Southern Company (SO) official guidance

Looking towards the second half of the year, we anticipate this momentum continuing and now project our full year 2026 adjusted earnings to be near or at the top of our 2026 adjusted EPS guidance range of $4.50-$4.60.

Our adjusted EPS estimate for the third quarter is $1.65 per share.

Together with a significant amount of equity previously sourced, we have reduced our projected remaining equity need by 2030 to $1.1 billion.

We continue to proactively address our identified equity needs to support our path towards 17% FFO to Debt by 2029.

At June 30, 2026, the remaining pre-tax accelerated depreciation and decommissioning costs are projected to total approximately $205 million in 2026 and $120 million in 2027.

At June 30, 2026, the remaining pre-tax accelerated depreciation and decommissioning costs are projected to total approximately $205 million in 2026 and $120 million in 2027.

Our adjusted EPS estimate for the second quarter is $1.00 per share.

For example, Georgia Power recently initiated the regulatory process for an all source RFP to procure 2-6 GW of new dispatchable generation resources, including from thermal generation, battery energy storage, and renewables that are projected to be in service in 2032 and 2033.

These projects are the first of several resources included within our 10 GW portfolio of approved new generation resources that are in development to power the extraordinary projected growth in our region, including multiple battery systems and natural gas combustion turbines that are projected to be online later in 2026 and 2027.

At March 31, 2026, the remaining pre-tax accelerated depreciation is projected to total approximately $335 million in 2026 and $100 million in 2027.

At March 31, 2026, the remaining pre-tax accelerated depreciation is projected to total approximately $335 million in 2026 and $100 million in 2027.

Through 2030, we expect to invest roughly $42 billion or over half of our total 5-year capital plan to reliably serve projected growth through the combination of new generation, enhancements to existing generation assets, and expansions of our transmission and interstate pipeline systems.

Turning to our capital plan, our base capital investment forecast is $81 billion over the next five years, 95% of which is at our state-regulated utilities.

In December, as a part of its certification process for new generation, Georgia Power was able to quantify at least approximately $1.7 billion of benefits that will help to lower cost to serve existing customers from 2029 through 2031.

While future dividend increases are subject to approval by our board of directors, we project continued modest increases in the dividend over the next several years.

This should serve to lower our dividend payout ratio into the low- to mid-60% range in the latter portion of our forecast horizon.

In addition to the 2026 range I provided, our initial guidance range for 2027 is adjusted earnings per share of $4.85-$4.95, which represents approximately 8% growth from 2026.

For 2028, we project adjusted earnings per share to grow approximately 9% from 2027, resulting in initial guidance range of $5.25-$5.45.

The estimate for adjusted EPS for the first quarter is $1.20.

Over the next three years, we expect to grow adjusted earnings per share 8%-9% from 2026 through 2028.

Longer term, we expect adjusted earnings to grow approximately 7%-8% from our 2028 guidance range.

Of roughly 15% FFO to debt through 2027, as we continue to deploy significant capital investment to serve our forecasted growth.

Our capital investment plan supports projected long-term state-regulated average annual rate-based growth of approximately 9%, a 2% increase from our forecast one year ago.

Considering the composition and strength of our large load pipeline, we project commercial sales, which currently comprise roughly one-third of our total retail sales, to more than double, growing roughly 20% annually through the end of the decade.

Starting with our sales forecast, we project retail electric sales to grow at least 3% across our three electric operating companies in 2026.

On average, from 2026 through 2030, we project annual electricity sales growth of 10%, an increase of 2 percentage points from our prior long-term sales projections.

On average, from 2026 through 2030, we project annual electricity sales growth of 10%, an increase of 2 percentage points from our prior long-term sales projections. Georgia Power's total retail electric sales growth is projected to be approximately 13% over the same period.

As a reminder, on our July earnings call, we highlighted a cumulative equity need of $9 billion through 2029 to fund our $76 billion capital investment plan in a credit supportive manner.

Our adjusted EPS estimate for the fourth quarter is $0.54 per share, which, combined with our year-to-date performance, would represent full year adjusted earnings at the top of our 2025 annual guidance range of $4.30 per share.

Our adjusted EPS estimate for the fourth quarter is $0.54 per share, which, combined with our year-to-date performance, would represent full year adjusted earnings at the top of our 2025 annual guidance range of $4.30 per share.

As a reminder, on our July earnings call, we highlighted a cumulative equity need of $9 billion through 2029 to fund our $76 billion capital investment plan in a credit supportive manner.

Across our electric subsidiaries, the total pipeline remains more than 50 gigawatts of potential incremental load by mid-2030s. Recall that our disciplined approach to forecasting assumes that only a fraction of this load pipeline materializes. As Chris mentioned earlier, in just the last 2 months, we have 4 contracts across Southern Company system that represent over 2 gigawatts of load. As you can see, projects within our pipeline are maturing into executed contracts, which, along with their associated load ramps over the next several years, solidifies a substantial portion of our total forecasted electric sales growth of 8% annually through 2029, including average annual growth at Georgia Power of 12% through the same period.

Across our electric subsidiaries, the total pipeline remains more than 50 gigawatts of potential incremental load by mid-2030s. Recall that our disciplined approach to forecasting assumes that only a fraction of this load pipeline materializes. As Chris mentioned earlier, in just the last 2 months, we have 4 contracts across Southern Company system that represent over 2 gigawatts of load. As you can see, projects within our pipeline are maturing into executed contracts, which, along with their associated load ramps over the next several years, solidifies a substantial portion of our total forecasted electric sales growth of 8% annually through 2029, including average annual growth at Georgia Power of 12% through the same period.

Earnings for the three and nine months ended September 30, 2025 include pre-tax charges, net of noncontrolling interests impacts, of $103 million ($80 million after tax) and $168 million ($130 million after tax), respectively, associated with accelerated depreciation related to the repowering of certain wind facilities at Southern Power. Accelerated depreciation related to the equipment being replaced will continue until the commercial operation dates of the repowering projects, which are projected to occur between the third quarter 2026 and the second quarter 2027. At September 30, 2025, the remaining pre-tax accelerated depreciation, net of noncontrolling interest impacts, is projected to total approximately $100 million in 2025, $320 million in 2026, and $25 million in 2027.

Mississippi Power Company expects to incur additional pre-tax period costs through the end of 2025 related to dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, net of salvage.