Southern reports second-quarter net income rise to $1.2 billion
The utility provider saw second-quarter operating revenues rise 0.1% to $6.98 billion
Southern (SO), the electric and gas utility provider, reported second-quarter net income of $1.2 billion.
Results for the period reflected a divergence between growing demand for electricity and losses within its power generation and gas segments. While the company saw an increase in total kilowatt-hour sales, the bottom line was pressured by decommissioning costs and regulatory setbacks.
Net income as reported for the quarter was $1.03 a share, up from $0.80 a share in the second quarter of 2024. Non-GAAP net income, which excludes certain items, rose to $1.3 billion, or $1.13 a share, compared to $1.0 billion, or $0.92 a share, in the prior-year period.
Operating revenues for the quarter were $6.98 billion, a 0.1% increase over the $6.97 billion reported in the second quarter of 2024. This followed a sequential decline from the $8.4 billion in operating revenues recorded in the first quarter of 2025. Year-to-date operating revenues through June 2025 rose 4.2% to $15.4 billion.
Total kilowatt-hour sales increased 3.9% to 51,793 million kWh. This growth was driven by a 9.2% increase in wholesale sales and a 2.1% increase in retail sales. Within the retail mix, commercial sales grew 7.3% and industrial sales remained flat, while residential sales declined 1.5%.
Southern Power experienced a significant decline in performance, reporting a net loss of $25 million for the quarter compared to a net income of $51 million in the second quarter of 2024. Part of this result was due to wind facility repowering, which drove pre-tax accelerated depreciation and decommissioning costs to $143 million, up from $40 million in the prior-year quarter.
Southern Company Gas reported a pre-tax loss of $8 million related to Nicor Gas capital investments. The loss resulted from investments disallowed by the Illinois Commerce Commission in November 2024.