Southern Company - 4.95% NT REDEEM 30/01/2080 USD 25

Strong Q1 2026 results beat guidance; EPS forecast for Q2 set - Adjusted EPS: $1.32/share, +9¢ vs Q1 2025 and +12¢ vs company estimate. - Key drivers: customer growth + higher usage (notably data centers), stronger gas utility and unregulated earnings (Southern Power); partially offset by higher financing costs and milder weather vs last year. - Q2 2026 outlook: adjusted EPS forecast of $1.00/share.

Retail electricity demand and data-center momentum are unusually strong - Weather-normalized retail sales (Q1): +2.3% YoY, described as the highest first-quarter growth in recent history. - Customer trends: 46,000 net new residential customers; commercial sales +4.5% YoY (weather-adjusted) supported by data centers; industrial sales +1.5% with strength in Alabama steel manufacturing. - Data center usage: +42% YoY, tied to accelerating ramp rates at large-load facilities.

Large-load growth “stays on track” and is expanding—supports affordability/rate stability - Contracted/late-stage load: 23 GW total; in the last two months, +1.9 GW signed by Georgia Power (high credit quality hyperscalers). - Fully contracted large load: >11 GW across subsidiaries (Alabama, Georgia, Mississippi). - Future pipeline: management cites >75 GW prospective pipeline; late-stage discussions for another 12 GW through mid-2030s (up +2 GW vs last quarter). - Near-term conversion expectation: about 6 GW (roughly half) expected to reach executed contracts in the near term. - How contracts protect existing customers: bilateral pricing/structure intended so large-load customers cover incremental or full cost to serve, with collateral, cancellation fees, minimum bills, etc.—used as the foundation for rate stability.