Southern : 1Q 2026 Presentation

Published: 2026-04-30 14:22:12 ET SO

Published on 04/30/2026 at 02:22 pm EDT

First Quarter 2026 Earnings Conference Call

Non-GAAP Financial Measures

In addition to including earnings per share (EPS) in accordance with generally accepted accounting principles (GAAP), this presentation also includes historical adjusted EPS excluding: (1) accelerated depreciation from repowering, (2) costs associated with the extinguishment of debt at Southern Company, (3) estimated loss on Nicor Gas capital investments, and (4) estimated loss on plants under construction.

Accelerated depreciation from repowering relates to the repowering of certain wind facilities at Southern Power, which impacted EPS for the three months ended March 31, 2026 and 2025. Accelerated depreciation related to the equipment being replaced will continue until the completion dates of the repowering projects, which are projected to occur through the third quarter 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.

The costs associated with the extinguishment of debt at Southern Company impacted EPS for the three months ended March 31, 2026 and resulted from Southern Company's

redemption of certain junior subordinated notes. Further charges may occur; however, the amount and timing of any such charges are uncertain.

Estimated loss on Nicor Gas capital investments represents costs associated with Nicor Gas capital investments disallowed by the Illinois Commerce Commission in November 2025, which impacted EPS for the three months ended March 31, 2026. Further charges may occur; however, the amount and timing of any such charges are uncertain.

Estimated loss on plants under construction includes charges (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power's integrated coal gasification combined cycle project in Kemper County, Mississippi (Kemper IGCC). The charges impacted EPS for the three months ended March 31, 2025. Dismantlement of the abandoned gasifier-related assets was completed at the end of 2025. Site restoration activities are substantially complete, and any additional costs are expected to be immaterial.

This presentation also includes projected adjusted EPS for future periods excluding any additional: acquisition and disposition impacts, charges associated with the Kemper IGCC and/or Plant Vogtle Units 3 and 4, charges associated with Nicor Gas disallowances, impairment charges, costs associated with the extinguishment of debt at Southern Company and its non-state regulated subsidiaries, and/or accelerated depreciation from the repowering of wind facilities. Information concerning the aggregate magnitude of the impacts, if any, from these items on EPS is not available at this time. Accordingly, this presentation does not include a quantitative reconciliation of projected adjusted EPS (which is a forward-looking non-GAAP financial measure) because doing so would involve unreasonable efforts.

Southern Company believes presentation of EPS excluding the items described above provides investors with information comparable to guidance. Management also uses such

measures to evaluate Southern Company's performance.

See slide 5 for a reconciliation of historical adjusted EPS to GAAP EPS

Delivering Results Through Growth & Execution

Year-over-year earnings growth across all major businesses in first quarter

Weather-normal sales growth across all customer segments; data centers up 42% vs. Q1 2025

23GW of projects either contracted or in late stages - 6GW projected to finalize in near term

All-Source RFP filed in Georgia for resources by 2033 - process expected to progress through 2027

$26.5B of new DOE loans support the construction of these resources and other infrastructure

Remaining $1.8B projected need includes equity to support base capital plan + 400MW of SPC uprates

Q1 2026 Earnings Results

2026 2025

Earnings Per Share As Reported $1.21 $1.21

Less:

Accelerated Depreciation from Repowering1

($0.10)

($0.02)

Loss on Extinguishment of Debt2

($0.01)

Estimated Loss on Nicor Gas Capital Investments3

Estimated Loss on Plants Under Construction4

Earnings Per Share Excluding Items

$1.32

$1.23

1 Represents accelerated depreciation related to the repowering of certain wind facilities at Southern Power.

2 Represents costs associated with the extinguishment of debt at Southern Company.

3 Represents costs in 2026 associated with Nicor Gas capital investments disallowed by the Illinois Commerce Commission.

4 Represents charges (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts in 2025 resulting from the abandonment and closure activities associated with the Kemper IGCC. 5

Q1 2026 Year-Over-Year Adjusted Driven*

31.23

State-Regukted

Elecarka

Southern Company

Southern

Power

Q1 2026 Key Drivers

+ Strong Cuomer Usage and G¥owth

+ Investment in stato-regulated utilities

+ Wholesale avenues

- Weather (vs. normal: -34 Q12026 vs. +24 Q12025)

- Higher inQrest expenu

§12025 §12026

Exzltzdes accelerated depreciation related to the repowerir of certain wind farilit at Southern Power, case associated wñti the eztin$uishmem of debt at Southern Company, and costs associated with Nicor Gas capital iwestment disall

Q1 2026 & Projected Full Year Adjusted EPS

Q1 YTD 2026 Adjusted EPS 2026 Projected Full Year Adjusted EPS Guidance1,2

$0.36

$0.12

All Other

($0.90)

LDCs

$0.53

Competitive power,

FERC-regulated pipelines, and other assets under longterm contract

Parent

Electrics

$4.44

$4.60

$4.50

$0.10

$0.14

All Other

($0.21)

Parent

LDCs

$0.30

Competitive power,

FERC-regulated pipelines, and other assets under longterm contract

Electrics

$0.99

$1.32

State-Regulated

Utilities

State-Regulated

Utilities

Q2 2026 Estimate = $1.001

1 Excludes any further charges (credits) associated with Plant Vogtle Units 3 and 4, charges (net of salvage proceeds), associated legal expenses (net of insurance proceeds), and tax impacts from the abandonment and closure activities associated with the Kemper IGCC, future acquisition and disposition impacts, future impairment charges, further charges associated with Nicor Gas disallowances, additional costs associated with the extinguishment of debt at Southern Company and its non-state regulated subsidiaries, and/or

accelerated depreciation from the repowering of wind facilities. 7

2 Guidance provided as of February 19, 2026.

Q1 Retail Electricity Sales Growth vs. Prior Year

2.3% total weather-normal sales growth in Q1

Residential sales bolstered by strong customer growth

with addition of 46K new customers since March 2025

Commercial sales increase driven by data center growth of 42% - primarily ramping large loads

Industrial sales led by primary metals (+8%) and

pipeline (+6%) segments

Strong Southeast economy is driven by a diverse mix of

industries, strong employment growth, and in-migration

28 companies announced plans to locate/expanded in Q1,

adding ~4K new permanent jobs and $7B of investment

Rate stability in Alabama and Georgia bolstered by

accelerating sales growth

Weather-Normal Electricity Sales - Class

Q1 2026 vs. Q1 2025

4.6%

Weather-Normal Electricity Sales - Company

Q1 2026 vs. Q1 2025

0.9%

1.5%

2.3%

2.4% 2.5%

2.3%

Residential Commercial Industrial Total Retail

-0.7%

Alabama Georgia Mississippi Total Retail

Extraordinarily Positioned to Capture Growth

Our Approach To Delivering Value For Customers and Investors

Market Structure

Vertically integrated

Balance Sheet

Size & durability

Business Profile

Utilities & competitive power

Regulation

Constructive & orderly

Scale

To deliver

Location

Growing economies

Large Loads

Benefiting all stakeholders

New Generation

Approved & being built

Experience

To execute

~2GW of Additional Large Load Contracted in Q1

23GW of projects have either contracted or are in late stages

increase of ~2GW vs. prior quarter

Combined Large Load Outlook

Projects Ultimate

Ramp

across eight projects in Alabama and Georgia

demonstrating continued momentum and execution

provides robust opportunity for continued progress

100+

Prospective Pipeline

Late-stage

75GW+

+5GW

6GW

+5GW

Pipeline Stages

Definition

Prospective Pipeline

Potential large load customers in early to mid-stages that have requested

service in one of our electric service territories

Late Stage

Project is progressing through the review process and likely to execute contract within 12 months

Finalizing

Project is highly likely to execute contract in the near term

Contracted

Fully signed (without material contingencies) and/or regulator reviewed agreement to take electric service

8 Finalizing

6GW

+2GW

Progress

See slide 18 for quarterly comparison of large load outlook by stage

"Committed" projects in Georgia with signed Requests for Service agreements are included within the Late Stage and Finalizing phases

28 Contracted

11GW

since Q4 Call

New Infrastructure to Reliably Serve Growth

10GW of state-regulated company-owned new resources under construction, with assets projected to be placed in-service each year

Completed

Thermal

Yates Unit 8 (CT)

441 MW

Yates Units 9-10 (CT)

882 MW

Bowen Unit 7 (CC)

780 MW

Wansley Unit 10 (CC)

777 MW

Bowen Unit 8 (CC)

780 MW

Wansley Unit 11 (CC)

777 MW

McIntosh Unit 12 (CC)

797 MW

Storage

Solar

2 BESS Facilities 178 MW1

3 BESS Facilities 587 MW

3 BESS Facilities

610 MW

5 BESS Facilities

1,570 MW

2 Solar + BESS Sites

350MW

2 BESS Facilities

750 MW

2 BESS Facilities

443 MW

500+ Miles of New Transmission Lines

Transmission 11

1) Through April 2026, two BESS facilities, representing 178 MW, have been completed and placed in-service

$26.5B of U.S. Department of Energy Loans

Helps support infrastructure investment, including 10GW of new generation

Low-cost financing is projected to provide an estimated $7B in savings for customers over next 30 years

$26.5B of combined loans at Alabama Power ($4.1B) and Georgia Power ($22.4B) is expected to help satisfy a majority of their capital market needs over next several years

Terms for eligible draws:

Draws through: September 2033

Pricing: Fixed rate, Treasury +37.5bps

Maturity: December 2055

Identified Qualifying Projects by Type

Distribution

20%

21%

36%

Thermal Generation

Transmission

4% 9%

Hydro

10%

Nuclear

Modernization

BESS

Uprates 12

Announced Uprates to Gas Fleet

Millers Branch solar facility Phase I (200MW) placed

into service February 2026

Phases II (180MW) and III (132MW) projected in-service in Q2 and Q4 2026

Repowering of 5 wind facilities (1GW total) underway across Oklahoma and Texas

Projected in-service in 2026-2027

Renewable Projects Underway

400MW of gas uprates announced at four units

across plants Franklin (AL) and Wansley (GA)

Projected combined investment of ~$700M

Construction scheduled to begin in 2026

Commercial operations

projected 2029-2031

Additional 300MW of gas capacity uprate still being pursued

Plant Wansley

100MW

Plant Franklin 300 MW

Southern Power Projects Update

Proactively Addressing Projected Equity Need Through 2030

$0.5B

$2.3B

$2B Original Equity Need

For Base Capital Plan as shared on Q4 call

Additionalequity for

+$0.3B Southern Power

uprates

Remain on trajectory toward

~17% FFO to Debt by 2029

Assuming ~40% equity for incremental capital investments opportunities

Well-positioned to meet potential incremental growth in a credit supportive and shareholder-focused fashion

ATM

priced in Q1 2026 with forward contracts that settle by 2028

$1.8B

Equity needed to support credit

objective in outlook

Remaining equity to be addressed through 2030

25 Consecutive Years of Dividend Increases

Dividends equal to or greater than previous year for 79 years

Southern Company has a long-standing history of providing a regular, predictable and sustainable return to shareholders supported by our dividend

+8¢

On April 20, 2026, the Southern Company Board approved an 8-cent dividend increase to an annualized rate of $3.04 per share.1

+7¢

+8¢

+3¢ +3¢ +3¢

+6¢

+7¢

History of dividend increases

1Future dividends are subject to approval of the Southern Company Board of Directors and depend on earnings, financial condition and other factors.

20261

Southern Company Value Proposition:

Objective of Regular, Predictable and Sustainable

Strategy: Maximize long-term value to shareholders through a customer-, community-, and relationship-focused business model that produces premium, sustainable levels of return for investors

Objective of maintaining a high degree of financial integrity and strong investment-grade credit ratings

Targeting credit profiles that support

'A' ratings for each state-regulated utility and

strong 'BBB+' at Parent

Objective of providing superior risk-adjusted total shareholder return to our investors

79 years

of dividends1

Customer

equal to or greater than the previous year, and

25 consecutive years of dividend increases1

95% of projected capex in

state-regulated

utilities

Supports projected state-regulated electric & gas utility rate base growth of 9%

State-regulated gas $9B

Other

$81B

(2026-2030)

State-regulated electric $68B

8% to 9% projected adjusted EPS growth through 2028

Long-term projected adjusted EPS growth of 7% to 8%2

>90% of Earnings

from state-regulated electric & gas utilities

Projected electric sales growth

of ~10% from 2026 to 2030

Driven by strong economic development that benefits all customers

1 Future dividends are subject to approval of the Southern Company Board of Directors and depend on earnings, financial condition and other factors. 16

2 From 2028 adjusted EPS guidance range of $5.25 to $5.45

Appendix

As of Q1 2026

As of Q4 2025

Large Load Stages

75GW+ (125+ projects)

75GW+ (100+ projects)

Prospective Pipeline

Late Stage

Finalizing

Contracted

Recently Contracted Hyperscaler A - 0.5GW Hyperscaler B - 1.4GW

Progress Across Large Load Stages vs. Q4 Call

Disciplined Approach to Contracting Large Loads

Provides benefits to customers and adds certainty to our outlook

Contracting Framework

Announced Load Ramps

At least 15 years for data centers and 10 years for all others

Negotiated with minimum bills to cover at least 100%

of annual incremental costs to serve

Tied to the remaining incremental costs to serve over the life of the contract

Tied to termination payment and

based on customer's creditworthiness

Nearly all (~11GW) contracted projects

have begun construction

11GW

6GW

23GW

2GW

3GW

16GW

10GW

8GW

11GW

2028 2030 Mid-2030s

(as of) (as of) (as of)

Late-Stage

Finalizing

Contracted

Georgia Power Storm and Fuel Case Timelines - 2026

Fuel Case (Docket No. 56765)

Storm Case (Docket No. 44280)

February 17 - File application and testimony

April 9 - Staff/Intervenors file testimony

April 17 - Staff/Intervenors file testimony

April 23 - Company files rebuttal testimony

April 30 - Company files rebuttal testimony

May 5-6 - Hearings

May 13-14 - Hearings

May 14 - Briefs and/or proposed orders

May 20 - Briefs and/or proposed orders

May 28 - Energy Committee

May 28 - Final Decision at Administrative Session

June 1 - Rates Adjusted

Disclaimer

Southern Company published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 18:21 UTC.