Executive Summary
The Southern Company delivered a cash-generative quarter with meaningful top-line growth in QQ1 2025. Reported revenue of USD 7.775 billion rose 16.99% year over year and 22.61% quarter over quarter, driven by a favorable mix of regulated earnings and higher energy prices within its utility segments. Gross profit reached USD 3.741 billion, yielding a gross margin of 48.12%, while operating income climbed to USD 2.01 billion and net income to USD 1.334 billion, producing EPS of USD 1.21. The improvements in EBITDA (USD 3.675 billion) and margins reflect a combination of rate-based earnings and ongoing efficiency in core utility operations, though the quarter also reflects the high cost of capital that accompanies large-scale grid modernization and asset development.
Key Performance Indicators
QoQ: 149.81% | YoY:18.16%
QoQ: 142.00% | YoY:17.48%
Key Insights
Revenue: USD 7.775B; YoY +16.99%, QoQ +22.61% | Gross Profit: USD 3.741B; YoY +15.32%, QoQ +40.59% | Operating Income: USD 2.01B; YoY +18.03%, QoQ +89.98% | Net Income: USD 1.334B; YoY +18.16%, QoQ +149.81% | EPS: USD 1.21; YoY +17.48%, QoQ +142.00%
Additional metrics: EBITDA USD 3.675B; gross margin 48.12%; EBITDA margin 47.27%; operating margin 25.85%; net margin 17.16%. Liquidity and leverage metrics show current ratio 0.86, quick ratio 0.64, cash ratio 0.17; debt to capitalisation 0.674, d...
Financial Highlights
Revenue: USD 7.775B; YoY +16.99%, QoQ +22.61% | Gross Profit: USD 3.741B; YoY +15.32%, QoQ +40.59% | Operating Income: USD 2.01B; YoY +18.03%, QoQ +89.98% | Net Income: USD 1.334B; YoY +18.16%, QoQ +149.81% | EPS: USD 1.21; YoY +17.48%, QoQ +142.00%
Additional metrics: EBITDA USD 3.675B; gross margin 48.12%; EBITDA margin 47.27%; operating margin 25.85%; net margin 17.16%. Liquidity and leverage metrics show current ratio 0.86, quick ratio 0.64, cash ratio 0.17; debt to capitalisation 0.674, debt to equity 2.07, interest coverage 2.82. Return metrics show ROA 0.9%, ROE 3.94%, ROCE 1.50%. Payout ratio 55.2% with dividend yield ~0.73%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.78B |
16.99% |
22.61% |
| Gross Profit |
3.74B |
15.32% |
40.59% |
| Operating Income |
2.01B |
18.03% |
89.98% |
| Net Income |
1.33B |
18.16% |
149.81% |
| EPS |
1.21 |
17.48% |
142.00% |
Key Financial Ratios
operatingProfitMargin
25.9%
operatingCashFlowPerShare
$1.14
freeCashFlowPerShare
$-1.08
dividendPayoutRatio
55.2%
Management Commentary
Note: The earnings transcript is not provided in the data set. Consequently, there are no management quotes available in this dataset to summarize by themes or provide direct quotes and context.
Forward Guidance
There is no explicit forward guidance within the provided data. However, The Southern Company has a historically large capex program to support grid modernization, generation asset development, and transmission investments, which implies ongoing reliance on regulated earnings to fund capital deployment. The near-term outlook will be sensitive to regulatory rate approvals, interest costs, and the pace of capital expenditures. Investors should monitor: (1) regulatory trajectories and rate-base growth, (2) the evolution of interest expense as debt levels remain elevated, (3) progress on capital projects and their impact on free cash flow generation, and (4) changes in demand and weather patterns affecting load and gas volumes.