Southern Company Sees Outstanding Year with 11% Growth and Strong Foundation for Future Success
The Southern Company reported an outstanding year in 2024, with adjusted earnings reaching the top of its EPS guidance range, representing an impressive 11% growth from the previous year's results. Chairman, President, and Chief Executive Officer Chris Womack praised the company's team for delivering exceptional value to customers and investors alike during a period marked by several weather events.
Despite these challenges, Southern Company remained committed to its mission of providing clean, safe, reliable, and affordable energy to the communities it serves. The company's dedication was particularly evident in response to a record-breaking storm in Georgia Power's history this past fall, which severely impacted many customers. By delivering on its promise, Southern Company reinforced its position as a leader in the industry.
Looking ahead, the company believes its portfolio of businesses is well-positioned to capitalize on significant opportunities for growth and improvement, both in terms of serving local economies and sustaining long-term success. At the heart of this strategy are the company's state-regulated utility franchises, which have demonstrated remarkable value due to their focus on customers, constructive regulatory environments, and strong service territories.
Economic development activities within these utilities have been robust, providing a solid foundation for predictable earnings growth over the long term. Over 150 companies announced expanded operations or new facilities in Southern Company's southeastern footprint in 2024 alone, supporting more than 20,000 new jobs. This has further highlighted the region's thriving economy.
Some of the notable economic development announcements included major projects in the manufacturing, entertainment, chemical, and metals industries. The data center industry, in particular, has shown tremendous momentum, with large-scale commitments for over 10,000 megawatts of potential incremental load by the mid-2030s. While only a fraction of this pipeline is currently accounted for in the company's sales growth forecasts, Southern Company remains committed to its disciplined approach and risk-adjusted outlook.
The company has also been encouraged to see data center momentum expand into Alabama and Mississippi, with recent contracts signed to serve power needs totaling over 1,000 megawatts. While state-regulated utilities are expected to account for approximately 5% of projected capital investments, Southern Company has continued to invest in its other strategically aligned businesses.
These complementary businesses add depth to the company's vertical integration and provide unique market insights that aid in customer attraction and retention within the regulated footprint. They also represent potential opportunities to enhance durability in the long-term earnings trajectory. The competitive power business, Southern Power, stands as a testament to this strategy, offering a strong complement to the state-regulated businesses.
