Southern Company beats Q3 estimates as data-center demand expands

Transcript intelligence

What changed

Management reported Q3 adjusted EPS of $1.94 and revenue of $8.843 billion, both above estimates. It now projects full-year adjusted earnings of $4.70, above prior guidance. Large-load contracts reached 21 GW, with another 7 GW in late stages. Management said the five-year capital plan could approach $100 billion, about $15 billion above the current $81 billion base plan.

Guidance delta

Raised full-year adjusted earnings outlook to $4.70. Management also expressed confidence in potentially raising the upper end of 2027–2028 guidance; no revised range was supplied in the analysis.

Key takeaways

• Q3 adjusted EPS of $1.94 beat the $1.71 estimate; revenue of $8.843 billion exceeded the $8.375 billion estimate.
• The company reported 21 GW of large-load contracts and another 7 GW in late stages, with data-center electricity usage up 59% quarter over quarter and 52% year to date.
• The five-year capital plan could rise toward $100 billion from an $81 billion base plan, as management cited Southeast economic development and data-center demand.
• Management said base rates would remain flat through at least 2029 and highlighted a $50-per-year residential saving delivered by Georgia Power.

Management priorities

• Meet rising large-load and data-center electricity demand while expanding generation and grid resilience.
• Expand battery storage toward approximately 6 GW by 2030 and advance generation-capacity RFPs in Alabama and Georgia.
• Continue nuclear capacity upgrades with Google and evaluate Department of Energy low-cost loans.