The Southern Company (SO) SEC Filings & Earnings Calls

Increased leverage and potential dilution from convertible notes.

“Convertible notes may be converted into common stock, diluting existing shareholders.”

Increased leverage from $2.375B in new convertible notes

“$725 million... Series 2026A Convertible Notes and $1.65 billion... Series 2026B Convertible Notes”

Potential dilution from conversion of convertible notes

“Convertible Senior Notes” · word for word

Convertible notes could dilute existing shareholders upon conversion, and increase leverage.

“Proposed offerings of convertible senior notes due 2027 and 2029.”

Interest expense headwind: higher interest expense partially offset earnings growth.

“Adjusted earnings drivers partially offset by higher interest expense.”

Regulatory risk: Nicor Gas capital investments disallowed by Illinois Commerce Commission.

“Estimated loss at Southern Company Gas related to costs associated with Nicor Gas capital investments disallowed by the Illinois Commerce Commission.” · word for word

Data center demand uncertainty and capital access risk

“variations in demand for electricity and natural gas, including uncertainties related to projected significant growth in electricity demand driven primarily by data centers and other large load customers, and the related requirement for substantial new generation and transmission investments, creating capital access and revenue recovery risks for the traditi” · word for word

Regulatory and environmental compliance costs

“the extent and timing of costs and legal requirements related to CCR; current and future litigation or regulatory investigations, proceedings, or inquiries” · word for word

Potential shareholder dilution from equity offering program.

“Company may offer and sell shares of common stock through sales agents or enter into forward sale agreements.”

Data center demand uncertainty and capital access risk

“variations in demand for electricity and natural gas, including uncertainties related to projected significant growth in electricity demand driven primarily by data centers and other large load customers, and the related requirement for substantial new generation and transmission investments, creating capital access and revenue recovery risks for the traditi” · word for word

Inflation and tariff cost pressure

“the impacts of inflation and trade policies (including tariffs and other trade measures) of the United States and other countries” · word for word

Interest rate exposure

“increased financing costs as a result of changes in interest rates” · word for word

Higher interest expense and milder weather partially offset revenue growth

“Higher interest expense and milder than normal weather at regulated electric utilities”

Data Center Demand Volatility

“Southern reported that 14.3 gigawatts (GW) of data center projects were withdrawn, producing a net 6 GW decline in its power connection queue—an unprecedented reversal for a market that had been expanding rapidly.” · word for word

Regulatory and Cost Recovery Risk

“If regulators reject or limit cost recovery, shareholders may be forced to absorb the losses.” · word for word

Equity Dilution Risk

“To fund its capital plan, SO has a cumulative equity need of $9 billion through 2029.” · word for word

Credit Rating Risk

“Moody's placed Southern Company on a negative outlook in October 2025, which adds uncertainty to its financial strategy and potential future equity issuances.” · word for word

Coal Plant Stranded Asset Risk

“The company's plan to extend the life of 8,200 MW of coal-fired plants to meet the growing demand from data centers has drawn intensified legal and environmental challenges.” · word for word

Increased leverage with $1.3B junior subordinated notes; 6% coupon adds interest cost.

“6.00% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due April 1, 2058.” · word for word

No material risk signals identified; filing is a routine material contract disclosure.

Higher non-fuel O&M, D&A, and interest expenses partially offset revenue growth.

“partially offset by higher non-fuel operations and maintenance expenses, depreciation and amortization, and interest expense.” · word for word

Regulatory disallowance at Nicor Gas

“Nicor Gas recorded a pre-tax charge to income in the fourth quarter 2025 of $63 million ($47 million after tax) associated with excluded capital investments.” · word for word

Rising costs and capex recovery risk

“The current period of rising costs and increased projected capital expenditures could result in increased resistance to authorizing cost recovery.” · word for word

Construction monitoring by PSC may introduce regulatory risk and cost overrun scrutiny.

“The Company-owned projects will require construction monitoring by the Georgia PSC.” · word for word

Settlement subject to PSC approval; terms may change.

“Settlement Agreement must be approved by the Georgia PSC; terms are subject to change.” · word for word

Nuclear PTC Uncertainty

“The §45U PTCs will be deferred as a regulatory liability until the Alabama PSC provides direction on how to apply them for the benefit of customers. The ultimate outcome of this matter cannot be determined at this time.” · word for word

CCR Litigation and Regulatory Risk

“These matters could have a material impact on Alabama Power's and Southern Company's financial statements, including ARO estimates and cash flows.” · word for word

Interest Rate and Debt Exposure

“Interest expense, net of amounts capitalized increased from $692 million to $755 million for the three months ended September 30, 2025 and 2024, respectively.”

Storm Damage Cost Recovery Risk

“Storm damage costs will be included in a separate regulatory proceeding to be filed no sooner than February 1, 2026 and no later than July 1, 2026 to recover the actual reasonable and prudent storm costs incurred through December 31, 2025.” · word for word

Higher depreciation and amortization and interest expense partially offset revenue growth.

“partially offset by higher depreciation and amortization and interest expense, as well as milder weather” · word for word