | -0.5% | 0.2% | -1.2% |
| 2/20/2025 | 1.5% | 2.6% | 4.0% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 15 | 14 | 15 |
| # Negative | 9 | 9 | 8 |
| Median Positive | 1.7% | 1.6% | 3.6% |
| Median Negative | -0.7% | -2.1% | -2.5% |
| Max Positive | 4.8% | 5.5% | 8.9% |
| Max Negative | -3.3% | -3.1% | -6.5% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/5/2026 | 0.2% | ||
| 7/30/2026 | -1.8% | -3.1% | -6.5% |
| 4/30/2026 | 3.4% | 0.0% | -0.7% |
| 2/19/2026 | 4.4% | 5.4% | 5.7% |
| 10/30/2025 | 1.7% | -2.2% | -4.0% |
| 7/31/2025 | -0.4% | -0.2% | -2.0% |
| 5/1/2025 | -0.5% | 0.2% | -1.2% |
| 2/20/2025 | 1.5% | 2.6% | 4.0% |
| 10/31/2024 | 1.9% | -2.2% | 0.6% |
| 8/1/2024 | 4.8% | 4.5% | 3.6% |
| 5/2/2024 | 1.1% | 4.2% | 8.5% |
| 2/15/2024 | -1.4% | 0.3% | 3.0% |
| 11/2/2023 | 2.5% | 0.2% | 5.6% |
| 8/3/2023 | -3.3% | -2.5% | -3.6% |
| 4/27/2023 | 1.3% | 1.0% | -2.9% |
| 2/16/2023 | -1.4% | -2.0% | 2.8% |
| 10/27/2022 | -0.7% | -1.3% | 3.0% |
| 7/28/2022 | 3.5% | 5.5% | 8.9% |
| 4/28/2022 | 2.9% | 1.5% | 3.4% |
| 2/17/2022 | -0.1% | -2.1% | 6.0% |
| 11/4/2021 | -0.1% | 2.1% | 1.5% |
| 7/29/2021 | 0.7% | 0.1% | 4.4% |
| 4/29/2021 | 1.3% | 1.7% | -0.1% |
| 2/18/2021 | 1.0% | -1.5% | 1.9% |
| SUMMARY STATS | |||
| # Positive | 15 | 14 | 15 |
| # Negative | 9 | 9 | 8 |
| Median Positive | 1.7% | 1.6% | 3.6% |
| Median Negative | -0.7% | -2.1% | -2.5% |
| Max Positive | 4.8% | 5.5% | 8.9% |
| Max Negative | -3.3% | -3.1% | -6.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 11/05/2026 | 10-Q |
| 06/30/2026 | 07/30/2026 | 10-Q |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 02/19/2026 | 10-K |
| 09/30/2025 | 10/30/2025 | 10-Q |
| 06/30/2025 | 07/31/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/20/2025 | 10-K |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/15/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 04/27/2023 | 10-Q |
| 12/31/2022 | 02/16/2023 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 11/05/2026 | 10-Q |
| 06/30/2026 | 07/30/2026 | 10-Q |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 02/19/2026 | 10-K |
| 09/30/2025 | 10/30/2025 | 10-Q |
| 06/30/2025 | 07/31/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/20/2025 | 10-K |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/15/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 04/27/2023 | 10-Q |
| 12/31/2022 | 02/16/2023 | 10-K |
| 09/30/2022 | 10/27/2022 | 10-Q |
| 06/30/2022 | 07/28/2022 | 10-Q |
| 03/31/2022 | 04/28/2022 | 10-Q |
| 12/31/2021 | 02/17/2022 | 10-K |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 07/29/2021 | 10-Q |
| 03/31/2021 | 04/29/2021 | 10-Q |
| 12/31/2020 | 02/18/2021 | 10-K |
| 09/30/2020 | 10/29/2020 | 10-Q |
| 06/30/2020 | 07/30/2020 | 10-Q |
| 03/31/2020 | 04/30/2020 | 10-Q |
| 12/31/2019 | 02/20/2020 | 10-K |
Recent Forward Guidance
Updated 11/6/2026Latest: Q3 2026 Earnings Reported 11/5/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Remaining Pre-tax Accelerated Depreciation and Decommissioning Costs | Reported | 100.00 Mil | -51.2% | Lowered | Guidance: 205.00 Mil for 2026 | |||
| 2027 Remaining Pre-tax Accelerated Depreciation and Decommissioning Costs | Reported | 135.00 Mil | 12.5% | Raised | Guidance: 120.00 Mil for 2027 | |||
Prior: Q1 2026 Earnings Reported 4/30/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Pre-tax Accelerated Depreciation | Reported | 335.00 Mil | -31.6% | Lowered | Guidance: 490.00 Mil for 2026 | |||
| 2027 Pre-tax Accelerated Depreciation | Reported | 100.00 Mil | 0 | Affirmed | Guidance: 100.00 Mil for 2027 | |||
Q4 2025 Earnings Reported 2/19/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Pre-tax Accelerated Depreciation | Reported | 490.00 Mil | 53.1% | Raised | Guidance: 320.00 Mil for 2026 | |||
| 2027 Pre-tax Accelerated Depreciation | Reported | 100.00 Mil | 300.0% | Raised | Guidance: 25.00 Mil for 2027 | |||
Insider Activity
Updated 11/9/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Spainhour, Sterling A JR | EVP & CLO | Direct | Sell | 11092026 | 91.81 | 3,333 | 306,003 | 2,927,454 | Form |
| 2 | Kim, Matthew M | Comptroller | Direct | Sell | 11032026 | 93.39 | 100 | 9,339 | 447,151 | Form |
| 3 | Kim, Matthew M | Comptroller | Direct | Sell | 10012026 | 82.73 | 100 | 8,273 | 404,384 | Form |
| 4 | Kim, Matthew M | Comptroller | Direct | Sell | 9042026 | 88.87 | 1,400 | 124,418 | 443,284 | Form |
| 5 | Sena, Peter P Iii | Chairman,President & CEO, SNC | Direct | Sell | 9032026 | 88.59 | 4,266 | 377,925 | 2,386,172 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Spainhour, Sterling A JR | EVP & CLO | Direct | Sell | 11092026 | 91.81 | 3,333 | 306,003 | 2,927,454 | Form |
| 2 | Kim, Matthew M | Comptroller | Direct | Sell | 11032026 | 93.39 | 100 | 9,339 | 447,151 | Form |
| 3 | Kim, Matthew M | Comptroller | Direct | Sell | 10012026 | 82.73 | 100 | 8,273 | 404,384 | Form |
| 4 | Kim, Matthew M | Comptroller | Direct | Sell | 9042026 | 88.87 | 1,400 | 124,418 | 443,284 | Form |
| 5 | Sena, Peter P Iii | Chairman,President & CEO, SNC | Direct | Sell | 9032026 | 88.59 | 4,266 | 377,925 | 2,386,172 | Form |
| 6 | Kim, Matthew M | Comptroller | Direct | Sell | 9032026 | 88.45 | 100 | 8,845 | 566,040 | Form |
| 7 | Kim, Matthew M | Comptroller | Direct | Sell | 8042026 | 94.28 | 100 | 9,428 | 611,689 | Form |
| 8 | Kim, Matthew M | Comptroller | Direct | Sell | 7022026 | 95.77 | 100 | 9,577 | 630,933 | Form |
| 9 | Kim, Matthew M | Comptroller | Direct | Sell | 6012026 | 91.16 | 100 | 9,116 | 609,678 | Form |
| 10 | Kim, Matthew M | Comptroller | Direct | Sell | 5042026 | 96.57 | 100 | 9,657 | 655,517 | Form |
| 11 | Greene, Kimberly S, | Chairman, President & CEO, GPC | Direct | Sell | 3312026 | 96.67 | 25,000 | 2,416,750 | 10,015,205 | Form |
| 12 | Cummiskey, Christopher | EVP | Direct | Sell | 3192026 | 96.55 | 6,669 | 643,892 | 2,973,783 | Form |
| 13 | Connally, Stan W | EVP & COO | Direct | Sell | 3192026 | 97.13 | 12,500 | 1,214,125 | 15,684,650 | Form |
| 14 | Kim, Matthew M | Comptroller | Direct | Sell | 2252026 | 95.15 | 5,123 | 487,453 | 655,393 | Form |
Investor Activity (13F)
Updated Nov 10, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
SO Trade Sentinel
Constructive
CONVICTION RATIONALE
Conviction is constructive, centered on a generational, accelerating demand for electricity that is already secured by 21 gigawatts of long-term contracts. This provides high visibility into future growth. The primary watch item is the execution of the large construction program required to meet this demand and the associated regulatory process for cost recovery.
STOCK ARCHETYPE
Regulated Utility & Infrastructure Growth(Volume of energy sold * Regulated Rate) + (Regulated Rate Base * Allowed Rate of Return) Successfully executing a massive capital expenditure program to grow the regulated rate base at an accelerated pace to meet highly visible, long-term contracted demand, thereby compounding earnings at an above-average rate for a utility.
INVESTMENT THESIS
Evidence suggests yes, as the company is securing unprecedented, long-term demand with protective contracts, fueling a multi-year growth cycle.
- The portfolio of signed large load contracts has grown to 21 gigawatts.
- Weather-normal retail sales growth accelerated to 3.5% in Q3 2026.
- Data center electricity usage increased 59% year-over-year in Q3 2026.
- New data center contracts have minimum terms of at least 15 years.
- Management raised full-year 2026 adjusted earnings guidance to $4.70 per share.
PRIMARY RISK
The massive capital program, with spending at 45.6% of revenue, creates significant risk of construction delays, cost overruns, and unfavorable regulatory outcomes that could impair shareholder returns.
- Trailing-twelve-month free cash flow is negative at $-3.8 billion.
- Capital expenditure is high at 45.6% of trailing-twelve-month revenue.
- Net debt increased to $73.8 billion from $70.4 billion a year earlier.
- Operating expenses grew 9.8% year-over-year, outpacing 7.9% revenue growth.
- The basic share count has increased 6% over the last three years.
| KPI | Status | Rationale |
|---|---|---|
| Weather-Normal Retail Electricity Sales Growth | 3.5% year-over-year growth in the third quarter 2026 - Accelerating | Management described the current sales growth as the "highest level in generations." The trajectory shows significant acceleration over the past year, driven by broad-based demand across all customer classes. |
| Contracted Large Load | 21 gigawatts (GW) of signed contracts as of Q3 2026 - Accelerating | This forward-looking metric quantifies the pipeline of future electricity demand from large customers, primarily data centers and industrial facilities. The rapid growth in this backlog underpins the company's large capital expenditure plans. |
| Data Center Usage Growth | 59% higher year-over-year (Q3 2026) | Measures the accelerating electricity consumption from a key growth driver. This high growth rate validates the thesis of unprecedented demand from the technology sector. |
| Southern Power Investment Coverage Ratio | 97% through 2030 (As of 12/31/2025) | Measures the percentage of Southern Power's asset investment that is covered by long-term contracts, indicating the level of revenue predictability and insulation from wholesale market price volatility. |
Contracted Growth vs. Financial Strain
BULL VIEW
The 21 gigawatts of signed, long-term contracts provide a de-risked and highly visible path to growth that justifies the current investment cycle and will ultimately resolve the negative cash flow.
CORE TENSION
Can the earnings power from the 21 GW contracted backlog come online fast enough to offset the financial strain of negative free cash flow and rising debt?
PREVAILING SENTIMENT
The latest evidence favors the bulls. Management's decision to raise 2026 guidance and signal a potential 2027 raise suggests confidence that the growth is profitable and manageable.
BEAR VIEW
The negative free cash flow of $-3.8 billion and rising net debt of $73.8 billion show the company cannot fund its growth and dividend internally, creating significant financial and execution risk.
| Timeline | Event & Metric To Watch |
|---|---|
by the end of 2026 | Illinois Gas Regulation Outcome Watch: The final report from the Illinois Commission and any subsequent proposed rulemakings or legislative actions affecting Nicor Gas. |
This coming February | Updated Long-Term Outlook Watch: Management plans to refresh its financial outlook through 2031, including capital investment, sales, and earnings expectations. |
1/25/2027 | Peer Earnings Read-Through Watch: Commentary from NEE and DUK management on cost inflation, supply chain constraints, and the pace of data center demand. |
2/8/2027 | Peer Duke Energy Earnings Watch: Peer Duke Energy (DUK) is scheduled to report earnings. |
2/10/2027 | Peer Entergy Earnings Report Watch: Peer Entergy (ETR) is scheduled to report earnings. |
2/17/2027 | Capex And Demand Update Watch: Any announced project delays, cost overruns, or downward revisions to load growth forecasts. Updates on the capital plan size. |
2/17/2027 | Company Earnings Report Watch: Southern Company is scheduled to report its next quarterly earnings. |
| Date | Event | Stock Impact |
|---|---|---|
2026-11-05 | Q3 Earnings Call Held Details: Management reported strong Q3 results, with adjusted EPS of $1.94. They noted weather-normal sales growth of 3.5% in the quarter, led by a 7.3% increase in commercial sales. | +0.2% $93.12 -> $93.34 |
2026-08-03 | Company Announces Convertible Notes Offerings Details: Southern Company announced offerings of $650 million in convertible senior notes due 2027 and $1.5 billion in convertible senior notes due 2029, which were subsequently upsized. | -1.4% $93.77 -> $92.49 |
2026-07-31 | Georgia Power Plant Bowen Update Details: The company celebrated the future of energy production at Plant Bowen, highlighting investments in efficiency, technology, and the construction of new natural gas units and battery energy storage. | -1.5% $93.57 -> $92.18 |
2026-07-30 | Guidance Changes Disclosed Details: The company lowered guidance for 2026 Remaining Pre-Tax Accelerated Depreciation and Decommissioning Costs by -38.8% and raised guidance for the same 2027 metric by 20.0%. | -1.6% $95.26 -> $93.77 |
2026-06-25 | Georgia Power Expands Solar Programs Details: Georgia Power opened enrollment for new Customer Identified Resource programs, expanding how commercial and industrial customers can support their sustainability efforts. The company procured over 2,200 megawatts of new solar. | +1.4% $95.00 -> $96.36 |
Position Sizing
5% - 7%
NORMAL POSITION
Sizing is volatility-based: SO trades at roughly 17% annualized realized (three-month) volatility versus about 10% for the S&P 500 (1.7x the market). A 5% - 7% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
DUK - Duke Energy
Regional Peer ExposureDuke Energy offers similar exposure to the Southeast's 'once-in-a-generation growth' but has a slightly higher operating margin at 27.4% versus Southern's 24.7%.
NEE - NextEra Energy
Capital Efficiency LeaderNextEra Energy demonstrates superior capital efficiency, with a positive 14.2% free-cash-flow margin compared to Southern's negative margin, and a higher 29% operating margin.
A regulated utility transforming into a growth infrastructure play, capitalizing on a generational surge in electricity demand from data centers in the U.S. Southeast.
Southern Company is at the center of a massive economic expansion in the Southeast, driven by data centers and industrial reshoring. The company is leveraging its regulated utility model to sign unprecedented long-term, high-visibility contracts to serve this new demand. This is fueling a multi-year, multi-billion dollar capital investment cycle, which should drive significant growth in its regulated rate base and, consequently, earnings, while using the new revenue streams to maintain rate stability for existing customers.
Continued announcements of new large load contracts, successful and on-budget execution of its large-scale generation and transmission projects, and constructive outcomes from regulatory filings for cost recovery.
A significant slowdown in data center demand, major regulatory pushback or disallowance of cost recovery on new investments, or substantial construction delays and cost overruns.
News articles referencing 'Southern California' or other companies with 'Southern' in their name that are unrelated to Southern Company (SO).
Repricing Catalyst
The market's increasing recognition of the magnitude and durability of the company's growth outlook, driven by the accelerating, contracted large load demand, which management indicated in November 2026 could lead to a raised earnings outlook for 2027 and beyond.
Traditional Electric Operating Companies
$22.2B TTM (74% of Total)What It Is
This segment consists of three vertically integrated utilities (Alabama Power, Georgia Power, and Mississippi Power) that generate, transmit, and distribute electricity to retail customers in three Southeastern states and to wholesale customers in the Southeast.
Who Pays & How
Retail customers (residential, commercial, industrial) and wholesale customers (municipalities, electric cooperatives) pay for reliable electric service within exclusive, regulated service territories.
Competition
Southern Company Gas
$5.4B TTM (18% of Total)What It Is
This segment is an energy services holding company whose primary business is the distribution of natural gas through utilities in four states (Illinois, Georgia, Virginia, and Tennessee) to approximately 4.4 million customers. It is also involved in gas pipeline investments and gas marketing services.
Who Pays & How
Residential, commercial, and industrial customers pay for the distribution of natural gas for heating and other energy needs. The business provides access to a competitive energy source.
Competition
Southern Power
$2.3B TTM (8% of Total)What It Is
This segment develops, constructs, acquires, owns, and manages power generation assets (including natural gas, solar, wind, and battery storage) and sells electricity at market-based rates in the wholesale market. Customers are primarily investor-owned utilities, municipalities, electric cooperatives, and other load-serving entities.
Who Pays & How
Wholesale purchasers pay for generating capacity and electricity, typically through long-term Power Purchase Agreements (PPAs), to meet their own customers' energy needs.
Competition
Southern — Investor Video Playlist
Industry Resources
| Utilities Resources |
| Data.gov Energy Infrastructure |
| Data.gov Energy Resources |
| Utility Dive |
| Electric Utilities Resources |
| T&D World |
| Edison Electric Institute (EEI) |
| Smart Energy International |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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