Operating cash flow averages $2.4B per quarter, but capex of $2.9B/quarter exceeds it, leading to negative free cash flow and reliance on external financing, though dividend coverage remains comfortable at 3.1x.
Southern Company (The) Series 2 (SOJD) 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% | 27.28% | 29.41% | 27.67% | 24.64% | 35.86% | 31.49% | 35.68% | 29.62% |
| Net Income | 4.66B | 4.34B | 4.4B | 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 | 6.19B | 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 | 307M | 618M | 536M | 63M | 670M | -49M | -241M | 611M | 94M | 166M | -127M | 1.4B | 0 | 0 | 0 |
| Other Non-Cash Items | -3.27B | -1.55B | -1.82B | -1.31B | -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 | -135M | 160M | -783M | -389M | 162M | 276M | -949M | 980M | 226M | 453M | 165M | -315M |
| Capital Expenditures | 5.54B | -13.39B | -9.59B | -9.69B | -8.57B | -7.68B | -7.8B | -7.95B | -8.39B | -7.74B | -19.5B | -5.84B | -5.25B | -5.46B | -4.81B |
| CapEx / Revenue % | 26.02% | 45.32% | 35.87% | 38.36% | 29.28% | 33.24% | 38.29% | 37.5% | 35.52% | 33.47% | 98.16% | 33.39% | 28.41% | 31.97% | 29.08% |
| CapEx / D&A | 1.27x | 2.22x | 1.82x | 1.95x | 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) | 1.31x | 0.73x | 1.02x | 0.78x | 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 | -9.65B | -8.36B | -6.85B | -6.67B | -3.2B | -3.21B | -7.11B | -19.5B | -6.94B | -6.41B | -5.74B | -5.17B |
| Acquisitions | -635M | -635M | 369M | 185M | 348M | 1.07B | 1.25B | 5.12B | 5.33B | -1.14B | -11.58B | -1.38B | -731M | 0 | 0 |
| Purchase of Investments | -483M | -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 | 466M | 1.69B | 1.53B | 1.12B | 1.11B | 1.59B | 871M | 882M | 1.11B | 839M | 1.15B | 1.42B | 0 | 0 | 0 |
| Other Investing | -6.48B | 85M | -166M | -124M | -120M | -238M | -110M | -362M | -142M | 1.76B | 379M | 446M | -431M | -279M | -359M |
| Cash from Financing | 5.63B | 4.7B | -208M | 978M | 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% | 54.06% | 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 | -394M | -477M | -617M | -596M | -413M | -417M | -341M | -455M | -290M | 154M | 1.35B | 104M |
| Net Change in Cash | 896M | 570M | 322M | -1.17B | 119M | 733M | -910M | 579M | -734M | 155M | 571M | 694M | 51M | 31M | -687M |
| Exchange Rate Effect | 0 | 31M | 142M | -53M | -89M | -28M | 0 | 120M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 987M | 1.07B | 921M | 1.92B | 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 | 1.24B | 748M | 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 | -2.13B | -2.27B | -1.51B | -1.11B | -2.17B | -1.44B | -1.34B | -14.6B | 433M | 569M | 634M | 89M |
| FCF Growth % | 1012.13% | -1886.07% | 109.42% | 5.99% | -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% | -8.45% | -7.75% | -6.55% | -5.43% | -10.22% | -6.11% | -5.8% | -73.52% | 2.48% | 3.08% | 3.71% | 0.54% |
| FCF / Net Income % | 339.04% | -82.7% | 4.57% | -53.67% | -64.42% | -63.23% | -35.46% | -45.58% | -64.41% | -152.39% | -585.68% | 17.89% | 28.99% | 38.56% | 3.79% |
Quick answers to the most common questions about buying SOJD stock.
Southern Company (The) Series 2 (SOJD) generated $9.80B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Southern Company (The) Series 2 (SOJD) reported negative free cash flow of $3.59B in 2025, indicating capital requirements exceeded cash from operations.
Southern Company (The) Series 2 (SOJD) 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, Southern Company (The) Series 2 (SOJD) 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.
Regulated Cash Flow Remains Predictable
Operating cash flow averaged $2.4B per quarter over the last year, according to reported figures, with OCF/interest coverage strong despite seasonal swings, indicating stable regulated cash generation.
OCF has been consistently positive, ranging from $1.2B to $3.8B quarterly, with the strongest quarters in Q3 and Q4, reflecting seasonal demand patterns. The OCF-to-interest coverage appears robust, though interest paid data is sparse, suggesting the company's regulated operations generate sufficient cash to cover fixed obligations. This predictability supports the utility's ability to fund its capital program without undue strain.
CAPEX Burn Outpaces Depreciation
Capital expenditures have averaged $2.9B per quarter over the last year, as per financial statements, exceeding operating cash flow in most quarters, indicating aggressive rate base growth investment.
CapEx/OCF ratios have frequently exceeded 100%, with peaks above 170% in Q4 2025, showing that the company is investing heavily in its rate base. This investment is expected to drive future revenue growth, but it also creates a funding gap that must be covered by external financing. The consistent CAPEX levels suggest a deliberate strategy to expand regulated assets, likely in generation and transmission, which should translate into higher allowed returns once assets are placed in service.
External Financing Bridges the FCF Gap
Free cash flow has been negative in most quarters, with a cumulative deficit of $1.7B over the last year, according to reported data, yet the company has issued minimal long-term debt, suggesting reliance on existing credit facilities.
Despite negative FCF, long-term debt issuance has been negligible, with only $1.0M in most quarters, and net stock issuance has been modest, indicating that the company may be drawing on cash reserves or commercial paper to fund the gap. The balance sheet appears adequate, but investors should monitor the company's ability to access capital markets on reasonable terms, especially as CAPEX continues to grow. The lack of significant external financing in recent quarters may indicate that the company has ample liquidity or is timing its issuances strategically.
Working Capital Swings Reflect Seasonal Patterns
Quarterly OCF volatility, with Q1 consistently lower at $1.2B, as reported in financial statements, suggests working capital adjustments tied to fuel and weather-normalization mechanisms.
The pattern of lower OCF in Q1 and higher in Q3/Q4 aligns with typical utility seasonal working capital needs, such as fuel inventory build-up and receivables collection. These swings appear manageable and are likely offset by regulatory mechanisms that allow for deferred cost recovery. The stability of these adjustments, despite quarterly fluctuations, indicates that the regulatory construct is functioning as intended, minimizing earnings volatility.
Dividend Coverage Remains Comfortable
OCF-to-dividend coverage has averaged 3.1x over the last year, according to reported figures, with the lowest at 1.6x in Q1, indicating dividends are well-supported by operating cash flow.
Dividends paid have been steadily increasing, from $733M in Q1 2024 to $803M in Q2 2026, but OCF has grown at a similar pace, maintaining coverage above 1.5x even in the weakest quarter. This suggests that the dividend is safe in the near term, but investors should watch for any regulatory setbacks that could reduce OCF. The consistent coverage ratio indicates management's commitment to maintaining the dividend, which is a key support for the stock's yield.
What Could Invalidate the Base Case
Despite stable cash flows, the company's heavy CAPEX and reliance on external financing, as per reported figures, expose it to rising interest rates and regulatory disallowances.
The aggressive CAPEX program, with CapEx/OCF ratios often above 100%, implies a growing need for external capital. If interest rates rise or credit markets tighten, the cost of financing could increase, pressuring returns. Additionally, regulatory lag or adverse rate case outcomes could reduce the cash recovery of these investments, potentially leading to lower OCF and dividend coverage. Investors should monitor the company's ability to secure timely rate relief and maintain access to affordable capital.