Southern Company - 4.20% NT REDEEM 15/10/2060 USD 25

Q1 2026 performance beat + fundamentals driving it - Adjusted EPS: $1.32/share, +9¢ YoY and +12¢ vs management estimate. - Main drivers: customer growth and higher usage (incl. data centers), gas utility revenue strength, and higher energy-related unregulated revenues (Southern Power); partially offset by higher financing costs and milder weather vs 2025. - Q2 adjusted EPS forecast: $1.00/share.

Strong demand growth—data centers/data-led load ramps are a core engine - Weather-normal retail electricity sales (all classes): +2.3% YoY in Q1, described as the highest first-quarter growth in recent history. - Residential: +46k new customers (positive net migration). - Commercial: +4.5% YoY (weather-adjusted), boosted by data centers. - Data center usage: +42% YoY, driven by accelerating ramps at large load facilities. - Industrial: +1.5% YoY, with notable strength tied to steel manufacturing in Alabama.

Large-load pipeline is expanding fast and is structured to protect existing customers - Total large-load demand: 23 GW contracted or late-stage (Q1 commentary). - Last ~2 months: signed +1.9 GW (high-credit hyperscalers) → >11 GW fully contracted across electric subsidiaries. - Late-stage/late-stage pipeline: well over 75 GW prospective; active late-stage discussions for another 12 GW through mid-2030s (up +2 GW vs last quarter). - Expected near-term contracting: ~6 GW (~half) of those late-stage additions expected to move to executed contracts soon. - Contract design emphasis: bilaterally negotiated agreements with minimum bills + collateral/cancellation terms so incremental customers cover the full cost to serve, supporting rate stability and limiting risk to existing customers.