Southern Company reports third-quarter 2024 earnings
Excluding the items described under "Net Income – Excluding Items" in the table below,
Non-GAAP Financial Measures |
Three Months Ended |
|
Year-to-Date |
||
Net Income – Excluding Items (in millions) |
2024 |
2023 |
|
2024 |
2023 |
Net Income – As Reported |
$ 1,535 |
$ 1,422 |
|
$ 3,867 |
$ 3,121 |
Less: |
|
|
|
|
|
Estimated Loss on |
(3) |
(166) |
|
11 |
(171) |
Tax Impact |
1 |
42 |
|
(16) |
43 |
Acquisition and Disposition Impacts |
— |
(2) |
|
— |
(2) |
Tax Impact |
— |
1 |
|
— |
1 |
Loss on Extinguishment of Debt |
— |
— |
|
— |
(5) |
Tax Impact |
— |
— |
|
— |
1 |
Estimated Loss on Qualifying Infrastructure Plant |
— |
— |
|
— |
(38) |
Tax Impact |
— |
— |
|
— |
10 |
Impairments |
(36) |
— |
|
(36) |
— |
Tax Impact |
9 |
— |
|
9 |
— |
Net Income – Excluding Items |
$ 1,564 |
$ 1,547 |
|
$ 3,899 |
$ 3,282 |
Average Shares Outstanding – (in millions) |
1,097 |
1,092 |
|
1,096 |
1,092 |
Basic Earnings Per Share - Excluding Items |
$ 1.43 |
$ 1.42 |
|
$ 3.56 |
$ 3.01 |
NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.
Adjusted earnings drivers for the third quarter of 2024, as compared with the same period in 2023, were higher utility revenues, partially offset by increased interest expense, depreciation and amortization, non-fuel operations and maintenance expenses, and income taxes.
Third-quarter 2024 operating revenues were
"Our entire company, including our premier, state-regulated electric and gas utilities, continued to perform well during the third quarter," said
"Employees across
About
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Financial Highlights |
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(In Millions Except Earnings Per Share) |
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|
|
|
|
|
|
|
Three Months Ended |
|
Year-To-Date September |
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Net Income – As Reported |
2024 |
|
2023 |
|
2024 |
|
2023 |
Traditional Electric Operating Companies |
$ 1,618 |
|
$ 1,419 |
|
$ 3,630 |
|
$ 2,852 |
|
82 |
|
100 |
|
264 |
|
288 |
|
38 |
|
82 |
|
555 |
|
475 |
Total |
1,738 |
|
1,601 |
|
4,449 |
|
3,615 |
Parent Company and Other |
(203) |
|
(179) |
|
(582) |
|
(494) |
Net Income – As Reported |
$ 1,535 |
|
$ 1,422 |
|
$ 3,867 |
|
$ 3,121 |
|
|
|
|
|
|
|
|
Basic Earnings Per Share(1) |
$ 1.40 |
|
$ 1.30 |
|
$ 3.53 |
|
$ 2.86 |
Average Shares Outstanding |
1,097 |
|
1,092 |
|
1,096 |
|
1,092 |
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures |
Three Months Ended |
|
Year-To-Date September |
||||
Net Income – Excluding Items |
2024 |
|
2023 |
|
2024 |
|
2023 |
Net Income – As Reported |
$ 1,535 |
|
$ 1,422 |
|
$ 3,867 |
|
$ 3,121 |
Less: |
|
|
|
|
|
|
|
Estimated Loss on |
(3) |
|
(166) |
|
11 |
|
(171) |
Tax Impact |
1 |
|
42 |
|
(16) |
|
43 |
Acquisition and Disposition Impacts(3) |
— |
|
(2) |
|
— |
|
(2) |
Tax Impact |
— |
|
1 |
|
— |
|
1 |
Loss on Extinguishment of Debt(4) |
— |
|
— |
|
— |
|
(5) |
Tax Impact |
— |
|
— |
|
— |
|
1 |
Estimated Loss on Qualifying Infrastructure Plant(5) |
— |
|
— |
|
— |
|
(38) |
Tax Impact |
— |
|
— |
|
— |
|
10 |
Impairments(6) |
(36) |
|
— |
|
(36) |
|
— |
Tax Impact |
9 |
|
— |
|
9 |
|
— |
Net Income – Excluding Items |
$ 1,564 |
|
$ 1,547 |
|
$ 3,899 |
|
$ 3,282 |
|
|
|
|
|
|
|
|
Basic Earnings Per Share – Excluding Items |
$ 1.43 |
|
$ 1.42 |
|
$ 3.56 |
|
$ 3.01 |
|
|
|
|
Notes |
|
(1) |
Dilution is not material in any period presented. Diluted earnings per share was |
(2) |
Earnings for the nine months ended |
(3) |
Earnings for the three and nine months ended |
(4) |
Earnings for the nine months ended |
(5) |
Earnings for the nine months ended |
Earnings for the three and nine months ended |
|
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Significant Factors Impacting EPS |
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|
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|
|
|
|
Three Months Ended |
|
Year-To-Date |
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|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
Earnings Per Share – |
|
|
|
|
|
|
|
|
|
|
|
As Reported(1) |
|
|
|
|
$ 0.10 |
|
|
|
|
|
$ 0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
Significant Factors: |
|
|
|
|
|
|
|
|
|
|
|
Traditional Electric Operating Companies |
|
|
|
|
$ 0.18 |
|
|
|
|
|
$ 0.71 |
|
|
|
|
|
(0.02) |
|
|
|
|
|
(0.02) |
|
|
|
|
|
(0.04) |
|
|
|
|
|
0.07 |
Parent Company and Other |
|
|
|
|
(0.02) |
|
|
|
|
|
(0.08) |
Increase in Shares |
|
|
|
|
— |
|
|
|
|
|
(0.01) |
Total – As Reported |
|
|
|
|
$ 0.10 |
|
|
|
|
|
$ 0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year-To-Date |
||||||||
Non-GAAP Financial Measures |
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
Earnings Per Share – |
|
|
|
|
|
|
|
|
|
|
|
Excluding Items |
|
|
|
|
$ 0.01 |
|
|
|
|
|
$ 0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
Total – As Reported |
|
|
|
|
$ 0.10 |
|
|
|
|
|
$ 0.67 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
Estimated Loss on |
|
|
|
|
0.12 |
|
|
|
|
|
0.11 |
Acquisition and Disposition Impacts(3) |
|
|
|
|
— |
|
|
|
|
|
— |
Loss on Extinguishment of Debt(4) |
|
|
|
|
— |
|
|
|
|
|
— |
Estimated Loss on Qualifying Infrastructure Plant(5) |
|
|
|
|
— |
|
|
|
|
|
0.03 |
Impairments(6) |
|
|
|
|
(0.03) |
|
|
|
|
|
(0.02) |
Total – Excluding Items |
|
|
|
|
$ 0.01 |
|
|
|
|
|
$ 0.55 |
|
See Notes on the following page. |
|
|
|
|
Notes |
|
(1) |
Dilution is not material in any period presented. Diluted earnings per share was |
(2) |
Earnings for the nine months ended |
(3) |
Earnings for the three and nine months ended |
(4) |
Earnings for the nine months ended |
(5) |
Earnings for the nine months ended |
(6) |
Earnings for the three and nine months ended |
|
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EPS Earnings Analysis |
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Description |
Three Months Ended September 2024 vs. 2023 |
|
Year-To-Date September 2024 vs. 2023 |
|
|
|
|
Retail Sales |
(3)¢ |
|
2¢ |
|
|
|
|
Retail Revenue Impacts |
32 |
|
72 |
|
|
|
|
Weather |
(1) |
|
19 |
|
|
|
|
Wholesale and Other Operating Revenues |
4 |
|
10 |
|
|
|
|
Non-Fuel Operations and Maintenance Expenses(1) |
(10) |
|
(11) |
|
|
|
|
Depreciation and Amortization |
(3) |
|
(9) |
|
|
|
|
Interest Expense and Other |
(7) |
|
(13) |
|
|
|
|
Income Taxes |
(3) |
|
(8) |
|
|
|
|
Total Traditional Electric Operating Companies |
9¢ |
|
62¢ |
|
|
|
|
|
(2) |
|
(2) |
|
|
|
|
|
(4) |
|
5 |
|
|
|
|
Parent Company and Other |
(2) |
|
(9) |
|
|
|
|
Increase in Shares |
— |
|
(1) |
|
|
|
|
Total Change in EPS (Excluding Items) |
1¢ |
|
55¢ |
|
|
|
|
Estimated Loss on |
12 |
|
11 |
|
|
|
|
Acquisition and Disposition Impacts(3) |
— |
|
— |
|
|
|
|
Loss on Extinguishment of Debt(4) |
— |
|
— |
|
|
|
|
Estimated Loss on Qualifying Infrastructure Plant(5) |
— |
|
3 |
|
|
|
|
Impairments(6) |
(3) |
|
(2) |
|
|
|
|
Total Change in EPS (As Reported) |
10¢ |
|
67¢ |
See Notes on the following page.
|
|
|
|
Notes |
|
(1) |
Excludes gains/losses on asset sales, which are included in "Interest Expense and Other." Includes non-service cost-related benefits income. |
(2) |
Earnings for the nine months ended |
(3) |
Earnings for the three and nine months ended |
(4) |
Earnings for the nine months ended |
(5) |
Earnings for the nine months ended |
(6) |
Earnings for the three and nine months ended |
(7) |
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Consolidated Earnings |
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As Reported |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September |
|
Year-To-Date September |
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|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|
(in millions) |
|
(in millions) |
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Retail electric revenues: |
|
|
|
|
|
|
|
|
|
|
|
Fuel |
$ 1,179 |
|
$ 1,356 |
|
$ (177) |
|
$ 3,250 |
|
$ 3,412 |
|
$ (162) |
Non-fuel |
4,187 |
|
3,783 |
|
404 |
|
10,543 |
|
9,185 |
|
1,358 |
Wholesale electric revenues |
721 |
|
727 |
|
(6) |
|
1,919 |
|
1,930 |
|
(11) |
Other electric revenues |
222 |
|
203 |
|
19 |
|
631 |
|
602 |
|
29 |
Natural gas revenues |
682 |
|
689 |
|
(7) |
|
3,220 |
|
3,417 |
|
(197) |
Other revenues |
283 |
|
222 |
|
61 |
|
820 |
|
662 |
|
158 |
Total operating revenues |
7,274 |
|
6,980 |
|
294 |
|
20,383 |
|
19,208 |
|
1,175 |
Fuel and purchased power |
1,395 |
|
1,574 |
|
(179) |
|
3,843 |
|
4,056 |
|
(213) |
Cost of natural gas |
98 |
|
102 |
|
(4) |
|
852 |
|
1,199 |
|
(347) |
Cost of other sales |
166 |
|
126 |
|
40 |
|
464 |
|
381 |
|
83 |
Non-fuel operations and maintenance |
1,662 |
|
1,424 |
|
238 |
|
4,543 |
|
4,352 |
|
191 |
Depreciation and amortization |
1,210 |
|
1,143 |
|
67 |
|
3,537 |
|
3,365 |
|
172 |
Taxes other than income taxes |
375 |
|
341 |
|
34 |
|
1,155 |
|
1,076 |
|
79 |
Estimated loss on Plant Vogtle Units 3 and 4 |
— |
|
160 |
|
(160) |
|
(21) |
|
160 |
|
(181) |
Total operating expenses |
4,906 |
|
4,870 |
|
36 |
|
14,373 |
|
14,589 |
|
(216) |
Operating income |
2,368 |
|
2,110 |
|
258 |
|
6,010 |
|
4,619 |
|
1,391 |
Allowance for equity funds used during |
58 |
|
66 |
|
(8) |
|
167 |
|
200 |
|
(33) |
Earnings from equity method investments |
31 |
|
32 |
|
(1) |
|
107 |
|
110 |
|
(3) |
Interest expense, net of amounts capitalized |
692 |
|
620 |
|
72 |
|
2,050 |
|
1,812 |
|
238 |
Other income (expense), net |
147 |
|
141 |
|
6 |
|
450 |
|
428 |
|
22 |
Income taxes |
377 |
|
297 |
|
80 |
|
890 |
|
492 |
|
398 |
Net income |
1,535 |
|
1,432 |
|
103 |
|
3,794 |
|
3,053 |
|
741 |
Net income (loss) attributable to |
— |
|
10 |
|
(10) |
|
(73) |
|
(68) |
|
(5) |
Net income attributable to |
$ 1,535 |
|
$ 1,422 |
|
$ 113 |
|
$ 3,867 |
|
$ 3,121 |
|
$ 746 |
|
Certain prior year data may have been reclassified to conform with current year presentation. |
|
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Kilowatt-Hour Sales and Customers |
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|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September |
|
Year-To-Date September |
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|
2024 |
|
2023 |
|
% Change |
|
Weather |
|
2024 |
|
2023 |
|
% Change |
|
Weather |
|
(in millions) |
|
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|
|
|
(in millions) |
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|
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Kilowatt-Hour Sales |
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
Total Sales |
56,035 |
|
55,428 |
|
1.1 % |
|
|
|
152,461 |
|
150,157 |
|
1.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Retail Sales |
41,893 |
|
42,364 |
|
(1.1) % |
|
(0.4) % |
|
114,154 |
|
110,715 |
|
3.1 % |
|
0.6 % |
Residential |
14,677 |
|
15,133 |
|
(3.0) % |
|
(1.5) % |
|
38,442 |
|
36,458 |
|
5.4 % |
|
(0.5) % |
Commercial |
14,279 |
|
14,341 |
|
(0.4) % |
|
0.1 % |
|
38,419 |
|
37,050 |
|
3.7 % |
|
2.1 % |
Industrial |
12,803 |
|
12,751 |
|
0.4 % |
|
0.4 % |
|
36,889 |
|
36,791 |
|
0.3 % |
|
0.3 % |
Other |
134 |
|
139 |
|
(3.5) % |
|
(3.1) % |
|
404 |
|
416 |
|
(2.8) % |
|
(3.0) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Wholesale Sales |
14,142 |
|
13,064 |
|
8.2 % |
|
N/A |
|
38,307 |
|
39,442 |
|
(2.9) % |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended September |
|
|
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|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
||
Regulated Utility Customers |
|
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|
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|
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|
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|||
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Total Regulated Utility Customers |
|
|
|
|
|
8,865 |
|
8,792 |
|
0.8 % |
|
|
|||
Traditional Electric Operating Companies |
|
|
|
4,530 |
|
4,476 |
|
1.2 % |
|
|
|||||
|
|
|
|
|
|
4,335 |
|
4,316 |
|
0.4 % |
|
|
|
|||||||||||
Financial Overview |
|||||||||||
As Reported |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year-To-Date September |
||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
(in millions) |
|
|
|
(in millions) |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ 7,274 |
|
$ 6,980 |
|
4.2 % |
|
$ 20,383 |
|
$ 19,208 |
|
6.1 % |
Earnings Before Income Taxes |
1,912 |
|
1,729 |
|
10.6 % |
|
4,684 |
|
3,545 |
|
32.1 % |
Net Income Available to Common |
1,535 |
|
1,422 |
|
7.9 % |
|
3,867 |
|
3,121 |
|
23.9 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ 2,138 |
|
$ 2,083 |
|
2.6 % |
|
$ 5,803 |
|
$ 5,420 |
|
7.1 % |
Earnings Before Income Taxes |
628 |
|
644 |
|
(2.5) % |
|
1,517 |
|
1,235 |
|
22.8 % |
Net Income Available to Common |
493 |
|
565 |
|
(12.7) % |
|
1,195 |
|
1,132 |
|
5.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ 3,472 |
|
$ 3,237 |
|
7.3 % |
|
$ 8,745 |
|
$ 7,805 |
|
12.0 % |
Earnings Before Income Taxes |
1,296 |
|
980 |
|
32.2 % |
|
2,765 |
|
1,892 |
|
46.1 % |
Net Income Available to Common |
1,050 |
|
780 |
|
34.6 % |
|
2,249 |
|
1,547 |
|
45.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ 412 |
|
$ 436 |
|
(5.5) % |
|
$ 1,118 |
|
$ 1,137 |
|
(1.7) % |
Earnings Before Income Taxes |
97 |
|
93 |
|
4.3 % |
|
233 |
|
208 |
|
12.0 % |
Net Income Available to Common |
75 |
|
75 |
|
— % |
|
186 |
|
173 |
|
7.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ 600 |
|
$ 653 |
|
(8.1) % |
|
$ 1,597 |
|
$ 1,686 |
|
(5.3) % |
Earnings Before Income Taxes |
115 |
|
149 |
|
(22.8) % |
|
223 |
|
258 |
|
(13.6) % |
Net Income Available to Common |
82 |
|
100 |
|
(18.0) % |
|
264 |
|
288 |
|
(8.3) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ 682 |
|
$ 689 |
|
(1.0) % |
|
$ 3,220 |
|
$ 3,417 |
|
(5.8) % |
Earnings Before Income Taxes |
49 |
|
110 |
|
(55.5) % |
|
739 |
|
635 |
|
16.4 % |
Net Income Available to Common |
38 |
|
82 |
|
(53.7) % |
|
555 |
|
475 |
|
16.8 % |
|
See Financial Highlights pages for discussion of certain significant items occurring during the periods |
View original content to download multimedia:https://www.prnewswire.com/news-releases/southern-company-reports-third-quarter-2024-earnings-302292488.html
SOURCE