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GEORGIA POWER CO (GPJA)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue rose 4.9% year over year to $6.34B while GAAP EPS fell to $0.49 from $0.78; adjusted EPS was $0.50 vs $0.64 as non-fuel O&M, interest expense, and depreciation increased .
  • Georgia Power segment revenue grew 11.8% YoY to $2.59B, but Q4 net income declined 44.8% to $294M; FY 2024 net income increased 22.3% to $2.54B .
  • Management emphasized strong 2024 performance and customer value delivery while noting higher utility revenues and expense pressures; retail kWh sales rose 2.8% YoY in Q4, with commercial up 4.4% (weather-adjusted +2.4%) .
  • No Q4 earnings call transcript or estimates data were available in our sources; comparison to Wall Street consensus from S&P Global is therefore unavailable.

What Went Well and What Went Wrong

What Went Well

  • Strong top-line growth: Q4 operating revenues increased 4.9% YoY to $6.34B; FY revenues rose 5.8% to $26.72B .
  • Broad-based retail demand: Q4 total retail kWh sales up 2.8% YoY, led by commercial (+4.4% YoY; +2.4% weather-adjusted) and residential (+1.9% YoY) .
  • Management tone on execution: “The hard work and dedication of our team members across our company made 2024 an outstanding year… we believe our commitment to sustainably meeting the growing energy needs… will support our continued success” – CEO Christopher C. Womack .

What Went Wrong

  • Margin and EPS compression: Q4 operating income fell to $1.06B from $1.21B YoY; GAAP EPS dropped to $0.49 from $0.78, adjusted EPS to $0.50 from $0.64 .
  • Expense headwinds: Q4 non-fuel O&M rose $255M YoY, interest expense rose $59M, and D&A rose $58M, pressuring profitability .
  • Segment profitability mixed: Georgia Power Q4 net income fell to $294M from $533M YoY; Southern Power’s pre-tax result was a loss in Q4 .

Financial Results

Consolidated Quarterly Trend

MetricQ1 2024Q2 2024Q4 2024
Operating Revenues ($USD Billions)$6.65 $6.46 $6.34
Operating Income ($USD Billions)$1.70 $1.94 $1.06
GAAP Basic EPS ($)$1.03 $1.10 $0.49
Adjusted EPS ($)$1.03 $1.10 $0.50

Q4 Year-over-Year Comparison

MetricQ4 2023Q4 2024YoY Change
Operating Revenues ($USD Billions)$6.05 $6.34 +4.9%
Operating Income ($USD Billions)$1.21 $1.06 (12.3)%
GAAP Basic EPS ($)$0.78 $0.49 (37.2)%
Adjusted EPS ($)$0.64 $0.50 (21.9)%

Segment Breakdown (Q4 2024 vs Q4 2023)

SegmentOperating Revenues Q4 2023 ($MM)Operating Revenues Q4 2024 ($MM)Net Income Q4 2023 ($MM)Net Income Q4 2024 ($MM)
Alabama Power$1,630 $1,751 $238 $208
Georgia Power$2,313 $2,586 $533 $294
Mississippi Power$337 $345 $15 $13
Southern Power$503 $417 $69 $64
Southern Company Gas$1,285 $1,236 $140 $185

KPIs (Q4 2024 vs Q4 2023)

KPIQ4 2023Q4 2024Change
Total kWh Sales (mm)45,351 46,577 +2.7%
Total Retail kWh Sales (mm)33,817 34,752 +2.8%
Residential kWh (mm)10,622 10,827 +1.9% (weather-adjusted: (0.2)%)
Commercial kWh (mm)11,294 11,789 +4.4% (weather-adjusted: +2.4%)
Industrial kWh (mm)11,765 12,005 +2.0% (weather-adjusted: +2.0%)
Regulated Utility Customers (000s, period-end)8,861 8,936 +0.8%

Non-GAAP Reconciliation Highlights (Q4)

Item (EPS impact)Q4 2023Q4 2024
EPS (As Reported)$0.78 $0.49
EPS (Excluding Items)$0.64 $0.50
Key drivers (Excl. Items)Retail revenue, weather, wholesale and other ops; offset by O&M, D&A, interest, taxes Retail revenue, weather, wholesale and other ops; offset by higher O&M, D&A, interest, taxes
Specific adjustments2023 QIP disallowances at Nicor Gas (Illinois) (-$0.04 YoY effect), acquisition/disposition impacts (-$0.03) Accelerated depreciation at Kay Wind (-$0.01), Vogtle probable loss credit + tax impact net (-$0.15), Illinois QIP absence (+$0.04)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Earnings/Revenue/SegmentsQ4 2024/FY 2025Not disclosed in 8-KNot disclosed in 8-KNo formal guidance provided in filing; management referenced slides “including earnings guidance” at investor.southerncompany.com (not retrieved here) .

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available in our document set. Themes reflect press releases and filing commentary.

TopicPrevious Mentions (Q1 2024)Previous Mentions (Q2 2024)Current Period (Q4 2024)Trend
Demand/commercial usageStronger weather-adjusted commercial usage; data center customers contributing Strong economies, customer growth across Southeastern footprint Retail kWh up 2.8%; commercial +4.4% YoY Positive demand trajectory
Nuclear (Plant Vogtle)Unit 4 achieved commercial operation; >2,200 MW added; largest clean energy generator in U.S. —Vogtle probable loss forecast revised, small credit and tax impact in FY Transition from build to operate; financial clean-up effects
Cost pressures (O&M, interest, D&A)Higher D&A and interest cited Higher interest and D&A; income taxes up Q4: O&M +$255M YoY; interest +$59M; D&A +$58M Persistent cost headwinds
WeatherLess mild vs prior-year Q1; aided results Weather contributed positively (14¢ EPS Q2 vs prior year) Q4 weather modestly positive (2¢ EPS) Continued modest tailwind
Regulatory/LegalMississippi Kemper dismantlement costs ongoing Kemper costs ongoing Kemper dismantlement additional ~$15M expected in 2025; Kay Wind accelerated depreciation through 2026 Ongoing regulatory/legal cleanup

Management Commentary

  • “The hard work and dedication of our team members across our company made 2024 an outstanding year… looking ahead, we believe our commitment to sustainably meeting the growing energy needs of our local economies will support our continued success” – Christopher C. Womack, CEO .
  • “We are pleased with our business fundamentals, and the economies in our service territories… remain strong with continuing customer growth and robust economic development” – Christopher C. Womack (Q2 2024) .
  • “Plant Vogtle Unit 4 has achieved commercial operation… now positioned to deliver more than 2,200 megawatts of reliable, carbon-free energy for decades to come… Plant Vogtle is now the largest generator of clean energy in the United States” – Christopher C. Womack (Q1 2024) .

Q&A Highlights

No Q4 2024 earnings call transcript or Q&A detail was available in our document set; the 8-K noted a webcast and slides but we did not retrieve the call transcript .

Estimates Context

  • We attempted to retrieve Wall Street consensus estimates via S&P Global (Primary EPS Consensus Mean, Revenue Consensus Mean for Q4 2024), but the data were unavailable due to an API request limit error; therefore, estimate comparisons are not included here.
  • Where estimates comparisons are required, we anchor to S&P Global data; in this case, they were unavailable.

Key Takeaways for Investors

  • Q4 2024 exhibited healthy top-line growth but notable margin compression and EPS decline due to higher O&M, interest expense, and D&A; watch cost control and rate recovery mechanisms .
  • Georgia Power’s Q4 net income declined sharply YoY despite revenue growth; however, FY net income at Georgia Power rose materially, reflecting improved annual profitability—important for GPJA credit views .
  • Retail demand trends remain constructive, especially commercial; incremental data center load noted earlier in the year supports medium-term load growth assumptions .
  • Non-GAAP adjustments matter for trajectory analysis: Vogtle probable loss forecast revisions, Kay Wind accelerated depreciation, and legacy Illinois QIP disallowances influenced comparability between 2023 and 2024 .
  • Continued cleanup at Kemper and accelerated depreciation at Kay Wind persist into 2025–2026; model ongoing non-operating items and depreciation impacts in near-term EPS .
  • Absent consensus estimates and the Q4 call transcript, near-term expectation-setting relies on internal cost and demand tracking; monitor investor slides for any updated guidance not included in the 8-K .
  • For GPJA holders, segment-level profitability at Georgia Power and consolidated expense trends are key to credit quality; FY improvement offsets a weaker Q4, but elevated interest/D&A warrant ongoing scrutiny .