SO · 8-K · 20261105PR000071

Operating Expense and Margin Drivers

SOUTHERN CO · 2026-11-05 · Importance 41 · Surprise 22 · In source text

Third-quarter operating expenses increased $614 million to $5.843 billion, while operating income rose $406 million to $3.000 billion. Fuel and purchased power expense increased $223 million to $1.827 billion, and non-fuel operations and maintenance expense rose $205 million to $1.848 billion, a 12.5% increase. Depreciation and amortization increased $22 million to $1.444 billion, while taxes other than income taxes rose $146 million to $434 million. Management identified higher non-fuel operating expenses and taxes other than income taxes as offsets to adjusted earnings growth.

Key facts

• Southern Company reported Q3 2026 operating expenses of $5.843 billion, up $614 million from $5.229 billion in Q3 2025; non-fuel operations and maintenance expense increased by $205 million and taxes other than income taxes increased by $146 million. source
• Southern Company reported Q3 2026 operating income of $3.000 billion, up $406 million from $2.594 billion in Q3 2025. source

Impact estimates