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

Strong Q3 earnings beat + clear full-year uplift - Adjusted EPS: $1.94 in Q3 2026, +$0.34 vs. Q3 2025 and +$0.29 above the prior estimate. - Primary drivers: warmer weather + higher usage + customer growth; stronger revenue from large commercial/industrial customers (including data centers); higher earnings at Southern Power. - Partially offset by: higher nonfuel O&M and taxes (other than income taxes), plus dilution from more shares outstanding. - FY 2026 forecast: Q4 adjusted EPS estimate $0.30; implies full-year adjusted EPS $4.70 (+$0.10 vs. top of original guidance), about 9% YoY growth.

Demand growth is broad-based and unusually strong (incl. data centers) - Management highlighted highest weather-normal sales growth in generations, accelerating to +3.5% in Q3 and +2.7% year-to-date. - Commercial/industrial strength: commercial sales +7.3% YoY in Q3; industrial usage up across nearly all major top segments. - Data center load is accelerating: +59% usage in Q3 and +52% YTD, driven by faster load ramps. - Net result: management is positioning the outlook as more durable than previously expected.

Big “large load”/contract pipeline growth—profitability and customer protections emphasized - Signed large load contracts: now 21 GW, with +7 GW in late-stage development (across Alabama, Georgia, Mississippi). - Alabama Power and Georgia Power each added about ~2 GW of contracted load in the quarter. - Contracts include minimum-bill structures designed to provide visibility/protection and to ensure large load customers pay their full share at a minimum (supporting both utility economics and customer fairness). - Strategic objective: keep base rates flat in Alabama and Georgia through at least 2029 (Georgia also reduced rates this summer; management cited ~$50/year benefit for a typical residential customer and additional customer benefits commitment).