Southern Company — Feb 19, 2026 release

(3) Earnings include pre-tax charges, net of noncontrolling interests impacts, of $116 million ($90 million after tax) and $284 million ($221 million after tax) for the three and twelve months ended December 31, 2025, respectively, and $9 million ($7 million after tax) for the three and twelve months ended December 31, 2024 associated with accelerated depreciation related to the repowering of certain wind facilities at Southern Power Company. Accelerated depreciation related to the equipment being replaced will continue until the commercial operation dates of the repowering projects, which are projected to occur between the third quarter 2026 and the third quarter 2027. At December 31, 2025, the remaining pre-tax accelerated depreciation is projected to total approximately $490 million in 2026 and $100 million in 2027. (4) Earnings for the three and twelve months ended December 31, 2025 include loss on extinguishment of debt totaling $123 million ($92 million after tax) and $252 million ($189 million after tax), respectively, as a result of Southern Company's repurchase of certain convertible senior notes. Similar transaction costs may occur in the future at Southern Company or one of its unregulated subsidiaries; however, the amount and timing of any such costs are uncertain. (5) Earnings for the twelve months ended December 31, 2025 include a pre-tax gain of $2 million ($1 million after tax) related to the sale of a multi-use commercial facility development at Alabama Power Company. Further impacts may result from future disposition activities; however, the amount and timing of any such impacts are uncertain. Earnings for the twelve months ended December 31, 2024 include a pre-tax impairment loss of $36 million ($27 million after tax) associated with Alabama Power Company discontinuing development of the multi-use commercial facility. Impairme