v3.26.1
Segment and Related Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment and Related Information SEGMENT AND RELATED INFORMATION
See Note 16 to the financial statements in Item 8 of the Form 10-K for additional information.
Southern Company
The primary businesses of the Southern Company system are electricity sales by the traditional electric operating companies and Southern Power and the distribution of natural gas by Southern Company Gas. The traditional electric operating companies are vertically integrated utilities providing electric service in three Southeastern states. Southern Power develops, constructs, acquires, owns, operates, and manages power generation assets, including battery energy storage projects, and sells electricity at market-based rates in the wholesale market. Southern Company Gas distributes natural gas through its natural gas distribution utilities and is involved in several other complementary businesses including gas pipeline investments and gas marketing services.
Southern Company's reportable business segments are the sale of electricity by the traditional electric operating companies, the sale of electricity in the competitive wholesale market by Southern Power, and the distribution of natural gas and other complementary products and services by Southern Company Gas. While the traditional electric operating companies represent three separate operating segments, they are vertically integrated utilities providing electric service to retail customers, as well as wholesale customers, in the Southeast and have been aggregated into one reportable segment. The "All Other" presentation includes the Southern Company parent entity, which does not allocate operating expenses to business segments, and operating segments below the quantitative threshold for separate disclosure. These operating segments include providing distributed energy and resilience solutions and deploying microgrids for commercial, industrial, governmental, and utility customers, as well as investments in telecommunications. Revenues from sales by Southern Power to the traditional electric operating companies were $92 million and $192 million for the three and six months ended June 30, 2026, respectively, and $114 million and $229 million for the three and six months ended June 30, 2025, respectively. All other inter-segment revenues were immaterial for all periods presented.
Southern Company's CODM utilizes segment net income, including variances to budget and forecasts, to assess performance and is not provided with segment expense information. To achieve the consolidated net income goal, Southern Company's CODM sets net income expectations for each operating segment, which is expected to monitor its expenses in order to achieve its assigned net income target. Therefore, Southern Company has no reportable significant segment expenses.
Financial data for business segments for the three and six months ended June 30, 2026 and 2025 was as follows:
Electric Utilities
Traditional
Electric Operating
Companies		Southern
Power		EliminationsTotalSouthern Company Gas
Total Reportable Segments
All
Other		EliminationsConsolidated
(in millions)
Three Months Ended June 30, 2026
Operating revenues$5,396 $535 $(105)$5,826 $966 $6,792 $223 $(38)$6,977 
Other segment items(a)
2,501 329 (78)2,752 554 3,306 193 (27)3,472 
Depreciation and amortization(b)
967 280 (15)1,232 185 1,417 17 — 1,434 
Earnings from equity method investments12 — — 12 32 44 42 — 86 
Interest expense
367 28 (12)383 101 484 312 — 796 
Income taxes (benefit)304 (77)— 227 32 259 (72)— 187 
Segment net income (loss)(b)(c)
$1,269 $(25)$— $1,244 $126 $1,370 $(185)$(11)$1,174 
Six Months Ended June 30, 2026
Operating revenues$10,878 $1,216 $(246)$11,848 $3,157 $15,005 $441 $(72)$15,374 
Other segment items(a)
5,360 772 (219)5,913 1,911 7,824 382 (68)8,138 
Depreciation and amortization(b)
1,908 558 (15)2,451 369 2,820 34 — 2,854 
Earnings from equity method investments11 — — 11 78 89 47 — 136 
Interest expense(d)
705 55 (12)748 206 954 619 — 1,573 
Income taxes (benefit)534 (147)— 387 176 563 (149)— 414 
Segment net income (loss)(b)(c)(d)
$2,382 $(22)$— $2,360 $573 $2,933 $(398)$(4)$2,531 
At June 30, 2026
Goodwill$— $2 $— $2 $5,015 $5,017 $144 $— $5,161 
Total assets120,194 12,780 (2,101)130,873 27,604 158,477 4,283 (733)162,027 
Electric Utilities
Traditional
Electric Operating
Companies		Southern
Power		EliminationsTotalSouthern Company Gas
Total Reportable Segments
All
Other		EliminationsConsolidated
(in millions)
Three Months Ended June 30, 2025
Operating revenues$5,380 $546 $(122)$5,804 $979 $6,783 $225 $(35)$6,973 
Other segment items(a)
2,674 296 (122)2,848 599 3,447 193 (23)3,617 
Depreciation and amortization(b)
957 177 — 1,134 172 1,306 17 — 1,323 
Earnings from equity method investments4 — — 4 23 27 (17)— 10 
Interest expense(d)
336 24 — 360 92 452 422 — 874 
Income taxes (benefit)370 (2)— 368 33 401 (112)— 289 
Segment net income (loss)(b)(c)(d)
$1,047 $51 $— $1,098 $106 $1,204 $(312)$(12)$880 
Six Months Ended June 30, 2025
Operating revenues$10,692 $1,113 $(245)$11,560 $2,818 $14,378 $454 $(84)$14,748 
Other segment items(a)
5,468 599 (245)5,822 1,670 7,492 401 (81)7,812 
Depreciation and amortization(b)
1,905 329 — 2,234 341 2,575 33 — 2,608 
Earnings from equity method investments2 — — 2 62 64 (21)— 43 
Interest expense(d)
652 50 — 702 183 885 703 — 1,588 
Income taxes (benefit)596 (3)— 593 162 755 (186)— 569 
Segment net income (loss)(b)(c)(d)
$2,073 $138 $— $2,211 $524 $2,735 $(518)$(3)$2,214 
At December 31, 2025
Goodwill$— $2 $— $2 $5,015 $5,017 $144 $— $5,161 
Total assets114,287 12,657 (915)126,029 27,387 153,416 2,829 (525)155,720 
(a)Primarily consists of fuel, purchased power, cost of natural gas, cost of other sales, other operations and maintenance expenses, taxes other than income taxes, AFUDC equity, non-service cost-related retirement benefits income, and net income (loss) attributable to noncontrolling interests.
(b)For Southern Power, includes accelerated depreciation related to the repowering of multiple wind facilities of $140 million ($109 million after tax) and $293 million ($228 million after tax) for the three and six months ended June 30, 2026, respectively, and $42 million ($31 million after tax, net of noncontrolling interest impacts) and $69 million ($51 million after tax, net of noncontrolling interest impacts) for the three and six months ended June 30, 2025. See Note (K) under "Southern Power – Wind Repowering Projects" and Notes 5 and 15 to the financial statements under "Depreciation and Amortization – Southern Power" and "Southern Power – Wind Repowering Projects," respectively, in Item 8 of the Form 10-K for additional information.
(c)Attributable to Southern Company.
(d)For All Other, includes pre-tax losses associated with the extinguishment of debt at the parent company of $11 million ($8 million after tax) for the six months ended June 30, 2026 and $129 million ($97 million after tax) for the three and six months ended June 30, 2025.
Traditional Electric Operating Companies
Each of the traditional electric operating companies' single reportable business segment is the sale of electricity.
Alabama Power and Georgia Power have identified utility operations and maintenance expenses as significant segment expenses provided to their CODMs. Utility operations and maintenance expenses is calculated as other operations and maintenance, as reflected on the statements of income, less expenses from unregulated products and services, losses (gains) on asset dispositions, impairment charges, and amortization of cloud software. Alabama Power's utility operations and maintenance expenses are disaggregated into expenses related to Rate RSE and Rate
CNP Compliance. See Note 2 to the financial statements under "Alabama Power" in Item 8 of the Form 10-K for additional information.
During the third and fourth quarters of 2025, Mississippi Power updated the information provided to its CODM. As a result, Mississippi Power identified certain operational and environmental compliance expenses as significant segment expenses and has recast prior period information to conform to the current period presentation.
Financial data for significant segment expenses and other segment information for the three and six months ended June 30, 2026 and 2025 was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Alabama Power
Operating revenues$1,963 $1,968 $4,055 $3,980 
Utility operations and maintenance
Rate RSE expenses332 374 633 739 
Rate CNP Compliance expenses71 67 145 142 
Total utility operations and maintenance403 441 778 881 
Other segment items(a)
486 544 1,154 1,152 
Depreciation and amortization385 371 766 741 
Interest expense117 116 232 225 
Income taxes135 115 263 226 
Segment net income$437 $381 $862 $755 
Capital expenditures$501 $599 $1,019 $1,159 
Georgia Power
Operating revenues$3,133 $3,110 $6,276 $6,148 
Utility operations and maintenance586 568 1,164 1,104 
Other segment items(a)
886 989 2,050 2,106 
Depreciation and amortization503 512 987 1,015 
Interest expense228 198 431 385 
Income taxes151 236 236 334 
Segment net income$779 $607 $1,408 $1,204 
Capital expenditures$2,173 $1,676 $4,243 $3,313 
Mississippi Power
Operating revenues$403 $400 $875 $821 
Operational expenses(b)
80 65 144 122 
Environmental compliance expenses(c)
3 4 7 6 
Other segment items(a)
173 183 424 400 
Depreciation and amortization58 52 113 105 
Interest expense21 20 41 40 
Income taxes16 17 34 34 
Segment net income
$52 $59 $112 $114 
Capital expenditures$96 $126 $178 $199 
(a)Primarily consists of fuel, purchased power, expenses from unregulated products and services, losses (gains) on asset dispositions, amortization of cloud software, taxes other than income taxes, AFUDC equity, and non-service cost-related retirement benefits income. For Mississippi Power, includes employee benefit expenses. Also includes earnings from equity method investments, which were immaterial for all periods presented.
(b)Consists of certain operations and maintenance expenses related to PEP and the MRA tariff, including labor costs, materials, contract services, and other normal operational costs. See Note (B) under "Mississippi Power" and Note 2 to the financial statements under "Mississippi Power" in Item 8 of the Form 10-K for additional information regarding PEP and the MRA tariff.
(c)Consists of environmental compliance expenses related to ECO Plan and the MRA tariff. See Note (B) under "Mississippi Power" and Note 2 to the financial statements under "Mississippi Power" in Item 8 of the Form 10-K for additional information regarding ECO Plan and the MRA tariff.
Southern Power
Southern Power's single reportable business segment is the sale of electricity in the competitive wholesale market. Southern Power's CODM utilizes segment expense information in the form of variances to budget to assess performance; therefore, Southern Power has no reportable significant segment expenses.
Financial data for segment information for the three and six months ended June 30, 2026 and 2025 was as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Operating revenues
$535 $546 $1,216 $1,113 
Other segment items(a)
329 296 772 599 
Depreciation and amortization(b)
280 177 558 329 
Interest expense28 24 55 50 
Income taxes (benefit)(77)(2)(147)(3)
Segment net income (loss)(b)(c)
$(25)$51 $(22)$138 
(a)Primarily consists of fuel, purchased power, other operations and maintenance expenses, taxes other than income taxes, and net income (loss) attributable to noncontrolling interests.
(b)Includes accelerated depreciation related to the repowering of multiple wind facilities of $140 million ($109 million after tax) and $293 million ($228 million after tax) for the three and six months ended June 30, 2026, respectively, and $42 million ($31 million after tax, net of noncontrolling interest impacts) and $69 million ($51 million after tax, net of noncontrolling interest impacts) for the three and six months ended June 30, 2025 respectively. See Note (K) under "Southern Power – Wind Repowering Projects" and Notes 5 and 15 to the financial statements under "Depreciation and Amortization – Southern Power" and "Southern Power – Wind Repowering Projects," respectively, in Item 8 of the Form 10-K for additional information.
(c)Southern Power had no earnings from equity method investments for any period presented.
Southern Company Gas
Southern Company Gas manages its business through three reportable segments – gas distribution operations, gas pipeline investments, and gas marketing services. The non-reportable segments are combined and presented as "All Other."
The gas distribution operations segment is the largest component of Southern Company Gas' business and includes natural gas local distribution utilities that construct, manage, and maintain intrastate natural gas pipelines and gas distribution facilities in four states.
The gas pipeline investments segment consists of joint ventures in natural gas pipeline investments including a 50% interest in SNG and a 50% joint ownership interest in the Dalton Pipeline. These natural gas pipelines enable the provision of diverse sources of natural gas supplies to the customers of Southern Company Gas. See Note 7 to the financial statements under "Southern Company Gas" in Item 8 of the Form 10-K for additional information.
The gas marketing services segment provides natural gas marketing to end-use customers primarily in Georgia through SouthStar.
The "All Other" presentation includes operating segments and subsidiaries that fall below the quantitative threshold for separate disclosure.
Southern Company Gas' CODM utilizes segment expense information in the form of variances to budget to assess performance; therefore, Southern Company Gas has no reportable significant segment expenses.
Financial data for business segments for the three and six months ended June 30, 2026 and 2025 was as follows:
Gas Distribution OperationsGas
Pipeline Investments		Gas Marketing Services
Total Reportable Segments
All
Other
EliminationsConsolidated
(in millions)
Three Months Ended June 30, 2026
Operating revenues$885 $8 $73 $966 $2 $(2)$966 
Other segment items(*)
496 1 54 551 5 (2)554 
Depreciation and amortization181 1 3 185 — — 185 
Earnings from equity method investments— 32 — 32 — — 32 
Interest expense90 9 1 100 1 — 101 
Income taxes (benefit)23 7 4 34 (2)— 32 
Segment net income (loss)$95 $22 $11 $128 $(2)$— $126 
Six Months Ended June 30, 2026
Operating revenues$2,785 $16 $358 $3,159 $4 $(6)$3,157 
Other segment items(*)
1,673 1 237 1,911 6 (6)1,911 
Depreciation and amortization360 2 5 367 2 — 369 
Earnings from equity method investments— 78 — 78 — — 78 
Interest expense181 18 2 201 5 — 206 
Income taxes (benefit)
139 18 32 189 (13)— 176 
Segment net income
$432 $55 $82 $569 $4 $— $573 
Total assets at June 30, 2026
$26,244 $1,546 $1,710 $29,500 $11,265 $(13,161)$27,604 
Three Months Ended June 30, 2025
Operating revenues$885 $8 $83 $976 $5 $(2)$979 
Other segment items(*)
526 1 68 595 6 (2)599 
Depreciation and amortization167 1 3 171 1 — 172 
Earnings from equity method investments— 23 — 23 — — 23 
Interest expense82 9 1 92 — — 92 
Income taxes19 5 3 27 6 — 33 
Segment net income (loss)$91 $15 $8 $114 $(8)$— $106 
Six Months Ended June 30, 2025
Operating revenues$2,454 $16 $345 $2,815 $9 $(6)$2,818 
Other segment items(*)
1,431 3 234 1,668 8 (6)1,670 
Depreciation and amortization330 3 7 340 1 — 341 
Earnings from equity method investments— 62 — 62 — — 62 
Interest expense164 18 1 183 — — 183 
Income taxes (benefit)
123 13 29 165 (3)— 162 
Segment net income$406 $41 $74 $521 $3 $— $524 
Total assets at December 31, 2025
$25,391 $1,475 $1,749 $28,615 $10,643 $(11,871)$27,387 
(*)Primarily consists of cost of natural gas, other operations and maintenance expenses, taxes other than income taxes, AFUDC equity, and non-service cost-related retirement benefits income.