Southern Company (SO)
NYSEUtilitiesRegulated ElectricSnapshot 2026-09-04
$88.11-0.74%
Close 2026-09-04 · 1-day change
NYSEUtilitiesRegulated ElectricSnapshot 2026-09-04
QuarterlyIQ Insights · SO
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within utilities on a research-validated quality screen. As of 2026-09-04.
The screen ranks SO against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Utilities names rated neutral grew net income 67% of the time over the next year (vs 64% for the rest of the cohort, n=1452).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 1 guided quarters · 0.0% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Invest in infrastructure to support regional growth while maintaining reliability and rate stability for customers.
Stated as a priority in 2 of last 2 quarters. Revenue grew from $7.8B in 2025-Q1 to $8.4B in 2026-Q1 (+8.0%) and from $6.3B in 2024-Q4 to $7.0B in 2025-Q4 (+10.1%). Management emphasizes responsible growth with customer focus, and the revenue growth trajectory matches this stated priority.
“Southern Company is delivering on our plans to serve growth in a way that is both beneficial and protective for existing customers.”
“Southern Company is meeting the growing demand responsibly, while continuing to deliver value and benefits to all of our customers.”
Continue to grow earnings per share by managing operations and investments effectively.
Stated as a priority in 3 of last 3 quarters. EPS grew from $1.23 in 2025-Q1 to $1.32 in 2026-Q1 and full-year EPS excluding items increased from $4.05 in 2024 to $4.30 in 2025. Management's focus on EPS growth is reflected in these improving earnings metrics, indicating delivery on this priority.
Increase cash generated from operating activities to support capital needs and financial flexibility.
Stated as a priority in 4 of last 4 quarters. Cash from operations fluctuated between $1.23B in 2026-Q1 and $3.77B in 2025-Q3, reflecting operational cash generation capacity. While quarterly amounts vary, management continues to emphasize enhancing cash flow, showing ongoing focus but mixed quarterly delivery.
Raise capital through convertible senior notes offerings to refinance debt and support corporate purposes.
Newly stated in 2026-Q2. Southern Company announced convertible senior notes offerings totaling $2.15 billion to refinance existing debt and support corporate purposes. This capital structure management is a recent priority with clear financial action taken.
“Southern Company announced offerings of $650 million and $1.5 billion in convertible senior notes due 2027 and 2029.”
Over the trailing year it converted 1.21x of net income into operating cash flow. Historically, Utilities names rated fragile grew net income 55% of the time over the next year (vs 70% for the rest of the cohort, n=929).
Most sensitive to real (inflation-adjusted) rates and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, the broad stock market, Fed net liquidity (low R² over the window).
21 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Utilities names rated volatile grew net income 67% of the time over the next year (vs 66% for the rest of the cohort, n=183).
Not investment advice. As of 2026-09-04.
“Southern Company earned $1.5 billion, or $1.32 per share, during the first quarter of 2026.”
“For the full-year 2025, excluding these items, Southern Company earned $4.7 billion, or $4.30 per share.”
“We've positioned Southern Company for an even brighter future ahead.”
“Cash from operating activities was $1.23 billion in 2026-Q1.”
“Cash from operating activities was $2.60 billion in 2025-Q4.”
“Cash from operating activities was $3.77 billion in 2025-Q3.”
“Cash from operating activities was $2.18 billion in 2025-Q2.”