Operating cash flow averaged $2.3B per quarter, covering dividends 3.3x in 2026Q2, but capital expenditures averaged $2.8B per quarter, leading to negative free cash flow in six of the last ten quarters and reliance on external financing, including a $1.5B stock issuance in 2025Q4.
Southern Company (The) Series 2 (SOJE) cash flow statement — 30-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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| 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 | 5.9B | 3.99B | 3.26B | 3.4B | 3.4B | 2.82B | 2.53B | 2.69B | 3.07B | 2.83B | 2.38B | 2.82B | 2.72B | 2.75B | 2.63B | 2.4B |
| 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% | -17.03% | 47.91% | 22.31% | -3.97% | 0.09% | 20.39% | 11.46% | -6.02% | -12.2% | 8.3% | 18.75% | -15.4% | 3.49% | -0.91% | 4.69% | 9.33% | 3.71% |
| Operating CF / Revenue % | 33.96% | 33.17% | 36.63% | 29.91% | 21.52% | 26.69% | 32.86% | 26.99% | 29.56% | 27.77% | 24.6% | 35.87% | 31.49% | 35.68% | 29.62% | 33.43% | 22.86% | 20.73% | 19.84% | 22.11% | 19.64% | 18.67% | 22.95% | 27.41% | 26.93% | 23.48% | 28% | 29.23% | 28.93% | 20.82% | 23.18% |
| Net Income | 4.66B | 4.17B | 4.26B | 3.98B | 3.43B | 2.31B | 3.1B | 4.74B | 2.3B | 926M | 2.53B | 2.44B | 2.03B | 1.71B | 2.42B | 2.27B | 2.04B | 1.71B | 1.74B | 1.73B | 1.57B | 1.59B | 1.53B | 1.47B | 1.32B | 1.26B | 1.31B | 1.28B | 977M | 972M | 1.13B |
| Depreciation & Amortization | 6.35B | 6.03B | 5.27B | 4.99B | 4.06B | 3.97B | 3.9B | 3.33B | 3.55B | 3.46B | 2.92B | 2.4B | 2.29B | 2.3B | 2.15B | 2.05B | 1.83B | 1.79B | 1.7B | 1.49B | 1.42B | 1.4B | 1.18B | 1.16B | 1.16B | 1.36B | 1.34B | 1.52B | 1.77B | 1.47B | 1.2B |
| Deferred Taxes | 475M | 618M | 536M | 416M | 758M | 239M | 100M | 1.37B | 94M | 166M | -127M | 1.36B | 744M | 798M | 1.1B | 1.16B | 1.04B | 25M | 21M | -1.8B | -1.58B | 0 | 590M | 451M | 172M | -22M | 97M | 137M | -22M | -5M | 57M |
| Other Non-Cash Items | -2.61B | -1.55B | -1.83B | -1.83B | -2.23B | 494M | -136M | -3.93B | 601M | 2.73B | -1.41B | 176M | 70M | 1.08B | -362M | -183M | -892M | -236M | 174M | 1.82B | 1.86B | 544M | -165M | -96M | -54M | -334M | 136M | 172M | -199M | -92M | 16M |
| Working Capital Changes | 1.25B | 399M | 1.42B | -135M | 160M | -990M | -389M | 162M | 276M | -996M | 858M | -187M | 614M | 152M | -451M | 573M | -59M | -45M | -263M | 125M | -483M | -1B | -538M | -1M | 224M | 120M | -70M | -44M | -62M | 158M | -137M |
| Capital Expenditures | -7.67B | -12.74B | -8.96B | -9.1B | -7.92B | -7.24B | -7.44B | -7.55B | -8B | -7.42B | -20.05B | -7.39B | -5.98B | -5.46B | -4.81B | -4.53B | -4.09B | -4.67B | -3.96B | -3.54B | -2.99B | -2.37B | -2.11B | -2B | -2.72B | -2.62B | -2.23B | -4.21B | -2B | -4.76B | -1.23B |
| CapEx / Revenue % | 25.43% | 43.1% | 33.51% | 36.02% | 27.06% | 31.32% | 36.52% | 35.27% | 34.05% | 32.23% | 100.76% | 42.27% | 32.37% | 31.97% | 29.08% | 25.63% | 23.41% | 29.66% | 23.13% | 23.09% | 20.86% | 17.49% | 17.99% | 17.9% | 25.84% | 25.77% | 22.1% | 45.23% | 21.11% | 37.78% | 11.87% |
| CapEx / D&A | 1.21x | 2.11x | 1.70x | 1.82x | 1.95x | 1.82x | 1.91x | 2.27x | 2.25x | 2.15x | 6.86x | 3.09x | 2.61x | 2.38x | 2.24x | 2.21x | 2.23x | 2.61x | 2.32x | 2.39x | 2.11x | 1.70x | 1.79x | 1.72x | 2.35x | 1.93x | 1.66x | 2.77x | 1.13x | 3.24x | 1.02x |
| CapEx Coverage (OCF/CapEx) | 1.34x | 0.77x | 1.09x | 0.83x | 0.80x | 0.85x | 0.90x | 0.77x | 0.87x | 0.86x | 0.24x | 0.85x | 0.97x | 1.12x | 1.02x | 1.30x | 0.98x | 0.70x | 0.86x | 0.96x | 0.94x | 1.07x | 1.28x | 1.53x | 1.04x | 0.91x | 1.27x | 0.65x | 1.37x | 0.55x | 1.95x |
| Cash from Investing | -14.98B | -13.96B | -9.4B | -9.67B | -8.43B | -7.35B | -7.03B | -3.39B | -5.76B | -7.19B | -20.05B | -7.28B | -6.41B | -5.74B | -5.17B | -4.18B | -4.26B | -4.32B | -4.13B | -3.71B | -2.83B | -2.63B | -2.25B | -2.19B | -2.96B | -2.74B | -2.31B | -4.21B | -2.64B | -4.76B | -1.29B |
| Acquisitions | -634M | -634M | 369M | 164M | 275M | 572M | 888M | 4.92B | 2.78B | -1.22B | -12.13B | -1.38B | -731M | 0 | 0 | 25M | 18M | 340M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.8B | -998M | -2.92B | 0 |
| Purchase of Investments | -925M | -1.7B | -1.55B | -1.14B | -1.13B | -1.6B | -877M | -888M | -1.12B | -811M | -1.16B | -1.42B | -916M | -986M | -1.05B | -2.19B | -2.06B | -55M | 0 | 0 | 0 | 0 | -97M | -72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 908M | 1.69B | 1.53B | 1.12B | 1.11B | 1.59B | 871M | 882M | 1.11B | 805M | 1.15B | 1.42B | 914M | 984M | 1.04B | 2.19B | 2.03B | 1.23B | 712M | 775M | 743M | 596M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -6.66B | -571M | -798M | -716M | -769M | -680M | -471M | -755M | -530M | 1.46B | -599M | 119M | -429M | -277M | -356M | 322M | -158M | -1.16B | -877M | -939M | -583M | -855M | -45M | -120M | -244M | -119M | -81M | 146M | 367M | 19M | -64M |
| Cash from Financing | 5.63B | 4.7B | -208M | 999M | 2.34B | 1.95B | -576M | -1.93B | -1.81B | 951M | 15.72B | 1.7B | 644M | -324M | -417M | -852M | 22M | 1.33B | 944M | 348M | -21M | -67M | -378M | -834M | 49M | 507M | -379M | 1.08B | 159M | 2.3B | -1.44B |
| 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 | -1.83B | -1.76B | -1.67B | -1.56B | -1.43B | -1.28B | -1.21B | -1.14B | -1.1B | -1.04B | -1B | -958M | -922M | -873M | -921M | -933M | -889M | -846M |
| Dividend Payout Ratio % | - | 69.45% | 67.12% | 76.33% | 82.23% | 115.32% | 85.67% | 54.06% | 108.16% | 261.36% | 84.4% | 80.92% | 91.88% | 103.04% | 70.1% | 70.59% | 73.33% | 80.15% | 70.84% | 69.49% | 72.47% | 69.01% | 68.21% | 68.11% | 72.69% | 73.06% | 66.49% | 72.18% | 95.5% | 91.46% | 75.07% |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K |
| Stock Issued | 1.67B | 1.62B | 143M | 36M | 1.51B | 73M | 74M | 844M | 1.09B | 1.04B | 3.76B | 256M | 806M | 695M | 397M | 723M | 772M | 1.29B | 474M | 538M | 137M | 213M | 124M | 470M | 451M | 395M | 910M | 24M | 234M | 360M | 171M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -33M | -658M | 0 | -115M | -5M | -20M | -430M | 0 | 0 | 0 | -125M | 0 | 0 | -356M | 0 | 0 | -70M | 0 | -415M | -948M | -364M | -660M | -179M |
| Other Financing | 2.36B | -704M | -366M | -373M | -404M | -116M | -233M | -217M | 2.13B | 124M | 3.86B | -68M | 32M | 9M | 169M | -20M | 626M | -25M | -95M | -715M | 101M | 847M | -40M | -544M | 58M | -3M | -54M | 2B | 648M | 1.45B | 212M |
| Net Change in Cash | 896M | 539M | 180M | -1.12B | 208M | 761M | -910M | 459M | -628M | 155M | 571M | 694M | 51M | 31M | -687M | 868M | -243M | 273M | 216M | 34M | -35M | -166M | 62M | 38M | -81M | 155M | 45M | -406M | 271M | 156M | -327M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -88M | 0 | 0 | 0 | 0 |
| Cash at Beginning | 987M | 1.1B | 921M | 2.04B | 1.83B | 1.07B | 1.98B | 1.52B | 2.15B | 1.98B | 1.4B | 710M | 659M | 628M | 1.31B | 447M | 690M | 417M | 201M | 167M | 202M | 368M | 311M | 273M | 354M | 199M | 154M | 872M | 601M | 445M | 772M |
| Cash at End | 2.16B | 1.64B | 1.1B | 921M | 2.04B | 1.83B | 1.07B | 1.98B | 1.52B | 2.13B | 1.98B | 1.4B | 710M | 659M | 628M | 1.31B | 447M | 690M | 417M | 201M | 167M | 202M | 373M | 311M | 273M | 354M | 199M | 466M | 872M | 601M | 445M |
| Free Cash Flow | 2.57B | -2.94B | 833M | -1.54B | -1.62B | -1.07B | -745M | -1.77B | -1.06B | -1.03B | -15.15B | -1.12B | -162M | 634M | 89M | 1.38B | -95M | -1.41B | -563M | -150M | -174M | 160M | 582M | 1.06B | 114M | -233M | 593M | -1.49B | 743M | -2.14B | 1.17B |
| FCF Growth % | 264.62% | -452.34% | 154.02% | 4.87% | -51.35% | -43.76% | 58% | -67.99% | -2.72% | 93.22% | -1254.24% | -590.74% | -125.55% | 612.36% | -93.54% | 1550.53% | 93.25% | -149.91% | -275.33% | 13.79% | -208.75% | -72.51% | -45.3% | 833.33% | 148.93% | -139.29% | 139.77% | -300.67% | 134.72% | -282.59% | 1990.32% |
| FCF Margin % | 8.53% | -9.93% | 3.12% | -6.11% | -5.54% | -4.63% | -3.66% | -8.28% | -4.49% | -4.46% | -76.17% | -6.4% | -0.88% | 3.71% | 0.54% | 7.8% | -0.54% | -8.94% | -3.29% | -0.98% | -1.21% | 1.18% | 4.96% | 9.51% | 1.08% | -2.29% | 5.89% | -16% | 7.82% | -16.97% | 11.31% |
| FCF / Net Income % | 55.25% | -67.61% | 18.93% | -38.78% | -45.86% | -44.48% | -23.77% | -37.32% | -47.1% | -116.82% | -607.86% | -46.22% | -7.98% | 37.08% | 3.69% | 60.76% | -4.66% | -82.38% | -31.16% | -8.65% | -11.06% | 10.06% | 37.99% | 72.18% | 8.65% | -18.46% | 45.16% | -116.85% | 76.05% | -220.16% | 103.99% |
Quick answers to the most common questions about buying SOJE stock.
Southern Company (The) Series 2 (SOJE) 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 (SOJE) reported negative free cash flow of $2.94B in 2025, indicating capital requirements exceeded cash from operations.
Southern Company (The) Series 2 (SOJE) spent $12.74B 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 (SOJE) 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 Amid Seasonal Swings
Operating cash flow averaged $2.3B per quarter over the last year, with coverage of dividends at 3.3x in 2026Q2, indicating robust cash generation from regulated operations.
OCF has been volatile, ranging from $1.2B in 2026Q1 to $3.8B in 2025Q3, reflecting seasonal demand and timing of fuel cost recoveries. Despite this, the average OCF comfortably covers fixed obligations, with interest coverage (OCF/interest) exceeding 3x in quarters where interest is reported. This suggests that the regulated cash flows are predictable enough to support debt service and dividend payments.
CAPEX Burn Outpaces Depreciation
Capital expenditures averaged $2.8B per quarter, exceeding operating cash flow in most periods, with CapEx/OCF reaching 195% in 2025Q1, signaling aggressive rate base growth.
The company is investing heavily in its rate base, with CapEx consistently above $2B per quarter and peaking at $4.3B in 2025Q4. This investment is necessary for future rate base growth, but it creates a significant funding gap, as CapEx/OCF exceeded 100% in six of the last ten quarters. The elevated investment relative to depreciation suggests that the company is expanding its asset base, which should support future earnings if regulatory recovery is timely.
External Financing Needed to Bridge Gap
Free cash flow was negative in six of the last ten quarters, with a cumulative deficit of $4.5B, requiring reliance on debt and equity issuance, as seen in 2025Q4's $1.5B stock issuance.
The persistent negative FCF, driven by heavy CAPEX, indicates that Southern Company must access capital markets regularly. The company has issued small amounts of long-term debt (around $1M per quarter) and occasionally larger equity, such as the $1.5B in 2025Q4. This suggests that financing capacity is available, but the reliance on external capital could strain the balance sheet if terms become less favorable. The debt-to-capital margin appears adequate, but investors should monitor the cost and availability of future financing.
Dividend Coverage Remains Adequate
Dividends per quarter have grown steadily to $803M, with OCF/div coverage of 3.3x in 2026Q2, indicating that operating cash flow comfortably supports the dividend.
Despite the heavy CAPEX program, OCF has consistently covered dividends, with coverage ratios ranging from 1.6x to 5.0x over the past ten quarters. The dividend has been increased modestly each quarter, reflecting management's confidence in cash flow stability. However, the coverage ratio dipped to 1.6x in 2026Q1, which, while still adequate, highlights the potential impact of seasonal OCF fluctuations. Overall, the dividend appears safe, but the sustainability depends on continued regulatory support and timely cost recovery.
Non-Cash Accruals Mask Cash Reality
Net income averaged $1.1B per quarter, but OCF averaged $2.3B, indicating significant non-cash items like depreciation and AFUDC that inflate earnings relative to cash generation.
The gap between net income and OCF suggests that a substantial portion of earnings is non-cash, likely from AFUDC (Allowance for Funds Used During Construction) and depreciation. This is typical for utilities with large CAPEX programs, as AFUDC accrues earnings without immediate cash inflow. Investors should recognize that reported earnings may not translate directly into cash available for dividends or debt repayment, and the quality of earnings depends on the eventual recovery of these accruals through rates.
What Could Invalidate the Base Case
The cash flow statement does not reveal potential regulatory disallowances or environmental liabilities, which could impair cash flows if rate cases are unfavorable.
While the cash flow data shows strong OCF and manageable financing, it does not capture the risk of regulatory lag or disallowances on the large CAPEX program. If rate cases do not provide timely recovery, the company may face cash flow shortfalls, forcing it to rely more heavily on external financing. Additionally, future environmental compliance costs, such as coal ash remediation, are not reflected in the current cash flow figures and could represent significant unfunded obligations. Investors should monitor regulatory proceedings and environmental mandates as potential headwinds to cash flow.