Southern Company (NYSE:SO) reported mixed second-quarter fiscal 2026 results on Thursday, with adjusted earnings topping Wall Street expectations while revenue missed estimates. Following the results, the stock fell over 2%.
Adjusted earnings came in at $1.13 per share, beating the analyst consensus estimate of $1.00. Operating revenue was essentially flat year over year at $6.98 billion, below the Street estimate of $7.23 billion. Operating expenses were also broadly unchanged at $5.20 billion.
Revenue from fuel declined 6% year over year to $1.06 billion, while non-fuel revenue increased 2%. Wholesale and other electric revenue rose, offsetting a decline in natural gas sales.
On a GAAP basis, net income attributable to Southern Company increased to $1.17 billion, or $1.03 per share, from $880 million, or 80 cents per share, a year earlier.
The company said adjusted earnings benefited from continued investment in its regulated utilities, customer growth and usage, higher equity-method investment income and lower income taxes, partly offset by higher interest expense.
Chief Executive Officer Chris Womack said the company continued to benefit from strong economic development across the Southeast, with rising electricity demand creating opportunities for long-term growth while supporting reliability and rate stability.
Utility Sales Show Continued Demand
Total kilowatt-hour sales increased 3.9% from a year earlier, driven by a 2.1% rise in retail sales and a 9.2% increase in wholesale sales.
Commercial sales climbed 7.3%, industrial sales edged up 0.1%, while residential sales declined 1.5%.
Southern Company ended the quarter with 9 million regulated utility customers, up 0.7% year over year. Traditional electric operating company customers increased 1%, while Southern Company Gas customers rose 0.3%.
Segment Revenue Mixed
Among the company’s operating businesses, Alabama Power generated revenue of $1.96 billion, down 0.3% year over year.
Georgia Power revenue increased 0.7% to $3.13 billion, while Mississippi Power revenue rose 0.8% to $403 million.
Southern Power revenue declined 2% to $535 million, and Southern Company Gas revenue slipped 1.3% to $966 million.
Outlook
Southern Company affirmed its fiscal 2026 adjusted EPS guidance of $4.50 to $4.60, compared with the analyst consensus estimate of $4.58.
The company also maintained its fiscal 2028 adjusted EPS outlook of $5.25 to $5.45, versus the consensus estimate of $5.36.
Southern Company forecast third-quarter adjusted earnings of $1.65 per share, versus the Wall Street estimate of $1.66.
SO Price Action: Southern shares were down 2.19% at $93.95 at the time of publication on Thursday, according to Benzinga Pro data.
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