Operating cash flow peaked at $3.8 billion in 2025Q3, demonstrating improved cash conversion efficiency that supports a dividend coverage ratio as high as 5.0x despite ongoing capital expenditure requirements.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 9.8B | 9.79B | 7.55B | 6.3B | 6.17B | 6.7B | 5.78B | 6.95B | 6.39B | 4.89B | 6.27B | 5.82B | 6.1B | 4.9B |
| Operating CF Growth % | 0.14% | 29.59% | 19.85% | 2.16% | -7.87% | 15.83% | -16.76% | 8.6% | 30.67% | -22% | 7.89% | -4.63% | 24.48% | - |
| Operating CF / Revenue % | 33.17% | 36.63% | 29.91% | 21.52% | 26.69% | 32.86% | 26.99% | 29.41% | 27.67% | 24.64% | 35.86% | 31.49% | 35.68% | 29.62% |
| Net Income | 4.17B | 4.26B | 3.98B | 3.54B | 2.41B | 3.13B | 4.75B | 2.24B | 880M | 2.49B | 2.42B | 1.96B | 1.64B | 2.35B |
| Depreciation & Amortization | 6.03B | 5.26B | 4.96B | 4.06B | 3.98B | 3.9B | 3.33B | 3.56B | 3.44B | 2.92B | -2.4B | 2.29B | 2.3B | 2.15B |
| Deferred Taxes | 618M | 536M | 63M | 670M | -49M | -241M | 611M | 94M | 166M | -127M | 1.4B | 0 | 0 | 0 |
| Other Non-Cash Items | -1.55B | -1.82B | -2.31B | -2.12B | 611M | 290M | -3.07B | 7.85B | 10.15B | 4.79B | -186M | 1.04B | 1.93B | 403M |
| Working Capital Changes | 399M | 1.42B | 728M | 160M | -783M | -389M | 162M | 276M | -949M | 980M | 226M | 453M | 165M | -315M |
| Capital Expenditures | -13.39B | -9.59B | -9.1B | -8.57B | -7.68B | -7.8B | -7.95B | -8.39B | -7.74B | -19.5B | -5.84B | -5.25B | -5.46B | -4.81B |
| CapEx / Revenue % | 0% | 0% | 36.02% | 29.28% | 33.24% | 38.29% | 37.11% | 35.52% | 33.47% | 98.16% | 33.39% | 28.41% | 31.97% | 29.08% |
| CapEx / D&A | 0.00x | 0.00x | 1.83x | 2.11x | 1.93x | 2.00x | 2.39x | 2.36x | 2.25x | 6.66x | -2.44x | 2.29x | 2.38x | 2.24x |
| CapEx Coverage (OCF/CapEx) | - | - | 0.83x | 0.74x | 0.80x | 0.86x | 0.73x | 0.83x | 0.83x | 0.25x | 1.07x | 1.11x | 1.12x | 1.02x |
| Cash from Investing | -13.96B | -9.4B | -9.67B | -8.36B | -6.85B | -6.67B | -3.2B | -3.21B | -7.11B | -19.5B | -6.94B | -6.41B | -5.74B | -5.17B |
| Acquisitions | -635M | 0 | 185M | 348M | 1.07B | 1.25B | 5.12B | 5.33B | -1.14B | -11.58B | -1.38B | -731M | 0 | 0 |
| Purchase of Investments | 0 | 0 | -1.14B | -1.13B | -1.6B | -877M | -888M | -1.12B | -828M | -1.89B | -1.58B | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 1.12B | 1.11B | 1.59B | 871M | 882M | 1.11B | 839M | 1.15B | 1.42B | 0 | 0 | 0 |
| Other Investing | -13.32B | -9.4B | -737M | -120M | -238M | -110M | -362M | -142M | 1.76B | 379M | 446M | -431M | -279M | -359M |
| Cash from Financing | 4.7B | -208M | 999M | 2.26B | 1.44B | -939M | -2.13B | -4.36B | 871M | 15.17B | 1.36B | 644M | -324M | -417M |
| Dividends Paid | -3.02B | -2.95B | -3.04B | -2.91B | -2.78B | -2.69B | -2.57B | -2.42B | -2.3B | -2.1B | -1.96B | -1.87B | -1.76B | -1.69B |
| Dividend Payout Ratio % | 69.45% | 67.12% | 76.33% | 82.49% | 116.05% | 86.09% | 54.23% | 108.16% | 261.36% | 84.4% | 80.92% | 95.06% | 107.18% | 72.04% |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Stock Issued | 1.62B | 143M | 36M | 1.51B | 73M | 74M | 844M | 1.09B | 1.04B | 3.76B | 256M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -33M | -658M | 0 | -527M | -5M | -20M | -430M |
| Other Financing | -704M | -366M | -373M | -477M | -617M | -596M | -413M | -417M | -341M | -455M | -134M | -25M | -57M | 104M |
| Net Change in Cash | 539M | 180M | -1.12B | 119M | 733M | -910M | 579M | -734M | 155M | 571M | 694M | 51M | 31M | -687M |
| Exchange Rate Effect | 0 | 0 | 0 | -89M | -28M | 0 | 120M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 1.1B | 921M | 2.04B | 1.8B | 1.06B | 1.98B | 1.4B | 2.13B | 1.98B | 1.4B | 710M | 659M | 628M | 1.31B |
| Cash at End | 1.64B | 1.1B | 921M | 1.92B | 1.8B | 1.06B | 1.98B | 1.4B | 2.13B | 1.98B | 1.4B | 710M | 659M | 628M |
| Free Cash Flow | -3.59B | 201M | -1.54B | -2.27B | -1.51B | -1.11B | -2.17B | -1.44B | -1.34B | -14.6B | 433M | 569M | 634M | 89M |
| FCF Growth % | -1886.07% | 113.03% | 32.07% | -50.03% | -36.8% | 48.96% | -50.07% | -7.68% | 90.82% | -3472.06% | -23.9% | -10.25% | 612.36% | - |
| FCF Margin % | -12.15% | 0.75% | -6.11% | -7.75% | -6.55% | -5.43% | -10.12% | -6.11% | -5.8% | -73.52% | 2.48% | 3.08% | 3.71% | 0.54% |
| FCF / Net Income % | -82.7% | 4.57% | -38.78% | -64.42% | -63.23% | -35.46% | -45.73% | -64.41% | -152.39% | -585.68% | 17.89% | 28.99% | 38.56% | 3.79% |
Capital intensity and regulatory reliance
According to recent quarterly filings, Southern Company generated operating cash flow peaking at $3.8 billion in 2025Q3, demonstrating the underlying strength of its regulated utility model as it transitions from heavy construction phases toward more predictable, rate-base-driven cash generation across its primary Southeastern service territories.
The ability to consistently generate multi-billion dollar operating cash flows suggests that the company's core electric operations are effectively capturing the required returns on invested capital. Investors should monitor whether this cash flow stability persists as the company shifts its focus from nuclear construction to grid modernization and data center-related infrastructure.
As reported in financial statements, Southern Company maintained a high capital expenditure profile, with quarterly investments reaching $2.9 billion in 2025Q2, reflecting the ongoing necessity of funding massive infrastructure projects to support the rapidly growing industrial load demand within its regulated service footprint.
The high CapEx-to-OCF ratio, which frequently exceeds 100%, is a hallmark of the company's growth strategy rather than a sign of operational inefficiency. This persistent investment appears necessary to maintain the rate base growth required to satisfy regulatory expectations and meet the surging power needs of the Sunbelt corridor.
Based on reported figures, the company has successfully utilized a mix of debt and equity to bridge its free cash flow deficits, with net stock issuance reaching $1.5 billion in 2025Q4 to support the capital-intensive nature of its ongoing utility infrastructure expansion and debt service requirements.
The reliance on external capital markets suggests that the company's access to liquidity remains robust, though the frequent issuance of equity may indicate a management preference for maintaining a specific credit profile. Analysts should evaluate whether the cost of this external financing remains sustainable given the current interest rate environment and the company's significant debt load.
Data from the last ten quarters indicates that Southern Company maintained dividend coverage ratios as high as 5.0x in 2025Q3, suggesting that despite the massive capital requirements of its regulated business, the company prioritizes shareholder returns through consistent and well-covered dividend distributions.
The stability of dividend payments, even during periods of negative free cash flow, appears to be a cornerstone of the company's value proposition to institutional investors. This suggests that management views the dividend as a fixed obligation that is supported by the predictable cash flows inherent in the regulated utility model.
Quick answers to the most common questions about buying SOJC stock.
The Southern Company JR 2017B NT 77 (SOJC) generated $9.80B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Southern Company JR 2017B NT 77 (SOJC) reported negative free cash flow of $3.59B in 2025, indicating capital requirements exceeded cash from operations.
The Southern Company JR 2017B NT 77 (SOJC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Southern Company JR 2017B NT 77 (SOJC) returned $3.02B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.