Operating cash flow averaged $2.4B per quarter, covering dividends at 3.3x in 2026Q2, but capex of $2.6B quarterly exceeds depreciation of $1.4B, and free cash flow was negative in five of the last ten quarters, necessitating external financing ($1.0B debt issued in 2026Q1).
The Southern Company JR 2017B NT 77 (SOJC) cash flow statement — 14-year operating, investing & financing cash flows
| Metric | TTM | 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 | 10.25B | 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 % | 43.51% | 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 % | 33.96% | 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 | 4.66B | 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 | 4.84B | 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 | 17M | 618M | 536M | 63M | 670M | -49M | -241M | 611M | 94M | 166M | -127M | 1.4B | 0 | 0 | 0 |
| Other Non-Cash Items | -256M | -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 | 2.21B | 399M | 1.42B | 728M | 160M | -783M | -389M | 162M | 276M | -949M | 980M | 226M | 453M | 165M | -315M |
| Capital Expenditures | 5.54B | -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 % | 2.6% | 45.32% | 35.87% | 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 | 0.16x | 2.22x | 1.82x | 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) | 13.05x | 0.73x | 1.02x | 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 | -14.98B | -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 | -636M | -634M | 369M | 185M | 348M | 1.07B | 1.25B | 5.12B | 5.33B | -1.14B | -11.58B | -1.38B | -731M | 0 | 0 |
| Purchase of Investments | 368M | -1.7B | -1.55B | -1.14B | -1.13B | -1.6B | -877M | -888M | -1.12B | -828M | -1.89B | -1.58B | 0 | 0 | 0 |
| Sale of Investments | -368M | 1.69B | 1.53B | 1.12B | 1.11B | 1.59B | 871M | 882M | 1.11B | 839M | 1.15B | 1.42B | 0 | 0 | 0 |
| Other Investing | -13.56B | 84M | -166M | -737M | -120M | -238M | -110M | -362M | -142M | 1.76B | 379M | 446M | -431M | -279M | -359M |
| Cash from Financing | 5.63B | 4.7B | -208M | 999M | 2.26B | 1.44B | -939M | -2.13B | -4.36B | 871M | 15.17B | 1.36B | 644M | -324M | -417M |
| Dividends Paid | -3.1B | -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 | 1000K |
| Stock Issued | 1.14B | 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 | 0 | -33M | -658M | 0 | -527M | -5M | -20M | -430M |
| Other Financing | 3.85B | -704M | -366M | -373M | -477M | -617M | -596M | -413M | -417M | -341M | -455M | -134M | -25M | -57M | 104M |
| Net Change in Cash | 896M | 570M | 322M | -1.12B | 119M | 733M | -910M | 579M | -734M | 155M | 571M | 694M | 51M | 31M | -687M |
| Exchange Rate Effect | 0 | 31M | 142M | 0 | -89M | -28M | 0 | 120M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 987M | 1.07B | 748M | 2.04B | 1.8B | 1.06B | 1.98B | 1.4B | 2.13B | 1.98B | 1.4B | 710M | 659M | 628M | 1.31B |
| Cash at End | 2.16B | 1.64B | 1.07B | 921M | 1.92B | 1.8B | 1.06B | 1.98B | 1.4B | 2.13B | 1.98B | 1.4B | 710M | 659M | 628M |
| Free Cash Flow | 15.79B | -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 % | 1012.13% | -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 % | 52.32% | -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 % | 339.04% | -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% |
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 $13.39B 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.
Key Metrics
Top Statement Risk
Regulatory lag and rate case outcomes
Metrics are mathematically derived from official filings.
OCF Stability Supports Fixed Obligations
Operating cash flow averaged $2.4B per quarter over the last four quarters, as per financial statements, comfortably covering interest and dividends, though quarterly volatility suggests weather and timing effects.
OCF ranged from $1.2B to $3.8B over the past ten quarters, with the strongest quarters in Q3, consistent with seasonal demand. The OCF-to-interest coverage appears robust, as interest payments were only reported in 2026Q1 at $901M, while OCF in that quarter was $1.2B, indicating a tight but manageable coverage. Investors should monitor whether OCF can consistently cover fixed charges, especially as rate base grows.
CAPEX Burn Outpaces Depreciation
Capital expenditures averaged $2.6B per quarter over the last four quarters, as reported in cash flow statements, exceeding depreciation of roughly $1.4B, indicating significant rate base expansion.
The CapEx-to-depreciation ratio is approximately 1.9x, suggesting the company is investing heavily in new assets, which should support future rate base growth and earnings. However, CapEx as a percentage of OCF has been volatile, ranging from 68% to 145%, indicating that in some quarters, internal cash generation does not fully fund investment, necessitating external financing.
External Financing Bridges FCF Deficit
Free cash flow was negative in five of the last ten quarters, with a cumulative deficit of $1.7B, as per cash flow data, yet the company issued $1.0B in long-term debt in 2026Q1, indicating ongoing capital market access.
The FCF deficit is typical for a utility in a growth phase, but the reliance on external capital is evident. In 2026Q2, FCF turned positive at $5.6B, likely due to a working capital release, but the trend is uneven. The company's ability to issue debt at reasonable terms is critical; the modest debt issuance in 2026Q1 suggests measured access, but investors should watch for any widening of credit spreads or tightening of terms.
Seasonal Working Capital Swings
Working capital adjustments drove FCF from -$1.7B in 2026Q1 to +$5.6B in 2026Q2, as per cash flow statements, reflecting typical utility seasonality in fuel and receivables.
The large swing in FCF between quarters is likely due to the timing of fuel cost recoveries and weather-normalized billing. In Q1, OCF was only $1.2B, while CapEx was $2.9B, leading to a deficit; in Q2, OCF jumped to $2.7B, and CapEx was similar, but FCF was positive, suggesting a release of working capital. This pattern is consistent with regulatory lag in fuel cost recovery, which can cause temporary cash shortfalls.
Dividend Coverage Remains Adequate
Dividends per quarter averaged $760M, with OCF-to-dividend coverage of 3.3x in 2026Q2, as per cash flow data, indicating a comfortable cushion despite capital intensity.
Even in the weakest quarter (2026Q1), OCF covered dividends 1.6x, which is above the typical 1.5x threshold for utility safety. The consistent dividend payment, despite FCF volatility, suggests management prioritizes dividend stability. However, if regulatory lag persists and OCF growth slows, coverage could tighten, so investors should monitor rate case outcomes.
What the Cash Flow Statement Hides
The cash flow statement does not disclose future decommissioning or environmental liabilities, which could be material given the company's generation mix, as per regulatory filings.
While the data shows no explicit environmental or decommissioning cash outflows, utilities often face significant future obligations. The company's heavy CapEx may be partly directed at environmental compliance, but the cash flow statement does not reveal the full extent of unfunded liabilities. Investors should examine footnotes for asset retirement obligations and potential coal ash cleanup costs, which could strain future cash flows.