Southern Company (NYSE:SO) reported mixed fourth-quarter results on Thursday, missing earnings expectations but delivering stronger-than-anticipated revenue growth, sending the stock nearly 2.5% higher in premarket trading.
The U.S. utility group posted adjusted earnings of $0.55 per share for the fourth quarter of 2025, slightly below the $0.57 consensus estimate. However, revenue climbed to $7.0 billion, comfortably beating analyst forecasts of $6.4 billion and rising 10.1% from $6.3 billion in the same period last year.
For the full year, adjusted earnings reached $4.30 per share, up from $4.05 in 2024, while annual revenue advanced 10.6% to $29.6 billion from $26.7 billion.
“2025 was another outstanding year for Southern Company, and it was also a transformative one,” said Chris Womack, chairman, president and CEO. “Southern Company is meeting the growing demand responsibly, while continuing to deliver value and benefits to all of our customers.”
Quarterly adjusted results excluded several one-off items, including a $90 million after-tax charge tied to accelerated depreciation for wind facility repowering, a $92 million after-tax loss related to debt extinguishment, and a $47 million after-tax loss connected to Nicor Gas capital investment disallowances.
Looking ahead, Southern Company issued fiscal 2026 earnings guidance of $4.50 to $4.60 per share, broadly in line with the $4.56 analyst consensus.
Operationally, retail electric sales rose 1.7% year over year in the fourth quarter, with commercial demand leading the gains at 3.0%. Wholesale electricity sales jumped 14.5%, helping to drive the revenue beat.
Southern Company supplies electricity and natural gas to roughly 9 million customers across the Southeastern United States through its regulated electric utilities and gas distribution businesses.