The Southern Company: Adjusted EPS beat vs estimate while still noting interest and dilution headwinds

The Southern Company 2026 Q2: Financial Performance summary

• Customer and sales momentum included ~11,000 new residential customers added in the quarter and net electric customer adds of over 40,000 in the last year.
• Drivers of Q2 vs. prior year included increased usage and customer growth, higher AFUDC from ongoing construction, higher earnings from equity method investments, and tax-related impacts at state-regulated electric utilities.
• Performance also included contributions from Southern Company Gas and smaller complementary businesses, including PowerSecure; partially offset by higher interest expense (higher debt balances) and dilution from additional shares outstanding.
• Q1+Q2 2026 adjusted EPS was $2.46, well above year-to-date expectations.
• Q2 2026 adjusted EPS was $1.13 per share, up $0.21 vs. Q2 2025 and $0.13 above the prior-quarter estimate.
• Retail electricity sales: weather-normal year-to-date retail sales were up 2.3% vs. the first half of 2025.