How Does Southern Company Make its Money?
Southern Company is one of the largest electric utilities in the United States, serving approximately 9 million customers across the Southeast through its subsidiaries Georgia Power, Alabama Power, Mississippi Power, and Southern Company Gas. The company operates a diverse generation fleet including natural gas, nuclear, coal, solar, and wind. Southern Company’s Vogtle Units 3 and 4 in Georgia — the only new nuclear reactors built in the US in decades — achieved commercial operation, though the project went significantly over budget and behind schedule. The company is now well-positioned for data center demand growth in the Southeast.
Southern Company (SO) Business Model
Southern Company operates in the utilities sector. Below is a summary of Southern Company’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Southern Company’s 2024 fiscal year filings with the SEC.
Southern Company Competitors
Southern Company’s key competitors and comparable public companies in the utilities sector include Duke Energy, NextEra Energy, and Constellation Energy. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Southern Company stacks up by comparing their revenue breakdown, margins, and growth metrics.
Southern Company Competitors
Southern Company’s key competitors and comparable public companies in the utilities sector include Duke Energy, NextEra Energy, and Constellation Energy. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Southern Company stacks up by comparing their revenue breakdown, margins, and growth metrics.
Southern Company Competitors
Southern Company’s key competitors and comparable public companies in the utilities sector include Duke Energy, NextEra Energy, and Constellation Energy. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Southern Company stacks up by comparing their revenue breakdown, margins, and growth metrics.
Southern Company Competitors
Southern Company’s key competitors and comparable public companies in the utilities sector include Duke Energy, NextEra Energy, and Constellation Energy. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Southern Company stacks up by comparing their revenue breakdown, margins, and growth metrics.
Southern Company Competitors
Southern Company’s key competitors and comparable public companies in the utilities sector include Duke Energy, NextEra Energy, and Constellation Energy. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Southern Company stacks up by comparing their revenue breakdown, margins, and growth metrics.
Southern Company Competitors
Southern Company’s key competitors and comparable public companies in the utilities sector include Duke Energy, NextEra Energy, and Constellation Energy. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Southern Company stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Georgia Power | $11,200 | $10,300 | +8.7% |
| Alabama Power | $7,700 | $7,100 | +8.5% |
| Southern Company Gas | $4,300 | $4,500 | -4.4% |
| Mississippi Power & Other Electric | $1,500 | $1,400 | +7.1% |
| Southern Power (Wholesale) | $1,800 | $1,700 | +5.9% |
| Total Revenue | $25,400 | $24,000 | +5.8% |
Georgia Power — 44% of Revenue
Alabama Power — 30% of Revenue
Southern Company Gas — 17% of Revenue
Mississippi Power & Other Electric — 6% of Revenue
Southern Power (Wholesale) — 7% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $25,400 | $24,000 |
| Cost of Revenue | $11,600 | $11,200 |
| Gross Profit | $13,800 | $12,800 |
| Operating Expenses | $8,600 | $8,100 |
| Operating Income | $5,200 | $4,700 |
| Net Income | $4,300 | $3,900 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 54.3%
- Operating Margin: 20.5%
- Revenue Growth: 5.8%
Is Southern Company Profitable?
Yes, Southern Company is profitable. The company reported net income of $4,300 on total revenue of $25,400. With an operating margin of 20.5%, Southern Company demonstrates solid profitability for the utilities sector. The gross margin of 54.3% reflects Southern Company’s pricing power and cost structure.
What to Watch
- Data center load growth in Georgia and Alabama utility territories
- Performance of Vogtle Units 3 and 4 nuclear reactors at full commercial operation
- Rate case outcomes and regulatory treatment of capital investments
- Renewable energy expansion and fleet transition away from coal
Southern Company (SO) Financial Summary
Southern Company (SO) is a utilities company that generated $25,400 in total revenue in fiscal year 2024. Revenue grew 5.8% year-over-year. The company earned $4,300 in net income, making it profitable. For a deeper look at Southern Company’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.