We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Southern Company Q2 Earnings Beat as Utility Sales Grow
Read MoreHide Full Article
Key Takeaways
SO posted Q2 adjusted EPS of $0.91, topping estimates but declining from $1.09 a year earlier.
Revenues rose 7.9% year over year to $7B, beating the Zacks Consensus Estimate of $6.6B.
Total O&M costs jumped 21.4% while residential sales slipped 2.7% in the second quarter.
Power supplier The Southern Company (SO - Free Report) reported second-quarter 2025 earnings per share (excluding certain one-time items) of 91 cents, outperforming the Zacks Consensus Estimate of 87 cents. The encouraging numbers reflect higher utility revenues.
However, the bottom line came well below the year-ago adjusted profit of $1.09 due to higher-than-expected expenses and the effects of milder weather.
The utility reported revenues of $7 billion. The top line came in 7.9% higher than second-quarter 2024 sales and beat the Zacks Consensus Estimate of $6.6 billion.
The firm guided earnings per share between $4.20 and $4.30 for this year and $1.50 for the September quarter. Further, Southern Company management stuck to its long-term EPS growth rate projection of 5-7%.
Southern Company (The) Price, Consensus and EPS Surprise
Southern Company’s wholesale power sales fell 1.8%, though there was a slight gain in retail electricity demand.
Overall, there was a marginal decline in electricity sales and usage. In fact, total electricity sales during the second quarter edged down 0.1% from the same period last year.
Southern Company’s total retail sales moved up 0.5%, with industrial and commercial sales increasing 2.8% and 1.3%, respectively, while residential sales fell 2.7%.
Expenses Summary
The Zacks Rank #3 (Hold) power supplier’s operations and maintenance (O&M) cost rose 21.4% year over year to $1.7 billion. The utility’s total operating expense for the period — at $5.2 billion — increased 15.1% from the prior-year level and surpassed our estimate of $4.9 billion.
While we have discussed The Southern Company’s second-quarter results in detail, let’s see how some other utilities have fared this earnings season.
PPL Corporation (PPL - Free Report) reported operating EPS of 32 cents, which missed the Zacks Consensus Estimate of 37 cents by 13.5%. In the year-ago quarter, the company reported earnings of 38 cents per share. Total revenues of $2.03 billion surpassed the Zacks Consensus Estimate of $1.98 billion by 2.15%. The top line also increased 7.7% from the year-ago figure of $1.88 billion.
PPL’s total operating expenses were $1.62 billion, up 8.7% from the year-ago quarter’s $1.49 billion. This was due to an increase in fuel and energy purchases. Operating income totaled $406 million, up 4.1% from the year-ago figure of $390 million.
Interest expenses amounted to $199 million, up 9.3% from $182 million in the corresponding period of 2024. PPL reaffirmed its 2025 earnings projection in the range of $1.75-$1.87 per share.
American Water Works Company (AWK - Free Report) posted operating EPS of $1.48, which lagged the Zacks Consensus Estimate of $1.49 by 0.7%. The bottom line improved 4.2% from the year-ago quarter's EPS of $1.42. The year-over-year improvement in earnings was due to increased revenues from the implementation of new rates in the Regulated Businesses and contributions from acquired assets.
Total operating expenses for the second quarter were $787 million, 12.4% higher than the year-ago quarter’s $700 million, due to an increase in operating and maintenance expenses. American Water Works continues to expand operations through acquisitions and organic means. As of June 30, 2025, American Water Works added 7,600 customers through seven closed acquisitions. Another 20 pending acquisitions, when completed, will add 40,650 customers.
IDACORP, Inc. (IDA - Free Report) reported second-quarter 2025 earnings of $1.76 per share, which came in line with the Zacks Consensus Estimate. The company’s earnings improved 2.9% from $1.71 in the year-ago quarter. The year-over-year improvement was due to higher-than-expected customer usage, continued customer growth and rate changes.
Customer growth rate in IDACORP’s service areas increased 2.5% year over year for the 12 months ended on June 30, 2025. This boosted operating income by $5.5 million compared with the year-ago level. IDACORP’s total operating expenses were $350.3 million, up 0.7% from the year-ago quarter. The increase in operating expenses was due to higher fuel, operations and maintenance as well as depreciation and amortization expenses.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Southern Company Q2 Earnings Beat as Utility Sales Grow
Key Takeaways
Power supplier The Southern Company (SO - Free Report) reported second-quarter 2025 earnings per share (excluding certain one-time items) of 91 cents, outperforming the Zacks Consensus Estimate of 87 cents. The encouraging numbers reflect higher utility revenues.
However, the bottom line came well below the year-ago adjusted profit of $1.09 due to higher-than-expected expenses and the effects of milder weather.
The utility reported revenues of $7 billion. The top line came in 7.9% higher than second-quarter 2024 sales and beat the Zacks Consensus Estimate of $6.6 billion.
The firm guided earnings per share between $4.20 and $4.30 for this year and $1.50 for the September quarter. Further, Southern Company management stuck to its long-term EPS growth rate projection of 5-7%.
Southern Company (The) Price, Consensus and EPS Surprise
Southern Company (The) price-consensus-eps-surprise-chart | Southern Company (The) Quote
Overall Sales Breakup
Southern Company’s wholesale power sales fell 1.8%, though there was a slight gain in retail electricity demand.
Overall, there was a marginal decline in electricity sales and usage. In fact, total electricity sales during the second quarter edged down 0.1% from the same period last year.
Southern Company’s total retail sales moved up 0.5%, with industrial and commercial sales increasing 2.8% and 1.3%, respectively, while residential sales fell 2.7%.
Expenses Summary
The Zacks Rank #3 (Hold) power supplier’s operations and maintenance (O&M) cost rose 21.4% year over year to $1.7 billion. The utility’s total operating expense for the period — at $5.2 billion — increased 15.1% from the prior-year level and surpassed our estimate of $4.9 billion.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Key Utility Earnings
While we have discussed The Southern Company’s second-quarter results in detail, let’s see how some other utilities have fared this earnings season.
PPL Corporation (PPL - Free Report) reported operating EPS of 32 cents, which missed the Zacks Consensus Estimate of 37 cents by 13.5%. In the year-ago quarter, the company reported earnings of 38 cents per share. Total revenues of $2.03 billion surpassed the Zacks Consensus Estimate of $1.98 billion by 2.15%. The top line also increased 7.7% from the year-ago figure of $1.88 billion.
PPL’s total operating expenses were $1.62 billion, up 8.7% from the year-ago quarter’s $1.49 billion. This was due to an increase in fuel and energy purchases. Operating income totaled $406 million, up 4.1% from the year-ago figure of $390 million.
Interest expenses amounted to $199 million, up 9.3% from $182 million in the corresponding period of 2024. PPL reaffirmed its 2025 earnings projection in the range of $1.75-$1.87 per share.
American Water Works Company (AWK - Free Report) posted operating EPS of $1.48, which lagged the Zacks Consensus Estimate of $1.49 by 0.7%. The bottom line improved 4.2% from the year-ago quarter's EPS of $1.42. The year-over-year improvement in earnings was due to increased revenues from the implementation of new rates in the Regulated Businesses and contributions from acquired assets.
Total operating expenses for the second quarter were $787 million, 12.4% higher than the year-ago quarter’s $700 million, due to an increase in operating and maintenance expenses. American Water Works continues to expand operations through acquisitions and organic means. As of June 30, 2025, American Water Works added 7,600 customers through seven closed acquisitions. Another 20 pending acquisitions, when completed, will add 40,650 customers.
IDACORP, Inc. (IDA - Free Report) reported second-quarter 2025 earnings of $1.76 per share, which came in line with the Zacks Consensus Estimate. The company’s earnings improved 2.9% from $1.71 in the year-ago quarter. The year-over-year improvement was due to higher-than-expected customer usage, continued customer growth and rate changes.
Customer growth rate in IDACORP’s service areas increased 2.5% year over year for the 12 months ended on June 30, 2025. This boosted operating income by $5.5 million compared with the year-ago level. IDACORP’s total operating expenses were $350.3 million, up 0.7% from the year-ago quarter. The increase in operating expenses was due to higher fuel, operations and maintenance as well as depreciation and amortization expenses.