Executive Summary
The Southern Company delivered a solid QQ3 2025 performance with a notable revenue uptick and strong profitability metrics consistent with its regulated utility profile. Revenue for the quarter stood at USD 7.823 billion, rising 7.6% year-over-year and 12.2% quarter-over-quarter, underpinned by favorable operating leverage and the steady demand characteristic of a regulated electric and gas utility franchise. Gross margins remained robust at ~78.0%, with EBITDA of USD 2.778 billion and operating income of USD 2.594 billion, translating to operating margins just above 33%. Net income was USD 1.711 billion, and EPS (diluted) was USD 1.54β1.55, supported by disciplined cost management and a tax regime that preserved meaningful profitability.
From a risk and balance-sheet perspective, the quarter reflects the earnings quality consistent with a rate-regulated business: stable cash flows and margin protection, albeit with a non-trivial interest expense component (USD 0.755 billion) and other expenses of USD 0.483 billion. While the reported figures demonstrate healthy profitability, ongoing capex investments in generation, transmission and distribution, as well as potential regulatory rate-base growth, will be critical to sustaining mid-to-long-term earnings power. Investors should monitor regulatory outcomes, capital deployment efficiency, and any shifts in energy pricing or weather-related demand that could influence the earnings trajectory going into 2026.
Key Performance Indicators
Key Insights
Revenue: USD 7.823B; YoY growth 7.55%; QoQ growth 12.19%. Gross Profit: USD 6.103B; Gross Margin 78.01%; YoY variance 54.39%; QoQ variance 74.87%. Operating Income: USD 2.594B; Operating Margin 33.16%; YoY variance 9.54%; QoQ variance 47.05%. EBITDA: USD 2.778B; EBITDA Margin 35.51%. Net Income: USD 1.711B; Net Margin 21.87%; YoY variance 11.47%; QoQ variance 94.43%. Earnings Per Share (EPS): USD 1.55; Diluted EPS USD 1.54; YoY EPS growth 10.71%; QoQ EPS growth 93.75%. Cash flow and balance shee...
Financial Highlights
Revenue: USD 7.823B; YoY growth 7.55%; QoQ growth 12.19%. Gross Profit: USD 6.103B; Gross Margin 78.01%; YoY variance 54.39%; QoQ variance 74.87%. Operating Income: USD 2.594B; Operating Margin 33.16%; YoY variance 9.54%; QoQ variance 47.05%. EBITDA: USD 2.778B; EBITDA Margin 35.51%. Net Income: USD 1.711B; Net Margin 21.87%; YoY variance 11.47%; QoQ variance 94.43%. Earnings Per Share (EPS): USD 1.55; Diluted EPS USD 1.54; YoY EPS growth 10.71%; QoQ EPS growth 93.75%. Cash flow and balance sheet indicators are not fully disclosed in the provided dataset; available items include interest expense of USD 0.755B, depreciation & amortization of USD 1.422B, and total other income/expenses net of USD -0.483B.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.82B |
7.55% |
12.19% |
| Gross Profit |
6.10B |
54.39% |
74.87% |
| Operating Income |
2.59B |
9.54% |
47.05% |
| Net Income |
1.71B |
11.47% |
94.43% |
| EPS |
1.55 |
10.71% |
93.75% |
Management Commentary
No earnings call transcript or highlights were provided in the dataset. As a result, themes, management commentary, and quotable insights from the QQ3 2025 call could not be extracted.
Forward Guidance
No explicit forward guidance or targets were disclosed in the provided data. Based on the QQ3 2025 results and the typical utility landscape, the longer-term outlook would hinge on regulated rate-base growth, capex execution in generation, transmission, and distribution, and the policy/regulatory environment. Investors should monitor: (1) regulator-approved tariffs and rate cases that affect earnings stability, (2) pace and cost of capital investments in renewables, grid modernization and natural gas infrastructure, and (3) financing costs as interest rates evolve. Achievability of any future targets will depend on regulatory approvals, capital project execution, and macroeconomic conditions affecting financing costs.