Southern Company (SO) FY2025 10-K Review

Statements & commentary

Statements as filed on the left — every figure from the company's own XBRL filing, in millions of dollars. What management wrote on the right, quoted verbatim. Open any claim for its arithmetic. The gold number beside a statement line counts the claims resting on that line. ✓ matches · ◐ partly · ✗ contradicts or red flag · ◐ watch.

INCOME STATEMENTCASH FLOWBALANCE SHEETVARIANCE YoYBUSINESS QUALITYQUARTERLYOWNERSHIPEVERY FIGURE AS FILED · $M EXCEPT PER-SHARE

Income statement · $ millions	2025	2024	2023
Total revenues	29,553	26,724	25,253
· Retail	19,331	17,790	16,343
· Natural gas	5,044	4,456	4,702
· Wholesale electric	2,941	2,431	2,467
· Product and service other	1,284	1,151	949
· Other electric revenue	953	896	792
Impairments	—	—	0
Total operating expenses	22,268	19,656	19,427
Operating income	7,285	7,068	5,826	1
Interest expense	3,238	2,743	2,446	1
Other income (expense), net	(2,286)	(1,839)	(1,481)
Income before income taxes	4,999	5,229	4,345
Income tax provision	828	969	496	1
Net income incl. noncontrolling interests	4,171	4,260	3,849
Less: noncontrolling interests	(170)	(141)	(127)
Net income attributable to common	—	4,401	3,976	1
Diluted earnings per share	$3.92	$3.99	$3.62
Weighted-average diluted shares	1,109	1,102	1,098

Cash flow · $ millions	2025	2024	2023
Net income incl. noncontrolling interests	4,171	4,260	3,849
Deferred income taxes	618	626	416
Change in receivables	124	372	(482)
Change in payables	(290)	492	(863)
Net cash provided by operating activities	9,802	9,788	7,553	2
Capital expenditure	12,737	8,955	9,095	3
Net cash used in investing activities	(13,959)	(9,400)	(9,668)
Dividends paid	3,015	2,954	3,035	1
Net cash used in financing activities	4,696	(208)	999
Cash and equivalents at end of period	1,640	1,101	921

Balance sheet · $ millions	2025	2024
Cash and cash equivalents	1,639	1,070
Total current assets	10,917	10,694
Goodwill	5,161	5,161	1
Intangible assets, net	225	257
Total assets	155,720	145,180	1
Accounts payable	3,710	3,701
Current debt	6,220	4,718
Total current liabilities	16,888	15,993
Long-term debt	65,649	58,768
Total liabilities	116,853	108,506	1
Stockholders' equity	36,016	33,208
Noncontrolling interests	2,851	3,466
Total equity	38,867	36,674

Largest FY/FY moves · $ millions, ranked by \|Δ\|	FY2025	FY2024	Δ $	Δ %	Reading
Total assets · BS	155,720	145,180	+10,540	+7.3%	—
Total liabilities · BS	116,853	108,506	+8,347	+7.7%	—
Long-term debt · BS	65,649	58,768	+6,881	+11.7%	—
Net cash used in financing activities · CF	4,696	(208)	+4,904	+2,357.7%	◐ outsized
Net cash used in investing activities · CF	(13,959)	(9,400)	−4,559	-48.5%	—
Capital expenditure · CF	12,737	8,955	+3,782	+42.2%	—
Total revenues · IS	29,553	26,724	+2,829	+10.6%	—
Stockholders' equity · BS	36,016	33,208	+2,808	+8.5%	—
Total operating expenses · IS	22,268	19,656	+2,612	+13.3%	—
Total equity · BS	38,867	36,674	+2,193	+6.0%	—
· Retail · IS	19,331	17,790	+1,541	+8.7%	—
Current debt · BS	6,220	4,718	+1,502	+31.8%	—
Total current liabilities · BS	16,888	15,993	+895	+5.6%	—
Change in payables · CF	(290)	492	−782	-158.9%	—

Business quality — Buffett/Munger screen · deterministic · not part of the filing score	Value	Reading
Return on equity net income ÷ average of start- and end-of-year equity	12.1% sector median 10.8%	adequate
Share count, year-end (year-end shares − prior year-end) ÷ prior year-end	+0.0% sector median +0.3%	flat
Debt to equity (current debt + long-term debt) ÷ year-end equity	2.00 sector median 1.66	leveraged
FCF consistency, 5yr operating cash flow − capital expenditure, per year	positive 1 of 5	volatile
Margin stability pre-tax income ÷ revenue, swing across up to five years	pre-tax margin 16.9% sector median 16.3%	cyclical

Quarterly · as filed in 10-Q/10-K · $ millions	SEP 24	MAR 25	JUN 25	SEP 25	MAR 26
Total revenues	7,274	7,775	6,973	7,823	8,397
Total operating expenses	4,906	5,765	5,209	5,229	6,379
Operating income	2,368	2,010	1,764	2,594	2,018
Interest expense	692	714	874	755	778
Other income (expense), net	(456)	(460)	(622)	(483)	(452)
Income before income taxes	1,912	1,550	1,142	2,111	1,566
Income tax provision	377	280	289	404	228
Net income incl. noncontrolling interests	1,535	1,270	853	1,707	1,338
Less: noncontrolling interests	0	(64)	(27)	(4)	(18)
Net income attributable to common	1,535	1,334	880	1,711	1,356
Diluted earnings per share	$1.39	$1.21	$0.79	$1.54	$1.20
Weighted-average diluted shares	1,103	1,105	1,108	1,110	1,128
Net cash provided by operating activities	—	1,250	—	—	1,226

Largest QoQ moves · latest vs prior filed quarter	Prior	Latest	Δ $	Δ %
Total operating expenses	5,229	6,379	+1,150	+22.0%
Operating income	2,594	2,018	−576	-22.2%
Total revenues	7,823	8,397	+574	+7.3%
Income before income taxes	2,111	1,566	−545	-25.8%
Net income incl. noncontrolling interests	1,707	1,338	−369	-21.6%
Net income attributable to common	1,711	1,356	−355	-20.7%
Income tax provision	404	228	−176	-43.6%
Other income (expense), net	(483)	(452)	+31	+6.4%

Ownership — insiders & floatForm 4 + 10-K cover · open-market trades only	Value	Reading
Public float	$101,000M	10-K cover · as of 2025-06-30
Insider Form 4s, 90d	16 filings · 0 buys / 3 sells	net selling · −$28,121
· Kim Matthew M.	SELL $9,577	Form 4 filed 2026-07-02 · open market
· Kim Matthew M.	SELL $9,428	Form 4 filed 2026-08-04 · open market
· Kim Matthew M.	SELL $9,116	Form 4 filed 2026-06-01 · open market
Insider ownership %	—	needs the proxy statement — not read yet, never estimated
· BlackRock, Inc., 50 Hudson Yards, New York, NY 10001	6.9 %	5%+ holder · DEF 14A filed 2026-04-03
· State Street Corporation, One Congress Street, Boston, MA 02114	5.7 %	5%+ holder · DEF 14A filed 2026-04-03
Institutional %	2 holders of 5%+ named	full 13F total pending — never estimated
· 10b5-1 adopted	Stanley W. Connally, Jr., Executive Vice President and Chief Operating Officer	November 17, 2025 · 12,500 shares · 10-K insider trading arrangements
· 10b5-1 adopted	Christopher Cummiskey, Executive Vice President	November 18, 2025 · 8,954 (1) shares · 10-K insider trading arrangements
· 10b5-1 adopted	Matthew M. Kim, Comptroller	November 25, 2025 · 6,353 (1) shares · 10-K insider trading arrangements
· 10b5-1 adopted	Sterling A. Spainhour, Executive Vice President and Chief Legal Officer	November 25, 2025 · 9,443 shares · 10-K insider trading arrangements
· 10b5-1 adopted	Kimberly S. Greene, Chairman, President, and Chief Executive Officer of Georgia Power	November 26, 2025 · 65,000 shares · 10-K insider trading arrangements

COMMENTARY3EARNINGS QUALITY5

Georgia Power capex◐PARTLY

“The certified costs of these Georgia Power projects total $19.5 billion, and these projects are projected to be placed in service through 2030.”

Capital expenditure $9.0B → $12.7B+3,782

The quoted figures do not map one-for-one onto a filed line on this page; carried as partly supported.

1 LINES TRACED · ITEM 1 · THE SOUTHERN COMPANY SYSTEM – TRADITIONAL ELECTRIC OPERATING COMPANIES · P. I-2

ARO cost estimate◐PARTLY

“Estimated costs for 2026 total $653 million for Southern Company, primarily consisting of $256 million for Alabama Power, $360 million for Georgia Power, and $18 million for Mississippi Power.”

Total liabilities $108.5B → $116.9B+8,347

The quoted figures do not map one-for-one onto a filed line on this page; carried as partly supported.

1 LINES TRACED · ITEM 1 · CONSTRUCTION PROGRAMS · P. I-5

Southern Power capex projects◐PARTLY

“Includes $40 million and $0.7 billion related to the Millers Branch solar project and wind repowering projects, respectively.”

Capital expenditure $9.0B → $12.7B+3,782

The quoted figures do not map one-for-one onto a filed line on this page; carried as partly supported. The source sentence carries qualifiers beyond the 40-word quote limit; carried as partly supported.

1 LINES TRACED · ITEM 1 · CONSTRUCTION PROGRAMS, FOOTNOTE (F) · P. I-4

Interest coverage✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Operating income$7,285M

Interest expense$3,238M

Coverage $7,285M ÷ $3,238M2.2×

Interest coverage is 2.2× — below the 3× threshold.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Capital returned vs free cash flow✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Capital returned ÷ FCF, three years (newest first)-1.03× · 3.55× · -1.97×

Current year ($3,015M + $0M) ÷ ($9,802M − $12,737M)-1.03×

Free cash flow was negative in the current year while capital was returned — the multiple is shown for arithmetic only and is not meaningful as a ratio. The flag marks the combination. Management's own account touching these lines appears in the "Georgia Power capex" claim on this page (partial); this page has not independently verified it.

EARNINGS-QUALITY FLAG · 3 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Cash tax vs book charge✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Cash income taxes paid$284M

Total book tax charge$828M

Divergence ($284M − $828M) ÷ $828M-65.7%

Deferred tax asset $7,260M → $7,221M-39M

Cash taxes paid diverge from the total book charge by -65.7%. The deferred tax asset moved in the same direction — the ordinary accounting counterpart of such a gap, shown above. The flag marks the size of the divergence.

EARNINGS-QUALITY FLAG · 1 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Goodwill weight✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Goodwill$5,161M

Total assets$155,720M

Weight $5,161M ÷ $155,720M3.3%

Impairments, three years (newest first)none filed

Goodwill is 3.3% of assets (threshold 40%), no impairment in three years.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Cash conversion stability✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Operating cash flow, three years (newest first)$9,802M · $9,788M · $7,553M

Net income incl. noncontrolling interests, three years (newest first)$4,171M · $4,260M · $3,849M

OCF ÷ NI, three years (newest first)2.35× · 2.30× · 1.96×

Swing 2.35× − 1.96×0.39×

Cause verified by this pageno

OCF ÷ NI ran 2.35× · 2.30× · 1.96× across three years — swing 0.39×, inside the 1.00× threshold.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Five-year seriesEACH OPENS ITS OWN PAGE WITH DERIVATION AND HISTORY

Revenue →Net income →Operating cash flow →Free cash flow →Capital expenditure →Cash & equivalents →Total assets →Shareholders' equity →Total debt →Return on equity →

Terms and acronyms used on this page

Income statement & cash flow

ImpairmentA write-down of an asset's carrying value. Non-cash, and it does not reverse. A large impairment in one year flatters the next year's comparison.

OCFOperating cash flow — net cash provided by operating activities, as reported.

FCFFree cash flow. Not a GAAP measure and not defined in this filing. Derived here as operating cash flow less additions to oil and gas property less leasehold acquisitions. The method is shown wherever the figure is used.

Balance sheet & market

Public floatThe market value of shares held by non-affiliates, disclosed on the 10-K cover at the prior 30 June. Converting it to a float percentage needs a share price on that date, which the filing does not contain.

Filing & document terms

10-KThe annual report filed with the SEC. Item 7 is management's discussion and analysis; Item 1A is risk factors; Item 8 and Item 15 carry the audited financial statements.

YoY · CAGRYear over year · compound annual growth rate.

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Not investment advice. DHI Signal publishes impersonal, rules-based research; no recommendation to buy or sell any security is made or implied. Every statement figure is transcribed from Southern Company's Form 10-K for FY2025 (accession 0000092122-26-000006), pulled from EDGAR XBRL. Derived measures are computed only from lines shown on this page and the arithmetic is displayed so it can be checked. SO is not in the tracked book. Market posture attaches only when the dashboard feed carries the name; this page computes none of it.