Revenue growth has been inconsistent, with 2026Q1 up 8.0% year-over-year but 2026Q2 slowing to 0.1%, while operating margins fluctuate widely from 33.2% in 2025Q3 to 13.0% in 2025Q4, indicating regulatory lag and weather sensitivity.
The Southern Company (SOMN) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Revenue | 30.18B | 29.55B | 26.72B | 25.25B | 29.28B | 23.11B | 20.38B | 21.42B | 23.5B | 23.03B | 19.9B |
| Revenue Growth % | 6.4% | 10.59% | 5.83% | -13.75% | 26.68% | 13.44% | -4.87% | -8.84% | 2.01% | 15.76% | - |
| Cost of Revenue | 17.08B | 20.74B | 13.38B | 13.54B | 18.65B | 12.87B | 10.48B | 11.82B | 13.88B | 13.12B | 11.37B |
| Gross Profit | 13.1B | 8.81B | 13.34B | 11.71B | 10.63B | 10.25B | 9.9B | 9.6B | 9.62B | 9.91B | 8.53B |
| Gross Margin % | 43.4% | 29.81% | 49.93% | 46.36% | 36.3% | 44.33% | 48.57% | 44.83% | 40.93% | 43.05% | 42.87% |
| Gross Profit Growth % | - | -33.98% | 13.96% | 10.17% | 3.71% | 3.54% | 3.06% | -0.14% | -3.02% | 16.24% | - |
| Operating Expenses | 5.8B | 1.54B | 6.27B | 5.88B | 5.26B | 6.55B | 5.01B | 1.87B | 5.42B | 7.58B | 4.04B |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 13.34B | 13.3B | 12.33B | 10.81B | 9.43B | 7.67B | 8.79B | 11.07B | 7.74B | 5.79B | 7.41B |
| EBITDA Margin % | 44.2% | 45.01% | 46.15% | 42.81% | 32.22% | 33.19% | 43.14% | 51.67% | 32.94% | 25.14% | 37.24% |
| EBITDA Growth % | 4.59% | 7.84% | 14.08% | 14.61% | 22.98% | -12.73% | -20.57% | 42.98% | 33.68% | -21.85% | - |
| Depreciation & Amortization | 6.04B | 6.03B | 5.27B | 4.99B | 4.06B | 3.97B | 3.9B | 3.33B | 3.55B | 3.46B | 2.92B |
| D&A / Revenue % | 20.02% | 20.4% | 19.71% | 19.74% | 13.88% | 17.19% | 19.17% | 15.55% | 15.11% | 15.01% | 14.69% |
| Operating Income (EBIT) | 7.3B | 7.27B | 7.07B | 5.83B | 5.37B | 3.7B | 4.88B | 7.74B | 4.19B | 2.33B | 4.49B |
| Operating Margin % | 24.19% | 24.6% | 26.45% | 23.07% | 18.34% | 16% | 23.98% | 36.12% | 17.84% | 10.13% | 22.55% |
| Operating Income Growth % | - | 2.87% | 21.32% | 8.49% | 45.21% | -24.3% | -36.85% | 84.59% | 79.64% | -47.99% | - |
| Interest Expense | 4M | 3.31B | 2.74B | 2.45B | 2.02B | 1.84B | 1.82B | 1.74B | 1.84B | 1.69B | 1.32B |
| Interest Coverage | - | 2.51x | 2.91x | 2.78x | 3.09x | 2.40x | 2.92x | 4.77x | 2.49x | 1.63x | 3.64x |
| Interest / Revenue % | 0.01% | 11.18% | 10.26% | 9.69% | 6.91% | 7.95% | 8.94% | 8.1% | 7.84% | 7.36% | 6.62% |
| Non-Operating Income | -4M | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | 5.25B | 5B | 5.23B | 4.34B | 4.22B | 2.58B | 3.5B | 6.54B | 2.75B | 1.07B | 3.48B |
| Pretax Margin % | 17.39% | 16.92% | 19.57% | 17.21% | 14.42% | 11.15% | 17.16% | 30.54% | 11.7% | 4.64% | 17.49% |
| Income Tax | 684M | 828M | 969M | 496M | 795M | 267M | 393M | 1.8B | 449M | 142M | 951M |
| Effective Tax Rate % | 13.03% | 16.56% | 18.53% | 11.42% | 18.83% | 10.36% | 11.24% | 27.48% | 16.33% | 13.3% | 27.33% |
| Net Income | 4.66B | 4.34B | 4.4B | 3.98B | 3.54B | 2.41B | 3.13B | 4.75B | 2.24B | 880M | 2.49B |
| Net Margin % | 15.43% | 14.69% | 16.47% | 15.74% | 12.07% | 10.42% | 15.38% | 22.2% | 9.54% | 3.82% | 12.53% |
| Net Income Growth % | 8.73% | -1.36% | 10.69% | 12.48% | 46.8% | -23.17% | -34.08% | 112.04% | 154.77% | -64.7% | - |
| EPS (Diluted) | 4.08 | 3.92 | 3.99 | 3.62 | 3.26 | 2.26 | 2.95 | 4.50 | 2.15 | 0.84 | 2.47 |
| EPS Growth % | 6.7% | -1.75% | 10.22% | 11.04% | 44.25% | -23.39% | -34.44% | 109.3% | 155.95% | -65.99% | - |
| EPS (Basic) | - | 3.94 | 4.02 | 3.64 | 3.28 | 2.26 | 2.95 | 4.50 | 2.15 | 0.84 | 2.47 |
| Diluted Shares Outstanding | 1.14B | 1.11B | 1.1B | 1.1B | 1.08B | 1.06B | 1.06B | 1.05B | 1.03B | 1.01B | 990.2M |
Quick answers to the most common questions about buying SOMN stock.
For fiscal year 2025, The Southern Company (SOMN) reported total revenue of $29.55B. This represents a 48.5% increase compared to $19.90B in 2016.
The Southern Company (SOMN) is profitable, generating $4.34B in net income for the fiscal year ending 2025 with a net profit margin of 14.7%.
The Southern Company (SOMN) reported an operating income of $7.27B, resulting in an operating profit margin of 24.6%. This margin reflects the operational efficiency of the business before interest and taxes.
The Southern Company (SOMN) generated $8.81B in gross profit for the year, representing a gross profit margin of 29.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory lag and weather volatility
Revenue Growth Driven by Rate Base Expansion
Revenue grew 8.0% year-over-year in 2026Q1, per company filings, reflecting rate base expansion and rate case outcomes, though 2026Q2 growth slowed to 0.1%.
The 8.0% revenue growth in 2026Q1 likely stems from recent rate case approvals and capital investment recovery, but the sharp deceleration to 0.1% in 2026Q2 suggests a pause in rate relief or weather normalization. This pattern indicates that revenue growth is episodic, tied to regulatory decisions rather than organic demand. Investors should monitor the cadence of rate case filings to assess the durability of this trajectory.
Earned Returns Fluctuate with Seasonality
Operating margin swung from 33.2% in 2025Q3 to 13.0% in 2025Q4, as reported in financial statements, indicating significant quarterly volatility in earned returns relative to authorized levels.
The wide margin range suggests that the company's earned ROE is heavily influenced by seasonal demand and cost timing, not just regulatory constructs. The 2025Q4 margin of 13.0% may reflect higher operating costs or lower revenues, potentially indicating regulatory lag in cost recovery. This volatility implies that the authorized ROE is not consistently achieved, and the gap may widen during periods of high fuel or maintenance expenses.
Fuel Cost Pass-Through Creates Revenue Swings
Revenue growth of 17.0% in 2025Q1, per SEC filings, likely reflects higher fuel costs passed through to customers, but this does not translate to earnings growth, as EPS rose only 17.5%.
The near-parallel movement of revenue and EPS in 2025Q1 suggests that fuel cost recovery mechanisms are functioning, but the pass-through nature means revenue increases are not a source of margin expansion. The 2025Q4 revenue growth of 10.1% with a 22.9% EPS decline indicates that cost recovery may lag, straining working capital. This pattern warrants monitoring for any regulatory delays in fuel clause adjustments.
Earnings Volatility Masks Core Regulated Growth
EPS swung from $1.54 in 2025Q3 to $0.37 in 2025Q4, based on reported figures, suggesting non-recurring items or weather effects obscure the underlying regulated earnings power.
The extreme quarterly EPS swings, including a 22.9% year-over-year decline in 2025Q4, indicate that reported earnings are not a smooth reflection of regulated operations. Weather normalization and one-time charges likely contribute to this volatility, making it difficult to assess the true growth rate. Analysts should adjust for these items to gauge the sustainable earnings trajectory.
CAPEX Cycle Yet to Show EPS Payoff
Despite revenue growth averaging 8% in recent quarters, EPS growth has been inconsistent, with 2026Q2 EPS up 28.7% but 2025Q4 down 22.9%, per company data.
The lack of consistent EPS growth alongside revenue expansion suggests that incremental CAPEX may not be translating into rate base and earnings as quickly as expected. The 2026Q2 EPS surge of 28.7% could be a catch-up from prior quarters, but the overall pattern indicates regulatory lag in recovering capital costs. This implies that the current CAPEX cycle may be more about maintaining the existing asset base than driving a step-change in earnings.
Weather and Regulatory Lag Pose Risks
The 2025Q4 operating margin of 13.0% and EPS of $0.37, as reported, suggest that weather normalization and cost recovery timing could undermine the earnings narrative.
The sharp deterioration in 2025Q4 profitability, despite revenue growth, may indicate that the company is not fully recovering costs in a timely manner, possibly due to regulatory lag or weather-related demand declines. If this pattern persists, it could signal that the authorized ROE is not being earned consistently, challenging the sustainability of the dividend and growth outlook. Investors should scrutinize the regulatory environment and weather-normalized demand trends.