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FINWIRES

Research Alert: Southern Company Q1: Wholesale Electric Fuels Top- And Bottom-line Beats

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Southern Company reported Q1 2026 adjusted EPS of $1.32, up 7.3% Y/Y, and beating guidance by 10.0% and consensus by 9.1%. Operating revenues increased 8.0% (+3.6% vs. consensus) to $8.4B, attributed to wholesale electric revenues surging 29.7% to $965M and natural gas revenues rising 19.1% to $2.2B. The company added 49K customers Y/Y, reflecting 1.1% growth, while weather-adjusted retail sales increased 2.3%, with strong commercial (+4.6%) and industrial (+1.5%) performance. Weather impacts reduced quarterly EPS by $0.05 as actual residential sales declined 4.1%. Southern Power faced significant headwinds, with net income falling 95.4% to $4M due to $154M in accelerated depreciation charges from wind facility repowering projects, with additional charges of $335M expected through 2026 and $100M in 2027. We believe the strong underlying utility performance and customer growth trends support the investment thesis despite near-term Southern Power challenges.

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